ils 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT) 2. The company's operating costs (excluding depreciation and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $200,000 and $2,280,656 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar Year 2 (Forecasted) 1,200,000 Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less Taxes (25) Earnings after taxes Lesi Preferred stock dividends Earnings available to common shareholders Less Common stock dividends Contribution to retained earnings Blue Hamster Manufacturing Inc. Income Statement for Year Ending December 31 Year 1 $30,000,000 19,500,000 1,200,000 $9,300,000 930,000 8,370,000 2,092,500 56,277,500 200,000 6,077,500 1,883,250 $4,194,250 $5,121,531