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Income Statement for Year Ending December 31 Year 2 Year 1 (Forecasted) $30,000,000 19,500,000 1,200,000 $9,300,000 930,000 8,370,000 3,348,000 $5,022,000 100,000 4,922,000 2,008,800 $2,913,200 Net

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Income Statement for Year Ending December 31 Year 2 Year 1 (Forecasted) $30,000,000 19,500,000 1,200,000 $9,300,000 930,000 8,370,000 3,348,000 $5,022,000 100,000 4,922,000 2,008,800 $2,913,200 Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses 1,200,000 Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (40%) Earnings after taxes Earnings available to common shareholders Contribution to retained earnings Less: Preferred stock dividends Less: Common stock dividends $3,549,050 Given the results of the previous income statement calculations, complete the following statements: .In Year 2, if Green Caterpillar has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. If Green Caterpillar has 400,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2 Green Caterpillar's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2 It is to say that Green Caterpillar's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $2,913,200 and $3,549,050, respectively. This is because the income statement involve payments and receipts of cash. of the item reported in

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