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 Less: Preferred stock dividends Earnings available to common shareholders Less Common stock dividends Contribution to retained earnings Green Caterpillar Garden Supplies Inc. Income Statement for Year Ending December 31 Year 1 Year 2 (Forecasted) $15,000,000 9,000,000 600,000 600,000 $5,400,000 540,000 4,860,000 1,215,000 $3,645,000 100,000 3,545,000 1,458,000 $2,087,000 $2,539,250 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 earnings 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 annua contribution to retained earnings, $2,087,000 and 52,539,250, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. 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%) Earings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings Green Caterpillar Garden Supplies Inc. Income Statement for Year Ending December 31 Year 1 $15,000,000 9,000,000 600,000 $5,400,000 540,000 4,860,000 1,215,000 $3,645,000 100,000 3,545,000 1,458,000 $2,087,000 Year 2 (Forecasted) $18,750,000 11,250,000 600,000 $6,900,000 1,035,000 5,865,000 2,346,000 $3,519,000 200,000 3,319,000 1,055,700 $2,539,250 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 $20.00 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 in Year 1 to in Year 2. Green Caterpillar's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. 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, $2,087,000 and $2,539,250, respectively. This is because of the items reported in the income statement involve payments and receipts of cash