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Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Blue Hamster Manufacturing Inc. Income Statement for Year Ending December
Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Blue Hamster Manufacturing Inc. Income Statement for Year Ending December 31 Year 1 $10,000,000 6,000,000 400,000 Year 2 (Forecasted) $ I Operating income (or EBIT) Less: Interest expense 400,000 $3,600,000 $ 360,000 Pre-tax income (or EBT) 3,240,000 Less: Taxes (25%) 810,000 Earnings after taxes $2,430,000 $ Less: Preferred stock dividends 100,000 Eamings available to common shareholders 2,330,000 Less: Common stock dividends 850,500 Contribution to retained eamings $1,479,500 $1,806,125
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