Net sales Year 1 $20,000,000 14,000,000 800,000 $5,200,000 Year 2 (Forecasted) $25,000,000 17,500,000 800,000 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) $6,700,000 1,005,000 $5,695,000 Less: Taxes (40%) 2,278,000 $3,417,000 520,000 $4,680,000 1,872,000 $2,808,000 100,000 $2,708,000 982,800 $1,512,050 Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends 100,000 $ Contribution to retained earnings $2,121,050 Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Cute Camel has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive $10.00 in annual dividends. If Cute Camel has 500,000 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. Cute Camel's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. It is to say that Cute Camel'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, $1,512,050 and $2,121,050, respectively. This is because of the items reported in the income statement involve payments and receipts of cash