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please answer both requirements Lonsider the toiswirk scendrio: Blue Hamster Manufacturing Incis income statement reports data for its first year of operation. The firm's CEO
please answer both requirements
Lonsider the toiswirk scendrio: Blue Hamster Manufacturing Incis income statement reports data for its first year of operation. The firm's CEO wDild like sales to increase by 25% next yeat. 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 bo\% of net sales, and its depreciation and amertization expenses remain constant from year to year. 3. The company's tax rate remains constant at 40% of its pre-tax income or eamings befilre taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $150,000 and $267,750 of preferred and common stock dividends, respectively. Blue Hamster Manufacturing Inc.Income Statement for Year Ending December 31 Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Blue Hamster has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to recelve in annual dividends. - If Blue Hamster has 200,000 shares of common stock issued and outstanding, then the firm's eamings per share (EPS) is expected to change from in Year 1 to in Year 2. - Biue Hamster's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2 . - it is to say that Blue Hamster'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, $498,000 and $653,250, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Lonsider the toiswirk scendrio: Blue Hamster Manufacturing Incis income statement reports data for its first year of operation. The firm's CEO wDild like sales to increase by 25% next yeat. 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 bo\% of net sales, and its depreciation and amertization expenses remain constant from year to year. 3. The company's tax rate remains constant at 40% of its pre-tax income or eamings befilre taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $150,000 and $267,750 of preferred and common stock dividends, respectively. Blue Hamster Manufacturing Inc.Income Statement for Year Ending December 31 Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Blue Hamster has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to recelve in annual dividends. - If Blue Hamster has 200,000 shares of common stock issued and outstanding, then the firm's eamings per share (EPS) is expected to change from in Year 1 to in Year 2. - Biue Hamster's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2 . - it is to say that Blue Hamster'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, $498,000 and $653,250, respectively. This is because of the items reported in the income statement involve payments and receipts of cashStep by Step Solution
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