second part

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 Income Statement for Year Ending December 31 Year 1 Year 2 (Forecasted) $20,000,000 $25,000,000 12,000,000 15,000,000 800,000 800,000 $7,200,000 $9.200,000 720,000 1,380,000 6,480,000 7,820,000 1,620,000 1.955,000 $4,850,000 $5,865,000 100,000 100,000 4,760,000 5,765,000 1,701,000 2,052,750 $3,059,000 $3,712,250 Given the results of the previous income statement calculations, complete the following statements: In Year 2, ir Cold Goose has 10,000 shares of preferred stock Issued and outstanding, then each preferred share should expect to receive $15.00 in annual dividends. If Cold Goose 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 Cold Goose's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to In Year 2 . It is to say that Cold Goose'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, $3,059,000 and $3,712,250, respectively. This is because of the items reported in the income statement involve payments and receipts of cash