tements, Cash Flow, and Taxes 1. Cold Goose 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 75% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. in Year 2, Cold Goose expects to pay $300,000 and $938,081 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar Year 2 (Forecasted) S 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 (10) Earrings after taxes Less: Preferred stock dividends Earns into common shareholders Cold Goose Metal Works Inc. Income Statement for Year Ending December 31 Year 1 $15,000,000 11,250,000 600,000 $3,150,000 315,000 2.835,000 1,134,000 51,701,000 300,000 1401000 600,000 5