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Year 2 (Forecasted) 1,200,000 5 Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest

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Year 2 (Forecasted) 1,200,000 5 Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pro-tax income (or EBT) Less: Taxes (25%) Eamings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings Cold Goose Metal Works Inc. Income Statement for Year Ending December 31 Year 1 $30,000,000 21,000,000 1,200,000 $7.500,000 780,000 7,020,000 1,755,000 55.265,000 200.000 5.065,000 1.579.500 $4,254,812 53.495,500 Given the results of the previous income statement calculations, complete the following statements: In Year 2, it Cold Goose has 5.000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive In annual dividends. If Cold Goose has 400.000 shares of common stock issued and outstanding channels camins per aliare (ERS) is expected to change from a INI $5,265,000 15 Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings 200,000 5,065,000 1,579,500 $3,485,500 $4,284,812 Given the results of the previous income statement calculations, complete the following statements: In Year 2. If Cold Goose has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive In annual dividends. If Cold Goose has 400,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) k 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 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, $3,465,500 and $4,284,812, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. in Year 1 to

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