Question: 1,000,000 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

 1,000,000 Net sales Less: Operating costs, except depreciation and amortization Less:

1,000,000 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 (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings $25,000,000 17,500,000 1,000,000 $6,500,000 650,000 5,850,000 2,340,000 $3,510,000 300,000 3,210,000 1,579,500 $1,630,500 $2,049,187 Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Blue Hamster has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. If Blue Hamster has 200,000 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. in Year 1 to Blue Hamster's before interest, taxes, depreciation and amortization (EBITDA) value changed from 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, $1,630,500 and $2,049,187, respectively. This is because of the item reported in the income statement involve payments and receipts of cash

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