CENGAGE Chapter 3 Assignment Year 1 $20,000,000 Net sales - 14,000,000 Less: Operating costs, except depreciation and amortization 800,000 Less: Depreciation and amortization expenses $5,200,000 Operating income (or EBIT) $20,000 Less: Interest expense 4,680,000 Pre-tax income (or EBT) Less: Taxes (25%) 1,170,000 Earnings after taxes $3,510,000 Less: Preferred stock dividends 200,000 Earnings available to common shareholders 3,310,000 Less: Common stock dividends 1,053,000 Contribution to retained earnings $2,257,000 $2,789,875 Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Cute Camel has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. If Cute Camel has 400,000 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. Cute Camel's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. . It is to say that Cute Camel'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, $2,257,000 and $2,789,875, respectively. This is because statement involve payments and receipts of cash. of the items reported in the income Grade It Now Save & Continua Year 2 (Forecasted) $20,000,000 14,000,000 SERVE 800,000 $5,200,000 520,000 4,420,000 11,050,000 $33,150,000 200,000 31,150,000 1,833,625