Chapter 2 Assignment 1. Green Caterpillar 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 80.00% af 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 (EHT). 4. In Year 2, Green Caterpillar expects to pay $300,000 and $1,445,850 of preferred and common stock dividends, respectively. Complete the Your 2 income statement data for Green Caterpiter, the answer the questions that follow. Round coch delar valve to the nearest whole doltar Green Caterpillar Garden Supplies Inc. Income Statement for Year Ending December 31 Year 2 (Forecasted) E 1,200,000 Net sales Less Operating costs, except depreciation and amortization Less. Depreciation and amortization expenses Operating income (or EBIT) LE Intereste Pre-taxi.com (or EBT) Less Taxes (40) tanning was Le Perred stock dividends Earnings available to common shareholders Les Common dividends Cantibution to the Year 1 130.000.000 24,000,000 1.200,000 54,800,000 480,000 120,000 1.728.000 $2.592.000 300.000 2.293.000 MacBook Air . GD 2 * 3 $ 4 % 5 9 & 7 0 8 6 o U E R Y W G I F J D S V C B N M Less: Preferred stock dividends Earnings available to common shareholders Less: Comenon stock dividends 300,000 $2,292,000 1,166,400 IS Contribution to retained earnings $846,150 $1,467,150 Given the results of the previous income statement calculations, complete the following statements: In Year 2, Green Caterpillar hou 25,000 shares of preferred stock sand and outstanding, then each preferred share should expect to receive in awal dividends Green Caterpillar hos 200,000 shares of common stock sound and outstanding, then the firm's earnings per anare (EPS) as expected to tunge from Year to in Yew 2 . Green Caterpillar's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year to . to say that Green Caterpisar's news and outflows of cash at the end of years and are to the company con to retainedcami 1046,150 and 51,467,150, rectively. This is because of the emer the income stament move payment and receipts of cath Grade it Now Save & Continue Cat MacBook Air - $ 4 % 5 8 7 2 8 3 6 W 20 E T Y U 0 D S F G 5 C V B B N M B command nand