Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar.

	Blue Hamster Manufacturing Inc.
	Income Statement for Year Ending December 31
	Year 1	Year 2 (Forecasted)
Net sales	$30,000,000
Less: Operating costs, except depreciation and amortization	19,500,000
Less: Depreciation and amortization expenses	1,200,000	1,200,000
Operating income (or EBIT)	$9,300,000
Less: Interest expense	930,000
Pre-tax income (or EBT)	8,370,000
Less: Taxes (25%)	2,092,500
Earnings after taxes	$6,277,500
Less: Preferred stock dividends	200,000
Earnings available to common shareholders	6,077,500
Less: Common stock dividends	1,883,250
Contribution to retained earnings	$4,194,250	$5,121,531

Given the results of the previous income statement calculations, complete the following statements:

	In Year 2, if Blue Hamster has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive $40.00 in annual dividends.
	If Blue Hamster has 400,000 shares of common stock issued and outstanding, then the firms earnings per share (EPS) is expected to change from $15.19 in Year 1 to in Year 2.
	Blue Hamsters earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2.
	It is to say that Blue Hamsters net inflows and outflows of cash at the end of Years 1 and 2 are equal to the companys annual contribution to retained earnings, $4,194,250 and $5,121,531, respectively. This is because of the items reported in the income statement involve payments and receipts of cash.