Question: I would like the answer to the question attached below Green Caterpillar Garden Supplies Inc.'s income statement reports data for its first year of operation.

 I would like the answer to the question attached below Green

I would like the answer to the question attached below

Caterpillar Garden Supplies Inc.'s income statement reports data for its first yearof operation. The firm's CEO would like sales to increase by 25%next yea r. 1. Green Caterpillar is able to achieve this level

Green Caterpillar Garden Supplies Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next yea r. 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 60% of 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 pretax income or earnings before taxes {EBT). 4. In Year 2, Green Caterpillar expects to pay $100,000 and $2,463,300 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Green Caterpillar. then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Green Caterpillar Garden Supplies Inc. Income Statement for Year Ending December 31 Year 2 Year 1 {Forms-lied) Net sales $30,300,330 Less: Operating costs, except depreciation and amortization 18,030,033 Less: Depreciation and amortization expenses 1,203,003 1,200,000 Operating income {or EBlT] $10,800,330 Less: Interest expense 1,083,003 Pre-tax income {or EBT) 9,?23,003 Less: Taxes {40%} 3,888,003 Earnings aer taxes $5,832,033 Less: Prefened stock dividends 103,003 Earnings available to common shareholders 332,003 Less: Common stock dividends 2,041,203 Contribution to retained earnings $3,690,833 $4,4?4,?00 Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Green Caterpillar has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. Given the results of the previous income statement caloulations. complete the following statements: - In Year 2, if Green Caterpillar has 10,000 shares of preferred stock issued and outstanding. then each preferred share should expect to receive in annual dividends. - If Green Caterpillar has 500,0011] shares of common stock imued and outstanding. then the firm's earnings per share {EPS} is expected to change from in Year 1 to in Year 2. - Green ICaterpillar's before interest, taxes, depreciation and amortization {EBITDA) value changed from in Year 1 to in Year 2. - It is to sa}:r that Green Caterpillar's net inows and outows of cash at the end of' Years 1 and 2 are equal to the oompanv's annual oontn'bution to retained earnings, $3,590,800 and $4,424,230, respectively. This is because of' the item reported in the income statement involve payments and receipts of' cash

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