Net sales $$25,000,000$

Less: Operating costs, except depreciation and amortization $18,750,000$

Less: Depreciation and amortization expenses $1,000,0001,000,000$

Operating income $($or EBIT$)$ $$5,250,000$

Less: Interest expense $525,000$

Pre$-$tax income $($or EBT$)4,725,000$

Less: Taxes $(25\%)1,181,250$

Earnings after taxes $$3,543,750$

Less: Preferred stock dividends $100,000$

Earnings available to common shareholders $3,443,750$

Less: Common stock dividends $1,240,313$

Contribution to retained earnings $$2,203,437$ $$2,722,930$