Question: This is all for the same question. Thanks in advance! Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The

 This is all for the same question. Thanks in advance! Blue

Hamster Manufacturing Inc.'s income statement reports data for its first year of

operation. The firm's CEO would like sales to increase by 25% next

This is all for the same question. Thanks in advance!

Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Blue Hamster 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 65% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $300,000 and $1,710,492 of preferred and common stock dividends, respectively. 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. UJ. 3315 CTIL 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) $ $15,000,000 Net sales 9,750,000 Less: Operating costs, except depreciation and amortization 600,000 600,000 Less: Depreciation and amortization expenses $ $4,650,000 Operating income (or EBIT) 465,000 Less: Interest expense 4,185,000 Pre-tax income (or EBT) 1,046,250 Less: Taxes (25%) $3,138,750 $ Earnings after taxes 300,000 Less: Preferred stock dividends 2,838,750 Earnings available to common shareholders 1,412,438 Less: Common stock dividends $1,426,312 $1,790,602 Contribution to retained earnings Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Blue Hamster has 254000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. If Blue Hamster has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to Blue Hamster's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 2. . In Year 1 to in Year 2 It is to say that Blue Hamster'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, $1,426,312 and $1,790,602, respectively. This is because of the items reported in the income statement involve payments and receipts of cash

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