Year 2 (Forecasted) Net sales Less: Operating costs, except depreciation and amortization 1,200,000 Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Year 1 $30,000,000 19,500,000 1,200,000 $9,300,000 930,000 8,370,000 3,348,000 $5,022,000 200,000 4,822,000 1,506,600 $3,315,400 Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends 200,000 Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings 1,824,525 $4,057,225 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 firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. Blue Hamster's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from 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, $3,315,400 and $4,057,225, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Year 2 (Forecasted) Net sales Less: Operating costs, except depreciation and amortization 1,200,000 Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Year 1 $30,000,000 19,500,000 1,200,000 $9,300,000 930,000 8,370,000 3,348,000 $5,022,000 200,000 4,822,000 1,506,600 $3,315,400 Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends 200,000 Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings 1,824,525 $4,057,225 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 firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. Blue Hamster's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from 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, $3,315,400 and $4,057,225, respectively. This is because of the items reported in the income statement involve payments and receipts of cash