The last photo has the information needed for the problem. MindTap-Cengage Lea x

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The last photo has the information needed for the problem.

MindTap-Cengage Lea x O https://g engage on static nbu evo index.html?deploymentid-560761 13824676385054361256 el BN978 DTAP gage t Ch. 3 Financial Statements, Cash Flow, and Taxes he Year 2 income statement data for Cold Goose, then answer the questions that follow. Be sure to round each dollar value to the r Cold Goose Metal Works Inc. Income Statement for Year Ending December 31 Year 2 Year 1 (Forecasted) $15,000,000 10,500,000 600,000 $3,900,000 390,000 3,510,000 1,404,000 $2,106,000 100,000 2,006,000 737,100 $1,268,900 Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses 600,000 Operating income (or EBIT) Pre-tax income (or EBT) Earnings after taxes Earnings available to common shareholders Contribution to retained earnings Less: Interest expense Less: Taxes (40%) Less: Preferred stock dividends Less: Common stock dividends $1,565,787 results of the previous income statement calculations, complete the following statements: nYear 2, if cold Goose has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receiv in annual dividends. Type here to search

Explanation / Answer

Year1 Year2
Sales(mn) 15 15*1.25=18.75
OpEx 10.5 18.75*0.7=13.125
Dep 0.6 0.6
EBIT 3.9 5.025
Int 0.39 5.025*15%=0.75375
EBT 3.51 4.27125
Taxes 1.404 4.27125*40%=1.7085
After Taxes2.106 2.56275
Pr.Div. 0.1 0.1
E.A.toCS. 2.006 2.46275
CSDiv. 0.7371 0.896963
Cont.to.RE.1.2689 1.565787

1.
Preferred dividends are fixed hence preferred dividend per share=100000/10000=10
2.
EPS in Year 1=2.006/0.5=4.012
EPS in Year 2=2.46275/0.5=4.9255
3.
EBITDA in Year 1=4500000
EBITDA in Year 2=5625000
4.
Incorrect
All but One

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