B. Assignment - Financial Statements, Cash Flow, and Taxes terest and tes (EBIT) 2. The company's operating costs (excluding depreciation and amortization) remain at 75% of net sales, and is depreciation and amortition ses remain constant from year to year 3. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Colore expects to pay $300,000 and $938,081 of preferred and common stock dividends, respectively Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Be sure to round each dollar value to the searest whole ola Neses Less Gogo, except Orection and motion Le Depreciation and amortisation expenses O come or EB) Year 2 (Forecasted) $12.110.440 Cold Goose Metal Works Inc. Income Statement for Year Ending December 31 Year 1 $15.000.000 11,250.000 600.000 3), 150.000 315.000 2.835.000 1.134.000 51.701.00 300,000 1,405,000 500.000 Tas 2427510 3645 2063 to common seders Les stacks $1238681 300.000 > 4 % 5 6 & 7 G 8 9 R 0 T Y U delete 0 F G H L V B N rol M 0 x 1. Cold Goose is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before terest and team) 2. The company's operating costs (excluding depreciation and amortization) remain at 75% of net sales, and is deprecation and amortization expenses remain content from year to year. 3. The company's toute remains constant of its pre-tax income or carnings before taxes (EBT) * In Year 2, Cold Gospects to pay $200,000 and 8938,081 of preferred and common stock dividends, respectively Com the Year 2 income statement data for Cold Goose the answer the questions that follow. Be sure to round each dollar value to the nearest 3. ed Cold Goose Metal Works Inc Income Statement for Year Ending December 31 LED denon and more Chcem $15.000.000 11.250.000 0.000 3.110.000 Year 2 Forecast 512.110.40 20 more 3227610 2.DOC evids $170.00 0.00 80 13 BBS # 3 $ 4 A 5 6 & 7 6 * 1. Cold Goose 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 75% 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 pre-tax income or earnings before taxes (EBT). 4. In Year 2, Cold Goose expects to pay $300,000 and $938,081 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Be sure to round each dollar value to the new whole dollar Nosales Les Otrating costs, excitot depreciation and amortization Lessi Depreciation and amortisation expenses Operating income (or EBIT) Lost Interest DES Pretax income for BT) Les Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Cold Goose Metal Works Inc. Income Statement for Year Ending December 31 Year 1 515.000.000 11,250,000 600,000 $3.150.000 315,000 2,835,000 1.134,000 $1,701,000 300.000 1.401,000 Year 2 (Forecasted) $12, 110,440 9,082,830 600,000 $2,427,610 364.142 2063,468 325,837 51.238.081 300,000 38,081