DId i do this correclty on the chart?? ND NEED HELP WITH BELOW QUESTIONS THANKS...
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DId i do this correclty on the chart?? ND NEED HELP WITH BELOW QUESTIONS THANKS FROM
Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings Year 1 $10,000,000 6,000,000 400,000 $3,600,000 360,000 3,240,000 1,296,000 $1,944,000 100,000 1,844,000 777,600 $1,066,400 Year 2 (Forecasted) $2,500,000 7,500,000 400,000 $4,600,000 690,000 3,910,000 1,564,000 $2,346,000 100,000 2,246,000 938,400 $1,307,600 Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Green Caterpillar has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. If Green Caterpillar 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. in Year 1 to Green Caterpillar's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 2. It is to say that Green Caterpillar'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, $1,066,400 and $1,307,600, respectively. This is because of the item reported in the income statement involve payments and receipts of cash
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