Cold Goose Metal Works 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. 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 70% 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 $200,000 and $1,537,650 of preferred and common stock dividends, respectively.

Required:
Complete the Year 2 income statement data for Cold Goose.

                           Cold Goose Metal Works Inc.

                                  Income Statement

                                              current year                 forecasted

net sales                                $30,000,000              $37,500,000

-operating costs excluding   $21,000,000              $26,250,000

dep. and amortization

-dep. and amortization           $1,200,000                  $1,200,000

EBIT                                         $7,800,000               $10,050,000

-interest expense                      $780,000                  $1,507,500

EBT                                         $7,020,000                  $8,542,500

-income taxes                        $2,808,000                   $3,417,000

net income                              $4,212,000                   $5,125,500

-preferred stock div.                $200,000                     $200,000

earnings available to             $4,012,000                   $4,925,500

common stockholders

-common stock div.                $1,537,650                    $1,537,650

contribution to retained        $2,474,350                    $3,387,850

earnings

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

answer; the coefficient of determination;