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 $15.19 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, $4,194,250 and $5,121,531, respectively. This is because of the items reported in the income statement involve payments and receipts of cash.