2. Income statement The incwme statesnent, also known as the profit and loss. (PSL) statement, provides a snapthot of the financial performance of a company doring a specified period of time. It reports a firm's gross income, epenses, net income, and the income that is availatile for distribution to its prefered and commoe shareholdert. The income statement is prepared using the oenerally accopted accounting grinciples (GaAP) that match the firm's revenues and expenses to the period in which they wern incurred, not necessarily when cash was recrived or paid. thvestors and analysts use the information given in the incoene statement and other-financial statements and repocts to evaluate the conpany's finandal performance and condition. Consider the following scenario: Cute Camel Woodcaft Company's income statement resorts data for its first vear of operation. The firmis CEO would lke sales to increase by 25% next year. 1. Cute Camet is atle to achieve this level of increased sales, but its interest couts increase from 10% to 15% of earnings before interest and taxes (EBTT). 2. The company's operating costs (excloding depredation and amoetisation) remain at 70\% of net sales, and its depreojation and amortization expenses remain constant from vear to yeac. 3. The company's tax rate remains constant at 25% of As ore-tax income or earnings tefore tares (CEIT). 4. In Year 2 , Cute Camel expects to par $200,000 and $1,201,375 of srefered and conmon stock bividenifs, respectively. Complete the Year 2 income statensent data for Cute Camel, then answer the questions that follow. be sure to round each dollar value to the nearest. whole dollat, Groen the results of the previout income statement caloulations, consiete the folowing stitements: Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Cute Camel has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to recelve in annual dividends. - If Cute Camel has 400,000 shares of common stock issued and outstanding, then the firm's eamings per share (EPS) is expected to change from in Year 1 to in Year 2 . - Cute Camel's earnings before interest, taxes, depreciation and amortization (EBrOA) value changed from in Year 1 to in Year 2. - it is to say that Cute Came''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, $2,257,000 and $2,789,875, respectively. This is because of the items reported in the income statement involve payments and recelpts of cash. Cute Camel Woodcraft Company'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. Cute Camel 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 deprecation and amortization expenses remain constant from year to vear. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year Z, Cute Came expects to pay $200,000 and $1,281,375 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Cute Camel, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Given the results of the previous income statement calculations, complete the following statements