3. Income Statement

Net sales $10,000,000

inment: Chapter 02 - Financial Statements, CUJITUT Cute Camel Woodcraft Company Income Statement for Year Ending December 31 Year 2 (Forecasted) 400,000 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 8,000,000 400,000 $1,600,000 160,000 1,440,000 576,000 $864,000 100,000 764,000 345,600 $418,400 $542,600 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 receive in annual dividends. Cute Camel has 400,000 shares of common stock issued and outstanding, then the firm's earnings ner share (FPS) is expected to chan ent: Chapter 02 - Financial Statements, Cash Flow, and Taxes 764,000 345,600 $418,400 Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings $542,600 in 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 receive in annual dividends. If Cute Camel 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 Cute Camel's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 2 It is to say that Cute Camel'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, 5418,400 and $542,600, respectively. This is because of the item reported in the income statement involve payments and receipts of cash. Orade New Save & Continue g 0 inment: Chapter 02 - Financial Statements, CUJITUT Cute Camel Woodcraft Company Income Statement for Year Ending December 31 Year 2 (Forecasted) 400,000 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 8,000,000 400,000 $1,600,000 160,000 1,440,000 576,000 $864,000 100,000 764,000 345,600 $418,400 $542,600 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 receive in annual dividends. Cute Camel has 400,000 shares of common stock issued and outstanding, then the firm's earnings ner share (FPS) is expected to chan ent: Chapter 02 - Financial Statements, Cash Flow, and Taxes 764,000 345,600 $418,400 Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings $542,600 in 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 receive in annual dividends. If Cute Camel 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 Cute Camel's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 2 It is to say that Cute Camel'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, 5418,400 and $542,600, respectively. This is because of the item reported in the income statement involve payments and receipts of cash. Orade New Save & Continue g 0