3. Income statement The income statement, also known as the profit and loss (Pal.) statement, provides a snapshot of the financal performance of a company during a specified period of time. if reports a firm's gross income, expenses, net income, and the income that is available for d-stribution to its preferred and common shareholders. The incorne statement is prepared using the generally sccepted accouling principles (GAAP) that match the firm's revenues and expenses to the period) in which they were incurred, not necessarily when cash was recelved or paid. Investors and analysts use the information given in the income statement and other financial statements and reports to evaluate the company's financial performance and condition. Consider the following scenario: Cold Goose Metal Works Inc.'s income statement reports data for its first year of operotion. The fim's CEO would like sales to increase by 25% nextyear. 1. Cold Goose is able to achleve 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 depreciatice 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 rote remains constant at 40% of 3 ts pre-tax income or earnings before taxes (CBT) 4. In Year 2 , Cold Goose expects to pay $200,000 and $1,537,650 of preferred and cornmon stock dividends, respectively. Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Be sure to round each dollar-value to the nearest whole dotlar. Given the results of the grevious income statement calculations, complete the following statements: - In Year 2 , if Coid Goose has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to recelve. in arrual dividends. - If cold Goose thas 400,000 shares of comman stock issued and outstanding, then the firm's earnings per share (EPs) is expected to change from In Year 1 to in Year 2. - Cold Goose's before interest, taxes, deprecation and arrartization (EBITDA) value changed from. in Year 1 to Year?. - It is to say that Cold Goose's net inflows and outfows of cash at the end of Years 1 and 2 are cqual to the company's annual contribietion to retalned earnings. This is because of the itern reported in the income statement involve payments and receipts of