3. Income statement The income statement, also known as the profit and loss (PL) statement, provides a snapshot of the financial performance of a company during specified period of time. It reports a fim's gross income, expenses, net income, and the wecome that is available for distribution to its preferred and common shareholders The income statement i prepared thing the generally ccepted accounting principles (GAAP) that match the firm's revenues and expenses to the pervod in which they were curred, not necessarily when cash was received 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 scenano Cute Carvel Woodcraft Company's income statement reports dits for its first year of operation. The Cto would like sales to increase by 25% next year 1. Cute Came is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (BIT) 2. The company's operating costs (excluding depreciation and amortizatoo) cemain at 70% of net sales, and its depreciation and mortization expenses rem constant from year to year 3. The company's tax rate remains constant at 25% of its pre-tax income or earrings before taxes (EBT). 4. In Year 2, Cute Camel expects to pay $100,000 and 51,281,375 of preferred and common stock dividends, respectively Complete the Year income statement data for Cute Camel, the answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar Year 2 (Forecasted) 5 Net sales Less Operating costs, except depreciation and amortization Leist Depreciation and amortization expenses Operating income (or EBIT) Les Interest expense Pretax income (or EB) 600,000 Cute Camel Woodcraft Company Income Statement for Year Ending December 31 Year 1 515,000,000 10,500,000 600,000 $3,900,000 390,000 3,510,000 877,500 52,632,500 100,000 2.512,500 1,053,000 51.479,500 Earnings after taxes Le Preferred stock dividends Earning available to common shareholders Les Common stock dividends Contribution to retained earnings 51.822.062 Given the results of the previous income statement calentations, complete the following statements in Year I to In Year 2, il Cute Camel has 5,000 shares of preferred stock wed 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 per share (EPS) is expected to change from in Year 2 . Cute Camel's earnings before interest, taxes, depreciation and amortization (EBITDA) Value changed from in Yeart to in Year 2 to say that Cute Camel's net inflows and outflow of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings. 51,479,500 and 51.822.062, respectively. This is because of the items reported in the income