3. Income statement The income statement, also known as the profit and loss (PQL) statement, provides a snapshot of the financial performance of a company during a specified period of time, It reports a firm's gross income, expenses, net income, and the income that is available for distribution to its preferred and commen shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the period in which they were incurred, 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 scenario: Cold Goose Metal Works incis income statement ik ports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year 1. Cold Goose 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 compahys operating costs (excluding depreciation and amortitation) remain ot 70% of net sales, and its depreciation and amprtization expenses remain constant from year to year. 3. The compary's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT) 4. In Year 2, Cold Goose expects to pay $200,000 and $1,537,650 of preferred and common 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 whale dellar. Given tie results of the prevous income statement calculations, complete the foliowing statements: - In Year 2. If cola Goose has 5,000 shares of preferred steck issued and outstanding, then each preferred share should expect fo receive. in annual evidends. - If Cold Goowe has 400,000 vhares of cemmon utock iswued and outstanding. then the firms earnings per share (CPS) is expected to change from in Ver ito in Year 2. - Cold Coostr before inserest, taxes, deprecation and amortiration (EorrDA) value changed from in vear 2 in Year 1 to - It is to wry that Cold Gooses net infows and outhows of cash at the end of Years 1 and 2 are equal to the company's annual contribution fir retsined earnings, This in because cash. of the item reported in the income statement involve paryments and receipts of