Assignment 03 Financial Statements, Cash Flow, and Taxes Due Tomorrow at 11 PM PST Income statement The income statement, also known as the Profitand loss (PAL) statement, provides asnapshot ofthe finendal performance of acompany during specified period of time. It reports a firm's grows income, expenses, netincome, and the income that is available for distribution to ats preferred and common shareholders. The Income statement is prepared using the generaly accepted accounting principles(GAAP)that match the fim's nevenues and expenses to the period in which they were incurred, not necessary when cash was reoeived or paid investors and analysts use the information givenin the income statement and other finandalstatements and reports to evaluate the company's finendal performance and condition. Consider the following scenario: cute camel woodcraft Company'sincome statement reports data for its fint year of operation The sms CEO would we sales to increase by next 1, Cute Camel is able to achieve this level of novesed sales but as interest costs increase from 10 15 ofeamingsbetre interest and 2. The company's operating costs (exdusng depredation and amortization mmain at Tswofnet sales, and esdepredaton andamentaation expenses remain constant from year to year. 3. The company's tax rate remains constant at 40% of its pre-tax income oreamings before taxes (EST 4. In Year 2 Cute Camel expeds to pay s100,000 and si 389,7so of preferred and common stock dividends, respectively. Complete the Year 2 income statemert data for Cute came, then answeree questions that follow. Be sure to round ead dosar vahe the nearee hose Cute Camel woodorant Company Income Statement for Year Ending Deeember 31 Year 1 Less operating costs, exoegt depreciation and amortiaation Less: Depreciation and amortiaation expenles ODD FA