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3. Income statement The income statement, also known as the profit and loss (PaL) statement, provides a tnapshot of the financial performance of a company duning a speofied period of time. It reports a firm's gross income, expenses, net income, and the income that is avaliable for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting prinoples (GMP) thot match the firm's revenues and expenses to the penod in which they were incurred, not necessarly when cash was received or paid. Irvestors and analysts use the information given in the income statement and other finanoal statements and reports to evaluate the company's financial performance and condian. Consider the following scenano: Cute Camel Woodcraft Comparr's income statement reports data for its first year of operation, The firm's ceo would like sales to increase by 25% hext yeac. orsider the followng scenario: iute Camel Woodart Company's income statement reports dato for its first year of operabon. The firm's CEO would like sales to increase by 25% ext year. 1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 1 Wos to 15% of earnngs befne interest and taxes (EBTT). 2. The company's operating costs (exduding deprecotion and amortization) remain at 65% of net sales, and its depreostion and annoctization expenses remain constant from year to yeat: 3. The companys tax rate remains constant at 25% of its pre tax income or earnings befare taxes (EBI). 4. In Year 2, Cute Camel expects to pay $100,000 and $1,773,044 of preferred and common stack dividends, respectively. Complete the vear 2 income statement data for Cute Camel, then anwwer the questions that follow. Be sure to round each daliar value to the nearest whole follar. Conplete the Year 2 income statement data for Cute Camel, then answer the equestinns that follow. Ee sure to round cact doliar yalue to the nearest whole crolar, Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Cute Camel has 10,000 shares of prefered stock issued and outstanding, then each preferred share should expect to recerve in annual dividends. - If Cute Camel has 500,000 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. - Cute Camel's eamngs before interet, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to 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 companys annual conthitution to retaned earnings, $2,620,250 and $3,194,2B1, respectively. This is because of the items reported in the income