Hey there! I was wondering if anyone could help explain these questions to me, as I am on my last attempt before I fail the whole question. Someone please help me! Thank you.

3. Income statement M 1.13 a The income statement, also known as the prot and loss statement, helps calculate the firm's net income that is available to shareholders. The income statement is usually prepared using the International Financial Reporting Standards {IFRS}, which match revenues and expenses to the period in which they were incurred, not necessarily when cash was received or paid. The following is the income statement of Universal Chemical Corp. in its first year of operation: Universal Chemical Corp. Income Statement For the 1I'ear Ending on December 31 {Millions of dollars} 1I'ear 1 Net sales $4,000 Operating costs, except depreciation and amortization 3,200 Depreciation and amortization 160 Total operating costs 3,360 Operating income {or EBlTjI 640 Less: Interest 64 Earnings before taxes {EBT} Less: Taxes {40%} Net income available to shareholders The firm's CED would like sales to increase by 25% next year. Assume that {1) the operating costs {excluding depreciation and amortization} remain at 00% of sales, {2) depreciation and amortization remain at 4% of sales, and {3) the interest cost increases from 10% to 15% of earnings before interest and taxes {EBIT}. The tax rate of 40% also remains the same. What will be the company's earnings before interest and taxes in the second year? $640 million $50121r million $1,000 million $800 million I " . Different companies have different debt-related expenses, depreciation, amortizati- in any of these expenses will have an impact on the company's income statement. . Changes Different companies have different debt-related expenses, depreciation, amortization, and other write-offs. Changes in any of these expenses will have an impact on the company's income statement. Considering that the following changes occur while everything else remains the same, which statements are true? Check all that apply. A decrease in interest expense will lead to an increase in the net income. An increase in depreciation and amortization expenses will lead to an increase in the net income. An increase in total operating costs will lead to an increase in the net income. A decrease in the tax rate will lead to an increase in the net income. An increase in operating costs will lead to a decrease in the operating income. Universal Chemical Corp. had 25 million shares of common stock outstanding in both years. What will be the firm's earnings per share (EPS) in the second year? $27.20 O $16.32 OC $32.00 $168.00