Keep the Highest 2 3. Income Matement The income statement, who known as the profit and loss (PAL) statement provides a snapshot of the financial performance of a company during a specified period of time. It reports aim's gross income, expenses, net income, and the income that walable for distribution to its preferred and common shareholders The income statement is prepared using the generally accepted accounting principles (GAP) that match the firm's revenues and expenses to the period in which they were incurred, not necessarily when she was received or paid investors and anwysts use the information given in the income e and other financ e ments and reports to evaluate the company's financial performance and condition s Consider the following scenarios Cold Goose Metal Works Inc.'s income statement reports data for its first year of operation. The firm's CEO wood ke sales to increase by 25% next 1. Cold Goose is able to achieve this level of increased sales, but is interest costs increase from 10 to 15 of earnings before interest and taxes (EBIT) 2. The company's operating cos (excluding depreciation and amortization) remain at 75% of news and depreciation and bon expenses remain contant from year to year 3. The company's tax rate con i pre tax income or carrings before taxes (ET) In Year 2. Cold Goose expects to pay $300.000 and 12.00 p red and common stack dividends, respectively Complete the Year come wa s for Gold Gothen awer the questions that w e are to round each dollar to the nearest e here to search DELL Ch 03: Assignment Financial Statements, Cash Flow, and Taxes Cold Goose Metal Works Inc. Income Statement for Year Ending December 31 Net sales Less: Operating costs, except depreciation and most Les Depreciation and more Operating income (or EBIT) Less: Interest expense Pre-tax income (or ST) Les Taxes (254) Earrings abertas Less: referred stock dividends Tags wat common shawholders Les common stock dividends Contribution to carrings 52126250 1,876.250 956.813 Given the results of the previous com m entation, come the following statements: standing, then each preferred share out to receive . in 2. cold n . Cold Goose on 25.000 shares of peerred and ends 200.000 wes of common stock und and out the thes i s perhe (EPS) pected to change from . Cold Gour's ng before weerst, depreciation and D h anged from is contr to say that Gold Goes Wondutos of the end of art and we we , and 113 , rectively. This is because to the companys o - here to search DOLL