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3. Income statensent The income statement, also known as the profit and ioss (PQL) statement, provides a snapshot of the financial performance of a company during a specifed period of time. It reports a firm's gross income, expenses, net income, and the income that is avaliable for distribution to is preferred and common shareholders: The income statement is prepared using the generally accepted accounting principles (GMP) that match the firm's revenues and expenses to the period in which they were incurred, not necessarily when cash was received or paid, Imvestors and analysts use the information given in the income statement and other financial statements and reports to evaluate the company's financial performance and condtion. Corisider the followiog scenario: Cute Camel Wooderaft Company's income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25\% next year. 1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earrings before interest and taxes (CBIT). 2. The company's operating costs (excluding depreciation and amertisatien) renain at 7os, of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of as pre-tax income or eamings before taver (EBT). 4. In Year 2, Cute Camel expects to pay $100,000 and $1,281,375 of preferred and common stock dividends, respectivery, Ch 03: Assignment - Financial Statements. Cash Flow, and Taxes Complete the Year 2 income statement data for Cute Camel, then answer the questions that follow, Be sure to raund each dollar value to the nnarest whole doliar. lege Success Tips eer Success Tips e Feedback Given the results of the previous income statement calculations, complete the following statements: - In Year 2 if Cute Camel has 5,000 sheres of preferted stock bsued and outstanding, then each preferred share should expect to rece ve in annual dividends. Given the results of the previous income stacement calculations, complete the following satements: - In Year 2. if Cule Camel has 5,000 shares of preferred stock issued and ouksanding. then each preferred thare should expect to receive in annual dividends. - If Cute Camel has 400,000 shares of common stock issued and outstanding, then the firm's eamings per share (EFS) is expected to change from in Year 1 to in Year 2. - Cute Camels eamings before interest, taxes, depreciation and amortization (EaITDA) value changed from in Year 1 to in Year 2. - It is to say that Cute Camel's net inflows and outfiows of cash at the end of Years 1 and 2 are ecual to the company's annual contribution to retained eamings, 51,479,500 and 51,822,062, respectorily, This is because of the lierns reported in the income statement involve payments and receipes of eash