PLS ANSWER THE QUESTION ON IMAGE 3

The income statement, also knowil as the proft and loss (PaL) statement, provides a snaphok of the financial performance of a compary during a specified period of time, fe reports a fim's gross income, expenses, net income, and the incorne that is avaiable for distribution to its preferred and common shareholders. The income statement is prepared using the generaly sccepted accounting prindiples (GAP) that hatch the firms revenues and expenses to the period in which they were incurred, not necestarly when cash mas receved or paid. Itvestors and analysts use the information given in the income tatement and other francial statements and reports to evalsate the compary ' financial performance and condition. Consider the folowing scenario: Cute Camei Woodemn Comosny's income statement reports diste for its first yesr of operaton. The fimis CEO nould lhe sales fo increase by 25 Sh. nent year. interel and toxes (CBIT). 2. Tht company' operating coster (exdioding depreciation and actortuation) remain at 70 s. of net sales, and its depreciation and anortuxation expenses remain contont from year to year. 3. The company's the rate temains constant at 25% of its pre-tax income of eamings before taxes (EAT). 4. In Year 2, Cute Comel expects io poy $200,000 and $1,281,375 of preferred and komman mock didends, respectiveiy. Complete the Year 2 income statement data for Cute Camel, then answer the questions that follow. Be sure to round each dollar value to the nearest Whole dollar, is abhink dividends. in Yese 1 to 4 est 2 . or the kent roosted it the income