seectied petiod of time. It eeperts a feisis uross incorte, expenses, not inconse, and the incomat that is avelotol lor distnbution to its preferred and cominon sharehulders. staterinont and other financal statoments and tepotts to eraluste the company' financial performance and cenation. Cornider the lollowing mernario: nest mar. 1. Cute Carnet is able to schieve this level of incteased sales, test its interest cnecs incinase frum 10% to 15% of rarnirvs betore interest and laxes \{t-P9T). 2. The company's operatong costs (emoluding depreciation and amortieabon) reman at 704 of net saley and its deprecation and iamertatation expenses femain constant from year to yeae. 7. The compinyib tax fate temains constant at 40% of as pre cax mome of carrings tefore taxas fEDI). whiold doblar: Ch 03: Assigrment - Finanoal Stateroents, Cashi Flow, and Taxes itrarunual asisenids. in Year 1 to in Yeat 2 in rear a it is Corecobuturn to retaned a mings, 11,16,7,000 and 51,437,650, respectively. This is berause statetnend invelve peymunds and rect of of canh