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The income statement, also known as the profit and foss (PBL) statement, provides a snapshot of the financial performance of a company during a specified

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The income statement, also known as the profit and foss (PBL) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm's gross income, expenses, net income, and the income that is available for distribution to its preferned and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the period in which they were incurred, fot necessarly when cash was recelved or paid. Investors and analysts use the information glven in the income statement and other financial statements and reports to evaluate the company's financial performance and condition. Consider the following 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 Cambi is able to achleve this level of increased sales, but its interest costs increase fram 10% to 15% of earnings before interest and taxes (EDIT). 2. The company's operating costs (exoluding depreciation and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to year, 3. The compary's tax rate remains constant at 255 of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Cute Camel expects to pay 5100,000 and 51,773,844 of preferred and common stock dividends, respectively. Compiete the Year 2 income stotement data for Cute Camel, then answer the questions that follow, Be sure to round each dolitr value to the nearest whole dollar. Given the resuls of the previous income statement calculations, complete the following statements: Given the results of the previous income statement calculations, complete the following statements: - In Year 2 , If Cute Camel has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to recelve in annual dividends. - If Cute Camel has 500,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2 : - Cute Camel's earnings before interest, taxes, depreciation and amortization (EBrTDA) 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 equal to the cornpany's annual contribution to retained eamings, $2,620,250 and $3,194,281, respectively, This is because of the items reported in the income. statement involve payments and receipts of cash

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