The income statement, also known as the profit and lass (PSL) 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 preferred and common shareholders: The incame 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, not necessarlly when cash'was received or paid. Inwestors 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. Consider the following scenario: Cold Goose Metal Works Inc's income statement reports data for its first vear of operation. The firm's CEO would like sales to increase bV 25% next year. 1. Cold Goose is able to achieve the level of increased sales, but its interest costs increase from 10% to 15% of earnings before, interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 70% 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 its pre-tax income or earnings before taxes (EBT). 4, In Year 2, Cold Goose expects to pay $200,000 and $1,922,063 of preferred and common stock dwibends, respectively. Complete the Vear 2 income staternent data for Cold Goose, then answer the cuestions that follow. Be sure to tound each dollar value to the nearest whole doltar. Qven the results of the previous income statement calculations, complete the following statements: - In Year 2, if Cold Coose has 5,000 shares of preferred stock issued and outstanding, then each peoferred shiare should expect to receive in annual dividehos. - If Cold Goose has 400,000 shares of common stock issued and outstanding, then the firm) eamings per share (EPs) is expected to change from in vear 1 to in Year 2 . - Cold Coose's eacnings before interest, taxes, depreciation and amortization (EBrroa) value chanped from in vear 2 . - It is to say that Cold Gooso's net infiaws and outflows of cash at the end of Years 1 and 2 are equal to the company contribution to retained carnings, $3,485,500 and $4,284,812, tespectively. This is because statement involve payments and receipts of cash