The income statement, also known as the profit and loss (PSL.) statement, provides a snapshot of the finandal 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 income statement is prepared using the oenerally accepted accounting principles (GMA) that match the firm's rovenues and expenses to the period in which they were incurred, not necessarily when cash was recelved or paid. Investors and analysts use the information given in the income statement and other financial statements and reports to evaluate the companys finandat performance and condition. Consider the following scenario: Blve Hamster Manufacturing Incis income statement reports data for its first year of operation. The firm's ceO would like sales to increase by 25% next yoar. 1. Elve Hamster is able to achleve this level of increased sales, but its interest costs increase from 10% to 25% of earnings betore interest and taxes (EEIT). 2. The compary's operating costs (excluding depreciation and amortiation) remain at 65% 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 of earnings before taxes (EBT). 4. In Year 2, Elue Hamster expects to pay $200,000 and $2,280,656 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollat. Gven the resilts of the previous income atatement catculabions; complete the folloning statements: Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Blue Hamster has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - If Blue Hamster has 400,000 shares of common stock issued and outstanding, then the firm's earnings per share (EpS) is expected to change from in rear 1 to in year 2. - Blue Hamster's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2 - 1t is to way that Blue Hamster's net infows and outflows of cash at the end of Years 1 and 2 are equal to the company's anniual contribution to retained earnings; $4,194,250 and $5,121,531, respectively. This is because of the items reported in the incortie statement involve payments and receiots of cash