The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a Company during a specified period of time. It reports a firms 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 generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the period in which they were incurred, not necessary when cash was received or paid. Investors and analysts use the information given in the income statement and other financial statement and reports to evaluate the company's financial performance and condition. Consider the following scenario Fuzzy Butten is able to active this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). The company's operating costs (excluding depreciation and amortization) remain at 80% of net sales, and its and amortization expenses remain constant from year to year. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT) In year 2, Fuzzy Button excerpts to pay $200,000 and $963,900 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Fuzzy Button, then answer the questions that follow. Round each dollar value to the nearest whole dollar. Given the results of the previous income statement calculations, complete the following statements: In year 2, if Fuzzy Button has 5,000 shares of preferred stock issued and outstanding then each preferred share should expect to receive ____ in annual dividends. If Fuzzy Button has 400,000 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 Fuzzy Button's before interest, taxes, depreciation and amortization (EBITDA) value changed from ____ in Year 1 to ____ in Year 2. It is ____ to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $1,614,400 nd $2,049,100, respectively. this is because ____ of the item reported in the income statement involve payments and receipts of cash