The income statement, also known as the profit and loss (PQL) 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 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 necessarily when cash was received or paid. Investors and analysts use the information given in the income statement and other financial statements and reports to evaluate the compary's financial performance and condition. Consider the following scenario: Cute Camel Woodcratt 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 Camel is able to adieve this 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 amortizatoon) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to yeat. 3. The company's tax rate remains comstant at 25% of its pre-tax income or eamings before taxes (CBT). 4. In Year 2, Cute Camel expects to pay $100,000 and $1,73,844 of prefered and common stock dividends, respectively. Complete the Year 2 income statement data for Cufe Camel, then amwer the questions that follow. Be sure to round each dollar value to the nearest. whole dollar. Gryen the results of the peevious incomv statement calculabons, complete the folloming statements in aroual dividends in Year 1 to wh Year ? in Yoar 1 to in Yoar? - Ieves contritieition to retained earnings, $2,680,250 and $3,194,241, reicectively, Thre is because of the ineme reforted if the incorne 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 receive 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 eamings before interest, taxes, depredation and amortization (EBITDA) value changed from in Year i to in Year 2. - It is to say that Cute Came's net inflows and outlows of cash at the end of Years 1 and 2 are equal to the company's anhual contribution to retained eamings, $2,620,250 and $3,194,281, respectively. Thes is because of the items reported in the income statement involve payments and receipts of cish