The income statement, also known as the profit and loss (PAL) 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 mateh 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 company's financial performance and condition. Consider the following scenario: Green Caterpillar Garden Supplies tncis income statement reports data for its first year of operation. The firm's CEO would ike sales to increase by 25% next year, 1. Green Caterpaliar is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EUT). 2. The company's operating costs (excluding depeciation and amortization) remain at 60% 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 (E8T). 4. In Year 2 , Green Caterpilar expects to pay $100,000 and $1,759,500 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Green Caterpiliar, then answer the questions that follow, Be sure to round each dollar value to the nearest whole doliar: Given the resuits of the previous income statement caiculations, complete the following statements: - In Year 2, if Green Caterpiliar has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - If Green Caterpillar 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 2. - Green Caterpillar's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. - It is to say that Green Caterpiliar'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, $2,087,000 and $2,539,250, respectively. This is because of the items reported in the income statement involve payments and receipts of cash