Please help CENGAGE || MINDTAPCh 03: Assignment- Financial Statements, Cash Flow, and TaxesThe income statement, also known as the profit and loss (PSL) statement, provides a snapshot of the financial performance of a company during aspecified period of time. It reports a firm's gross income, expenses, net income, and the income that is available for distribution to its preferred andcommon shareholders.The Income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to theperiod in which they were incurred, not necessarily when cash wasrecelved or paid. Investors and analysts use the information given in the incomestatement and other financial statements and reports to evaluate the company's financial performance and condition.Consider the following scenario:Cute Camel Woodcraft Company's income statement reports data for its first year of operation. The firm's CEO would lke sales to increase by 25%next year.1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings beforeinterest and taxes (EBIT).2. The company's operating costs (excluding depreciation and amortization) remain at 70% of net sales, and its depreciation andamortization expenses remein 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, Cute Camel expects to pay $200,000 and $1,261.375 of preferted and common atock dividends, respectivelyCute Camel Woodcraft CompanyIcome Statement for Year Ending December 31Year 1Year 2 (Forecasted)Nat sales$20,000,000250000Less: Operating conts, except depreciation and amortization14,000,000Less: Depreciation and amortization expenses800,000BO0,000Operating income (or EBIT)$5,200,000isLess Interest expense520,000Pre-tex income (or EBT)4,600,000Less: Taves (25s)1.170,000Eamings after taves$3,510,000Le Prefered stock dividends200.000Eamings available to common shareholders3,310.000Les: Comman stock dividends1.053,000Contribution to retained namings$2,257,000$2,709.075Given the ruts of the previous income statement calculations, camplete the following atatementsType here to search857 PM3//202Given the resuits of the previous income statement calculations, complete the following statements:• In Year 2, if Cute Camel has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive$40.00 v in annual dividends.If Cute Camel has 400,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from$8.28 Yin Year 1 tov in Year 2.• Cute Camel's earnings before interest, texes, depreciation and amortization (EBITDA) value changed fromin Year : toin Year 2It isto say that Cute Camel's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annualcontribution to retained earnings, $2,257,000 and $2,789,875, respectively. This is becausestatement involve payments and receipts of cash.of the items reported in the income

The corporation prepares a forecasted income statement to analyze in advance the possible revenues…

Cute Camel Woodcraft Company's income statement reports data for its first year of operation, The firm's CEO would tke sales to increase by 25% next year. 1. Cute Camel is able to achieve 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 amortization) remain at 70% of net sales, and its depreciation and amortization expenses remein 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, Cute Camel expects to pay $200,000 and $1,281.375 of preferted and common stock dividends, respectively Cute Camel Woodcraft Company come Statement for Year Ending December 31 Year 1 Year 2 (Forecasted) Net sales S20,000,000 250000 Less: Operating costs, except depreciation and amortization 14,000,000 Less: Depreciation and amortisation expenses 800,000 B00,000 Operating income (or EBIT) $5,200,000 Less: Interest expense 520,000 Pre-tex income (or EBT) 4,600,000 Less: Taves (25s). 1170.000 Eamings after taves $3,510,000 Le Preterred stock dividends 200.000 Eamings availabie to common shareholders 3,310.000 Les: Comman stock dividends 1053,000 Contribution to retained amings 12,257,000 $2,709.875 Given the ruts of the previous income statement calculations, complete the following atatements Type here to search Given the results of the previous income statement calculations, complete the following statements: • In Year 2, if Cute Camel has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to recaive $40.00 Y in annual dividends. • If Cute Camel has 400,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from $8.28 in Year 1 to v in Year 2. • Cute Camel's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year i to v in Year 2. It is v to say that Cute Camel'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, $2,257,000 and $2,789,675, respectively. This is because v of the items reported in the income statement involve payments and receipts of cash