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3. Income statement 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 avaliable for distribution to its preferred and commen sharcholders. 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 company's financial performance and condition. Consider the following scenario: Cold Goose Metal Works Incis income statement i ports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year: 1. Cold Goose 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 companys operating costs (excluding depreciation and amortization) remain ot 70% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT) 4, In Year 2, Cold Goose expects to pay $200,000 and $1,537,650 of preferred and common stock dividends, respectively. Camplete the Year 2 income statement data for Cold Goose, then answer the questions that follow, Be sure to round each dollar value to the nearest whale dellar. Given the retuits of the previous income statement calculatians, complete the following statements

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