THIS IS ALL ONE QUESTION, Thanks! 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 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 company’s financial performance and condition. Consider the following scenario: Cold Goose Metal Works Inc.’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. 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 company’s operating costs (excluding depreciation and amortization) remain at 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 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Cold Goose expects to pay $200,000 and $1,922,063 of preferred and common stock dividends, respectively.   Complete 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 whole dollar.   Cold Goose Metal Works Inc.   Income Statement for Year Ending December 31   Year 1 Year 2  (Forecasted) Net sales $30,000,000   Less: Operating costs, except depreciation and amortization 21,000,000   Less: Depreciation and amortization expenses 1,200,000 1,200,000 Operating income (or EBIT) $7,800,000   Less: Interest expense 780,000   Pre-tax income (or EBT) 7,020,000   Less: Taxes (25%) 1,755,000   Earnings after taxes $5,265,000   Less: Preferred stock dividends 200,000   Earnings available to common shareholders 5,065,000   Less: Common stock dividends 1,579,500   Contribution to retained earnings $3,485,500 $4,284,812   Given the results of the previous income statement calculations, complete the following statements:   In Year 2, if Cold Goose has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive   (80,60,100,40)   in annual dividends.   If Cold Goose has 400,000 shares of common stock issued and outstanding, then the firm’s earnings per share (EPS) is expected to change from (17.55,12.66,19.50,13.16)     in Year 1 to (25.13,15.52,16.02,21.36) in Year 2. Cold Goose’s earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from  13,065,5000,900,000.00,955,000,28,8000    in Year 1 to 32,656,875,39,007,500,11250,000,16,456,875      in Year 2. It is (incorrect or correct) to say that Cold Goose’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, $3,485,500 and $4,284,812, respectively. This is because (ALL OR ALL BUT ONE) of the items reported in the income statement involve payments and receipts of cash.

From curiosity, what graphs are made to indicate the financial performance of a company?

The financial statement that shows the profitability of a business entity is known as: Group of answer choices Balance sheet and statement of retained earnings Balance sheet and income statement Income statement Statement of retained earnings

The four major financial reports that summarize the effects of economic events (like the results of operations) on a business for a specific time period or accounting period are called what? Group of answer choices tax returns managerial statements financial statements economic statements

Question: When preparing financial statements, which involve the culmination of various accounting principles and concepts, the process is crucial in portraying a company's financial health and performance. Among the key components, the income statement and the balance sheet stand as fundamental snapshots. The income statement delineates a company's revenues, expenses, and ultimately its profitability over a specific period, employing either the accrual basis or cash basis accounting. On the other hand, the balance sheet provides an overview of a company's assets, liabilities, and shareholders' equity at a given point in time, adhering to the accounting equation where assets are equal to liabilities plus shareholders' equity. Furthermore, the matching principle necessitates that expenses be recorded in the same period as the related revenues they helped generate, facilitating a more accurate representation of the company's financial performance.   In the context of accounting…

Which of the following is true regarding the accounting equation? The left side shows how a business invests its resources. The left side provides insight into how leveraged a company is. The right side shows the relative mix of revenues and expenses of a company. The right side shows who makes investment decisions for a company.

Evaluate the company’s latest annual financial statements (balance sheet, income statement, and cash flow statement) and comment on the company's financial performance and position. In your response, use the requirements of IAS 1 as a guide.b) Identify and discuss key accounting principles and standards applied in the company’s financial reporting process indicating their reasons for choosing these and how they were applied. Comment briefly on the appropriateness of the choices made given the company’s industry, location and type (e.g. MNC, regional conglomerate, etc.)c) Critically analyze any significant accounting policies and estimates disclosed in the notes to the financial statements. In your answer, indicate whether the company complied with the accounting standards and conventions.