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remake the income statment to match the guidlines in the first picture. the second picture is the format it needs to be. please also answer thr questions on the first picture.

Financial Statement Analysis A. Income Statement Analysis: 1. Reformat the income statement to clearly indicate EBITDA and EBIT. See footnote A Exhibit 3. Remove from Other General and Administrative Expenses the depreciation expenses noted in the footnote. Put those expenses into the depreciation expense line item. 2. Analyze the income statement line items by calculating the Avg, percentage change and CAGR for each line item. What do the trends imply about the operations of the Be Our Guest business? 3. Calculate and analyze the following margins from the income statement using AVG, percentage change and CAGR. Margins to be calculated: Gross Margin, COGS margin, Total Operating Expense Margin, EBITDA Margin, EBIT Margin and Net Profit Margin. What do the margin trends imply regarding the operations of Be Our Guest? 4. Calculate the percentage of earnings retained in the firm and the percentage of earnings paid out? Note: Percentage of Earnings Retained = Earnings Retained/Net Earnings Percentage of Earnings Paid Out = 1-Percentage of Earnings Retained A. What does the trend imply about earnings distributed to the firm's management? B. Did they violate the bank covenants? If so, by what percentage and what are the implications? AVG . Chng CAGR Income Statement Account Analysis Revenues: Total Revenues Total Cost of Revenue Gross Profit Operating Expenses: General and Administrative Salaries Total Operating Expenses EBITDA Depreciation EBIT Interest, Net Net Earnings Distributions To Shareholders Earnings Retained Percentage Retained Percentage Paid Out Exhibit 3 Be Our Guest Inc. Income Statements Years Ended December 31 1994 1995 1996 1997 Revenue: Rental Income $ 1.620,313 $ 1,794,807 $ 1,990,853 $ 2,469,474 Delivery Income 156,035 179,173 168,959 180,567 Total Revenue 1,776,348 1,973,980 2,159,812 2,650,041 Cost of Revenue: Salaries 490,968 575,253 547,611 610,602 Other Cost of Revenue 211,468 302,877 347,094 419,050 Depreciation 116,119 127,906 128,299 148,707 818,555 1,006,036 1,023,004 1,178,359 Gross Profit 957.793 967,944 1,136,808 1,471,682 Operating Expenses: General and Administrative Salaries 381,501 434,434 539,168 840,718 Other General and Admin. Expenses (a) 402,423 384,863 420,683 500,384 Bad Debt Expense 5,702 977 22,186 5,188 789,626 820,274 982,037 1,346,290 Earnings from Operations 168, 167 147,670 154,771 125,392 Interest, Net (27,820) (33,912) (44,545) (37,580) Net Earnings 140,347 113,758 110,226 87,812 Distributions To Shareholders (60,000) (46,700) (95,000) (27,660) Earnings Retained $ 80,347 $ 67,058 $ 15,226 S 60,152 (a) Other General and Administrative Expenses include depreciation of $3,692; $8,322; $14,025; and $22,612 for the years 1994 through 1997 respectively

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