ABC Consulting Services is a global firm specializing in IT consulting. Here are financial data for the year 2023:

Ledgers:

• Service Revenue: $15,000,000
• Salaries and Benefits Expense: $8,000,000
• Rent Expense: $500,000
• Utilities Expense: $100,000
• Depreciation Expense: $300,000

Income Statement Requirements:

• Prepare ABC Consulting Services' income statement for the year ended December 31, 2023.
• Calculate the Operating Income and Earnings Before Taxes (EBT).
• Determine the Net Income after taxes using a tax rate of 30%.

Other Requirements:

• Prepare a classified Balance Sheet as of December 31, 2023.
• Discuss the importance of overhead allocation in service firms like ABC Consulting Services.
• Analyze the impact of salary increases on the firm's profitability and cost structure.