ABC Corporation Financial Information for the Year Ending December 31, 2023:

• Sales Revenue: $200,000
• Cost of Goods Sold: $120,000
• Operating Expenses: $40,000
• Interest Expense: $5,000
• Income Tax Expense: $10,000
• Dividends Paid: $15,000
• Beginning Retained Earnings: $50,000

Requirements:

1. Prepare an income statement.
2. Prepare a statement of retained earnings.
3. Calculate the earnings per share if there are 10,000 shares outstanding.
4. Analyze the impact of a 10% increase in sales revenue on net income.
5. Discuss the effects of increasing dividends on the company’s financial health.