ABC Corporation provided the following 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:

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