Data for ABC Inc.:

• Total Revenue: $400,000
• Sales Discounts: $8,000
• Sales Returns and Allowances: $12,000
• Cost of Goods Sold: $200,000
• Operating Expenses: $70,000
• Interest Expense: $6,000
• Tax Rate: 28%

Requirements:

1. Prepare an income statement.
2. Calculate the operating profit margin.
3. Determine the amount of taxes paid.
4. Evaluate the effect of a 15% increase in sales discounts on net income.
5. Discuss the impact of interest expense on the company's net profit.