Data for JKL Retailers:

Item	Amount
Gross Sales	$800,000
Sales Returns and Allowances	$35,000
Net Sales	$765,000
Cost of Goods Sold	$400,000
Operating Expenses	$200,000
Marketing Expenses	$40,000
Interest Expense	$10,000
Tax Rate	29%

Requirements:

1. Prepare an income statement.
2. Calculate the gross profit margin.
3. Determine the amount of taxes paid.
4. Evaluate the impact of a 5% increase in marketing expenses on net income.
5. Discuss the influence of interest expense on profitability.