DEF Enterprises provides the following financial figures:

Item	Amount
Total Sales	$600,000
Sales Returns	$50,000
Net Sales	$550,000
Cost of Goods Sold	$250,000
Operating Expenses	$100,000
Interest Expense	$8,000
Tax Rate	32%

Requirements:

1. Construct an income statement for DEF Enterprises.
2. Calculate the gross profit margin.
3. Determine the net income after tax.
4. Assess the impact of a $20,000 increase in operating expenses on net income.
5. Analyze how sales returns affect the company’s revenue.