Financial Information for PQR Ltd.:

Particulars	Amount
Total Sales	$1,000,000
Sales Returns	$50,000
Net Sales	$950,000
Cost of Goods Sold	$500,000
Operating Expenses	$250,000
Administrative Expenses	$60,000
Interest Expense	$12,000
Tax Rate	24%

Requirements:

1. Prepare an income statement.
2. Calculate the gross profit margin.
3. Determine the amount of taxes paid.
4. Assess the impact of a 15% increase in administrative expenses on net income.
5. Discuss the significance of interest expense in determining profitability.