For the year ending December 31, 2023, XYZ Corporation reported the following figures:

• Total Revenue: $800,000
• Cost of Goods Sold: $500,000
• Operating Expenses: $150,000
• Depreciation: $20,000
• Interest Expense: $15,000
• Income Tax: $25,000

Requirements:

1. Prepare a detailed income statement.
2. Calculate the gross profit.
3. Calculate the operating income.
4. Determine the net income.
5. Evaluate the impact of a 5% reduction in cost of goods sold on the net income.