For the year ending March 31, 2023, PepsiCo Inc. reported the following:

Item	Amount ($)
Net Sales	35,000,000
Cost of Sales	25,000,000
Operating Expenses	6,000,000
Depreciation Expense	1,500,000
Interest Expense	1,200,000
Income Tax Expense	2,000,000
Dividends Paid	2,500,000
Beginning Retained Earnings	6,000,000

Requirements:

1. Draft an income statement.
2. Calculate the gross profit margin.
3. Prepare a statement of retained earnings.
4. Determine the earnings per share with 50,000 shares outstanding.
5. Evaluate the impact of a 20% increase in net sales on net income.