10. Given the following financial data, answer the questions:
    • Total Revenue: $1500 million
    • Cost of Goods Sold: $900 million
    • Total Operating Expenses: $400 million
    • Interest Expense: $50 million
    • Tax Rate: 30%

a. Calculate the Gross Profit. b. Compute the Operating Profit. c. Determine the Net Income. d. What is the Effective Tax Rate?

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Question 1

Income Statement Analysis: Given below is the income statement for XYZ Corp. for the year ended December 31, 2023.

Item	Amount ($)
Sales Revenue	500,000
Cost of Goods Sold	300,000
Gross Profit	200,000
Operating Expenses	100,000
Operating Income	100,000
Interest Expense	10,000
Income Before Taxes	90,000
Income Tax Expense (30%)	27,000
Net Income	63,000

Requirements:

1. Calculate the Gross Profit Margin.
2. Compute the Operating Profit Margin.
3. Determine the Net Profit Margin.
4. Analyze the impact on Net Income if the Sales Revenue increased by 10%.