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JKL Company Income Statement and Analysis Total Sales : $300,000 Sales Returns and Allowances : $20,000 Net Sales : $280,000 Cost of Goods Sold :

JKL Company Income Statement and Analysis

  • Total Sales: $300,000
  • Sales Returns and Allowances: $20,000
  • Net Sales: $280,000
  • Cost of Goods Sold: $150,000
  • Operating Expenses: $50,000
  • Interest Expense: $4,000
  • Tax Rate: 30%

Requirements:

  1. Prepare an income statement.
  2. Calculate the net profit margin.
  3. Determine the amount of taxes paid.
  4. Analyze how a 5% increase in operating expenses would affect net income.
  5. Discuss the impact of interest expense on profitability.

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