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