JKL Corporation's Financial Data for the Year Ending December 31, 2023:

• Sales Revenue: $800,000
• Cost of Goods Sold: $480,000
• Marketing and Selling Expenses: $150,000
• Interest Expense: $16,000
• Income Tax Expense: $40,000
• Dividends Paid: $45,000
• Beginning Retained Earnings: $160,000

Requirements:

1. Draft an income statement.
2. Draft a statement of retained earnings.
3. Calculate the earnings per share if there are 40,000 shares outstanding.
4. Investigate the impact of a 20% increase in sales revenue on gross profit.
5. Discuss the implications of a 5% increase in interest expense on net income.