JKL Ltd. has provided the following information for the year ending December 31, 2023:

• Sales Revenue: $450,000
• Cost of Goods Sold: $270,000
• Operating Expenses: $75,000
• Interest Expense: $9,000
• Income Tax Expense: $18,000
• Dividends Paid: $30,000
• Beginning Retained Earnings: $60,000

Requirements:

1. Prepare an income statement.
2. Prepare a statement of retained earnings.
3. Compute the earnings per share if there are 18,000 shares outstanding.
4. Analyze the effect of a 10% increase in sales revenue and a 5% increase in cost of goods sold on net income.
5. Evaluate the effect of doubling the dividends paid on the retained earnings.