MNO Corp. provided the following data for 2023:

• Sales: $600,000
• Cost of Goods Sold: $350,000
• Administrative Expenses: $100,000
• Selling Expenses: $70,000
• Interest Expense: $15,000
• Tax Expense: $25,000

Requirements:

1. Prepare the income statement.
2. Compute the gross profit.
3. Compute the operating profit.
4. Compute the net profit.
5. Determine the impact of a 12% decrease in sales on the net profit.