MNO Ltd. Financial Summary for the Year Ending December 31, 2023:

• Sales Revenue: $900,000
• Cost of Goods Sold: $540,000
• Operating Expenses: $180,000
• Interest Expense: $18,000
• Income Tax Expense: $45,000
• Dividends Paid: $50,000
• Beginning Retained Earnings: $180,000

Tasks:

1. Prepare an income statement.
2. Prepare a statement of retained earnings.
3. Determine the earnings per share if there are 45,000 shares outstanding.
4. Analyze the impact of a 10% increase in cost of goods sold on net income.
5. Evaluate the effects of a 15% reduction in dividends on retained earnings.