need help with the following (the last picture)

Three years ago, Karen Suez and her brother-in-law Reece Jones opened Sheridan Department Store. For the first 2 years, business was good, but the following condensed income statement results for 2022 were disappointing. SHERIDAN DEPARTMENT STORE Income Statement For the Year Ended December 31, 2022 Net sales $ 620,000 Cost of goods sold 496,000 Gross profit 124,000 Operating expenses Selling expenses $ 82,000 Administrative expenses 20,000 102,000 Net income $ 22,000 Karen believes the problem lies in the relatively low gross profit rate of 20%. Reece believes the problem is that operating expenses are too high. Karen thinks the gross profit rate can be improved by making two changes. She does not anticipate that these changes will have any effect on operating expenses. 1. Increase average selling prices by 15%; this increase is expected to lower sales volume so that total sales dollars will increase only 4%. 2. Buy merchandise in larger quantities and take all purchase discounts. These changes to selling price and purchasing practices are expected to increase the gross profit rate from its current rate of 20% to a new rate of 25%. Reece thinks expenses can be cut by making these two changes. He feels that these changes will not have any effect on net sales. 1. Cut 2023 sales salaries of $ 52,000 in half and give sales personnel a commission of 2% of net sales. 2. Reduce store deliveries to one day per week rather than twice a week. This change will reduce 2023 delivery expenses of $ 36,000 by 40%. Karen and Reece come to you for help in deciding the best way to improve net income. Answer the following. Your answer is correct. Prepare a condensed income statement for 2023 assuming Karen's changes are implemented. SHERIDAN DEPARTMENT STORE Projected Income Statement For the Year Ended December 31, 2023 Net sales $ 644800 Cost of goods sold 483600 PO Gross profit 161200 Operating expenses Selling expenses $ ta 82000 i Administrative expenses 20000 i Total operating expenses 102000 i Net income $ 59200 (a2) Prepare a condensed income statement for 2023 assuming Reece's ideas are adopted. SHERIDAN DEPARTMENT STORE Projected Income Statement $ > > $ ta $