PQR Corporation provided the following financial details for the year ending December 31, 2023:

• Sales Revenue: $700,000
• Cost of Goods Sold: $420,000
• Operating Expenses: $110,000
• Interest Expense: $14,000
• Income Tax Expense: $25,000
• Dividends Paid: $35,000
• Beginning Retained Earnings: $90,000

Requirements:

1. Prepare an income statement.
2. Draft a statement of retained earnings.
3. Compute the earnings per share if there are 30,000 shares outstanding.
4. Evaluate the effect of a 10% increase in cost of goods sold on net income.
5. Analyze the impact of increasing dividends by 20% on retained earnings and overall financial health.