PQR Inc. presents the following financial data:

• Beginning Inventory: $35,000
• Purchases: $90,000
• Ending Inventory: $25,000
• Sales Revenue: $160,000
• Sales Returns: $6,000
• Sales Discounts: $4,000
• General and Administrative Expenses: $25,000

Requirements:

1. Calculate the cost of goods sold.
2. Determine the gross profit.
3. Prepare the income statement.
4. Compute the net income.
5. Discuss the role of sales discounts in enhancing customer satisfaction.