PQR Ltd. Financial Overview for the Year Ending December 31, 2023:

• Sales Revenue: $250,000
• Cost of Goods Sold: $150,000
• General and Administrative Expenses: $45,000
• Interest Expense: $6,000
• Income Tax Expense: $12,000
• Dividends Paid: $18,000
• Beginning Retained Earnings: $55,000

Instructions:

1. Prepare an income statement.
2. Prepare a statement of retained earnings.
3. Calculate the earnings per share if there are 12,000 shares outstanding.
4. Analyze the potential impact of a 10% decrease in operating expenses on net income.
5. Discuss the financial consequences of doubling the dividends paid.