Scenario: Income Statement Analysis

Given the following income statement data for Company B for the year 2023:

• Sales Revenue: $500,000
• Cost of Goods Sold (COGS): $200,000
• Operating Expenses: $150,000
• Interest Expense: $20,000
• Tax Rate: 30%

Requirements:

1. Prepare the income statement.
2. Calculate the Gross Profit Margin.
3. Compute the Operating Profit Margin.
4. Determine the Net Profit Margin.
5. Calculate the Earnings Before Interest and Taxes (EBIT).