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WXY Corporation has the following financials for 2023: Revenue: $950,000 Cost of Goods Sold: $550,000 Administrative Expenses: $150,000 Selling Expenses: $100,000 Interest Expense: $25,000 Tax

WXY Corporation has the following financials for 2023:

  • Revenue: $950,000
  • Cost of Goods Sold: $550,000
  • Administrative Expenses: $150,000
  • Selling Expenses: $100,000
  • Interest Expense: $25,000
  • Tax Expense: $45,000

Requirements:

  1. Prepare an income statement.
  2. Calculate the gross profit.
  3. Calculate the operating income.
  4. Determine the net income.
  5. Assess the impact of a 10% decrease in administrative expenses on the net income.

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