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.