XYZ Corporation	Data for Financial Year
Total Revenue	$500,000
Discounts	$10,000
Returns	$15,000
Cost of Goods Sold	$250,000
Operating Expenses	$100,000
Depreciation Expense	$20,000
Interest Expense	$5,000
Tax Rate	25%

Requirements:

1. Prepare an income statement.
2. Calculate the gross profit margin.
3. Determine the amount of taxes paid.
4. Analyze the effect of a 10% increase in depreciation expense on net income.
5. Discuss the impact of interest expense on the company's profitability.