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