XYZ Fashion Retail operates upscale clothing stores globally. Financial data for 2023 is provided below:

Ledgers:

• Beginning Inventory: $5,000,000
• Purchases of Merchandise: $30,000,000
• Sales Revenue: $60,000,000
• Operating Expenses: $20,000,000
• Income Tax Expense: $3,000,000

Requirements:

• Prepare XYZ Fashion Retail's income statement for the year ended December 31, 2023.
• Calculate the Gross Profit and Operating Income.
• Determine the Net Income after taxes.
• Analyze XYZ Fashion Retail's financial performance relative to industry benchmarks.
• Recommend strategies to enhance XYZ Fashion Retail's profitability and market competitiveness.