XYZ Inc. Financial Information for the Year Ending December 31, 2023:

• Sales Revenue: $300,000
• Cost of Goods Sold: $180,000
• Administrative Expenses: $50,000
• Interest Expense: $7,000
• Income Tax Expense: $15,000
• Dividends Paid: $20,000
• Beginning Retained Earnings: $60,000

Requirements:

1. Prepare an income statement.
2. Prepare a statement of retained earnings.
3. Calculate the earnings per share if there are 15,000 shares outstanding.
4. Assess the impact of a 15% increase in cost of goods sold on gross profit.
5. Evaluate the implications of a 5% increase in operating expenses on net income.