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XYZ Ltd. has the following financial information for the year ending December 31, 2023: Sales Revenue: $350,000 Cost of Goods Sold: $210,000 Operating Expenses: $60,000
XYZ Ltd. has the following financial information for the year ending December 31, 2023:
- Sales Revenue: $350,000
- Cost of Goods Sold: $210,000
- Operating Expenses: $60,000
- Interest Expense: $10,000
- Income Tax Expense: $15,000
- Dividends Paid: $20,000
- Beginning Retained Earnings: $70,000
Requirements:
- Create an income statement.
- Prepare a statement of retained earnings.
- Determine the earnings per share if there are 15,000 shares outstanding.
- Assess the effect of a 15% increase in sales revenue on net income.
- Examine the impact of reducing operating expenses by 10% on net income.
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