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:

1. Create an income statement.
2. Prepare a statement of retained earnings.
3. Determine the earnings per share if there are 15,000 shares outstanding.
4. Assess the effect of a 15% increase in sales revenue on net income.
5. Examine the impact of reducing operating expenses by 10% on net income.