XYZ Retail Group operates a chain of department stores. Here are selected financial figures for the fiscal year 2023:

Ledgers:

• Beginning Inventory: $2,500,000
• Purchases of Merchandise: $15,000,000
• Sales Revenue: $30,000,000
• Operating Expenses: $10,000,000
• Income Tax Expense: $1,500,000

Requirements:

• Prepare XYZ Retail Group's income statement for the year ended December 31, 2023.
• Calculate the Gross Profit and Operating Income.
• Determine the Net Income after taxes.
• Evaluate the impact of a 5% increase in cost of goods sold on overall profitability.
• Discuss strategies to improve inventory turnover ratio by 20%.