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

Ledgers (in $ millions)	Amount
Beginning Inventory	10.0
Purchases of Merchandise	50.0
Sales Revenue	100.0
Operating Expenses	30.0
Income Tax Expense	15.0

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 25%.