XYZ Software Solutions develops custom software applications. Here are key financial figures for 2023:

Ledgers:

• Software Development Costs: $4,500,000
• Subscription Revenue: $10,000,000
• Marketing Expenses: $1,200,000
• General Administrative Expenses: $800,000

Requirements:

• Prepare XYZ Software Solutions' income statement for the year ended December 31, 2023.
• Calculate the Gross Profit Margin and Operating Expenses.
• Determine the Net Income before taxes.
• Analyze the company's cost structure and recommend ways to improve profitability.