XYZ Tech Solutions is a prominent software development company. Here are key financial figures for 2023:

Ledgers:

• Software Development Costs: $3,500,000
• Sales Revenue: $12,000,000
• Marketing Expenses: $1,000,000
• General Administrative Expenses: $600,000

Income Statement Requirements:

• Prepare XYZ Tech Solutions' income statement for the year ended December 31, 2023.
• Calculate the Gross Profit Margin and Operating Expenses.
• Determine the Net Income before taxes.

Other Requirements:

• Prepare a Statement of Cash Flows using the indirect method for XYZ Tech Solutions.
• Discuss the impact of software development costs on XYZ Tech Solutions' financial performance.
• Analyze how XYZ Tech Solutions can enhance its profitability through cost control measures.