Zara & Company is a manufacturing firm that produces widgets. Below are some financial transactions for the year ended December 31, 2023:

1. Beginning inventory: $50,000
2. Purchases of raw materials: $300,000
3. Direct labor costs: $200,000
4. Manufacturing overhead costs: $150,000
5. Ending inventory: $70,000
6. Cost of goods sold: $530,000
7. Sales revenue: $800,000
8. Selling and administrative expenses: $100,000
9. Income tax rate: 25%

Requirements:

1. Calculate the cost of goods manufactured (COGM).
2. Determine the gross profit for the year.
3. Compute the operating income before taxes.
4. Prepare an income statement for the year ended December 31, 2023.
5. Calculate the net income for the year.