ABC Company is a retail business that sells a variety of products. The company has several retail stores in different locations. As the auditor of ABC Company, you have been asked to analyze the sales and cost of sales for the year ended December 31, 2022. The company's records show the following information:

• Sales revenue: $10,000,000
• Beginning inventory of goods: $1,000,000
• Ending inventory of goods: $1,500,000
• Purchases of goods: $6,000,000
• Purchase discounts: $50,000
• Purchase returns and allowances: $75,000
• Freight-in: $100,000
• Other expenses related to purchasing and receiving goods: $200,000
• Gross profit percentage: 50%

a) Calculate the cost of goods sold for the year ended December 31, 2022. (8 marks)

b) Calculate the average inventory for the year ended December 31, 2022. (6 marks)

c) Calculate the inventory turnover for the year ended December 31, 2022. (6 marks)