ABC Ltd. has the following details as of 31st December 2023:

Particulars	Amount (₹)
Opening Inventory	1,00,000
Purchases	8,00,000
Closing Inventory	1,20,000
Sales	10,00,000
Operating Expenses	2,00,000

1. PREPARE the Cost of Goods Sold (COGS) statement.
2. COMPUTE the gross profit.
3. ANALYZE the impact on gross profit if closing inventory increases by ₹20,000.
4. EVALUATE the effect on operating profit if operating expenses are reduced by 10%.
5. DISCUSS the importance of inventory management on profitability.