Adobe Inc.

Category	Amount
Beginning Inventory	$3,000,000
Purchases	$10,000,000
Ending Inventory	$2,700,000
Net Sales	$18,000,000
Operating Expenses	$5,200,000

Requirements:

1. Create the Cost of Goods Sold (COGS) statement.
2. Determine the Gross Profit.
3. Calculate the Inventory Turnover Ratio.
4. Construct a partial Income Statement showing Net Sales, COGS, and Gross Profit.
5. Discuss the impact of Adobe's inventory turnover ratio on its software development and sales cycles.