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Chevron Corporation Annual Data: Beginning Inventory: $6,800,000 Purchases: $20,000,000 Ending Inventory: $6,300,000 Net Sales: $32,000,000 Operating Expenses: $9,500,000 Requirements: Develop the Cost of Goods Sold
Chevron Corporation
Annual Data:
- Beginning Inventory: $6,800,000
- Purchases: $20,000,000
- Ending Inventory: $6,300,000
- Net Sales: $32,000,000
- Operating Expenses: $9,500,000
Requirements:
- Develop the Cost of Goods Sold (COGS) statement.
- Compute the Gross Profit.
- Calculate the Inventory Turnover Ratio.
- Construct a partial Income Statement showing Net Sales, COGS, and Gross Profit.
- Discuss how Chevron's inventory turnover ratio affects its exploration and production activities.
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