Coca-Cola Company

Inventory and Sales Data:

• Beginning Inventory: $2,200,000
• Purchases: $9,200,000
• Ending Inventory: $2,700,000
• Net Sales: $14,500,000
• Operating Expenses: $4,000,000

Requirements:

1. Prepare the Cost of Goods Sold (COGS) statement.
2. Calculate the Gross Profit.
3. Compute the Inventory Turnover Ratio.
4. Prepare a partial Income Statement showing Net Sales, COGS, and Gross Profit.
5. Discuss how the Inventory Turnover Ratio influences Coca-Cola's distribution strategy.