Coca-Cola Company

Summary:

• Beginning Inventory: $5,800,000
• Purchases: $15,000,000
• Ending Inventory: $5,400,000
• Net Sales: $26,000,000
• Operating Expenses: $7,800,000

Requirements:

1. Create the Cost of Goods Sold (COGS) statement.
2. Determine the Gross Profit.
3. Calculate the Inventory Turnover Ratio.
4. Prepare a partial Income Statement showing Net Sales, COGS, and Gross Profit.
5. Analyze the implications of Coca-Cola's inventory turnover ratio for its production scheduling and distribution network.