1. Cost of Goods Sold Calculation

Data:

• Beginning Inventory: $40,000
• Purchases: $180,000
• Ending Inventory: $30,000
• Sales Revenue: $250,000

Requirements:

1. Calculate the Cost of Goods Sold for Alpha Electronics.
2. Determine the Gross Profit Margin.
3. Analyze the impact of inventory management on profitability.
4. Discuss strategies to optimize inventory turnover.
5. Prepare an income statement showing COGS and gross profit.