Cost of Goods Sold Calculation

Data:

• Beginning Inventory: $50,000
• Purchases: $200,000
• Ending Inventory: $30,000
• Sales Revenue: $300,000

Requirements:

1. Calculate the Cost of Goods Sold for Alpha Industries.
2. Determine the Gross Profit for the period.
3. Analyze the impact of inventory management on profitability.
4. Discuss strategies to optimize inventory turnover.
5. Prepare an income statement for Alpha Industries.