EFG Ltd. Details

1. Beginning Inventory: $28,000
2. Purchases: $135,000
3. Ending Inventory: $38,000
4. Sales Revenue: $210,000
5. Operating Expenses: $32,000

Tasks:

• Ascertain the Cost of Goods Sold.
• Create an income statement.
• Calculate the gross profit and gross profit margin.
• Calculate the operating profit margin.
• Discuss the impact of purchasing decisions on inventory and profit margins.