ExxonMobil Corporation

Details:

• Beginning Inventory: $8,500,000
• Purchases: $22,000,000
• Ending Inventory: $7,800,000
• Net Sales: $36,000,000
• Operating Expenses: $10,500,000

Requirements:

1. Formulate the Cost of Goods Sold (COGS) statement.
2. Compute the Gross Profit.
3. Calculate the Inventory Turnover Ratio.
4. Prepare a partial Income Statement showing Net Sales, COGS, and Gross Profit.
5. Evaluate the impact of ExxonMobil's inventory turnover ratio on its energy production and distribution efficiency.