• Gamma Retail reports the following financial data for the year:
  • Beginning inventory: $100,000
  • Purchases: $400,000
  • Sales: $500,000
  • Ending inventory: $80,000

• Requirements:
  1. Calculate Gamma Retail's cost of goods sold (COGS).
  2. Determine the gross profit.
  3. Calculate the inventory turnover ratio.
  4. Analyze the days' sales in inventory (DSI).
  5. Determine the gross profit margin.