General Electric Company

Annual Data:

• Beginning Inventory: $6,200,000
• Purchases: $17,500,000
• Ending Inventory: $5,900,000
• Net Sales: $28,000,000
• Operating Expenses: $8,800,000

Requirements:

1. Create the Cost of Goods Sold (COGS) statement.
2. Determine the Gross Profit.
3. Calculate the Inventory Turnover Ratio.
4. Construct a partial Income Statement showing Net Sales, COGS, and Gross Profit.
5. Analyze how General Electric's inventory turnover ratio impacts its manufacturing processes and product innovation.