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GHI Company reported the following: Beginning Inventory: $45,000 Purchases: $130,000 Ending Inventory: $40,000 Sales: $180,000 Sales Returns and Allowances: $10,000 Sales Discounts: $5,000 Operating Expenses:
GHI Company reported the following:
- Beginning Inventory: $45,000
- Purchases: $130,000
- Ending Inventory: $40,000
- Sales: $180,000
- Sales Returns and Allowances: $10,000
- Sales Discounts: $5,000
- Operating Expenses: $45,000
Requirements:
- Prepare the cost of goods sold statement.
- Calculate the gross profit.
- Prepare the income statement.
- Compute the net profit margin.
- Discuss the importance of accurate inventory management.
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