GoldenSpike Enterprises, a leading manufacturer of automotive components, is undergoing a comprehensive review of its inventory data for the fiscal year ending December 31, 2023. As the chief accountant, your role is pivotal in deriving crucial financial insights. Below, you'll find detailed inventory information along with sales and cost data for the year.

Inventory Details:

• Beginning Inventory (as of January 1, 2023):
  • Raw materials: $400,000
  • Work in process: $300,000
  • Finished goods: $500,000
• Purchases and Production Costs (during the year):
  • Raw materials acquired: $1,300,000
  • Direct labor expenses: $850,000
  • Manufacturing overhead costs: $550,000
• Ending Inventory (as of December 31, 2023):
  • Raw materials on hand: $450,000
  • Work in process: $350,000
  • Finished goods: $650,000

Sales and COGS Information:

• Total sales revenue for the fiscal year: $4,000,000
• Cost of goods sold (COGS) for the year: $2,500,000

Tasks:

1. Calculate Inventory Turnover Ratio:
   • Utilizing the provided inventory and sales data, determine the inventory turnover ratio for GoldenSpike Enterprises for the fiscal year 2023. Present your findings in a clear and concise manner.
2. Assess Gross Profit Margin:
   • Compute the gross profit margin for GoldenSpike Enterprises based on the given sales and COGS figures. Discuss the implications of the computed margin on the company's profitability.
3. Evaluate Inventory Composition:
   • Analyze the composition of GoldenSpike's ending inventory in terms of raw materials, work in process, and finished goods. Provide insights into any significant trends or shifts observed in inventory composition compared to the beginning of the year.