HIJ Corp. Information

• Initial Inventory: $55,000
• Net Purchases: $165,000
• Final Inventory: $65,000
• Sales: $270,000
• Operating Expenses: $38,000

Requirements:

1. Compute the Cost of Goods Sold.
2. Prepare the income statement.
3. Calculate gross profit and gross profit margin.
4. Calculate operating profit margin.
5. Evaluate the role of inventory management in cost control.