• Iota Manufacturing has the following information about its inventory:
  • Beginning inventory: $50,000
  • Purchases: $200,000
  • Sales: $150,000
  • Ending inventory: $100,000

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