LMN Company's Financial Data

• Beginning Inventory: $15,000
• Purchases: $95,000
• Ending Inventory: $20,000
• Sales: $130,000
• Operating Expenses: $22,000

Tasks:

1. Calculate the Cost of Goods Sold (COGS).
2. Create an income statement.
3. Calculate gross profit and gross profit margin.
4. Calculate operating profit margin.
5. Assess how inventory accuracy can impact financial reporting.