McDonald's Corporation

Data:

• Beginning Inventory: $7,800,000
• Purchases: $21,000,000
• Ending Inventory: $7,300,000
• Net Sales: $35,000,000
• Operating Expenses: $10,200,000

Requirements:

1. Create the Cost of Goods Sold (COGS) statement.
2. Determine the Gross Profit.
3. Calculate the Inventory Turnover Ratio.
4. Draft a partial Income Statement showing Net Sales, COGS, and Gross Profit.
5. Evaluate how McDonald's inventory turnover ratio affects its supply chain efficiency and cost management.