NOP Ltd. reports the following:

• Beginning Inventory: $40,000
• Purchases: $160,000
• Ending Inventory: $30,000
• Sales: $300,000

Requirements:

1. Calculate the cost of goods sold (COGS).
2. Calculate the inventory turnover ratio.
3. Compute the average days in inventory.
4. Calculate the gross profit.
5. Assess the company’s inventory management efficiency.