Samsung Electronics

Data:

• Beginning Inventory: $10,000,000
• Purchases: $30,000,000
• Ending Inventory: $9,500,000
• Net Sales: $45,000,000
• Operating Expenses: $13,000,000

Requirements:

1. Create the Cost of Goods Sold (COGS) statement.
2. Determine the Gross Profit.
3. Calculate the Inventory Turnover Ratio.
4. Prepare a partial Income Statement showing Net Sales, COGS, and Gross Profit.
5. Discuss the impact of Samsung's inventory turnover ratio on its technological innovation and market leadership.