UVW Corp:

• Beginning Inventory: $29,000
• Purchases: $105,000
• Ending Inventory: $22,000
• Sales Revenue: $155,000
• Sales Returns: $8,000
• Sales Discounts: $4,000
• Operating Expenses: $32,000

Requirements:

1. Prepare the COGS statement.
2. Calculate Gross Profit.
3. Prepare the Income Statement.
4. Compute the Operating Profit Margin.
5. Explain the role of accurate inventory management in financial reporting.