VWX Ltd. provides the following information:

• Beginning Inventory: $30,000
• Net Purchases: $120,000
• Ending Inventory: $40,000
• Sales Revenue: $180,000
• Operating Expenses: $25,000

Requirements:

• Prepare the cost of goods sold statement.
• Prepare an income statement.
• Calculate the gross profit and gross profit margin.
• Calculate the operating profit margin.
• Discuss the impact of inventory management on the financial performance of VWX Ltd.