Walmart Inc.

Financial Data for the Year:

• Beginning Inventory: $8,000,000
• Purchases: $25,000,000
• Ending Inventory: $7,000,000
• Net Sales: $35,000,000
• Operating Expenses: $10,000,000

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. Analyze the relationship between Walmart's inventory turnover ratio and its competitive pricing strategy.