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XYZ Corporation Data Beginning Inventory: $40,000 Net Purchases: $100,000 Ending Inventory: $50,000 Sales Revenue: $150,000 Operating Expenses: $20,000 Tasks: Determine the Cost of Goods Sold.

XYZ Corporation Data

  1. Beginning Inventory: $40,000
  2. Net Purchases: $100,000
  3. Ending Inventory: $50,000
  4. Sales Revenue: $150,000
  5. Operating Expenses: $20,000

Tasks:

  • Determine the Cost of Goods Sold.
  • Create an income statement.
  • Compute the gross profit and gross profit margin.
  • Compute the operating profit margin.
  • Discuss the relationship between inventory levels and cost management.

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