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.