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XYZ Retail Chain is conducting a comprehensive financial review: Compute Cost of Goods Sold (CGS) with beginning inventory valued at $1,000,000, purchases totaling $5,000,000, and

XYZ Retail Chain is conducting a comprehensive financial review:

  • Compute Cost of Goods Sold (CGS) with beginning inventory valued at $1,000,000, purchases totaling $5,000,000, and ending inventory of $1,500,000.
  • Evaluate SG&A expenses, including rent expenses of $200,000 and advertising costs amounting to $100,000.
  • Calculate the Gross Profit Margin and propose measures to optimize inventory turnover by 20% through better procurement strategies.
  • Analyze the financial impact of reduced inventory costs on working capital.

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