Question: Walmart Inc. Category Amount Beginning Inventory $5,000,000 Purchases $18,000,000 Ending Inventory $6,000,000 Net Sales $25,000,000 Operating Expenses $7,500,000 Requirements: Create the Cost of Goods Sold
Walmart Inc.
Category | Amount |
Beginning Inventory | $5,000,000 |
Purchases | $18,000,000 |
Ending Inventory | $6,000,000 |
Net Sales | $25,000,000 |
Operating Expenses | $7,500,000 |
Requirements:
- Create the Cost of Goods Sold (COGS) statement.
- Determine the Gross Profit.
- Calculate the Inventory Turnover Ratio.
- Draft a partial Income Statement showing Net Sales, COGS, and Gross Profit.
- Analyze the effect of Inventory Turnover Ratio on Walmart's inventory management practices.
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