P Inc. operates a retail operation that purchases and sells snowmobiles, amongst other outdoor products. The company purchases all merchandise inventory on credit and yses a perpetyal inventory system. recording inventory The accounts payable account is used for purchases only; all other current iabilities are acccrued in separate accounts. You are provided with the folowing selected information for the fiscal years 2017 through 2020, indusive. 2017 2018 2019 2020 Income Statement Data 82,220.00 26,550.00 (i) 52,060.00 () Sales 96,850.00 (e) 27,140.00 Cost of goods sold Gross profit Operating expenses (a) 69,260.00 61,540.00 63,500.00 (b) (f) 4,570.00 Net income Balance Sheet Data Merchandise inventory Accounts payable 13,000.00 (c) 6,500.00 14,700.00 (k) 5,000.00 4,600.00 Additional Information Purchases of merchandise on account 25,890.00 (g) (h) 24,050.00 Cash payments to suppliers (d) 24,650.00 REQUIREMENTS: 1. Calculate the missing amounts in good form! a. b. C. d. е. f. g. h. i. j. k. 2. Sales declined over the 3-year fiscal period, 2014-2016. Does that mean that profitably necessarily also declined? Explain, computing the gross profit rate and the profit margin ratio for each fiscal year to help support your answer.
P Inc. operates a retail operation that purchases and sells snowmobiles, amongst other outdoor products. The company purchases all merchandise inventory on credit and yses a perpetyal inventory system. recording inventory The accounts payable account is used for purchases only; all other current iabilities are acccrued in separate accounts. You are provided with the folowing selected information for the fiscal years 2017 through 2020, indusive. 2017 2018 2019 2020 Income Statement Data 82,220.00 26,550.00 (i) 52,060.00 () Sales 96,850.00 (e) 27,140.00 Cost of goods sold Gross profit Operating expenses (a) 69,260.00 61,540.00 63,500.00 (b) (f) 4,570.00 Net income Balance Sheet Data Merchandise inventory Accounts payable 13,000.00 (c) 6,500.00 14,700.00 (k) 5,000.00 4,600.00 Additional Information Purchases of merchandise on account 25,890.00 (g) (h) 24,050.00 Cash payments to suppliers (d) 24,650.00 REQUIREMENTS: 1. Calculate the missing amounts in good form! a. b. C. d. е. f. g. h. i. j. k. 2. Sales declined over the 3-year fiscal period, 2014-2016. Does that mean that profitably necessarily also declined? Explain, computing the gross profit rate and the profit margin ratio for each fiscal year to help support your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kindly answer all the questions please. Thank you
Transcribed Image Text:P Inc. operates a retail operation that purchases and sells snowmobiles, amongst other outdoor products.
The company purchases all merchandise inventory on credit and yses a perpetyal inventory system. recording inventory
The accounts payable account is used for purchases only; all other current iabilities are acccrued in separate accounts.
You are provided with the folowing selected information for the fiscal years 2017 through 2020, indusive.
2017
2018
2019
2020
Income Statement Data
82,220.00
26,550.00
(i)
52,060.00
()
Sales
96,850.00
(e)
27,140.00
Cost of goods sold
Gross profit
Operating expenses
(a)
69,260.00
61,540.00
63,500.00
(b)
(f)
4,570.00
Net income
Balance Sheet Data
Merchandise inventory
Accounts payable
13,000.00
(c)
6,500.00
14,700.00
(k)
5,000.00
4,600.00
Additional Information
Purchases of merchandise on account
25,890.00
(g)
(h)
24,050.00
Cash payments to suppliers
(d)
24,650.00
REQUIREMENTS:
1. Calculate the missing amounts
in good form!
a.
b.
C.
d.
е.
f.
g.
h.
i.
j.
k.
2. Sales declined over the 3-year fiscal period, 2014-2016. Does that mean that profitably necessarily also declined?
Explain, computing the gross profit rate and the profit margin ratio for each fiscal year to help support
your answer.
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