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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.

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 36E: The following data were extracted from the accounting records of Harkins Company for the year ended...
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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.
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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