Calculate the missing amounts

Assignment Help Accounting Basics

Reference no: EM131031246

I have completed what I c an I am having a very difficult time with inventory if you could break down the equation to inventory it would be greatly appreciated.

Alana Inc. operates a retail operation that purchases and sells home entertainment products. The company purchases all merchandise inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts.

You are provided with the following selected information for the fiscal years 2011 through 2014, inclusive. Calculate the missing amounts.

	2011	2012		2013		2014
Income Statement Data
Sales revenue		$55,770		$	(e)	$47,250
Cost of goods sold			(a)	13,430		14,240
Gross profit		38,880		35,920			(i)
Operating expenses		35,200			(f)	28,150
Net income		$	(b)	3,870		$	(j)
Balance Sheet Data
Inventory	$7,640	$	(c)	$9,220		$	(k)
Accounts payable	3,240	3,580		2,320			(l)
Additional Information
Purchases of merchandise inventory on account		$14,100		$	(g)	$13,710
Cash payments to suppliers			(d)		(h)	13,910

Compute the gross profit rate and the profit margin for each fiscal year. (Round answers to 1 decimal places, e.g. 10.5%.)

	2012		2013		2014
Gross profit rate		%		%		%
Profit margin		%		%		%

Reference no: EM131031246

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