Question

Sage Hill Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all 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 2020 through 2023, inclusive. Calculate the missing amounts. 2020 2021 2022 2023 Income Statement Data Sales revenue $101,000 (e) $76,000 Cost of goods sold (a) 25,600 25,500 Gross profit 71,710 54,400 Operating expenses 66,660 (f) 48,000 Net income $3,200 Balance Sheet Data Inventory $13,600 $ $15,600 $ Accounts payable 6,100 6,800 4,900 Additional Information Purchases of inventory on account 27,390 $ $25,550

Answer 1

	2020	2021	2022	2023
Sales Revenue		101,000	80,000	76,000
COGS		29,290	25,600	25,500
GP		71,710	54,400	50,500
Operating Expenses		66,660	51,200	48,000
Net Income		5,050	3,200	2,500
Inventory	13,600	11,700	15,600	15,650
Accounts Payable	6,100	6,800	4,900	4,400
Purchase of Inventory on Account		27,390	29,500	25,550
Cash Payments to suppliers		26,690	31,400	26,050
GP Rate		71.0%	68.0%	66.4%
Profit Margin		5.0%	4.0%	3.3%

А | B C D E 1 2020 2021 2022 2023 2 Sales Revenue 101000 =D3+D4 76000 3 COGS =C2-C4 25600 25500 4 GP 71710 54400 =E2-E3 5 Operating Expenses 66660 =D4-D6 48000 6 Net Income =C4-C5 3200 =E4-E5 7 8 Inventory 13600 =B8+C11-03 15600 =D8+E11-E3 9 Accounts Payable 6100 6800 4900 =D9+E11-E12 10 11 Purchase of Inventory on Account 27390 =D3+D8-C8 25550 12 Cash Payments to suppliers =B9+C11-09 =C9+D11-09 26050 13 14 15 GP Rate 16 Profit Margin =C4/C2 =C6/C2 =D4/D2 =D6/D2 =E4/E2 =E6/E2