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.
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2011
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2012
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2013
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2014
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Income Statement Data
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Sales revenue
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$55,770
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$
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(e)
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$47,250
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Cost of goods sold
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(a)
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13,430
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14,240
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Gross profit
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38,880
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35,920
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(i)
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Operating expenses
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35,200
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(f)
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28,150
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Net income
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$
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(b)
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3,870
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$
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(j)
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Balance Sheet Data
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Inventory
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$7,640
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$
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(c)
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$9,220
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$
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(k)
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Accounts payable
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3,240
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3,580
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2,320
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(l)
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Additional Information
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Purchases of merchandise inventory on account
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$14,100
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$
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(g)
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$13,710
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Cash payments to suppliers
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(d)
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(h)
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13,910
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Compute the gross profit rate and the profit margin for each fiscal year. (Round answers to 1 decimal places, e.g. 10.5%.)
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2012
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2013
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2014
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Gross profit rate
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%
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%
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%
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Profit margin
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%
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%
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%
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