Question

Problem 5-8A 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 2015 through 2018, inclusive

Calculate the missing amounts. 2015 2016 2017 2018 Income Statement Data Sales revenue $127,895   $enter a dollar amount (e) $108,530   Cost of goods sold enter a dollar amount (a) 37,039   34,967   Gross profit 89,496   78,698   enter a dollar amount (i) Operating expenses 84,005   enter a dollar amount (f) 69,788   Net income $enter a total net income (b) $ 4,633   $enter a total net income (j) Balance Sheet Data Inventory $17,160   $enter a dollar amount (c) $19,404   $enter a dollar amount (k) Accounts payable 7,656   8,580   6,072   enter a dollar amount (l) Additional Information Purchases of inventory on account 34,175   $enter a dollar amount (g) $31,746   Cash payments to suppliers enter a dollar amount (d) enter a dollar amount (h) 32,538

Compute the gross profit rate and the profit margin for each fiscal year. 2016 2017 2018 Gross profit rate (Round to 2 decimal places, e.g. 15.50%.) enter percentages rounded to 2 decimal places % enter percentages rounded to 2 decimal places % enter percentages rounded to 2 decimal places % Profit margin (Round to 2 decimal places, e.g. 15.30%.) enter percentages rounded to 2 decimal places % enter percentages rounded to 2 decimal places % enter percentages rounded to 2 decimal places %

Answer 1