Finn Publishing Corp. produces a monthly publication aimed at competitive swimmers, with articles profiling current stars of the sport, advice from coaches, and advertising by swimwear companies, training organizations, and others. The magazine is distributed through newsstands and bookstores, and by mail to subscribers. The most common subscription is for twelve months. When Finn Publishing receives payment of an annual subscription, it records an Unearned Revenue liability that is reduced by I/12th each month as publications are provided.

The table below provides four years of revenues from the income statement and unearned revenue from the balance sheet. (All amounts in $ thousands.)

a. Calculate the growth in revenue from 2018 to 2019, 2019 to 2020, and from 2020 to 2021.

b. Calculate the amount of customer purchases in 2019, 2020, and 2021. Customer purchases are defined as sales made at newsstands and bookstores, plus the amount paid for new or renewal subscriptions. Again, calculate the growth rates from 2019 to 2020 and from 2020 to 2021.

c. Explain the differences in growth rates between parts a and b above.

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Unearned revenue liability Fiscal year Revenue (end of year) 2018..... $48,000 $20,000 2019...... 55,000 24,000 62,000 62,000 2020 26,000 2021 25,000