Foot Locker, Inc., a retailer of athletic footwear and apparel, operates 3,335 stores in the United States, Foot Locker, Inc. (FL) Canada, Europe, Australia, and New Zealand. During its fiscal year ended in 2012, Foot Locker purchased merchandise inventory costing \$4,246 (\$ millions). Assume that Foot Locker makes all purchases on credit, and that its accounts payable is only used for inventory purchases. The following T-accounts reflect information contained in the company's fiscal 2011 and 2012 balance sheets (\$ millions).

a. Use the financial statement effects template to record Foot Locker's 2012 purchases.

b. What amount did Foot Locker pay in cash to its suppliers during fiscal year 2012? Explain.

c. Use the financial statement effects template to record cost of goods sold for its fiscal year 2012.

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Inventories 2011 Bal. 1,069 2012 Bal. 1,167 Accounts Payable 240 298 2011 Bal. 2012 Bal.