P5-6B Howit Inc. operates a retail operation that purchases and sells snowmobiles, assess profitability. amongst other outdoor products. The company purchases all merchandise inventory on credit

(SO 6, 7) 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 2005 through 2008, inclusive.