Psang Inc. operates a retail operation that purchases and sells home entertainment and assess profitability. products. The company purchases all merchandise inventory on credit and uses a periodic

(LO 6) 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.

2011 2012 2013 2014 Income Statement Data Sales revenue $53,000 $

(e) $46,000 Cost of goods sold

(a) 13,800 14,300 Gross profit 38,300 35,200 (i)

Operating expenses 35,900 (fH 28,600 Net income See ee(b)) S200). & (j)

Balance Sheet Data Inventory $7,200 $

(c) $8,100 $ (k)

Accounts payable 3,200 3,400 2,500 (1)

Additional Information Purchases of merchandise inventory on account $14,200 $ 6 (g) $13,200 Cash payments to suppliers

(d) (h) 13,600

(c) $6,700 Instructions

(g) $15,200

(a) Calculate the missing amounts.

(i) $31,700

(b) Sales declined over the 3-year fiscal period, 2012-2014. Does that mean that profitabil- y Pp Journalize, post, and prepare ity necessarily also declined? Explain, computing the gross profit rate and the profit trial balance and partial margin ratio for each fiscal year to help support your answer. (Round to one decimal income statement using place.)

periodic approach.

(LO 6)