Valerie Fons operates a retail clothing operation. She purchases all merchandise and assess profitability. inventory on credit and uses a periodic inventory system. The Accounts Payable account

(LO 6) 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 2011-2014.

2011 ~ 2012 2013 2014 Inventory (ending) $135,000 9S S00 S14°7 008 312200 Accounts payable (ending) 20,000 Sales revenue MDS) TAOXO) 240,300 235,000 Purchases of merchandise inventory on account 141,000 150,000 132,000 Cash payments to suppliers 135,000 161,000 127,000 Instructions

(a) 2013 $146,600

(a) Calculate cost of goods sold for each of the 2012, 2013, and 2014 fiscal years.

(b) Calculate the gross profit for each of the 2012, 2013, and 2014 fiscal years.

(c) 2013 Ending accts

(c) Calculate the ending balance of accounts payable for each of the 2012, 2013, and 2014 payable $16,000 fiscal years.

(d) Sales declined in fiscal 2014. Does that mean that profitability, as measured by the gross profit rate, necessarily also declined? Explain, calculating the gross profit rate for each fiscal year to help support your answer. (Round to one decimal place.)