1. Determine the Net Purchases of your company. Show and label your work. Use the following formula: Beginning Inventory + Net Purchases = Ending Inventory + COGS. Hint: Remember, the prior years ending inventory is the current years beginning inventory.

Beginning inventory=

Net purchases=

2. Calculate your companys Historical Gross Profit Rate. Show and label your work! Use the following formula: Gross Profit from Prior Periods / Net Sales from Prior Periods.

3. Using the information calculated in d and e above, calculate ending inventory under the Gross Profit Method.

4. How does the ending inventory calculated in part f above compare to the actual ending inventory reported? Please provide both amounts in your answer.

Consolidated Balance Sheets - USD (S) Jan. 28, 2017 Jan. 30, 2016 S in Millions Current assets: Cash and cash equivalents Receivables, net Merchandise inventories, net Prepaid expenses and other current S 1.137 Current assets of discontinued operations current assets Property and equipment Property and equipment, net Intangible assets, net of accumulated 1.147 Other assets Noncurrent assets of discontinued 1,010 Total assets Current liabilities Accounts payable expenses and other current iabilities Debt maturing within one year Current liabilities of discontinued Total current liabilities 441 Other long-term obligations Noncurrent liabilities of discontinued Stockholders' equity Preferred stock, S.01 par value, 5,000,000 shares authorized; no shares issued Common stock, S.0008 par value, 2,100,000,000 shares authorized: issued and outstanding 953,711,270 and 852,470,081 shares at January 28, 2017 and 948,964,792 and 645,723,803 shares at January 30, 2016 paid-in capital 5,067 5.010 Accumulated other comprehensive loss Retained earnings Less: Treasury stock at cost, 301,241, 189 shares at January 28, 2017 and January 30, 2016 (1,053) 5.092 8,900 (5.419) l Staples, Inc. stockholders' equity 5,376 Noncontrolling interests stockholders' equity 3,696 5.384 Total liabilities and stockholders' equity 5 8,271 Consolidated Statements of Income- USD (S) Jan. 28, 2017 Jan. 30, 2016 Jan. 31, 2015 S 18,247 18,764 S 19,684 Cost of goods sold and occupancy costs 13,857 3,845 4,096 9 (Loss) income from continuing operations (Loss) income from continuing operations Total pretax (loss) income of discontinued (1,045) (1,038) S (1,497 Basic Earnings per share Consolidated operations Dividends declared per common share