Hello,

I need a help with the following question. I started working in the template and did the calculations answering a). and b). but I cannot figure out part c). Please, if I did incorrectly part a) and b), let me know and show me hot to calculate it correctly. Also, show how to calculate part c).

Foot Locker Inc., a retailer of athletic footwear and apparel, operates 1,835 stores in the United States, Canada, Europe, Australia, and New Zealand. During its 2015 fiscal year ended in January 2016, Foot Locker purchased merchandise inventory costing $4,942 (millions). Assume Foot Locker makes all purchases on credit and its accounts payable is only used fir inventory purchases. The following T-accounts reflect information contained in the companys fiscal 2014 and 2105 balance sheets (millions).

Inventories				Accounts Payable
2014 Balance	$1,250				$301	2014 Balance
2015 Balance	$1,285				$279	2015 Balance

a). Use the financial statement effects template to record Foot Lockers 2015 purchases.

b). What amount did Foot Locker pay in cash to its suppliers during fiscal year 2015? Explain.

c). Use the financial statement effects template to record cost of goods sold for its fiscal year 2015.

My answer:

Financial Statement Effects Template for Foot Locker Inc. 2015-2016 ($ millions)
Transaction		Cash Assets	Noncash Assets	Liabilities	Contributed Capital		Earned Capital
2015			$1,285	$279
1.Purchase $4,942 of inventory on credit			$4,942	$4,942
2.Pay cash to its suppliers		($1,006)		($1,006)