Inferring Transactions from Financial Statements

Lowe's is the second$-$largest home improvement retailer in the world, with $1,857$ stores. During its $2015$ fiscal year ended in January $2016,$ Lowe's purchased merchandise inventory at a cost of $$39,129($ $ millions$).$ Assume all purchases were made on account and accounts payable is only used for inventory purchases. The following T$-$accounts reflect information contained in the company's $2014$ and $2015$ balance sheets.

I

$\backslash$table$[[$Merchandise Inventories,$],[2014$ Bal.,$8\mathrm{.}930,],[2015$ Bal.,$9,439,]]$

$\backslash$table$[[$Accounts Payable$],[,5,105,2014$ Bal.,$],[,5,652,2015$ Bal.,$]]$

a$.$ Use the financial statement effects template to record Lowe's purchases during fiscal $2015.$ Use a negative sign with answers, if appropriate.

Balance

Income

Inferring Transactions from Financial Statements

Lowe's is the second$-$largest home improvement retailer in the world, with $1,857$ stores. During its $2015$ fiscal year ended in January $2016,$ Lowe's purchased merchandise inventory at a cost of $$39,129($ $ millions$).$ Assume all purchases were made on account and accounts payable is only used for inventory purchases. The following T$-$accounts reflect information contained in the company's $2014$ and $2015$ balance sheets.

$\backslash$table$[[$Merchandise Inventories$],[2014$ Bal.,$8\mathrm{.}930,],[2015$ Bal.,$9,439,]]$

$\backslash$table$[[$Accounts Payable$],[,5,105,2014$ Bal.$],[,5,652,2015$ Bal.$]]$

a$.$ Use the financial statement effects template to record Lowe's purchases during fiscal $2015.$ Use a negative sign with answers, if appropriate.

c$.$ Use the financial statement effects template to record cost of sales for $2015.$ Use a negative sign with answers if appropriate.