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Lowe s is the second - largest home improvement retailer in the world, with 2 , 0 0 2 stores. During a recent fiscal year,
Lowes is the secondlargest home improvement retailer in the world, with stores. During a recent fiscal year, Lowes purchased merchandise inventory at a cost of $$ millions Assume all purchases were made on account and accounts payable is only used for inventory purchases. The following Taccounts reflect relevant balance sheet information.
Merchandise Inventory
Opening balance
Closing balance
Accounts Payable
Opening balance
Closing balance
a What amount did Lowes pay in cash to its suppliers during the fiscal year? Explain.
Note: Do not use a negative sign.
Accounts Payable
Opening balance Answer
Add purchases Answer
Subtract payments to suppliers Answer
Closing balance Answer
Lowes paid in cash to its suppliers: $Answer
b Use the financial statement effects template to record Lowes purchases during the fiscal year.
c Use the financial statement effects template to record cost of sales for the fiscal year.
Note: Use negative signs with answers when appropriate.
Note: If an answer field is not needed, leave it blank not all answer fields will be used
BALANCE SHEET INCOME STATEMENT
Cash Noncash Contributed Earned Net
Transaction Asset Assets Liabilities Capital Capital Revenues Expenses Income
b Purchase inventory on account Answer
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NA
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Acct Rec
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NA
c Record COGS for the fiscal year Answer
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