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Presented below are the income statements and balance sheets for Zale Corporation for 2013 and 2012 (all dollar amounts in $thousands). Zale Corporation Consolidated Income

Presented below are the income statements and balance sheets for Zale Corporation for 2013 and 2012 (all dollar amounts in $thousands).

Zale Corporation

Consolidated Income Statement

Year ended July 31, 2013 and 2012

2013

2012

Revenues

$1,888,016

$1,866,878

Cost of Sales

903,602

905,613

Gross profit

984,414

961,265

Selling, general and administrative

916,274

902,287

Depreciation

33,770

37,887

Other operating expenses (income), net

(748)

2,387

Operating earnings

35,118

18,704

Interest expense

23,182

44,649

Earnings before income taxes

11,936

(25,945)

Income tax expense

1,924

1,365

Net earnings (loss)

$ 10,012

$ (27,310)

Zale Corporation

Consolidated Balance Sheets

July 31, 2013 and 2012

2013

2012

Cash

$ 17,060

$ 24,603

Merchandise inventory

767,540

741,788

Other current assets

52,620

46,690

Total current assets

837,220

813,081

Property and equipment, net of accumulated depreciation

108,875

122,124

Other assets

241,160

245,263

Total assets

$1,187,255

$1,180,468

Accounts payable

$ 135,650

$ 133,071

Accrued payroll

20,379

12,734

Other accrued liabilities

146,639

144,991

Taxes payable and deferred income taxes

107,016

96,662

Total current liabilities

409,684

387,458

Long-term debt plus contributed capital

342,431

367,882

Retained earnings

435,140

425,128

Total liabilities and stockholders' equity

$1,187,255

$1,180,468

Required:

  1. Calculate the amount of inventory that Zales purchased in the fiscal year ended July 31, 2013.

  1. What amount of cash did Zales pay to suppliers of merchandise inventory in fiscal 2013?

  1. Zales included payroll expenses of $226,750 in selling, general and administrative expenses in its income statement. What amount of compensation (payroll) did Zales pay in cash to its employees in fiscal 2013?

  1. What amount of cash dividends did Zales pay during fiscal 2013?

  1. Zales sold property and equipment for $1,200 in cash and reported a loss on this sale of $1,308. What amount of property and equipment did Zales purchase in fiscal 2013?

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