Question
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) |
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|
|
Zale Corporation Consolidated Balance Sheets July 31, 2013 and 2012 |
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|
|
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| 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 |
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|
|
|
|
|
|
|
|
|
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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:
- Calculate the amount of inventory that Zales purchased in the fiscal year ended July 31, 2013.
- What amount of cash did Zales pay to suppliers of merchandise inventory in fiscal 2013?
- 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?
- What amount of cash dividends did Zales pay during fiscal 2013?
- 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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