Problem 5-8A

Sage Hill Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts. You are provided with the following selected information for the fiscal years 2015 through 2018, inclusive.

Calculate the missing amounts.

		2015		2016			2017			2018
Income Statement Data
Sales revenue				$127,895			$	(e)		$108,530
Cost of goods sold					(a)		37,039			34,967
Gross profit				89,496			78,698				(i)
Operating expenses				84,005				(f)		69,788
Net income				$	(b)		$ 4,633			$	(j)
Balance Sheet Data
Inventory		$17,160		$	(c)		$19,404			$	(k)
Accounts payable		7,656		8,580			6,072				(l)
Additional Information
Purchases of inventory on account				34,175			$	(g)		$31,746
Cash payments to suppliers					(d)			(h)		32,538

SHOW LIST OF ACCOUNTS
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Compute the gross profit rate and the profit margin for each fiscal year.

		2016			2017			2018
Gross profit rate (Round to 2 decimal places, e.g. 15.50%.)			%			%			%
Profit margin (Round to 2 decimal places, e.g. 15.30%.)			%			%			%