Question
Reza Inc. operates a retail operation that purchases and sells snowmobiles, amongst other outdoor products. The company purchases all merchandise inventory on credit and uses
Reza Inc. operates a retail operation that purchases and sells snowmobiles, amongst other outdoor products. The company purchases all merchandise 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 2010 through 2013, inclusive.
Collapse question part (a) Calculate the missing amounts.
2010 2011 2012 2013 Income Statement Data Sales revenue $133,011 $ (e) $112,872 Cost of goods sold (a) 38,521 36,365 Gross profit 93,076 81,846 (i) Operating expenses 87,365 (f) 72,580 Net income $ (b) $ 4,819 $ (j) Balance Sheet Data Inventory $17,846 $ (c) $20,180 $ (k) Accounts payable 7,962 8,923 6,315 (l) Additional Information Purchases of merchandise inventory on account 35,542 $ (g) $33,016 Cash payments to suppliers (d) (h) 33,840
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