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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
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.
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. 2016 2015 Income Statement Data $106,579 Sales revenue (e) $90,442 30,866 29,139 Cost of goods sold Gross profit 65,582 74,580 58,157 Operating expenses 70,004 3,861 Net income (j) Balance Sheet Data $14,300 (c) $16,170 (k) Inventory Accounts payable 6,380 7,150 5,060 Additional Information Purchases of inventory on account $26,455 28,479 Cash payments to suppliers (d) 27,115 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%.) 1% Profit margin (Round to 2 decimal places, e.g. 15.30%.)
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