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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 2020 through 2023, inclusive. Calculate the missing amounts. 2020 2021 2022 2023 Income Statement Data Sales revenue $101,000 (e) $76,000 Cost of goods sold (a) 25,600 25,500 Gross profit 71,710 54,400 Operating expenses 66,660 (f) 48,000 Net income $3,200 Balance Sheet Data Inventory $13,600 $ $15,600 $ Accounts payable 6,100 6,800 4,900 Additional Information Purchases of inventory on account 27,390 $ $25,550 Purchases of inventory on account 27,390 $ $25,550 Cash payments to suppliers 26,050 e Textbook and Media List of Accounts Compute the gross profit rate and the profit margin for each fiscal year. (Round answers to 1 decimal place, e.g. 15.5%.) 2021 2022 2023 Gross profit rate Profit margin e Textbook and Media List of Accounts
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