Val Knight operates a retail clothing operation. She 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 2011–2014.

Instructions
(a) Calculate cost of goods sold for each of the 2012, 2013, and 2014 fiscal years.
(b) Calculate the gross profit for each of the 2012, 2013, and 2014 fiscal years.
(c) Calculate the ending balance of accounts payable for each of the 2012, 2013, and 2014 fiscal years.
(d) Sales declined in fiscal 2014. Does that mean that profitability, as measured by the gross profit rate, necessarily also declined? Explain, calculating the gross profit rate for each fiscal year to help support your answer. (Round to one decimalplace.)

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2011 2012 2013 11,300 14,700 $12,200 237,000 145,000 2014 Inventory (ending) $13,000 Accounts payable (ending) 20,000 Sales revenue Purchases of merchandise 239,000 235,000 inventory on account Cash payments to suppliers 146,000 135,000 129,000 127,000 161,000