calculate the missing amounts 581674

Letterman Inc. operates a retail operation that purchases and sells home entertainment 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 2008 through 2011, inclusive.

2008

2009

2010

2011

Income Statement Data

Sales

$53,300

$ (e)

$45,200

Cost of goods sold

(a)

13,800

14,300

Gross profit

38,300

33,800

(i)

Operating expenses

34,900

(f)

28,600

Net income

$ (b)

$ 2,500

$ (j)

Balance Sheet Data

$ (c)

$ 8,100

$ (k)

Merchandise inventory

$7,200

3,600

2,500

(l)

Accounts payable

3,200

Additional Information

Purchases of merchandise

inventory on account

$14,200

$ (g)

$13,200

Cash payments to suppliers

(d)

(h)

13,600

Instructions

(a) Calculate the missing amounts.

(b) Sales declined over the 3 year fiscal period, 2009–2011. Does that mean that profitability necessarily also declined? Explain, computing the gross profit rate and the profit margin ratio for each fiscal year to help support your answer. (Round to one decimal place.)