Calculating merchandise inventory and cash payments to suppliers
Here is my homework problem: I understand how to calculate the sales, cogs, GP, OE, and NI, but I don't know how to use this information to calculate the merchandise inventory, accounts payable, purchase merchandise inventory on account, and cash payments to suppliers. If someone could help me with the formula, I could figure out the rest. Thanks.
Pierson 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 perpetual 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.
Fill in the missing amounts
Income statement data 2008 2009 2010 2011
Sales - 95,009 (e) 81,294
COGS - (a) 25,753 25,945
GP - 69,855 61,845 (I)
OE - 62,239 (f) 50,608
NI - (b) 5,155 (j)
Merch. Inv. 12,147 (c) 14,242 (k)
Acct. Pay 5,202 6,051 4,932 (l)
Purchase Merch. Inv
On Account - 24,790 (g) 23,693
Cash Payments to
Suppliers - (d) (h) 24,553
