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    trans_am_baby's Avatar
    trans_am_baby Posts: 4, Reputation: 1
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    #1

    Mar 5, 2010, 03:43 AM
    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
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Mar 5, 2010, 10:27 PM

    Please see the guidelines for submitting homework:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
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