Dick's Sporting Goods, Inc. is headquartered in Pennsylvania and is a leading sporting goods retailer. Dick's offers a variety of high-quality sports equipment, apparel, footwear and accessories. The company sells inventory in their stores (Dick's Sporting Goods, Golf Galaxy, Field & Stream, and True Runner) and online through their Web site.
Requirements
1. On which financial statement would you find Merchandise Inventory? What was the amount of merchandise inventory as of January 30, 2016 and January 31, 2015?
2. On which financial statement would you find Cost of Goods Sold? What does Cost of Goods Sold represent?
3. How could you determine the amount of profit that Dick's Sporting Goods earns when selling its merchandise inventory? What is this amount for the year ending January 30, 2016?