Barbara Brislen operates a clothing retail operation. She 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, 2009, 2010, and 2011.

Instructions
(a) Calculate cost of goods sold for each of the 2009, 2010, and 2011 fiscal years.
(b) Calculate the gross profit for each of the 2009, 2010, and 2011 fiscal years.
(c) Calculate the ending balance of accounts payable for each of the 2009, 2010, and 2011 fiscal years.
(d) The vice-presidents of sales, marketing, production, and finance are discussing the company€™s results with the CEO. They note that sales declined in fiscal 2011. They wonder whether that means 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 youranswer.

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2008 2009 2010 2011 Inventory (ending) Accounts payable (ending) Sales Purchases of merchandise $13,000 $ 11,300 $16,400 $ 12,200 227,600 224,000 146,000 155,700 141,000 17,000 225,700 inventory on account Cash payments to suppliers 135,000 159,000 127,000