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.

Instructions
(a) Calculate the missing amounts.
(b) The vice-presidents of sales, marketing, production, and finance are discussing the company€™s results with the CEO. They note that 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 youranswer.

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2008 2009 2010 2011 Income Statement Data $96,850 (e $82,220 26,490 Cost of goods sold Gross profit Operating expenses Net income Balanc Sheet Data Merchandise inventory Accounts payable Additional Information Purchases of merchandise 25,140 59,540 67,260 63,640 1 52,870 $ (b) 4,570 ) 13,000 (c) $14,700 (k) 5,800 6,500 4,600 g $24,050 24,650 $25,890 inventory on account Cash payments to suppliers