Zhou Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all inventory on credit and uses a periodic 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 fi scal years 2020 through 2023, 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 fi scal period, 2021−2023. Does that mean that profi tability necessarily also declined? Explain, computing the gross profi t rate and the profi t margin for each fi scal year to help support your answer.

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2021 2020 2022 2023 Income Statement Data Sales revenue $96,890 (a) 2$ (e) $82,220 Cost of goods sold 28,060 26,490 Gross profit Operating expenses 67,800 (i) 59,620 (f) $ 3,510 63,640 52,870 Net income %24 (b) () Balance Sheet Data $13,000 (c) $14,700 2$ (k) (1) Inventory Accounts payable 5,800 6,500 4,600 Additional Information Purchases of inventory $25,890 (d) $24,050 on account Cash payments to suppliers (h) 24,650 %24