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 fiscal years 2023 through 2026, 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, 2024-2026. Does that mean that profitability necessarily also declined? Explain, computing the gross profit rate and the profit margin for each fiscal year to help support your answer.

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Income Statement Data Sales revenue Cost of goods sold Gross profit Operating expenses Net income Balance Sheet Data Inventory Accounts payable Additional Information Purchases of inventory on account Cash payments to suppliers 2023 $13,000 5,800 2024 $97,000 (a) 67,900 63,050 (b) $ (c) 6,500 $25,890 (d) $ (e) 28,160 2025 59,840 (f) $ 3,520 $14,700 4,600 $ 69 (h) 2026 $82,000 27,060 (i) 52,480 (j) $ (k) (1) $24,050 24,650