Valerie Fons operates a retail clothing operation. She purchases all merchandise 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 2017 through 2020, inclusive.

Instructions
a. Calculate cost of goods sold for each of the 2018, 2019, and 2020 fiscal years.
b. Calculate the gross profit for each of the 2018, 2019, and 2020 fiscal years.
c. Calculate the ending balance of accounts payable for each of the 2018, 2019, and 2020 fiscal years.
d. Sales declined in fiscal 2020. Does that mean 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 your answer. (Round to one decimal place.)

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2017 2018 2019 2020 €13,000 Inventory (ending) Accounts payable (ending) Sales revenue Purchases of merchandise inventory on account Cash payments to suppliers € 11,300 € 14,700 € 12,200 20,000 225,700 240,300 235,000 132,000 141,000 150,000 161,000 135,000 127,000