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 2014 through 2017, inclusive.

Instructions
(a) Calculate cost of goods sold for each of the 2015, 2016, and 2017 fiscal years.
(b) Calculate the gross profit for each of the 2015, 2016, and 2017 fiscal years.
(c) Calculate the ending balance of accounts payable for each of the 2015, 2016, and 2017 fiscal years.
(d) Sales declined in fiscal 2017. 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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20142015 2016 2017 Inventory (ending) Accounts payable (ending) Sales revenue Purchases of merchancise 13,000 300 14,700 12,200 225,700 240,300 235,000 141,000 150,000 132,000 20,000 inventory on account Cash payments to suppliers 35,000 161,00027,000