Question

Skysong, 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 2020 through 2023, inclusive

Answer 1

	2020	2021	2022	2023
Income Statement Date
Sales revenue		105000	82000	77000
Cost of goods sold		28350	26240	26180
Gross profit		76650	55760	50820
Operating expenses		69300	52480	49280
Net income		7350	3280	1540
Balance Sheet Data
Inventory	14000	14040	16200	16570
Accounts payable	6300	7000	5100	4600
Additional Information
Purchases of inventory on account		28390	28400	26550
Cash payments to suppliers		27690	30300	27050

Workings:

(a) $105000 - $76650 = $28350

(b) $76650 - $69300 = $7350

(c) $14000 + $28390 - $28350 = $14040

(d) $6300 + $28390 - $7000 = $27690

(e) $26240 + $55760 = $82000

(f) $55760 - $3280 = $52480

(g) $26240 + $16200 - $14040 = $28400

(h) $7000 + $28400 - $16200 = $30300

(i) $77000 - $26180 = $50820

(j) $50820 - $49280 = $1540

(k) $162500 + $26550 - $26180 = $16570

(l) $5100 + $26550 - $27050 = $4600