Yang Inc. operates a retail operation that purchases and sells snowmobiles, amon

Question

Yang 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 2012 through 2015, inclusive.

Yang 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 2012 through 2015, inclusive.

Explanation / Answer

a)COGS =Sales -gross profit

           = 132,390- 92,642

           = 39748

b)net Income = Gross profit -operatin expense

                    = 92642 -86958

                   = 5684

c)Inventory at end = Beginning Inventory +Purchase- COGS

                         = 17763 + 35376 -39748

                         = 13391

d)cash payment to suppliers = Beginning payables +purchase -ending payables

                                           = 7925 +35376 -8882

                                            = 34419

e)sales =GOGS +profit

           = 38341+81465

          = 119806

f)operating expense =Gross profit -net income

                              = 81465-4796

                              =76669

g)Purchase = COGS+Ending inventory -beginning inventory

                = 38341 + 20086 - 13391 (part c)

                = 45036

h)cash payment = Beginning +purchase- ending payables

                       = 8882+ 45036 -6285

                      = 47633

i)Gross profit =sales-cogs

                 = 112345-36196

               = 76149

j)net income =76149-72242

                  = 3907

k)Invneotry ate end = Beginning Inventory +purchase - COGS

                            = 20086 + 32862- 36196

                            = 16752

L) accounts payable at end = Beginning payable +purchase-cash payment

                                        = 6285 + 32862 -33682

                                      = 5465

**Beginning balance =closing balance of last year

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