2 Assuming that 50 million of cost of sales was due to nonin

2.

Assuming that $50 million of cost of sales was due to noninventory purchase expenses (distribution and occupancy costs), how much inventory did the company buy during the year? (Hint: Use a T-account of inventory to infer how much was purchased.) (Enter your answer in thousands, not in dollars.)

3-1 Calculate selling, general, and administrative expenses as a percent of sales for each year presented. (Enter your answer in thousands, not in dollars. Round percentage answers to one decimal place.)

3-2 By what percent did these expenses increase or decrease from fiscal years ended 2014 and 2015 and between 2013 and 2014? (Hint: Percentage Change = [Current Year Amount Prior Year Amount] ÷ Prior Year Amount.) (Round percentage answers to one decimal place.)

4. Compute the company\'s net profit margin for each year.(Round your answer to one decimal place.)

CP3-2 Finding Financial Information LO3-2, 3-4, 3-6. From Financial Accounting with Connect Plus Edition 9

Financial information: http://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/libby_9e/Libby9e_AppC.pdf

Solution

SOLUTION:

2) Solution: 20,512,000

Working:

Particulars

Amount

Working

Beginning

229,561,000

229561*1000

Purchases

20,512,000

Balance

Ending

250,073,000

250073*1000

3-1 )

Solution:

Year Ended

SG&A Expenses /

Net Sales Revenue

= Percentage

2012

$575,811,000

$2,473,801,000

23.3%

2011

$522,417,000

$2,274,102,000

23.0%

2010

$447,161,000

$1,937,815,000

23.1%

Working:

Year Ended

SG&A Expenses /

Net Sales Revenue

2012

575811*1000

2473801*1000

2011

522417*1000

2274102*1000

2010

447161*1000

1937815*1000

3-2)

Particulars

% Change

Increase/ Decrease

Between years ended 2011 &2012:

10.2%

Decrease

Between years ended 2010 & 2011:

16.8%

Increase

4)

Fiscal Year Ended

Net Income /

Net Sales

Net Profit Margin Ratio

2012

$185,251,000

$2,473,801,000

7.5%

2011

$272,958,000

$2,274,102,000

12.0%

2010

$219,893,000

$1,937,815,000

11.3%

Particulars	Amount	Working
Beginning	229,561,000	229561*1000
Purchases	20,512,000	Balance
Ending	250,073,000	250073*1000