Auto 2oom 3-22 Module 3 Transactions, Adjustments, and Financial Statements 3-22
ID: 2618507 • Letter: A
Question
Auto 2oom 3-22 Module 3 Transactions, Adjustments, and Financial Statements 3-22 M3-20. Inferring Transactions from Financial Statements LO2 Foot Locker Inc, a retailer of athletic footwear and apparel, operates 1,835 stores in the United States, Foot Locker Inc. (FL) Canada, Europe, Australia, and New Zealand. During its 2015 fiscal year ended in January 2016, Foot Locker purchased merchandise inventory costing $4,942 (S millions). Assume Foot Locker makes all purchases on credit and its T-accounts reflect information contained in the company's fiscal 2014 and 2015 balance sheets (S millions) ccounts payable is only used for inventory purchases. The following Inventories Accounts Payable 301 279 2014 Bal 2015 Bal. 2014 Bal. 1,250 1,285 2015 Bal. a. Use the financial statement effects template to record Foot Locker's 2015 b. What amount did Foot Locker pay in cash to its suppliers during fiscal year 2015? Explain purchases. c. Use the financial statement effects template to record cost of goods sold for its fiscal vear 2015Explanation / Answer
Answer (a) Trading account opening stock 1250 Sales 4907 + x purchase of stock during year 4942 Closing Stock 1285 Profit x 6192 + x 6192 + x Here Profit is not given so I assume it be X to complete the trading account Answer (b) Opening creditors 301 Purchases during the year 4942 Less:- Closing Creditors 279 Payment made to suppliers 4964 Here the 4964 is the amount which is paid to suppliers it is to be found by adding amount of purchases in opening creditors and then substract closing creditors from it Answer © Value of COGS opening stock 1250 purchase of stock during year 4942 Less : -closing stock 1285 Cost of goods sold = 4907
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.