Show TLG formula Tabulate the following:A leading departmental store divided into fivemain sections- grocery, vegetables, medicines,textiles and novelties - recorded the followingsales in 1991, 1992 and 1993 :In 1991, sales in grocery, vegetables,medicines and novelties were Dollar 6,25,000,dollar 2,20,000, dolar 1,88,000 and dollar.94,000 respectively. Textiles accounted for 30%of the total sales during the years.In 1992 the total sales showed 10% increaseover the previous year. While grocery andvegetables registered 8% and 10% increaseover their corresponding figures in 1991,medicines dropped byDollar 13,000, textiles stood at dollar. 5,36,000.In 1993, though the total sales remained thesame as in 1992, grocery fell by Dollar 22,000,vegetables by Dollar 32,000, medicines byDollar 10,000 and novelties by Dollar 12,000.

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Business

Accounting

Show TLG formula

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 6CP

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The general merchandise retail industry has a number of segments represented by the following companies: For a recent year, the following cost of goods sold and beginning and ending inventories arc provided from corporate annual reports (in millions) for these three companies: a. Determine the inventory turnover ratio for all three companies. Round all calculations to one decimal place.b. Determine the number of days' sales in inventory for all three companies. Use 365 days and round all calculations to one decimal place. c.Interpret these results based on each company's merchandising concept.
The records for the Clothing Department of Sharapova’s Discount Store are summarized below for the month of January. Inventory, January 1: at retail $25,000; at cost $17,000 Purchases in January: at retail $137,000; at cost $82,500 Freight-in: $7,000 Purchase returns: at retail $3,000; at cost $2,300 Transfers in from suburban branch: at retail $13,000; at cost $9,200 Net markups: $8,000 Net markdowns: $4,000 Inventory losses due to normal breakage, etc.: at retail $400 Sales revenue at retail: $95,000 Sales returns: $2,400 Instructions a. Compute the inventory for this department as of January 31, at retail prices. b. Compute the ending inventory using lower-of-average-cost-or-market.
Streif Incorporated, a local retailer, has provided the following data for the month of June: Merchandise inventory, beginning balance $ 46,000 Merchandise inventory, ending balance $ 52,000 Sales $ 260,000 Purchases of merchandise inventory $ 128,000 Selling expense $ 13,000 Administrative expense $ 40,000 The cost of goods sold for June was: a)128,000 b)181,000 c)122,000 d)134,000
Shown below is information from the financial reports of Knauss Supermarkets for the past fewyears. 2011 2010 2009Net sales (in millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,495 $5,184 $4,800Number of stores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448 445 430Square feet of selling space (in millions) . . . . . . . . . . . . . . . . . . . 11.9 11.1 10.0Average net sales of comparable stores (in millions) . . . . . . . . . . $ 10.8 $ 11.0 $ 11.4Instructionsa. Calculate the following statistics for Knauss Supermarkets (round your answers to one decimalplace):1. The percentage change in net sales from 2009 to 2010 and 2010 to 2011. Hint: The percentagechange is computed by dividing the dollar amount of the change between yearsby the amount of the base year. For example, the percentage change in net sales from2009 to…
The total cost of goods sold was recorded as $65,900 on the income statement. The inventory account had a beginning balance of $3,000 and an ending balance of $4,500. How much cash was disbursed for food purchases during the year?
Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $61,500. The company's beginning merchandise inventory was $16,200 and its ending merchandise inventory was $21,300. What was the total amount of the company's merchandise purchases for the month? $56,400 $61,500 $99,000 $66,600
The following income statement was drawn from the records of Stuart, a merchandising firm: STUART COMPANY Income Statement For the Year Ended December 31 Sales revenue (6,500 units × $164) $ 1,066,000 Cost of goods sold (6,500 units × $89) (578,500 ) Gross margin 487,500 Sales commissions (5% of sales) (53,300 ) Administrative salaries expense (83,000 ) Advertising expense (39,000 ) Depreciation expense (44,000 ) Shipping and handling expenses (6,500 units × $4) (26,000 ) Net income $ 242,200 Reconstruct the income statement using the contribution margin format. Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Stuart will earn if sales increase by 20 percent.
Martinez Retailers produced the following information for the most recent year: 1. Sales revenue £290,000 2. Opening inventories £65,000 3. Gross profit 15% of sales revenue 4. Closing inventories 145% of opening inventories What were the purchases for the period?
The following income statement was drawn from the records of Adams, a merchandising firm: ADAMS COMPANY Income Statement For the Year Ended December 31 Sales revenue (5,500 units × $169) $ 929,500 Cost of goods sold (5,500 units × $83) (456,500 ) Gross margin 473,000 Sales commissions (10% of sales) (92,950 ) Administrative salaries expense (81,000 ) Advertising expense (38,000 ) Depreciation expense (41,000 ) Shipping and handling expenses (5,500 units × $3) (16,500 ) Net income $ 203,550 Required Reconstruct the income statement using the contribution margin format. Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Adams will earn if sales increase by 20 percent.
A gift store reported the following records for its operation during the month of February. @Cost @Retail Inventory on Feb. 1 $280,000 $435,000 Net sales $440,000 Markdowns $88,000 Returns to vendors $15,000 $20,000 Employee discounts $15,000 Purchases $320,000 $498,000 A. What was the book value of the closing inventory at retail in February? B. What was the cumulative markup% of total merchandise handled in February? (Hint: Cumulative MU% is the MU% for Total Merchandise Handled (TMH), and TMH = Opening inventory + Purchases – RTV) Cost Retail C. What was the book inventory at cost on February 28 when the store closed? D. The physical inventory at retail taken after closing the store on February 28 amounted to $368,000. Did this store experience a shortage or an overage or…
The following income statement was drawn from the records of Zachary Company, a merchandising firm: ZACHARY COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (4,000 units × $168) $ 672,000 Cost of goods sold (4,000 units × $88) (352,000) Gross margin 320,000 Sales commissions (10% of sales) (67,200) Administrative salaries expense (85,000) Advertising expense (32,000) Depreciation expense (49,000) Shipping and handling expenses (4,000 units × $1) (4,000) Net income $ 82,800 Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Zachary will earn if sales increase by 10 percent. (Round your intermediate calculations and "Operating leverage" answer to 2 decimal places. Round the "Net income" value to nearest whole dollar.)
Sing Along is a popular music store. During the current year, the company’s cost of goods availablefor sale amounted to $330,000. The retail sales value of this merchandise amounted to $600,000.Sales for the year were $520,000.Instructions a. Using the retail method, estimate (1) the cost of goods sold during the year and (2) the inven-tory at the end of the year. b. At year-end, Sing Along takes a physical inventory. The general manager walks through thestore counting each type of product and reading its retail price into a tape recorder. From the recorded information, another employee prepares a schedule listing the entire ending inven-tory at retail sales prices. The schedule prepared for the current year reports ending inventory of $75,000 at retail sales prices. 1. Use the cost ratio computed in part a to reduce the inventory counted by the general man-ager from its retail value to an estimate of its cost. 2. Determine the estimated shrinkage losses (measured at cost) incurred by…