Ch 4 Notes

Ch 4 Notes - Reporting and Analyzing Merchandising...

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Unformatted text preview: Reporting and Analyzing Merchandising Operations C H A P T E R 4 Service Organizations Service organizations provide Service organizations provide services to earn revenue. services to earn revenue. Examples: Accounting firms, Universities, law firms Examples: Accounting firms, Universities, law firms and plumbing services and plumbing services Revenues Expenses Minus Net income Equals Manufacturer Wholesaler Retailer Customer Merchandising Companies Merchandising Companies Merchandising Activities Merchandising companies sell products products (Merchandise Inventory) (Merchandise Inventory) to earn revenue. Examples: sporting goods, clothing, and auto parts stores Industry: General Merchandisers Rank Company 500 rank Revenues ($ millions) 1 Wal-Mart Stores 1 351,139.0 2 Target 33 59,490.0 3 Sears Holdings 38 53,012.0 4 Federated Dept. Stores 76 28,711.0 5 J.C. Penney 116 19,903.0 6 Kohl's 152 15,544.2 7 Dollar General 273 9,169.8 8 Nordstrom 286 8,560.7 9 Dillard's 307 7,849.4 10 Family Dollar Stores 359 6,394.8 11 Saks 570 3,564.3 12 Bon-Ton Stores 581 3,455.8 13 Belk 591 3,375.4 14 Retail Ventures 651 3,014.1 Who is the largest Merchandising Company? Source: Fortune Magazine, April 30, 2007 issue Reporting Income of a Merchandiser Minus Equals Minus Equals Operating Cycle for a Merchandiser Begins with the purchase of merchandise and ends with the collection of cash from the sale of merchandise. Purchases Merchandise inventory Credit sales Account receivable Cash collection Purchases Merchandise inventory Cash sales Beginning Inventory, Ending Inventory and COGS Beginning Inventory Net Cost of Purchases + =Merchandise available for sale Cost of goods sold Ending Inventory + Merchandising Transactions...
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Ch 4 Notes - Reporting and Analyzing Merchandising...

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