Retail Formula Sheet - Gross Sales = Retailer's total sales...

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Gross Sales = Retailer’s total sales (including sales for credit/cash) Gross Margin = Difference between net sales and cgs Returns and Allowances = Reductions from gross sales Net Sales = Gross sales less returns and allowances Operating Profit = Difference between gross margin and operating expenses Other Income or Expenses = Includes income or expense items that the firm incurs which are not in the course of its normal retail operations. Net Profit = Operating profit plus or minus income or expenses Current ratio:Current assets divided by Current Liabilities Cost method:Is an inventory valuation technique that provides a book valuation of inventory based solely on the retailer’s cost of merchandise including freight. Retail method:Is an inventory valuation technique that values merchandise at current retail prices, which is then converted to cost based on a formula. 1. Calculation of the Cost Complement 2. Calculation of Reductions from Retail Value 3.
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This note was uploaded on 04/04/2008 for the course RCSC 214 taught by Professor Burke during the Spring '08 term at University of Arizona- Tucson.

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Retail Formula Sheet - Gross Sales = Retailer's total sales...

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