BMGT 220 - Chapter 4

BMGT 220 - Chapter 4 - CHAPTER 4 Reporting and Analyzing...

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Reporting and Analyzing Merchandising Operations Reporting and Analyzing Merchandising Operations C H A P T E R 4
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Service Activities Service organizations provide a Service organizations provide a service service (not a (not a product) to earn revenue. product) to earn revenue. Examples: hospitals, universities, accounting Examples: hospitals, universities, accounting firms, law firms, and plumbing services firms, law firms, and plumbing services Service organizations provide a Service organizations provide a service (not a (not a product) to earn revenue. Examples: hospitals, universities, accounting Examples: hospitals, universities, accounting firms, law firms, and plumbing services firms, law firms, and plumbing services Revenues Revenues Expenses Expenses Minus Net income Net income Equals
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Manufacturer Wholesaler Retailer Customer Merchandising Companies Merchandising Companies Merchandising Activities
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All amounts in millions of dollars Cash and Short- Term Investments 4,897.45 1,502.0 Total Receivables 907.89 549.0 Total Inventory 0.0 4,708.0 Prepaid Expenses 140.55 0.0 Other Current Assets 1,176.60 583.0 TOTAL CURRENT ASSETS 7,122.51 7,342.0 Compare the excerpts from the following two companies’ financial statements and identify the companies as Service or Retail
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EBAY BEST BUY Cash and Short- Term Investments 4,897.45 1,502.0 Total Receivables 907.89 549.0 Total Inventory 0.0 4,708.0 Prepaid Expenses 140.55 0.0 Other Current Assets 1,176.60 583.0 TOTAL CURRENT ASSETS 7,122.51 7,342.0 Compare the excerpts from the following two companies’ financial statements and identify the companies as Service or Retail
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Reporting Income of a Merchandiser Merchandising companies sell products products to earn revenue. Examples: sporting goods, clothing, and auto parts stores Cost of Goods Sold Gross Profit Operating Expenses Operating Income Net Sales Minus Equals Minus Equals
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HOW BIG IS WALMART? TOP 15 US RETAILERS BASED ON JAN 2009 SALES DATA (Source: The Wall Street Journal) 0 2 4 6 8 10 12 14 16 18 20 W a l - M r t ( U . S ) C o s c T g e m u b y J P n G p B N i A F h k H Z z Billions of dollars Combined Sales Revenue of the next 14 biggest retailers = $16.793 billions WalMart’s Sales Revenue = $17.964 billions
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: In its income statement, a company reported operating expenses of $157,000. Determine sales and gross profit given cost of goods sold was $544,000 and operating loss was $41,000. 1. Sales: $660,000; Gross Profit: $503,000. 2.
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BMGT 220 - Chapter 4 - CHAPTER 4 Reporting and Analyzing...

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