{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch8_finances_S2010

ch8_finances_S2010 - Obstacles are those frightful things...

Info iconThis preview shows pages 1–23. Sign up to view the full content.

View Full Document Right Arrow Icon
“Obstacles are those frightful things you see when you take your eyes off the goal.” - Henry Ford , Founder of Ford
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 8 – Managing a Retailer’s Finances
Background image of page 2
Developing the Merchandise Budget
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
What is “Merchandising”? Activities involved in acquiring particular goods and/or services and making them available at the right place, time, price and quantity that enable a retailer to reach its goals.
Background image of page 4
Listen up homeys! You gotta always ask six major merchandising questions dude!
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 6
And not only that, man! They got RULES that need to be followed!! And they don’t SUCK!
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Plan in advance, before the selling season starts. Keep the plan simple and make sure everybody understands it. Plan short- to mid-term, not too far out. Allow flexibility to be able to respond to changes.
Background image of page 8
4 Quarter Merchandise Plan Planned: Q1 Q2 Q3 Q4 BOM Stock $225,000 $270,000 $180,000 $210,000 Sales $75,000 $90,000 $60,000 $70,000 Markdowns $3,750 $7,200 $3,000 $3,500 EOM Stock $270,000 $180,000 $210,000 $200,000 Purchases @ Retail $123,750 $7,200 $93,000 $63,500 Purchases @ Cost $74,250 $4,320 $55,800 $38,100 Initial Markup 40% 40% 40% 40% Gross Margin $49,500 $2,880 $37,200 $25,400 BOM Stock-to-Sales 3 3 3 3 Markdown %age 5% 8% 5% 5%
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Major cool! Now we’re going to talk about retail accounting statements!
Background image of page 10
Meet the Income Statement A summary of a retailer’s revenues and expenses over a given period of time that can be compared with a comparable period of time in the past.
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Components of an Income Statement Net Sales $330,000 Cost of Goods Sold $180,000 Gross Profit $150,000 Operating Expenses $ 95,250 Other Costs $ 20,000 Total Costs $115,250 Net Profit before Taxes $ 34,750 Taxes $ 15,500 Net Profit after Taxes $ 19,250
Background image of page 12
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Income (P&L) Statement Example
Background image of page 14
Income Statement Items to Remember: Gross sales Net sales Cost of goods sold Gross margin Operating expenses Operating profit Other income & expenses Net profit
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The Balance Sheet is a statement of a company’s assets and liabilities - a snapshot at an exact moment in time.
Background image of page 16
The Balance Sheet is a Snapshot Current Assets Fixed Assets Liabilities Net Profit Net Worth
Background image of page 17

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The Balance Sheet Measures… Asset Turnover Financial Leverage Liquidity Solvency Return on Assets
Background image of page 18
Parts of the Balance Sheet Assets Cash $130,000 Accts Receivable $180,000 Inventory $400,000 Current Assets $710,000 Property $800,000 Machinery & Equip $350,000 Long Term Assets $1,150,000 Total Assets $1,860,000 Liabilities Accts Payable $180,000 Notes Payable $70,000 Current Liabilities $250,000 Bonds Payable $150,000 Mortage Payable $500,000 Long Term Liabilities $650,000 Total Liabilities $900,000 Owner's Equity $960,000
Background image of page 19

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Balance Sheet Example
Background image of page 20
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}