Be sure to follow the following steps before starting the assignment:
A. Project needs to be completed on Excel or Word doc.
B. Read and use both PDF files that are attached in below “Financial Formulas” and “MAR 4231 Retail Jargon” for support to answer the 3 questions that I have pasted below.
Question # 1:
A retailer has yearly sales of $650,000. Inventory on January 1 is $250,000 (at cost). During the year, $500,000 of merchandise (at cost) is purchased. The ending inventory is $275,000 (at cost). Operating costs are $90,000.
a. Calculate the cost of goods sold
b. Calculate the net profit
Question # 2:
A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost. Net purchases during the month are $150,000 at retail and $70,000 at cost. Transportation charges are $17,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following:
a. Total merchandise available for sale – at cost and at retail
b. Cost complement
c. Ending retail book value of inventory
d. Stock shortages
e. Adjusted ending retail book value
f. Gross profit
Question # 3:
A car dealer purchased multiple –disc CD players for $1185 each and desires a 40% markup (at retail). What retail price should be charged?