_____ is (are) the retailer's total sales including sales for cash or for credit.
a. Gross margin
b. Operating sales
c. Return sales
d. Gross sales
e. Net sales
Question 2An income statement:
a. shows the estimated cash inflows and outflows for the period.
b. gives the retailer a summary of the firm's financial position at a given point in time.
c. is usually only prepared when the retailer is seeking to obtain a loan.
d. provides a summary of the sales and expenses for a given time period.
e. is the only financial statement that shows the retailer's retained earnings.
Question 3The most important financial statement a retailer prepares is the:
a. merchandise budget.
b. sales report.
c. balance sheet.
d. statement of cash flow.
e. income statement.
Question 4A buyer's planned sales are 80,000, planned initial markup is 60,000 and planned reductions are 7,500 . What is the buyer's planned gross margin on the merchandise budget?
a. 52,500
b. 72,500
c. 60,000
d. 67,500
e. 87,500
Question 5When doing next season's merchandise budget, the buyer's planned purchases at retail are 125,000 with a markup percentage of 40 at retail. What is the buyer's planned initial markup?
a. 50,000
b. 75,000
c. 60,000
d. 96,000
e. 84,000
Question 6Planned purchases at retail are 50,000 and the markup percentage is 45 of retail. What is the correct planned purchases at cost figure?
a. 22,500
b. 11,111
c. 25,000
d. 77,500
e. 27,500
Question 7Planned purchases at retail is equal to:
a. planned sales and planned reductions and BOM inventory minus planned EOM inventory.
b. planned sales and planned EOM inventory minus planned reductions and BOM inventory.
c. planned sales minus planned reductions, planned EOM inventory, and one-half BOM inventory.
d. planned sales, planned reductions, and planned EOM inventory minus BOM inventory.
e. planned sales plus planned reductions.
Question 8_____ is NOT used in the merchandise budget to derive the planned purchases at retail figure.
a. Planned BOM inventory
b. Planned net worth
c. Planned sales
d. Planned EOM inventory
e. Planned retail reductions
Question 9If a retailer's planned BOM inventory for April is 136,000, we can assume that the retailer's:
a. EOM inventory for March was 136,000.
b. planned sales for the month will exceed that amount.
c. BOM inventory requirements for May will be the same.
d. BOM inventory for March was also 136,000.
e. planned sales for the next month will exceed that amount.
Question 10If the planned sales for the month are 70,000, the merchandise budget calls for a planned stock-to-sales ratio of 2.3, and the financial leverage is 1.1, then the planned BOM inventory should be:
a. 77,000
b. 84,000
c. 161,000
d. 177,100
e. 194,100
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