Question

Module Two: Merchandising for a Profit          
          
Operating Income (Gross Sales and Net Sales)           
          
1. Return Percentages: Customer returns and allowances for Department #620 came to $5,500. Gross sales in the department were $100,000. What percentage of merchandise sold was returned?          
          
Customer returns and allowances   $5,500      
Gross sales   $100,000      
Return Percentage          
          
2. Net Sales $: If gross sales for Store A are $1,150,000 and reductions are $345,000, what are the net sales?          
          
Gross sales $   $1,150,000      
Reductions $   $345,000      
Net sales $          
          
3. Men's Store: If gross sales for Main Street Men's Store were $248,000 and the reduction % was 20%, calculate the following:          
a. The dollar amount of reductions          
b. The net sales          
          
Gross Sales   $248,000      
Reduction %   20%      
Dollar amount of reductions          
Net sales men's store          
          
4. Loungewear Department: After Mother's Day this year, the loungewear department had customer returns of 8.5%. The department's gross sales amounted to $835,380. As the buyer reviewed last year’s figures for the same period, the customer returns were 10.5%, with gross sales of $726,149.          
          
Compute the department’s performance in dollars and percentages for this year and last year, with regard to gross sales, customer returns, and net sales.          
   LY   %   TY
Loungeware net sales       89.5%  
Customer returns       10.5%  
Loungewear gross sales   $726,149.00   100.0%   $835,380.00
          
5.Towel Department Net Sales: The towel department represents 2% of total store sales, which are $3,500,000. What are the net sales planned for the towel department?          
          
Total store sales   $3,500,000      
% to total   2.0%      
Towel department net sales          
          
6. Shoes/Sneakers Net Sales: Casual sneaker sales represent 4.5% and athletic shoe sales represent 8.2% of total store sales. If total store sales are $960,000, what are the dollar sales for each department?          
   Casual Sneakers   Athletic Shoes  
Total store sales   $960,000   $960,000  
% to total   4.5%   8.2%  
Sneakers/shoes net sales          
          
Cost of Goods Sold Practice Problems          
          
"7.Total Billed Cost: The girls’ buyer placed an order for the following merchandise:
"          
150 sweaters with a billed cost of $7.75 each          
175 knit tops with a billed cost of $4.50 each          
250 leggings with a billed cost of $5.25 each          
Calculate the total billed cost for this order.          
          
   # Units   Billed cost   Total costs
Sweaters   150   $7.75  
Knit Tops   175   $4.50  
Leggings   250   $5.25  
Total          
          
8.Total Cost of Merchandise: A gift shop has workroom costs of $575. The billed cost of merchandise sold amounted to $59,000, with cash discounts earned of $1,180 and freight charges of $650. Find the total cost of the merchandise.          
          
   Billed cost   Shipping   Workroom costs
Total Cost of Merchandise   $59,000    $650    $575
Gross Margin Practice Problems          
          
9. Gross Margin: Calculate the gross margin in dollars and percentage for the home department if:          
Net sales = $149,000          
Billed cost of merchandise = $84,250          
Cost discount=6.5%          
Shipping charges = $840          
          
   Billed Cost   Cost Discount %   Cost Discount $
COGS   $84,250    6.50%  
          
Net sales   $149,000       
COGS   $0       
Gross Margin Total Cost and Percentage          
          
Operating Expense Practice Problems          
          
10. Total Expenses and Comparison of Sales: Analyze the following information:          
   TY   Plan   LY
Net sales   $485,000    $520,000    $450,000
Advertising costs   $82,000    $85,000    $86,000
Salaries   $94,000    $90,000    $91,000
Find the following:          
a. What are the total expenses in $ and % for TY, Plan, and LY?   TY   Plan   LY
Advertising costs   $82,000    $85,000    $86,000
Salaries   $94,000    $90,000    $91,000
Total expenses          
Total net sales   $485,000    $520,000    $450,000
Expense %          
          
b. What is the comparison (build) of sales for TY versus Plan and TY versus LY?   TY   Plan   LY
Net sales   $485,000    $520,000    $450,000
Build TY vs. Plan          
Build TY vs. LY          
          
Skeletal Profit and Loss Statements          
          
          
Net sales $1,390,000          
Gross margin $574,700          
Profit $105,000          
   $   %  
Net Sales Problem One   $1,390,000    100.0%

For this assignment you will use Excel to calculate a variety of basic merchandising problems using formulas. Specifically, you must complete the following: 1. Review the pertinent formulas from your resources. 2. Read each problem carefully from the “Problems” tab in the Module Two Merchandising for a Profit Excel document. 3. Complete each problem using formulas.

  
-COGS          
=GM   $574,700       
-Expenses          
=Profit/Loss   $105,000       
          
11.Skeletal Profit and Loss Statement: Set up skeletal profit and loss statement in both dollars and percentage given the information.          
Gross margin $535,000          
Gross margin 25%          
Expenses $625,000          
          
Net Sales Problem Two   $2,140,000    100.0%  
-COGS          
=GM   $535,000    25.0%  
-Expenses   $625,000       
=Profit/Loss          
          
          
          

Answer 1

Requirement 1:-

The return percentage is calculated as follows:-

=Customer returns and allowances/Gross Sales

=$5,500/$100,000

Return Percentage = 5.5%

Requirement 2:-

Net Sales = Gross Sales - Reductions

Net Sales = $1,150,000 - $345,000

Net Sales = $805,000

Requirement 3:-

Reductions = $248,000 * 20%

a.) Dollar amount of Reductions = $49,600

Net Sales = $248,000 - $49,600

b.) Net Sales = $198,400

Requirement 4:-

Particulars	This Year	Last Year
Gross Sales	835,380	726,149
Customer Returns	8.50%	10.50%
Returns (in dollars) - Gross Sales * Customer returns	71,007	76,246
Net Sales	764,373	649,903

Kindly note that i have answered the first 4 questions per the HOMEWORKLIB RULESs. Request you to post the remaining questions separately so that we can answer them as well. All the best and please let me know if you have any questions via comments :)