# financial assignment

Madelinereboso

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 \$140,000 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?

• 5 days ago
• 15
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