Financial Assignment

MAR 4231 = Financial Formulas

Note: When calculating the financials, please round to four decimal places. For example:

1.7658643983 = 1.7659 (four decimal places)

0.4322222222 = 0.4322 (four decimal places)

Asset turnover = Net sales

Total assets

Cost complement = Total cost valuation

Total retail valuation

Cost of goods sold = Cost of merchandise available for sale – cost value of ending inventory

Ending retail book value of inventory = on paper, how much is your inventory worth

(at retail) = Merchandise available for sale – Sales – Deductions

Financial Leverage = Total assets

Net worth

Gross Profit = Sales – Cost of Goods Sold

Net Profit = Gross Profit – Operating Expenses

Net Profit Margin = Net profit after taxes

Net sales

Profit & Loss Statement =

Sales – less cost of goods sold = gross profit

Return of Assets = Net profit margin x asset turnover

Return on Net worth = Net profit margin x Asset turnover x Financial leverage

Stock Shortages = Ending retail book value of inventory – physical inventory at retail

Total merchandise available (at cost) =

Beginning monthly inventory + Net purchases + transportation charges

Total merchandise available (at retail) = Beginning monthly inventory + Net purchases