Merchandising Business Formulas Flashcards
1
Q
Net sales
A
= gross sales - sales discounts - sale returns and allowances
2
Q
Net Purchases
A
= purchases - purchase discount - purchase returns and allowances
3
Q
Cost Of Goods Purchased (COGP)
A
= net purchases + transportation in (freight in)
4
Q
Cost Of Goods Available for Sale (COGAS)
A
= COGP + beginning inventory
5
Q
Gross profit
A
= net sales - COGS
6
Q
Net income (loss)
A
= gross profit - operating expenses
7
Q
Cost Of Goods Sold (COGS)
A
= Beginning Inventory + Purchases - Ending Inventory
= COGAS - ending inventory
8
Q
Gross Profit Margin
A
= Gross Profit / Net Sales
9
Q
Profit Margin
A
= Net Income / Net Sales
10
Q
Inventory Turnover
A
= Cost Of Goods Sold (COGS) / Average Inventory
11
Q
Day Sales in Inventory
A
= 365 / Inventory Turnover
