Exam 6: Financial Strategy

An appliance store has total assets of $2,800,000, accounts receivable of $900,000, accounts payable of $700,000, inventory valued at $1,500,000, and total liabilities of $2,500,000. In 2016, its net sales were $2,100,000, and its operating profit margin equaled $42,000. Calculate the store's return on assets.

A formula for calculating inventory turnover is: Cost of goods sold (COGS)/Average inventory at cost.

Output measures assess the results of a retailer's investment decisions.

The hosting of a website for the purpose of online retailing would be classified as a(n)

The amount paid for the merchandise by the retailer is the

The formula for calculating asset turnover is: Asset turnover = Cost of goods/Total assets.

The formula for calculating gross margin is

Why would a discount store have a lower gross margin percent than a jewelry store?

What ratio should a retailer use to best compare the performance of cashmere sweaters versus cotton sweaters?

Which of the following statements does not describe gross margin?

________ equals a company's net sales divided by its total assets.

Which of the following assesses the results of a retailer's investments?

Identify and describe the three types of objectives retailers might have in the strategic planning process.

Asset turnover

Which of the following statements is not True about the strategic profit model?

Which of the following would be the best example of an output measure?

Candle in the Wind is a store for people who enjoy and collect candles to decorate their homes. Last year, its net sales totaled $125,000 with $13,700 in taxes. The cost value of the candles it sold was $42,300. The expenses that the operation has are salaries to the owner and one part-time assistant for $52,000, administrative expenses of $400, and utilities at $900. Calculate the net profit after tax for Candle in the Wind.

Which of the following would be listed as an asset on the balance sheet for a children's clothing shop?

Operating profit margin is

Top-down planning means that goals get set at the top of the organization and are passed down to the lower operating levels.