3. The manager of your company told you to go out to the warehouse and count merchandise inventory. He said that owner is coming for a meeting next week and the manager wanted to put on a good show. He asked you to make the inventory higher by counting the first and last row twice. The higher ending inventory will result in higher net profit. What should you do?

3. The manager of your company told you to go out to the warehouse and count merchandise inventory. He said that owner is coming for a meeting next week and the manager wanted to put on a good show. He asked you to make the inventory higher by counting the first and last row twice. The higher ending inventory will result in higher net profit. What should you do?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 5TP: You own a clothing store and use a periodic inventory system. Research like companies in the...

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A manager in your organization just received a special order at a price that is “below cost.” The manager points to the document and says, “These are the kinds of orders that will get you in trouble. Every sale must bear its share of the full costs of running the business. If we sell below our full cost, we'll be out of business in no time.” What do you think of this remark?
Will it be beneficial to the store? Justify your answer
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1. You are a recent graduate and you are working in the accounting department of Macy’s. Next week, you are required to attend an inventory meeting for the store located in a local mall. You know this store well because you shop there frequently. One of the managers of the store feels that the men’s shoe department is unprofitable because the selection is poor, there are few sizes available, and there just aren’t enough shoes. The manager is pushing for a very large shoe inventory to make the department more desirable to shoppers and therefore more profitable. Explain why it is good or bad to have a large inventory of shoes. 2. Do the terms LIFO, FIFO, and Weighted Average have anything to do with the actual physical flow of the items in inventory? Please explain.
3. If a retailer bought n numbers of goods at P price each, he sold each good at a rater marked up on the selling price. Describe how to find the selling price and the gross margin for each good. How is the gross margin used in sales? 1S 4. After learning the concept of mark up, how would you assess your market value in terms of abilities? What can you do to increase your market value?
You are a recent Berkeley College graduate and you are working in the accounting department of Macy’s. Next week, you are required to attend an inventory meeting for the store located in the Paramus Park mall. You know this store well because you shop there frequently. One of the managers of the store feels that the men’s shoe department is unprofitable because the selection is poor, there are few sizes available, and there just aren’t enough shoes. The manager is pushing for a very large shoe inventory to make the department more desirable to shoppers and therefore more profitable. Explain in this discussion why it is good or bad to have a large inventory of shoes.
Please solve all the questions
after analyzing the skeletal profit and loss statement, a retailer is suffering a loss. list three ways and give examples of what they can do to turn the loss into profit. (Please explain)
You are a recent College graduate and you are working in the accounting department of Macy’s. Next week, you are required to attend an inventory meeting for the store located in the Paramus Park mall. You know this store well because you shop there frequently. One of the managers of the store feels that the men’s shoe department is unprofitable because the selection is poor, there are few sizes available, and there just aren’t enough shoes. The manager is pushing for a very large shoe inventory to make the department more desirable to shoppers and therefore more profitable. Explain in this discussion why it is good or bad to have a large inventory of shoes. Do the terms LIFO, FIFO, and Weighted Average have anything to do with the actual physical flow of the items in inventory? Please explain.
You are an owner/bookkeeper in a country whose economy has been nearly destroyed. Goods are scarce. In fact, you have no goods to sell at the start of each day. You go out early each morning to purchase goods and haul them back to sell. At the end of the day, you have sold everything. Prepare a Cost of Goods Sold section for a day when you purchased 400 in goods. What conclusion can you draw?
Prepare a schedule showing the change in revenues and expenses and the impact on the company’s overall net operating income that would result if the North Store were closed. Assuming that the store space can’t be subleased, what recommendation would you make to the management of Superior Markets, Inc.? Disregard requirement 2. Assume that if the North Store were closed, at least one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. The East Store has enough capacity to handle the increased sales. You may assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in that store. What effect would these factors have on your recommendation concerning the North Store? Show all computations to support your answer.
A large company has hired your friend. She tells you that her boss has asked customers to sign sales agreements just before year end indicating a sale has been made.The boss told customers that he will give them 30 days (well into the next year) to change their minds. If they do not change their minds they will quickly receive the merchandise. If they do change their minds he promised to cancel their orders, take merchandise back, and cancel the invoices.Your friend has been told by her boss to recognize the sales agreements as revenue this year. Your friend has concerns about recognizing revenue before the merchandise is shipped. She likes the company and wants to keep her job.What do you advise her to do?