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# Acid-Test Ratio Acid-Test Ratio = Current Assets - Inventory ÷ Current Liabilities Average Inventory Average Inventory

(Month) = (Beginning of Month Inventory + End of Month Inventory) ÷ 2 Basic Retailing Formula Cost of Goods + Markup = Retail Price Retail Price - Cost of Goods = Markup Retail Price - Markup = Cost of Goods Break-Even Analysis Break-Even (\$) = Fixed Costs ÷ Gross Margin Percentage Contribution Margin Contribution Margin = Total Sales - Variable Costs Cost of Goods Sold COGS = Beginning Inventory + Purchases - Ending Inventory Gross Margin Gross Margin = Total Sales - Cost of Goods Gross Margin Return on Investment GMROI = Gross Margin \$ ÷ Average Inventory Cost Initial Markup Initial Markup % = (Expenses + Reductions + Profit) ÷ (Net Sales + Reductions) Inventory Turnover (Stock Turn) Turnover = Net Sales ÷ Average Retail Stock Maintained Markup MM \$ = (Original Retail - Reductions) - Cost of Goods Sold MM % = Maintained Markup \$ ÷ Net Sales Amount Margin % Margin % = (Retail Price - Cost) ÷ Retail Price Markup Markup \$ = Retail Price - Cost Markup % = Markup Amount ÷ Retail Price Net Sales Net Sales = Gross Sales - Returns and Allowances Open to Buy

Inventory ÷ Current Liabilities Reductions Reductions = Markdowns + Employee Discounts + Customer Discounts + Stock Shortages Sales per Square Foot Sales per Square Foot = Total Net Sales ÷ Square Feet of Selling Space Sell-Through Rate Sell-Through % = Units Sold ÷ Units Received Stock to Sales Ratio Stock-to-Sales = Beginning of Month Stock ÷ Sales for the Month .Planned Beginning of Mon Percentage Increase/Decrease % Increase/Decrease = Difference Between Two Figures ÷ Previous Figure Quick Ratio Quick Ratio = Current Assets .OTB (retail) = Planned Sales + Planned Markdowns + Planned End of Month Inventory .

Inventory ÷ Current Liabilities Average Inventory Average Inventory (Month) = (Beginning of Month Inventory + End of Month Inventory) ÷ 2 Basic Retailing Formula Cost of Goods + Markup = Retail Price Retail Price .Acid-Test Ratio Acid-Test Ratio = Current Assets .Cost of Goods Gross Margin Return on Investment GMROI = Gross Margin \$ ÷ Average Inventory Cost Initial Markup Initial Markup % = (Expenses + Reductions + Profit) ÷ (Net Sales + Reductions) Inventory Turnover (Stock Turn) Turnover = Net Sales ÷ Average Retail Stock Maintained Markup MM \$ = (Original Retail .Markup = Cost of Goods Break-Even Analysis Break-Even (\$) = Fixed Costs ÷ Gross Margin Percentage Contribution Margin Contribution Margin = Total Sales .Cost) ÷ Retail Price Markup Markup \$ = Retail Price .Variable Costs Cost of Goods Sold COGS = Beginning Inventory + Purchases .Reductions) .Cost of Goods Sold MM % = Maintained Markup \$ ÷ Net Sales Amount Margin % Margin % = (Retail Price .Cost of Goods = Markup Retail Price .Cost Markup % = Markup Amount ÷ Retail Price Net Sales Net Sales = Gross Sales .Returns and Allowances Open to Buy .Ending Inventory Gross Margin Gross Margin = Total Sales .

Inventory ÷ Current Liabilities Reductions Reductions = Markdowns + Employee Discounts + Customer Discounts + Stock Shortages Sales per Square Foot Sales per Square Foot = Total Net Sales ÷ Square Feet of Selling Space Sell-Through Rate Sell-Through % = Units Sold ÷ Units Received Stock to Sales Ratio Stock-to-Sales = Beginning of Month Stock ÷ Sales for the Month .Planned Beginning of Month Inventor Percentage Increase/Decrease % Increase/Decrease = Difference Between Two Figures ÷ Previous Figure Quick Ratio Quick Ratio = Current Assets .OTB (retail) = Planned Sales + Planned Markdowns + Planned End of Month Inventory .

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ning of Month Inventory .