Part 2: Calculating Average Retail Stock, Turnover, and GMROI

1. A shoe department has net sales of $2,500,000 for the year. The average stock carried during this period was $1,000,000. What is the annual rate of stock turn?
2. The net sales for the fragrance department were $345,000 for the fourth quarter. The turn was 1.15. What was the average inventory for fragrances for the fourth quarter?
3. A housewares department has an average inventory of $112,000 at retail, with a stock turnover of 1.5. What are the department sales for the period?
4. Calculate the turnover for May if: May beginning stock was $214,500, May sales were $51,135, and June beginning stock was $194,600.

9. Calculate the Fall season stock turnover on the basis of the following information:

	Beginning Retail Inventory	Retail Sales
August	$60,000	$20,000
September	$68,000	$25,000
October	$47,000	$15,000
November	$50,000	$20,000
December	$70,000	$26,000
January	$38,000	$10,000
February	$32,000

10. For the first quarter (Feb-Apr), the sportswear department had a cumulative markup of 60% and the following results. Calculate GMROI for the first quarter.

	Retail Sales	Beginning Inventory	Gross Margin $
February	$12,000	$48,000	$6,000
March	$10,000	$45,000	$4,500
April	$9,000	$40,000	$4,000
May		$47,000

{Note: use the formula (GMROI = Gross Margin $ / Average Inventory at Cost) to solve this}