Physical inventory is taken every six months, in January and July, at the Global Enterprises Specialty Fashions store. Employees work a Sunday-evening-to-early-Monday-morning shift, while the store is closed, to perform this task the first weekend of the designated month. Merchandise is counted and recorded at the current retail price, and the physical inventory level obtained is compared with book inventory to determine shortage. The Global Enterprises Specialty Fashions has shown shortage as follows the past three years: The inventory selection in the Global Enterprises Specialty Fashions is highly seasonal, and monthly sales tend to follow a typical retail distribution, with December sales averaging about 18% of annual net sales. When physical inventory is counted in January, much of the missing merchandise is allocated to Christmas promotional items and the theft and damages that occur as a result of heavier store traffic. In July, shortage tends to span a wider variety of merchandise but also tends to be less than that during the holiday shopping season. John, the store manager, analyzes sales and profit levels monthly. He uses an inventory valuation formula to determine total cost of merchandise sold (TCMS) and then applies the TCMS figure to his monthly skeletal statement to determine the operating profit for Global Enterprises Specialty Fashions. Currently, John is analyzing figures for the month of April; net sales for April were $525,600.00. Global Enterprises Specialty Fashions does not perform any alterations, nor does it take advantage of any cash discounts in its purchasing program. After two years on the job as Global Enterprises Specialty Fashions' manager, John is concerned that he could improve (decrease) shortage levels if he is able to Using the following figures and net sales for April, determine the expected profit or loss for Global Enterprises Specialty Fashions in April if you do NOT include an estimated shortage in your calculation. April Figures: 5. Calculate anticipated profit for April when shortage is estimated to have been 2.20%. Physical inventory is taken every six months, in January and July, at the Global Enterprises Specialty Fashions store. Employees work a Sunday-evening-to-early-Monday-morning shift, while the store is closed, to perform this task the first weekend of the designated month. Merchandise is counted and recorded at the current retail price, and the physical inventory level obtained is compared with book inventory to determine shortage. The Global Enterprises Specialty Fashions has shown shortage as follows the past three years: The inventory selection in the Global Enterprises Specialty Fashions is highly seasonal, and monthly sales tend to follow a typical retail distribution, with December sales averaging about 18% of annual net sales. When physical inventory is counted in January, much of the missing merchandise is allocated to Christmas promotional items and the theft and damages that occur as a result of heavier store traffic. In July, shortage tends to span a wider variety of merchandise but also tends to be less than that during the holiday shopping season. John, the store manager, analyzes sales and profit levels monthly. He uses an inventory valuation formula to determine total cost of merchandise sold (TCMS) and then applies the TCMS figure to his monthly skeletal statement to determine the operating profit for Global Enterprises Specialty Fashions. Currently, John is analyzing figures for the month of April; net sales for April were $525,600.00. Global Enterprises Specialty Fashions does not perform any alterations, nor does it take advantage of any cash discounts in its purchasing program. After two years on the job as Global Enterprises Specialty Fashions' manager, John is concerned that he could improve (decrease) shortage levels if he is able to Using the following figures and net sales for April, determine the expected profit or loss for Global Enterprises Specialty Fashions in April if you do NOT include an estimated shortage in your calculation. April Figures: 5. Calculate anticipated profit for April when shortage is estimated to have been 2.20%