Through Excel
Forms that are used for six-month merchandise plans vary from retailer to retailer. Less formal and less detailed plans may be used by small retail organizations, while larger organizations may use a plan with more detail. The form used in Example 8-25 allows for comparisons of actual sales, markdowns, stock levels, and planned purchases with last year's figures and with planned figures. Practice Problems Exercise 8.5 1. Develop a merchandise plan on the basis of the information that follows. Sales for the six-month spring- summer season have been planned to total $650,000. Markdowns for the total season are to be 22.0% of planned sales, and season's turnover should be 1.9. BOM inventory values are to be planned by the basic stock method. In this problem, ending inventory will be the same as the average inventory. (A merchandise plan form is provided to complete the problem.) Month % of Season's Sales % of Season's Markdowns February 15.5 15 March 17.5 12 April 19.0 19 May 18.0 16 June 15.5 18 July 14.5 20 (a) Total sales for the season are $650,000. Determine sales for each month. (b) Calculate total $ markdowns and allocate markdowns to each month on the basis of the percentages given. (c) Using the basic stock method, calculate BOM inventory values for each month. (d) Enter the EOM inventory values on the form. July's ending inventory has been given as the average inventory (e) Calculate planned purchases at retail. (f) Calculate initial markup percent needed, given the following information: Markdowns 22.0% Operating expenses 34.0% Profit desired 7.5% SIX-MONTH MERCHANDISING PLAN Last Year Plan Actual Department Name: Department Number: % initial markup % markdowns % alteration expense % cash discount % gross margin % operating expense % net profit season turnover average stock GMROI Merchandise Manager: Buyer: Period: February SEASON TOTALS March April May June July SALES EOM STOCK SPRING LY Sales PL Sales Revised Actual % Change % of LY Sales % of PL Sales LY EOM Stock PL EOM Stock Revised Actual LY Markdowns PL Markdowns Revised Actual % Change % of LY Markdowns % of PL Markdowns LY BOM Stock PL BOM Stock Revised Actual MARKDOWNS BOM STOCK PLANNED PURCHASES AT RETAIL Basic Stock LY Purchases @ Retail PL Purchases @ Retail Revised Actual LY Purchases @ Cost PL Purchases @ Cost Revised Actual PLANNED PURCHASES AT COST AUTHORIZATION SIGNATURES: AUTHORIZATION DATE: Buyer Merchandise Manager Controller 240 chapter 8 Forms that are used for six-month merchandise plans vary from retailer to retailer. Less formal and less detailed plans may be used by small retail organizations, while larger organizations may use a plan with more detail. The form used in Example 8-25 allows for comparisons of actual sales, markdowns, stock levels, and planned purchases with last year's figures and with planned figures. Practice Problems Exercise 8.5 1. Develop a merchandise plan on the basis of the information that follows. Sales for the six-month spring- summer season have been planned to total $650,000. Markdowns for the total season are to be 22.0% of planned sales, and season's turnover should be 1.9. BOM inventory values are to be planned by the basic stock method. In this problem, ending inventory will be the same as the average inventory. (A merchandise plan form is provided to complete the problem.) Month % of Season's Sales % of Season's Markdowns February 15.5 15 March 17.5 12 April 19.0 19 May 18.0 16 June 15.5 18 July 14.5 20 (a) Total sales for the season are $650,000. Determine sales for each month. (b) Calculate total $ markdowns and allocate markdowns to each month on the basis of the percentages given. (c) Using the basic stock method, calculate BOM inventory values for each month. (d) Enter the EOM inventory values on the form. July's ending inventory has been given as the average inventory (e) Calculate planned purchases at retail. (f) Calculate initial markup percent needed, given the following information: Markdowns 22.0% Operating expenses 34.0% Profit desired 7.5% SIX-MONTH MERCHANDISING PLAN Last Year Plan Actual Department Name: Department Number: % initial markup % markdowns % alteration expense % cash discount % gross margin % operating expense % net profit season turnover average stock GMROI Merchandise Manager: Buyer: Period: February SEASON TOTALS March April May June July SALES EOM STOCK SPRING LY Sales PL Sales Revised Actual % Change % of LY Sales % of PL Sales LY EOM Stock PL EOM Stock Revised Actual LY Markdowns PL Markdowns Revised Actual % Change % of LY Markdowns % of PL Markdowns LY BOM Stock PL BOM Stock Revised Actual MARKDOWNS BOM STOCK PLANNED PURCHASES AT RETAIL Basic Stock LY Purchases @ Retail PL Purchases @ Retail Revised Actual LY Purchases @ Cost PL Purchases @ Cost Revised Actual PLANNED PURCHASES AT COST AUTHORIZATION SIGNATURES: AUTHORIZATION DATE: Buyer Merchandise Manager Controller 240 chapter 8
