RMG 200 Lecture Notes - Lecture 6: Gross Profit, Gross Margin, Income Statement

• School: Ryerson University
• Department: Retail Management
• Course: RMG 200
• Professor: Ken Wong

Document Summary

3 types of objectives for being a retailer. Credit union (non-proit in usa, for proit in can) Members who have accounts in the credit union are the owners of the credit union. Comparing a retailers ratio to another company"s during the same period. Compares a retailers ratio for the most recent year or quarter to see if they are meeting inancial goals. Gross proit (gross margin: net revenue cost of goods sold o. Does not include operating expenses (e. g. staf salary, rent) Income from operation (ifo: net revenue cost of goods sold selling, general and administrative (sg&a) o. Does not consider income from selling property or other abnormal business operation. Net income: net revenue cost of goods sold sg&a other expense + other income tax. Understand merchandise planning, don"t buy more than what you can sell. Don"t be out of stock of wanted, key items. Net sales/total assets = asset turnover: higher, the better.