Acid-Test Ratio Acid-Test Ratio = Current Assets - Inventory Current Liabilities Average Inventory Average Inventory (Month) = (Beginning

g 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

OTB (retail) = Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Mon Percentage Increase/Decrease % Increase/Decrease = Difference Between Two Figures Previous Figure Quick Ratio Quick Ratio = Current Assets - 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

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

OTB (retail) = Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventor Percentage Increase/Decrease % Increase/Decrease = Difference Between Two Figures Previous Figure Quick Ratio Quick Ratio = Current Assets - 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

ning of Month Inventory