13th Edition Appendix B Financial Aspects Of Marketing

1.

The __________ summarizes the profitability of a business firm for a specific time period, usually a month, quarter, or year. 
 

2.

A company's operating statement is also called 
 

3.

A company's operating statement consists of three key elements: sales of the firm's products and services, costs incurred in making and selling these products and services, and 
 

4.

Which of the following is a sales element of an operating statement? 
 

5.

A company's gross sales may be reduced by 
 

6.

When Beth purchased diabetic candy from a catalog retailer, she was sent orange- and lemon-flavored candy coated in dark chocolate. When she called to complain to the catalog retailer, she was told to keep the candy that was incorrectly sent to her, and that the company would immediately ship her the correct candy. This incorrectly sent candy would be listed as __________ on the operating statement for the catalog retailer. 
 

7.

Gross sales minus returns and allowances for a firm are called its 
 

8.

All of the following are cost elements of an operating statement except 
 

9.

The total cost of the products sold by a firm during a specified period is referred to as 
 

10.

The inventory for Jane Westerlund's picture frame store would include 
 

11.

The three major categories of expenses are 
 

12.

To increase the number of dogs boarding at its facilities, Muntz Kennels mailed coupons to dog owners who lived within a 25-mile radius of the facility. The printing and postage costs for the mailing plus the coupon redemptions would appear in which major expense category on the company's income statement? 
 

13.

All of the following are operating ratios used to set a price for an offering except 
 

14.

The __________ is the dollars added to cost of goods sold (COGS) to arrive at the selling price.  
 

15.

If Jane Westerlund, owner of a picture frame store, raises the average price of a framed picture to $100 and the cost of goods sold is $36, what is the percentage markup on selling price? 
 

16.

If Jane Westerlund, owner of a picture frame store, raises the average price of a framed picture to $80 and the cost of goods sold is $36, what is the percentage markup on cost? 
 

17.

__________ is a reduction in a retail price that is necessary if the items will not sell at the full selling price to which they have been marked up. 
 

18.

When Paulette saw the dress in the store window, she knew two things. She had to own the dress, and she could not afford it at its current price. As she viewed the dress in the store, she thought of the dress as her own and believed no one else would buy it. It seems she was right because no one else did buy it, and the store had to reduce its price by 30 percent in order to dispose of it. This made it affordable for Paulette, who took advantage of 
 

19.

A retailer of children's clothing had net sales of $72,000. But to get those sales, she had to reduce her prices by $2,000. Calculate her markdown. 
 

20.

The gift shop purchased four sets of Block brand hand-painted stemware expecting to sell all four at the list price of $24.99. Unfortunately, the demand for the stemware was not as high as the owner had anticipated. She was only able to sell one at this price. She reduced the price on the other three sets to $16.49 and was able to sell all three sets. Calculate her markdown percentage.  
 

21.

__________ is the financial ratio that measures the ability of a firm to move its inventory quickly.  
 

22.

Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer. 
 

23.

The __________ is the ratio of net income to the investment used to earn that net income. 
 

24.

Leon George sold kites at the beach last summer. He invested $2,500 in the venture and made $1,400 net profit (net income). Calculate his return on investment. 
 

25.

Rebecca Gollanek makes and sells wooden cooling racks for cakes, cookies, and bread for $22.50 each. She has invested $4,300 in the venture and made $2,200 in net profit. Calculate her return on investment.