12 terms

Strategic Profit Model

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Net profit
measure of the overall performance of a firm; revenue (sales) minus expenses and losses for period
Total assets
The sum of current, fixed and intangible assets, which represents everything of value that is owned by the company
Net Sales
total number of dollars received by a retailer after all refunds have been paid to customers for returned marchandise
Net Profit Margin
profit divided by net sales
Return on Assets
net profit after taxes divided by total assets
Asset Turnover
net sales divided by total assets
Operating expenses
costs, other than merchandise, incurred in the normal course of doing business, such as salaries for sales associates and managers, advertising, utilities, office supplies and rent
Gross Margin
the difference between the price that the customer pays for merchandise and the cost of the merchandise (price retailer paid for)
Accounts Receivable
Amount of money due to the retailer from selling merchandise on credit
Merchandise Inventory
the amount of goods on hand for sale to customers
Cash
money on hand
Fixed Assets
assets that require more than a year to convert to cash
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