Cindy Lou Linens Uses the Conventional Retail Method to Estimate

question 92

Essay

Cindy Lou Linens uses the conventional retail method to estimate its ending inventories. The company records sales net of employee discounts. The following partial data has been summarized for the year ended December 31, 2009:
Required:
Compute the net markups for Cindy Lou Linens during 2009.
$$\begin{array} { l c r } & \text { Cost } & { \text { Retail } } \\\text { Inventory, January 1 } & \$ 465,460 & \$ 736,000 \\\text { Purchases } & 1,412,000 & 2,344,000 \\\text { Net markups } & & ? ? ? \\\text { Net markdowns } & & 48,200 \\\text { Normal spoilage } & & 43,200 \\\text { Employee discounts } & & 75,600 \\\text { Net sales } & & 2,138,000 \\\text { Inventory, Dec. 31 } & 494,460 & 824,100\end{array}$$

Describe the types of managerial activities according to Luthans, Hodgetts, and Rosenkrantz.

Recognize the importance of socializing and informal interactions in employee satisfaction and commitment.

Understand the necessity of dealing with people in all managerial activities.

Identify Mintzberg's managerial roles and provide examples.

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