MemoMilligain
Memo
To: David Milligan
FROM: Kenneth Tarpley
DATE: March 6 2015
Re: Inventory of Milligan’s Backyard Storage Kits
Milligan’s Backyard Storage Kits is a thriving company. However, with growth comes a larger Inventory and a need for updating inventory systems. AS per your request, I analyzed your current inventory system and have identified the costs, sales, markup percentages, gross profits, and inventory levels. I also have identified your high-profit products and those that may need to be revaluated. We will first address your questions regarding the newly designed inventory analysis designed worksheet.
Analysis
1. I identified the items with markups less than 30 percent under the ISQ1 TAB of the attached spreadsheet shows a list of the items that are under a 30 percent markup.
2. The LISQ6Lowest TAB shows the item with the lowest annual sales is Item number A00820 8’ x 40’ Covered bridge on the spreadsheet See caption below. The spreadsheet shows this item has annual sales of $9,400.00 listed under TAB TYD Inventory Analysis TAB line 29 columns H on the spreadsheet.
3. The five top selling items last year were the 4’ Windmill, 6’ windmill, 8’ x 40’ Covered Bridge, 8’ x 10’ Cedar Shed, 6’ x 20’ Covered Bridge see caption below and is listed under the ISQ7 TAB on the spreadsheet as well..
Chart Top Annual Sales.
4. The actual annual sales of each are identified under the TYD Inventory Analysis TAB on the spreadsheet Column H.
5. Milligan’s Backyard Storage Kits had total annual sales of $5,013,072.42.
6. The company’s annual gross profit was $1,321,162.24.
7. The highest selling item is item number A00520 3' x 7' Picnic Table which had an average of 850 units sold over course of the year.
8. Additionally I identified items that that had an inventory greater than 12 which are:
Item A00410 8' x 10' Wood Barn in inventory turnover rate at 14 days and item number A00150 10' x 14' Aluminum Shed turnover rate @ 12.50 days. I also identified
To: David Milligan
FROM: Kenneth Tarpley
DATE: March 6 2015
Re: Inventory of Milligan’s Backyard Storage Kits
Milligan’s Backyard Storage Kits is a thriving company. However, with growth comes a larger Inventory and a need for updating inventory systems. AS per your request, I analyzed your current inventory system and have identified the costs, sales, markup percentages, gross profits, and inventory levels. I also have identified your high-profit products and those that may need to be revaluated. We will first address your questions regarding the newly designed inventory analysis designed worksheet.
Analysis
1. I identified the items with markups less than 30 percent under the ISQ1 TAB of the attached spreadsheet shows a list of the items that are under a 30 percent markup.
2. The LISQ6Lowest TAB shows the item with the lowest annual sales is Item number A00820 8’ x 40’ Covered bridge on the spreadsheet See caption below. The spreadsheet shows this item has annual sales of $9,400.00 listed under TAB TYD Inventory Analysis TAB line 29 columns H on the spreadsheet.
3. The five top selling items last year were the 4’ Windmill, 6’ windmill, 8’ x 40’ Covered Bridge, 8’ x 10’ Cedar Shed, 6’ x 20’ Covered Bridge see caption below and is listed under the ISQ7 TAB on the spreadsheet as well..
Chart Top Annual Sales.
4. The actual annual sales of each are identified under the TYD Inventory Analysis TAB on the spreadsheet Column H.
5. Milligan’s Backyard Storage Kits had total annual sales of $5,013,072.42.
6. The company’s annual gross profit was $1,321,162.24.
7. The highest selling item is item number A00520 3' x 7' Picnic Table which had an average of 850 units sold over course of the year.
8. Additionally I identified items that that had an inventory greater than 12 which are:
Item A00410 8' x 10' Wood Barn in inventory turnover rate at 14 days and item number A00150 10' x 14' Aluminum Shed turnover rate @ 12.50 days. I also identified