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Unit 5 Cash Purchases

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Information about Unit 5 Cash Purchases
Entertainment

Published on February 25, 2008

Author: Dante

Source: authorstream.com

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Slide1:  Unit Objectives: Compute the sales tax Compute the total purchase price Compute the unit price Find the better buy based on unit price Compute the final price after using a coupon or rebate Compute the dollar amount of the markdown Compute the sale price when markdown rate is known Slide3:  Different strokes for different folks. The most commonly used denominations in the U.S. are the $1 and the $20; internationally, it’s the $100 note. Posthumous portraits only, please. Since 1866, U.S. law has prohibited portraits of any living person on currency. Red, whitish and blue. Neutral-colored U.S. currency paper is composed of 25 percent linen and 75 percent cotton. Red and blue synthetic fibers of various lengths are distributed evenly throughout the paper. Comeback for color? The last U.S. currency with background color was the $20 Gold Certificate, Series 1905, which was tinted gold. Slide5:  Q. What was the highest-value note ever printed? A. The $100,000 Gold Certificate, Series 1934. These notes were not circulated among the general public, but only issued for transactions between Federal Reserve banks and the U.S. Treasury. Q. When did the U.S. government begin issuing notes with printed signatures? A. When the U.S. government launched its first major issue of paper currency in 1861, each and every Demand Note was signed by hand by representatives of the Register of the Treasury and the Treasurer. This impractical practice prompted new legislation allowing the signatures of the Register and the Treasurer to be engraved and printed on currency. This measure went into effect with the issuance of the first series of United State Notes in 1862. Q. What is the most common note printed today? A. More $1 notes are printed than any other ($1 notes comprise about 45 percent of all notes printed). Q. What happens to notes when they are taken out of circulation? A. Some of the notes removed from circulation by the Federal Reserve System wind up as recycled stationery. Slide6:  http://www.moneyfactory.gov/newmoney/main.cfm/learning/counterfeit Slide7:  Sales tax – a tax on the selling price of an item or service that you purchase. Remember a tax rate must be written as a decimal Sales tax is expressed as a percent which means per 100 RI sales tax on most items is 7% so you pay 7 cents per 100 cents or 7 cents per dollar. Example: Ron buys an ipod for $199.99, a case for $19.99 and speakers for $99.99. What is the difference in sales tax if he bought it in RI versus if he bought it in MA.:  Example: Ron buys an ipod for $199.99, a case for $19.99 and speakers for $99.99. What is the difference in sales tax if he bought it in RI versus if he bought it in MA. MA 5% sales tax $319.97 X 5% = $319.97 X 0.05 = $15.9985 = $16.00 Find the total selling price 199.99 + 19.99 + 99.99 = $319.97 Find the sales tax Total Selling Price X Sales Tax Rate RI 7% sales tax $319.97 X 7% = $319.97 X 0.07 = $22.3979 = $22.40 Savings of $6.40 Exercise: Fran purchases a $25.95 leather handbag, a pair of running shoes for $37.95 and four knit tops at $8.75 each. If all items are taxed at 3.75%, what is the sales tax on her purchase?:  Exercise: Fran purchases a $25.95 leather handbag, a pair of running shoes for $37.95 and four knit tops at $8.75 each. If all items are taxed at 3.75%, what is the sales tax on her purchase? Total selling price $25.95 + $37.95 + 4($8.75) = $25.95 + $37.95 + $35.00 = $98.90 Sales Tax $98.90 X 3.75% = $98.90 X .0375 = $3.71 in sales tax Final purchase price = $98.90 + $3.71 = $102.61 Transactions Subject to the Sales Tax:  Transactions Subject to the Sales Tax Sales of goods, wares, and merchandise, including meals, alcoholic and nonalcoholic beverages, motor vehicles not requiring registration, automobile lubricants and accessories, building materials and fixtures and most other types of tangible personal property. Sales and casual sales of motor vehicles, airplanes and trailers (except mobile homes) are also taxable. Sales of food or drinks served at restaurants, soda fountains, hotels, bars, clubs and similar places are subject to an 8% sales tax. The fabrication or production of any item of personal property to the special order of a customer, such as printing or photography. The furnishing of certain public utility services.  Telephone and telegraph services are taxable whether furnished by a private corporation or by a city or town.  Except for home consumption, the furnishing of electric, water or gas is also taxable.  The furnishing of community antennae television and cable television services is also taxable. The leasing or renting of tangible personal property such as bicycles, typewriters, and other business machines, trucks, automobiles and other personal property. Sales of prepaid telephone calling cards or calling arrangements. Transactions Not Subject to the Sales Tax:  Transactions Not Subject to the Sales Tax Sales of drugs & medicines sold on prescription. Sales of food (excluding take-out orders sold by a restaurant or drive-in) for human consumption off the premises of the retailer. Sales of clothing and footwear. Sales of newspapers. Sales of meals to students and teachers by schools, colleges, universities, student organizations and parent-teacher organizations. Sales to (but not sales by) institutions or organizations operated exclusively for religious or charitable purposes such as hospitals not operated for profit, educational institutions not operated for profit, churches, orphanages, interest-free nonprofit loan associations, nonprofit sporting leagues and bands for youths  under 19, parent-teacher associations and DECA Professional services, such as those provided by physicians, attorneys, accountants, and engineers. Occupational services such as provided by barbers, beauty parlors, bootblacks, cleaning and pressing shops, and laundries. Professional services rendered in creating a custom computer program to the special order of a particular user. Sales of real estate.  However, tangible personal property used in the construction or repair of buildings is subject to the tax. Rental charges for living quarters at camps or retreat houses, operated by religious, charitable, educational or other organizations - hospitals, nursing homes. Sales of "specially adapted motor vehicles" to persons with disabilities. Sales of fuel & water for residential use. Casual sales (five or less within a 12 mo. period). Sales of coffins, caskets and burial garments. Sales in public buildings by blind people. Sales of items for not more than $20 each by nonprofit RI organizations for youth activities; and by accredited RI elementary and secondary schools for the purposes of those schools or of organized activities of their students. Sale of compressed air. Sales of United States , RI or POW-MIA flags. Sales of new or used textbooks in RI by an educational institution and sales of used textbooks by any vendor. Sales of scientific equipment, computers, software and related items used for research. Sales of coins having investment value. Sale of a new or used boat. Sale of a mobile and manufactured home (located in a mobile and/or manufactured home park). Alternative fuels & alternative fueled vehicles. Original artwork created and sold by artists, writers, and composers residing in & having a principal place of business within designated zones of the cities of Providence , Pawtucket , Westerly and Woonsocket. Sale of property and supplies used by florists in the processing or preparation of floral products and floral arrangements. The sale of horse food products to persons engaged in the business of boarding horses. Slide13:  WHAT IS THE “USE TAX” -- Rhode Island followed the lead of several other states in enacting the Sales and Use Tax Act in 1947. Everyone is familiar with sales taxes. But many do not understand the “use tax” portion of this legislation. Use taxes are often described as complementary to sales taxes. Use tax applies to purchases of goods from outside Rhode Island for storage, use or consumption in Rhode Island. The use tax puts in-state retailers on a level playing field with remote sellers. Let’s assume you make a purchase of tangible personal property outside of Rhode Island’s taxing jurisdiction. The purchase might include (but is not limited to) items such as appliances, computers, books, cameras, jewelry, etc., (food and clothing are not taxable). If the purchase is destined for storage, use or consumption in Rhode Island, it is subject to the use tax. The purchase could have occurred on a visit to a bordering state. A mail order or internet purchase could have been shipped directly to you. In any of these cases, if no sales tax was charged, you are required to pay use tax on the purchase. THE PROBLEM -- The world has changed significantly since 1947. With ease of travel, purchases from neighboring states are an everyday event. Mail order and internet purchases have opened the world to us. When these transactions go untaxed, we are all affected. Look around and consider what your taxes provide. Schools, law enforcement, and healthcare are just some of the programs funded by sales and use taxes. We enjoy having these benefits. But remember, sales and use taxes help fund them. In purchase transactions where no sales tax is charged, the use tax liability remains. It is up to each Rhode Island purchaser to pay the use tax they owe. THE SOLUTION -- Educating the public regarding its obligation to pay the use tax is the first step. Making it convenient to pay the use tax is the second step. The Division of Taxation has made it easy for individuals to file and pay a consumer use tax. Individual consumers may pay the tax once a year when filing their personal income tax returns, by completing Form T-205P which is part of the resident individual income tax booklet. By using this form you can report all use tax due for the prior calendar year and pay it when filing your personal income tax return due April 15th. You can also download Form T-205 from this website. Please report all purchases of tangible personal property purchased outside the State of Rhode Island for storage, use or consumption within Rhode Island. By paying the use tax on your untaxed out-of-state purchases, you do your part. People of conscience with a common purpose are capable of great things. Slide14:  . Sales receipt – proof of purchase Handwritten or cash register tape Should include: The quantity and selling price of each item or service purchased The total selling price of the items Sales tax Total purchase price Why do you need a receipt? Record of purchase for manufacturers rebates or special offers Record for tax purposes Almost always necessary if you want to return the item for cash or credit If the item is defective, you must have the receipt in order to take advantage of most warranties Example: Using the receipt determine the total amount for each item and the subtotal. Then determine the tax for those items that require tax to be paid. Finally, find the total purchase price.:  Example: Using the receipt determine the total amount for each item and the subtotal. Then determine the tax for those items that require tax to be paid. Finally, find the total purchase price. Example: Kate bought a dome tent priced at $179, 2 coolers priced at $18 each, and a propane stove priced at $40. The sales tax rate is 2%. Complete the receipt.:  Example: Kate bought a dome tent priced at $179, 2 coolers priced at $18 each, and a propane stove priced at $40. The sales tax rate is 2%. Complete the receipt. Complete the item quantity, description, and price Determine the amount per item (quantity X price) Add all amounts to find the subtotal Calculate the sales tax by multiplying the subtotal by the sales tax rate Add the subtotal and the sales tax to get the total purchase price Exercise: At Jerry’s, Liz purchases a 22-lb turkey at 99¢ per pound, 6 oranges at 4 for $1.00, a $3.99-box of laundry detergent, a gallon of milk for $1.69, a 99¢ frozen pie, and 6 cans of condensed soup at 2 cans for 74¢. The sales tax rate is 3%. There is no sales tax charged on food items. What is the total purchase price?:  Exercise: At Jerry’s, Liz purchases a 22-lb turkey at 99¢ per pound, 6 oranges at 4 for $1.00, a $3.99-box of laundry detergent, a gallon of milk for $1.69, a 99¢ frozen pie, and 6 cans of condensed soup at 2 cans for 74¢. The sales tax rate is 3%. There is no sales tax charged on food items. What is the total purchase price? Slide18:  Name __________________________________________ Date __________ Period __ Find the selling price for the following items in the newspaper advertisements. Calculate the sales tax based on the state the item was purchased in. Determine the amount of sales tax paid and the total price for each item. Finally, compare the total price of the item to the price you would pay if you bought it in Rhode Island. Record the difference in price using + / -. It’s a wrap…:  It’s a wrap… How do you find the total purchase price? Why do you need a receipt? What information should be included on the receipt? Slide21:  What are some units of measure? Some common conversions in units… 16 ounces in 1 pound 164 ounces in 1 gallon Slide22:  1.4¢ per 77¢ plate Dorian’s Paper Plates ------- 55 plates ------- Unit Price Your Price Price per package Count per package Price per unit Unit of measure or count Example: Shane purchased a 6.5-oz can of tuna for 89¢ and a dozen oranges for $3.96. What is the unit price of the item to the nearest tenth of a cent?:  Example: Shane purchased a 6.5-oz can of tuna for 89¢ and a dozen oranges for $3.96. What is the unit price of the item to the nearest tenth of a cent? Find the unit price. Price per item ÷ measure or count Tuna: $0.89 ÷ 6.5 = $0.1369 = 13.69¢ = 13.7¢ per ounce Oranges: $3.96 ÷ 12 = $0.33 = 33¢ per orange Exercise: A 32-oz can of spaghetti sauce costs 99¢. Find the unit price per ounce to the nearest tenth of a cent.:  Exercise: A 32-oz can of spaghetti sauce costs 99¢. Find the unit price per ounce to the nearest tenth of a cent. Price per Item ÷ Measure or Count $0.99 ÷ 32 = $0.0309375 = 3.09375¢ = 3.1¢ per ounce Name _________________ Date _______ Period ____ Find 4 items in the local grocery flyer. Using the price per item and the measure or count, determine the unit price.:  Name _________________ Date _______ Period ____ Find 4 items in the local grocery flyer. Using the price per item and the measure or count, determine the unit price. Which one would you buy?:  Which one would you buy? BlackBerry® Pearl BlackJack II What information would help you make your decision? Slide27:  You choose two products to compare, but they are two different sizes. How can you choose which is the better buy? Things to consider when determining which to buy… If you choose the larger package – are you going to be able to finish it, or will some of it probably spoil? Do you have room to store the larger item? Are you sure you like the item? If it is something you want to try, buy the smaller one for now – if you like it get the larger next time. Be sure that the items you are comparing are of equal quality before determining the better buy. Example: You are comparing two possible packages of Bounty paper towels. Shaw’s offers 12 rolls for 16.99 while Stop & Shop offers 8 rolls for $9.99. Which is the better buy? :  Example: You are comparing two possible packages of Bounty paper towels. Shaw’s offers 12 rolls for 16.99 while Stop & Shop offers 8 rolls for $9.99. Which is the better buy? Find the unit price for each item Price per Item ÷ Measure or Count Find the better buy - compare Stop & Shop $9.99 ÷ 8 = 1.24875 per roll Shaw’s $16.99 ÷ 12 = 1.41583 per roll Find the better buy…:  Find the better buy… Scouring Pads Box of 18 for $1.69 Box of 10 for $1.05 0.09389 vs. 0.105 Tortilla Chips 16-oz bag for $2.49 12-oz bag for $1.89 0.155625 vs. 0.1575 It’s a wrap…:  It’s a wrap… How do we find the unit price? Where do we find it in the store? Why do we want to know the unit price? Other than price, what are some other things you need to consider when making your purchase? Slide31:  What are coupons used for? Where can you find coupons? What is the difference between a coupon and a rebate? Coupons:  Coupons Coupons and rebates are special discounts that are an incentive to purchase a particular item. Coupons are redeemed at the time of purchase You present it to the store & the amount is taken off your bill Types Manufacturer’s Coupons Store Coupons Things to be aware of… Be careful to use them before they expire A coupon is only truly a way to save if you are purchasing something you would normally purchase If you are using a store coupon, you may not have to go to that store. Most stores will match coupons of competitors. Be careful of the size and quantity you must buy in order to use the coupon Most grocery stores will double or triple coupons under $1 Rebates and Refunds:  Rebates and Refunds To get a rebate… Fill out a form Enclose your sales slip and the UPC or proof of purchase The down side… You lose your receipt – your proof of purchase Ruin the packaging Cost of the stamp and the envelope You pay tax on the entire purchase price. Gus purchased two 32-ounce bottles of liquid detergent for $2.19 each. He had a $1.00 off coupon. What is the final price of the detergent?:  Gus purchased two 32-ounce bottles of liquid detergent for $2.19 each. He had a $1.00 off coupon. What is the final price of the detergent? Find the final price. Total Selling Price – Total Savings MANUFACTURER COUPON EXPIRES 10-20-08 SAVE $1.00 On ay TWO (2) SAVON Liquid Dish Detergent Joel does his own service work on his car. Below is his receipt and a list of rebates he can make use of. Determine the total cost of the work on the car, and how much he will have paid after he receives the rebates?:  Joel does his own service work on his car. Below is his receipt and a list of rebates he can make use of. Determine the total cost of the work on the car, and how much he will have paid after he receives the rebates? RI Rebate Law:  RI Rebate Law Under the law, retailers advertising a manufacturer's rebate on any sale item must apply the rebate amount at the time of the sale and complete the rebate redemption process themselves, rather than requiring the consumer to do it. The law prohibits retailers from advertising a "net," or final, price for an item that includes a payment from a manufacturer -- unless the retailer gives the buyer the amount of the manufacturer's payment at the time of the sale. In many cases companies assume consumers are going to forget all about it, allowing the businesses to keep the money. Offering a deal and then making the consumer jump through hoops to get it is inappropriate and not all that great a deal. Retail-industry research estimates that 40 percent of all rebates are never redeemed. That rate translated into $500 million in unredeemed rebates last year. It’s a wrap…:  It’s a wrap… What is the difference between a coupon and a rebate? Where can we find a coupon or a rebate? Why do we want to use coupons or get rebates whenever possible? What are some down sides to coupons refunds, and rebates? How do you find the final price after coupons or rebates? Slide39:  What is a discount and where is it used? Sale Price – lower than the store’s regular price Markdown / discount Markdown rate – an item’s markdown expressed as a percent – 30% off Dollar amount off – $5.00 off Fraction off – ⅓ off In order to find the markdown, you must know the regular selling price. Example: Nora purchased a DVD player at a sale price of $175.00. The regular selling price is $229.99. What was the markdown?:  Example: Nora purchased a DVD player at a sale price of $175.00. The regular selling price is $229.99. What was the markdown? Find the markdown Markdown = Regular Selling Price – Sale Price Example: Cardi’s is selling all furniture for 35% off the regular price. Chad purchased furniture that regularly sold for $799. How much did he save by buying the furniture during the sale?:  Example: Cardi’s is selling all furniture for 35% off the regular price. Chad purchased furniture that regularly sold for $799. How much did he save by buying the furniture during the sale? Find the markdown Markdown = Regular Price X Markdown Rate Try these…:  Markdown $ Computer Software Regular price: $74.95 Sale price: $59.95 What is the markdown? Markdown % A pair of jeans Regular price: $87.99 Markdown rate: 45% What is the markdown? Try these… Slide43:  Determine the markdown % A mini van that regularly sells for $14,495 is on sale for $11,595. What is the markdown %? It’s a wrap…:  It’s a wrap… What are 2 ways to find a markdown? How can we find a markdown %? What are some ways stores advertise discounts? Slide45:  What are 3 ways a store will give the customer the markdown on sale items? $ off the selling price fraction off the selling price % off the selling price Sale Price = Regular Selling Price - Markdown Example: Debra is purchasing a clock radio at Target for $47.95. She is offered a discount of 38%. What will she pay for the radio?:  Example: Debra is purchasing a clock radio at Target for $47.95. She is offered a discount of 38%. What will she pay for the radio? Find the markdown. Find the sales price. Example: The regular selling price of a bicycle is $60.00. The store is offering a 1/3 off discount. Find the sale price.:  Example: The regular selling price of a bicycle is $60.00. The store is offering a 1/3 off discount. Find the sale price. markdown $60.00 - $20.00 = $40.00 sale price That’s a wrap…:  That’s a wrap… How is sale price found? Describe how to find the markdown and the sale price if the discount is given in the 3 possible ways.

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