Cost of goods sold

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    IMPLAN Support
    Hi Doleswar, It sounds like you are trying to take the producer value of the retail and wholesale Sectors in the IMPLAN Study Area Data and inflate those values to their equivalent Gross Retail Sales value in order to apply a local sales tax rate. If that is correct, the best way to reverse the IMPLAN producer values for Retail and Wholesale Sectors is to use the Margin values in reverse. For example, in the Margins table we can see that Sector 400 Retail Grocery has a Margin of 27.7%, so the producer value represents 27.7% of the total gross receipts. Thus if the IMPLAN Study Area Data reflected an Output value of $1.5M we could divide that value by the Sector's Margin and estimate that the associated Gross Sales value approximately $5,415,162.45. The 2014 Margins table can be downloaded here:http://implan.com/index.php?view=download&alias=65-2014-common-margins&category_slug=536&option=com_docman&Itemid=1764. We have also attached a screen cap of the retail Margins for your convenience. As regards intermediate demands, almost every Sector does have some amount of the spending pattern that is derived through retail and wholesale businesses and thus these Sectors do appear in the spending patterns. However, they are akin to Margining a producing Sector, and thus the entire Value Chain is captured in the spending pattern. Explore > Social Accounts > Balance Sheets > Commodity Demand to view the list of good needed to make that particular Sector's production. In the Total Commodity Demand row- Gross Inputs would be the total value of the goods needed and Regional Absorption is the value of the goods that are found locally. From the standpoint of Output in the Study Area Data, those retail and wholesales expenditures made by local businesses are captured as part of the total annual Output of the Retail and Wholesale Sectors, and the remaining Sectors values are already in producer values so their Output values aren't subject to a reduction like those of Retail and Wholesale Sectors. If you flip the View By: to Commodity Demand (in the Explore> Social Accounts> Balance Sheet (Tab)).you can see how local Institutions and Industries demand Retail and Wholesale services. We hope this helps address your questions, please let us know if we can provide additional assistance or if we didn't understand correctly. [attachment=700]hb3273e3.png[/attachment]

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