IDIS 240 Final Exam – Vestal Questions with Complete Solutions 100% Cash Flow - Correct Answer Cash in bank > purchased inventory > sold inventory > accounts receivable > cash in bank List Price - Correct Answer The retail price listed selling price - Correct Answer list price - trade discounts Net price - Correct Answer = selling price - allowable discounts (cash discounts) Net Sale Cost of Good Sold (COGS) - Correct Answer = Cost of Merchandise + Freight from Manufacturer Trade Discounts - Correct Answer specify term of sale and change of price with how they see fit.Cash Discounts - Correct Answer given to encourage buyers to promote payment promptly.Special Orders - Correct Answer instructions given by the buyer on how to deliver or manufacture the order.
Minimum Order vs. Freight Allowed - Correct Answer Minimum order:
The minimum amount you can order from a manufacturer
Freight Allowed:
manufacture pays for the shipping and just adds to the cost.Claims - Correct Answer request for payment from the insurance company to cover financial losses.Returns - Correct Answer goods returned to the business that sold them 1 / 2
Operating Expense (OE) - Correct Answer all costs needed to provide necessary services.SG&A - Correct Answer Selling, General and Administrative Expense EBITDA: Earnings before interest, Taxes, depreciation, and amortization - Correct Answer = Margin - OE - SG&A EBIT - Correct Answer EBITDA - Depreciation and Amortization Interest Expense - Correct Answer Not part of operating cost NPBT - Correct Answer Net profit before taxes NPAT - Correct Answer Net profit after taxes Accounts payable - Correct Answer Money the distributor owes the manufacturer Accounts Receivable - Correct Answer money the customer owes us Days Sales Outstanding - Correct Answer Receivable Dollars * (365/sales) Inventory - Correct Answer What we have on hand to sell Inventory Turn - Correct Answer = (COGS from inventory / Average Warehouse Inventory) Gross Margin Return on Inventory Investment (GMROII) - Correct Answer = (Gross Margin Dollars Earned on Warehouse Sales/ Average Warehouse inventory) COGS - Correct Answer = Cost of Merchandise + Freight from Manufacturer FOB Destination - Correct Answer manufacturer pays for the freight
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