IDIS 240 FINAL PAPER UPDATED
COMPLETE QUESTIONS AND CORRECT
ANSWERS
●● If we buy better it will affect our EBITDA by?
Answer: 15.5%
●● Reduces Expenses, it will affect our EBITDA by?
Answer: 10.66%
●● Raise prices, it will affect our EBITDA by?
Answer: 20.95%, biggest improvement
●● Example of Debt financing is?
Answer: A Loan
●● Equity Financing
Answer: Giving ownership of the company for money
●● Compound Interest
,Answer: -Subsidized money is money that the government pays the
interest. Unsubsidized money- you are responsible for the interest (you
don't have to pay in college)
-The addition of interest to the principle sum or loan or deposit
●● Du Pont Model
Answer: Any change (positive or negative) will affect our Return on
Investment (ROI)
●● Margin in Dollars=
Answer: Markup in Dollars
●● List Price
Answer: Manufacturers sell from a nationally advertised price. As there
is a fluctuation in cost of raw materials or market condition, a discount is
offered. But it is seldom reflected on the list price.
●● Selling Price
Answer: -The amount that appears on the invoice (amount paid by
customer)
-Selling Price= List Price- Trade Discounts
●● Net Price
, Answer: -Customer doesn't pay the full selling price and a cash Discount
is announced to pay the bill as soon as possible
-Net Price= Selling Price- allowable discounts (cash discounts)
●● Net Sale
Answer: -Actual money received by the distributor after all adjustments
are made to the net price
-Net Sale= Net Price- Adjustments
-Downward adjustments mean that the customer pays lesser than that
billed on the original invoice
●● What reasons are adjustments to net price usually made?
Answer: -Substitutions
-Different quality or specifications than those that are offered
-Damaged or Returned goods by the customer
●● If no adjustments are made to the net sale? No cash discounts? No
trade discounts?
Answer: -Net Sale= Net Price
-Net Sale= Selling Price
-Net Sale= List Price
●● Cost of Goods Sold (COGS)
COMPLETE QUESTIONS AND CORRECT
ANSWERS
●● If we buy better it will affect our EBITDA by?
Answer: 15.5%
●● Reduces Expenses, it will affect our EBITDA by?
Answer: 10.66%
●● Raise prices, it will affect our EBITDA by?
Answer: 20.95%, biggest improvement
●● Example of Debt financing is?
Answer: A Loan
●● Equity Financing
Answer: Giving ownership of the company for money
●● Compound Interest
,Answer: -Subsidized money is money that the government pays the
interest. Unsubsidized money- you are responsible for the interest (you
don't have to pay in college)
-The addition of interest to the principle sum or loan or deposit
●● Du Pont Model
Answer: Any change (positive or negative) will affect our Return on
Investment (ROI)
●● Margin in Dollars=
Answer: Markup in Dollars
●● List Price
Answer: Manufacturers sell from a nationally advertised price. As there
is a fluctuation in cost of raw materials or market condition, a discount is
offered. But it is seldom reflected on the list price.
●● Selling Price
Answer: -The amount that appears on the invoice (amount paid by
customer)
-Selling Price= List Price- Trade Discounts
●● Net Price
, Answer: -Customer doesn't pay the full selling price and a cash Discount
is announced to pay the bill as soon as possible
-Net Price= Selling Price- allowable discounts (cash discounts)
●● Net Sale
Answer: -Actual money received by the distributor after all adjustments
are made to the net price
-Net Sale= Net Price- Adjustments
-Downward adjustments mean that the customer pays lesser than that
billed on the original invoice
●● What reasons are adjustments to net price usually made?
Answer: -Substitutions
-Different quality or specifications than those that are offered
-Damaged or Returned goods by the customer
●● If no adjustments are made to the net sale? No cash discounts? No
trade discounts?
Answer: -Net Sale= Net Price
-Net Sale= Selling Price
-Net Sale= List Price
●● Cost of Goods Sold (COGS)
