IDIS 240 FINAL EXAM 2024- VESTAL QUESTIONS AND ANSWERS 100% ACCURATE

IDIS 240 FINAL EXAM 2024- VESTAL QUESTIONS AND ANSWERS 100% ACCURATE Cash Flow Cash in bank > purchased inventory > sold inventory > accounts receivable > cash in bank List Price The retail price listed selling price list price - trade discounts Net price = selling price - allowable discounts (cash discounts) Net Sale Cost of Good Sold (COGS) = Cost of Merchandise + Freight from Manufacturer Trade Discounts specify term of sale and change of price with how they see fit. Cash Discounts given to encourage buyers to promote payment promptly. Special Orders instructions given by the buyer on how to deliver or manufacture the order. Minimum Order vs. Freight Allowed 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 request for payment from the insurance company to cover financial losses. Returns goods returned to the business that sold them Operating Expense (OE) all costs needed to provide necessary services. SG&A Selling, General and Administrative Expense EBITDA: Earnings before interest, Taxes, depreciation, and amortization = Margin - OE - SG&A EBIT EBITDA - Depreciation and Amortization Interest Expense Not part of operating cost NPBT Net profit before taxes NPAT Net profit after taxes Accounts payable Money the distributor owes the manufacturer