IDIS 240 Final Exam - Vestal questions and answers all are graded A+

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