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