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What was the total cost of equipment sold during the year?
What was the total cost of equipment sold during the year?
The net cash provided by investing activities was a negative amount.
The net cash provided by investing activities was a negative amount.
True
What was the balance of common stock at the end of the period?
What was the balance of common stock at the end of the period?
$70,000
The purchase of equipment amounted to ______.
The purchase of equipment amounted to ______.
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Match the following cash flow activities with their corresponding amounts:
Match the following cash flow activities with their corresponding amounts:
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What is the total net increase in cash at the end of the period?
What is the total net increase in cash at the end of the period?
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The net cash provided by financing activities was positive.
The net cash provided by financing activities was positive.
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What was the cash balance at the beginning of the period?
What was the cash balance at the beginning of the period?
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What is added back to net income when calculating cash flows from operating activities?
What is added back to net income when calculating cash flows from operating activities?
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A gain on disposal of plant assets is added to net income in the operating activities section.
A gain on disposal of plant assets is added to net income in the operating activities section.
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What is the net cash provided by operating activities after adjustments for depreciation and loss on disposal?
What is the net cash provided by operating activities after adjustments for depreciation and loss on disposal?
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The loss on disposal of plant assets is calculated as the difference between the ______ and the proceeds from the sale.
The loss on disposal of plant assets is calculated as the difference between the ______ and the proceeds from the sale.
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Match the following adjustments with their descriptions:
Match the following adjustments with their descriptions:
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Which of the following reflects the book value at the date of disposal for the given equipment?
Which of the following reflects the book value at the date of disposal for the given equipment?
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A decrease in Accounts Receivable indicates that cash receipts are greater than revenue earned.
A decrease in Accounts Receivable indicates that cash receipts are greater than revenue earned.
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What was the loss on disposal of the plant assets calculated in the content?
What was the loss on disposal of the plant assets calculated in the content?
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What is the free cash flow calculated for Apple?
What is the free cash flow calculated for Apple?
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A high price to cash flow ratio suggests that the stock is undervalued.
A high price to cash flow ratio suggests that the stock is undervalued.
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What is the primary source of revenue for merchandising companies?
What is the primary source of revenue for merchandising companies?
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Cost of goods sold is the total cost of merchandise sold during the ______.
Cost of goods sold is the total cost of merchandise sold during the ______.
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Match the following terms with their definitions:
Match the following terms with their definitions:
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Which of the following is not included in the calculation of free cash flow?
Which of the following is not included in the calculation of free cash flow?
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Merchandising companies do not usually operate under a perpetual inventory system.
Merchandising companies do not usually operate under a perpetual inventory system.
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What does the price to cash flow ratio indicate?
What does the price to cash flow ratio indicate?
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What is the primary purpose of sales discounts?
What is the primary purpose of sales discounts?
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Sales discounts are added to revenues on the income statement to determine net sales.
Sales discounts are added to revenues on the income statement to determine net sales.
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What effect does analyzing data regarding customers have on a company?
What effect does analyzing data regarding customers have on a company?
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De La Hoya sold merchandise on account for a selling price of $______.
De La Hoya sold merchandise on account for a selling price of $______.
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Match the following companies with their practices related to data analytics:
Match the following companies with their practices related to data analytics:
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What was the cost of the goods sold by De La Hoya when selling to Marin Inc.?
What was the cost of the goods sold by De La Hoya when selling to Marin Inc.?
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Sales returns occur when goods sold are returned to the seller.
Sales returns occur when goods sold are returned to the seller.
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On what date did De La Hoya sell merchandise to Marin Inc.?
On what date did De La Hoya sell merchandise to Marin Inc.?
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Which of the following is classified as property, plant, and equipment?
Which of the following is classified as property, plant, and equipment?
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Intangible assets include physical items such as furniture and equipment.
Intangible assets include physical items such as furniture and equipment.
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What is the purpose of depreciation in accounting?
What is the purpose of depreciation in accounting?
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Patents and copyrights are classified as ______ assets.
Patents and copyrights are classified as ______ assets.
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Which of the following is considered a long-term asset?
Which of the following is considered a long-term asset?
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Accumulated depreciation represents the total amount of depreciation expensed in an asset's life.
Accumulated depreciation represents the total amount of depreciation expensed in an asset's life.
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Land is considered a ______ asset because it has an indefinite useful life.
Land is considered a ______ asset because it has an indefinite useful life.
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Match the following asset categories with their definitions:
Match the following asset categories with their definitions:
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Study Notes
Merchandising Operations and Inventory
- Merchandising businesses buy and sell goods.
- The primary source of revenue is sales revenue or sales.
- Cost of goods sold represents the total cost of merchandise inventory sold during a period.
### Sales Discounts
- Sales discounts are offered to customers to encourage prompt payment.
- Sales discounts are deducted from sales revenue on the income statement to determine net sales.
Data Analytics and Credit Sales
- Data analytics can be used to analyze current and potential customers.
- Data analytics can help companies expand sales and minimize the risk of unpaid receivables.
- Companies use data analytics to determine the size of a discount and the payment period.
### DO IT! 3: Purchase Transactions
- On September 20, De La Hoya sold merchandise inventory on account for $1,100 cash, with a cost of goods sold of $750.
- On September 25, De La Hoya received returned goods from Marin, with a selling price of $200 and a cost of goods sold of $150.
The Classified Balance Sheet
- Long-term assets that are not currently used in operations are classified as long-term investments.
- Examples of long-term investments include long-term notes receivable.
- Property, plant, and equipment are long-term assets with a useful life of more than one year.
- Property, plant, and equipment includes items such as land, buildings, equipment, delivery vehicles, and furniture.
- Depreciation is an accounting method used to allocate the cost of an asset over its useful life.
- Accumulated depreciation is the total amount of depreciation that has been expensed on an asset.
- Intangible assets do not have a physical substance.
- Examples of intangible assets include patents, copyrights, and trademarks.
DO IT! 1a: Assets Section of Classified Balance Sheet
- The problem asks the user to write an assets section of a Classified Balance Sheet for Hoffman Corporation, based on data provided.
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Description
Test your understanding of merchandising operations, inventory management, and sales discounts. This quiz covers the basics of sales revenue, cost of goods sold, and the use of data analytics within these contexts. Challenge yourself with practical scenarios related to purchase transactions.
