MSOM 300 Lecture Notes - Lecture 2: Shoplifting, Treasury Stock
10 Apr 2016
School
Department
Course
Professor
Document Summary
Cost of good available = inventory purchased during he period + beginning inventory balance. Sales revenue costs of goods sold=gross margin. Perpetual inventory system: system that subtracts inventory as soon as you take the material, and vice versa when items are added. Example of this would be target scanning bar codes when you purchase something at check out. Inventory shortages typically caused by shopliting or unreported broken products. Financing aciviies: issuing common stock, long term notes, bonds, cash dividends payment, treasury stock, Invesing aciviies: purchase and sell of property, plant, & equipment (pp&e), long term investment. Operaing aciviies: revenues and expenses, interest expenses, dividend income, amorizaion, depreciaion, Net income dividend = ending retained earning. Cash discounts: a deducion from the invoice price granted to induce early payment of the amount due. Note: 2/10-net/30 (2-percentage of discount if paid in 10 days; net is the full amount to be paid within 30 days)
