[UGBA 10] - Midterm Exam Guide - Ultimate 40 pages long Study Guide!

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: Briginshaw John

Document Summary

In january, mike"s buys worth of cheese on credit, taking delivery in january. They will pay the supplier in february (30-day credit terms) In february they start to sell the cheese, and deliver 70% of the cheese to their favorite customers for a. The customers buy on credit and will pay in march. Expense (cost) of cheese sold = x 70% = . 00. Revenue from sales = cost + markup = + x 100% = ,400. 00. Income = revenue - expenses = - = . 00. Cash inflow (february) = 0 (customers pay in march) Net cash flow = sh - = 1000. Asset: an economic resource that is expected to benefit the firm by heling generate revenues. Liability: a debt owed to an outside party. The amount of money left over if you were to sell the assets and then pay off all the liabilities.