Wilson Sells a Basketball to a Wholesaler for $16, and the Wholesaler

question 19

Multiple Choice

Wilson sells a basketball to a wholesaler for $16, and the wholesaler applies a 20 percent markup. A retailer then applies a 33.3 percent markup. The final selling price is:

• A) $24.53.
• B) $30.00.
• C) $25.59.
• D) $28.00.
• E) Cannot be determined from the information given.

---

Definitions:

Statement of Cash Flow

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations, investment activities, and financial activities, as well as all cash outflows that pay for business activities and investments during a given period.

Operating Activities

The day-to-day actions that involve the production, sales, and delivery of a company's product or service, which are reflected in its cash flows.

Investing Activities

Activities related to acquiring or disposing of non-current assets, such as property, plant, and equipment, which are used to generate revenue over multiple periods.

Free Cash Flow

The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.