Mary Kay Cosmetics
Selected Data and Additional Information from the Company's

question 50

Essay

Mary Kay Cosmetics
Selected data and additional information from the company's records are presented below:
$\begin{array}{lll}\underline {\text { Balance Slicet Data }}&\underline { 2014 }&\underline { 2013 }\\ \text { Cash } & \$ 235,000 & 246,000 \\\text { Accountsreceivable } & \$ 120,000 & \$ 150,000 \\\text { Inventories } & 56,000 & 50,000 \\\text { Accounts payable } & 38,000 & 70,000 \\\text { Salaries payable } & 10,000 & 5,000 \\\text { Equipment } & 110,000 & 70,000 \\\text { Accumulated depreciation } & 28,000 & 32,000 \\\text { Bondspayable } & 100,000 & 200,000 \\\text { Common stock } & 300,000 & 200,000 \\\text { Retained earnings } &76,000& 400,000\\\\\underline {\text { Income Statement Data } }&&\underline { 2014 }\\\text { Net sales } && \$ 920,000 \\\text {Cost of goods sold } &&700,000\\\text { Operating expense (excluding depreciation expense) } &&160,000\\\text { Net income (Includes depreciation expense and gain) } &&56,000\\\text {Gain on sale of equipment } &&4,000\\\end{array}$ Additional information:
1. Equipment with a cost of $\$ 30,000$ and a book value of $\$ 18,000$ was sold for $\$ 22,000$ during 2014 .
2. Common stock was issued to retire bonds payable duing 2014 .
3. The only items affecting retained earnings in 2014 were net income and dividends declared and paid. Refer to Mary Kay Cosmetics.How would the transaction to acquire a building by signing a 20-year mortgage note payable be reported on the statement of cash flows for 2014?

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Definitions:

Price Discrimination

A pricing strategy where companies charge different prices to different customers for the same product or service, often based on willingness to pay, market segment, or purchase location.

Supply Chain

The interconnected network of entities involved in producing, handling, and distributing a specific product, from raw materials to end consumers.

Consumer Markets

Markets comprised of individuals and households that purchase goods and services for personal consumption rather than for resale or business use.

Exchange Process

The exchange process is the act of obtaining a desired product from someone by offering something in return, foundational to the concept of trade in marketing.