Thank you for your reply.
Hello, Dr. M. Susan Stiner. I made a wheat noodles(tempuraudon) ,too.
I made wheat noodles (tempuraudon), too.
I'm sorry that I made a spelling error.
It's not udon but wheat noodles.
Tempuraudon put tempura on wheat noodles. It is easy to make it.
In Japan office workers often buy it on the street at the stations,
because they are hard workers.
I reply your questions.
1,I'm sorry I'm going to study next week.
It may help your studies if you know the answer.
1. What is the format of the American
Income Statement?
Dr.S: In a simple American Income Statement, list
Sales (Revenue) first. Then subtract Cost of
Goods Sold. The result is called Gross
Margin. Subtract Operating Expenses from
Gross Margin. The result is called Net
Income.
2,The amount of ... inventory is $15,000.
If you mean the amount of Gross Margin is $15,000,
you are correct.
You may want to read the explanation below anyway.
2. What would the Gross Margin be if
Delaware Parts used LIFO?
The gross margin would be:
Revenues $30,000
less: Cost of Goods Sold
Beginning Inventory $ 0
plus: Purchases 37,000
Available For Sale 37,000
less: Ending Inventory 22,000
Cost of Goods Sold 15,000
Gross Margin $15,000
Explanation:
(I did not expect you to write this. I did
expect you to understand this.)
Delaware Parts bought 300 units of
inventory (purchases). They sold 100 units
(revenue). They have 200 units left (ending
inventory). They had no units on hand at the
beginning of the month (beginning
inventory).
Under LIFO, the most recent purchases are
the first units sold. The oldest purchases
remain in ending inventory. Delaware Parts
has 200 units of ending inventory. Look at
the cost of the oldest purchases to find the
cost of the ending inventory. The first and
second purchases were for 200 units. That is
the amount of the ending inventory. So the
cost of the first two purchases is the cost of
the ending inventory under LIFO. The cost
of the first two purchases is:
#1 (100 units x $100) $10,000
#2 (100 units x $120) 12,000
Total $22,000
The Cost of Goods Sold is usually the largest
expense a company has. The method used to
value inventory (FIFO or LIFO) makes a big
difference in the amount of the Cost of
Goods Sold. If the Cost of Goods Sold is
large, Net Income is smaller. If the Cost of
Goods Sold is small, Net Income is larger.
Companies can manipulate (change) earnings
simply by carefully selecting the method of
inventory valuation.
The rainy season "Thuyu"has set in in Japan.
I don't like the rainy season in Japan.
I don't like it, because I don't go out.
Dr.S:It is very hot and humid here now. I don't like it because I don't go
out, either. What do you do when you have to stay
in?
Sincerely yours,
Aki