Dear Taka,
Thank you for your seventh message. My comments follow.
Sincerely,
Prof. Sue Stiner
shouhei takayama <s2398475@slb.cgu.ac.jp> wrote:
> Dear Dr. Stiner
>
> Thank you for your message.
> How do you do?
> I am very well. Thank you.
>
> I will answer the questions in your "reply to sixth message."
>
>
> 1. What is the format for an American Income Statement?
> It is FIFO.
The format for an American Income Statement is revenue minus cost of goods
sold equals gross margin. Gross Margin minus operating expenses equals net
income or loss. [Revenue - Cost of Goods Sold = Gross Margin. Gross Margin -
Operating Expenses = Net Income (Loss)]
FIFO is a way to value inventory.
> 2. What is the amount of gross margin if Delaware Parts used LIFO, not
> FIFO, to value inventory?
> Delaware Parts used LIFO to value inventory is $15,000.
If Delaware Parts used LIFO to value inventory, the gross margin is $15,000.
Correct!
> 3. Is the purchase price of inventory rising or falling?
> No, it is not.
The purchase price of inventory is rising.
To find this answer, I looked at the transactions. The first three
transactions are purchases of inventory. "Rising" means the same as
"increasing." The first purchase was for $10,000. The second purchase was
for $12,000. The third purchase was for $15,000. Each time a purchase is
made, the new purchase costs more than the last purchase. That is what "rising
purchase price" means.
Your answer ("No, it is not.") does not tell me if the purchase price is
rising. That answer does not tell me if the purchase price is falling.
> 4. Which inventory method (LIFO or FIFO) is better for Delaware Parts
> to use?
> "Better" means "results in lower income tax."
> It is FIFO.
LIFO is the better inventory method for Delaware Parts to use.
With LIFO, the cost of goods sold is $15,000. The gross margin is $15,000.
(30,000 - 15,000 = 15,000) With FIFO, the gross margin is $20,000. The net
income will be higher under FIFO, because the gross margin is higher. If the
net income is higher, then taxes will be higher. Under LIFO, the gross margin
is lower and the net income will be lower. The taxes will be lower, too,
under LIFO.
>
> Vocabulary - Income Statement (Part 1)
<snip>
>
Thank you for sending the vocabulary words, Taka.
> And
> I looked a picture of a tall ship.
I looked at the picture of a tall ship.
> This ship is very beautiful!
> I have never gone sailing.
> But,I wish that I go sailing.
But, I wish that I could go sailing.
>
> By the way, I make my homepage.
By the way, I made a homepage.
> I and my friend made this hompage.
My friend and I made this homepage.
> This homepage is my paer-time job's homepage.
This homepage is my part-time job's homepage.
> My job is hanburger shop.
My job is at a hamburger shop.
> This name is "LOTTERIA"
Its name is "Lotteria."
> Do you know LOTTERIA?
Are you familiar with Lotteria?
> http://www.geocities.co.jp/CollegeLife-Cafe/2437/
>
> I am looking forward to your reply.
>
> Sincerely,
> Taka
> (Syouhei Takayama)
Taka, I am impressed that you made a homepage on your own.
I can't wait to see the homepage you make for school.
Be sure to send me its URL.
I am not familiar with Lotteria. I am familiar with the lottery. The page
looks like it has a lottery number on it. Is that right?
Is Lotteria the name of your hamburger shop? I saw the Japanese characters on
your homepage. But I cannot read Japanese! Sumi massen!
Does your boss like the homepage? Did he ask you to make it?
The new lesson is
at:http://www72.homepage.villanova.edu/susan.stiner/cgu/income22k.html
We will learn more about the income statement.
This weekend is the Fourth of July weekend. The fourth of July is a national
holiday. It is our country's birthday. Most Americans do not have to work this
weekend. Most of us will have a picnic or barbeque at a friend's house. We eat
hot dogs and hamburgers. We invite friends and relatives to share the day with
us. We see wonderful fireworks displays at night.
Today (Sunday) I will visit a friend of mine. She has a three-year-old son. We
will have a picnic in her yard first. We will grill hot dogs and chicken. We
will eat ice cream for dessert. Then we will drive to a place that will shoot
fireworks. I love fireworks. I cannot wait to see them tonight.
This is a page with patriotic music:http://wilstar.com/holidays/july4.htm.
"Yankee Doodle Boy" is the background song on the first page. Scroll down and
click on more music files.
The National Anthem, the Star-Spangled Banner, is here:
http://wilstar.com/holidays/ssbanner.htm
The background music is our national anthem. The words are on the screen. We
usually sing only the first stanza (paragraph).
Yesterday (Saturday)I went to a family reunion. That means that very many
relatives meet at one person's house. We met at my cousin's house in
Maryland. She lives near Washington, DC. It took 2 hours for us to drive
there. I saw cousins that I have not seen in twenty years! Everyone was grown
up! The last time I saw some of my cousins, they were small children. They
live in California and New York. They are married and have children of their
own. We had a great time! We talked
and ate all afternoon and evening.