Dear Taku,
Thank you for your fifth message. My comments follow.
Sincerely,
Prof. Sue Stiner
> Takumi Kimoto wrote:
> Dear Dr. Stiner,
> Thank you for your reply.
1.What is a balance sheet?
> Double-entry accounting began about 1200 A.D. in northern Italy.
> The first financial statement was the Balance Sheet.
> The balance sheet is the statement of a business's financial position.
> The financial position is given by the equation:
> Assets = Liabilities + Stockholders' Equity
Taku, only one of these sentences is the answer to the question.
The answer is: the balance sheet is the statement of a business's
financial position.
2.What is stockholders' equity in the U.S.?
> "Stockholders" is the name for the owners of a corporation.
> "Shareholder" is another name for stockholder.
> The stockholders' equity is:
> ＋ the owners' original investment
> ＋ net earnings from the business
> − dividends
> If there is a net loss from the business, instead of net earnings, the
> net loss is subtracted from the owners' original investment.
Taku, not every sentence is the answer to a question. You must select
which sentence is the correct one. Sometimes *none* of the sentences in
the lesson are the correct answer. Sometimes you must think of the
correct answer yourself. American professors expect their students to
answer questions in their own words. We do not usually give our
students the answer in a lesson. The answer is not usually in the book.
Stockholders' equity is the owners' share of the assets. Stockholders'
equity is what is left of the assets after the liabilities are paid. It
is the net worth of the company.
3.Name one current asset of Dell Computers.
> Accounts payable.
"Accounts payable" is a current liability. Look again at last week's
lesson. Accounts payable is the first example of current liabilities.
The current assets of Dell Computers are: (1) cash and cash equivalents,
(2) short-term investments, (3) accounts receivable, net, (4)
inventories, and (5)other. You were to pick one of those.
4.What is the value of that current asset?
> 2001 2000
> $42,86 $35,38
Taku, in the US we put a comma (,) in numbers to mark the thousands. So
the numbers should be $4,286 and $3,538. But this says that Dell has
accounts payable of four thousand two hundred eighty-six dollars in
2001. Dell has more accounts payable than that. At the top of the Dell
balance sheet there is a phrase in parentheses: (in millions, except per
share
amounts). That means that six zeros are added to every number in the
balance sheet. So Dell has $4,286,000,000 (four billion two hundred
eight-six million dollars) in accounts payable in 2001.
5.Name one current liability of Nike.
> Cash and equivalents.
This is a current asset. Look again at last week's lesson. Cash is the
first example of current assets.
The current liabilities of Nike are: (1) current portion of long-term
debt, (2) Notes payable, (3) accounts payable, and (4)accrued
liabilities. You were to pick one of those.
6.hat is the value of that current liability?
> 2000 1999
> $254,3 $198,1
Taku, in the US we put a comma (,) in numbers to mark the thousands. A
period (.) in a number means something different. The Nike balance
sheet said cash was $254.3 (two hundred fifty-four point three dollars)
for 2000 and $198.1 (one hundred ninety-eight point one) for 1999.
At the top of the Nike balance sheet there is a phrase in parentheses:
(in millions). That means that six zeros are added to every number in
the
balance sheet. So Nike has cash of $254,300,000 (two hundred fifty-four
million three hundred thousand dollars) for 2000 and $198,100,000 (one
hundred ninety-eight million one hundred thousand dollars) for 1999.
7.Please send me the Japanese translation for the words in the list
below.Please write the words in romajii.
<snip>
Thank you for the vocabulary words.
> I'm looking forward to hearing from you.
> Have a nice day.
Thanks. You, too!
> Sincerely, Taku
The next lesson is at:
http://www72.homepage.villanova.edu/susan.stiner/cgu/balance201.htm
This is the second lesson about the balance sheet. We start a company.
The company makes four transactions. We make a balance sheet for the
company.
I read an online article in CareerJournalAsia. (at
http://www.careerjournal.com/myc/climbingladder/20010613-voigt.html).
The writer said that it is much more important today for Japanese
workers to know English. Matsushita Electric employees must know
English to get promoted. Do you think it is important to your career to
know English?