Dear Hiro,

 

Thank you for your sixth message.  My comments follow.

 

Sincerely,

Prof. Sue Stiner

 

s2399067@slb.cgu.ac.jp wrote:

Dear Prof. Stiner,

 

Thank you for your fifth message.

 

Thank you for correcting my English.

 

You're welcome!

 

My comments follow.

 

>Is this the Choushi you taked about?

Dose it have a lighthouse?

 

Yes, it is.

It puts into a lighthouse for pay.

You can go into the lighthouse for a fee.

 

I go into the lighthouse before.

I went into the lighthouse before.

 

>Do you students in Japan do that?

No, we don't send email when we are sick.

 

>What do you do to make yourself feel better when you are sick?

When I am sick, I like to have a drink before I go to sleep.

 

>Do you think it is important to your career to

know English?

I think that the 2nd foreign language, such as not only English

but Chinese and French, is required.

 

Japanese is your first language.  Is English your second language?  Do

you know other languages?

 

Most American students learned another language in high school.  Most of

the time they learn Spanish.  In college, most business students do not

take a foreign language.  So they forget what they learned in high

school!

 

Now, the answers to this week's homework are:

Beach Toys, Inc.

 

Balance Sheet

 

January 10, 2001

 

ASSETS LIABILITIES $ 0

 

Current Assets

 

Cash $ 32,000

 

Long-term assets

Land 10,000

 

Building 60,000

 

Hiro, you must include the total long-term assets and the total assets.

Total Long-term assets: 70,000

Total Assets: $102,000

 

STOCKHOLDERS' EQUITY

Total Long-term Assets 70,000

This line does not belong in Stockholders' Equity.

It belongs in the asset section.

 

Common stock, 9,000 shares, $ 10 par 102,000

Very clever way to get the balance sheet to balance!

But, the price the owners paid for their stock did not change.  It is

still $90,000.

 

TOTAL ASSETS $ 102,000

This line does not belong in Stockholders' Equity.

It belongs in the asset section.

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 102,000

 

This is the new balance sheet

 

Beach Toys, Inc

Balance Sheet

January 10, 2001

 

Assets

Current Assets

Cash     $12,000

Long-term assets

Land      10,000

Building  60,000

Total long-term assets   70,000

Total Assets   $90,000

 

Liabilities    $0

 

Stockholders' Equity

Common stock, 9,000 shares, $10 par      90,000

Total Liabilities and Stockholders' Equity   $90,000

 

Only the asset side changed.  The owners bought the more expensive land

and building with cash.  So the value of land and building increased (by

$20,000) and cash decreased by $20,000.

 

1. It's cash value $32,000.

Cash value is $12,000.

 

2. It's long-term assets value $70.000.

Correct!  The long-term asset value is $70,000.

 

3. It's total assets value $102.000.

Total assets are $90,000.

 

4. It's total liabilities and stockholder's equity value $102,000.

Total liabilities and stockholders' equity are $90,000.

 

5. zaikohin. toushi. fusai. mibaraikin. shisan. kabunushikousei.

Thank you for the vocabulary words.

 

I'm sorry, I forgot third homework.

I will email you the third homework assignment next week.

 

OK.  I will look forward to it.

 

Sincerely,

Hiro

 

This week we will study the income statement.  We have two lessons on

the income statement.  The new lesson is at:

http://www72.homepage.villanova.edu/susan.stiner/cgu/income101.htm

 

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