Dear Rika,
Thank you for your seventh message. My comments follow.
Sincerely,
Prof Sue Stiner
> Dear Dr. Stiner.
> > How long is the rainy season?
It's about a month long.
> > Is the rain as hard as usual in
> No, it isn't. It is light rain for long time.
We have not had enough rain this year, either.
> > Where is
>
> > Was this homework too easy?
> so so.
What is hard about these web page lessons?
What is easy about these web page lessons?
> > How long did it take to do this homework?
It took about four hours.
Is that about the same amount of time it took to do the other lessons?
> > Have you ever eaten an American-style donut?
> I like donuts. There are lots of Mister Donut shops.
> I sometimes go to Mister Donut shop.
> Homework:
> 1. What is the format for an American
Income Statement?
>
Revenue
> Less: Cost of Goods Sold
> Equals: Gross Miargin
> Less: Operating Expenses
> Equals: Net Income(Loss)
Correct!
> 2. Use your words to tell me how to calculate cost of goods sold. You do not need to use any numbers.
> Cost of goods sold is the
price the company paid for the product that the company sells.
The price paid when the company
bought it to resell.
> Beginning Inventory +
Purchases - Ending Inventory = Cost of Goods
> Sold.
Correct!
> 2. Did Beach Toys use LIFO or FIFO to calculate the cost of goods sold?
> Beach Toys used FIFO.
Correct!
> 3.Is the purchase price of inventory rising or falling for Beach Toys, Inc?
The purchase price of inventory is rising, because the first cost was $100 and all the other costs were higher than that.
Correct!
> 4. Which inventory method (LIFO or FIFO) is better for Beach Toys, Inc to use?
> "Better" means "results in lower income tax."
>
> LIFO is better for Beach Toys, Inc to use.
Correct!
> Vocabulary - Income Statement (Part 1)
Thank you for the vocabulary list.
Please enjoy your summer break. When we return, please tell me what you did this summer.