Dear Ken,
Thank you for your seventh message. My comments follow.
Sincerely,
Prof. Sue Stiner
Kenichi Ooami wrote:
> Dear Prof.stiner.
>
> Thank you for your reply!
Where is the best place you have ever visited?
Why was it the best place?
I did something different on Saturday. I went to the wedding of my
friend's son. I described the day in the attached Word document.
I will separately email everyone what I wrote, if you cannot open
the Word document. The subject of this email is CJ's wedding. Tell me
if you open the Word file. If you open the Word file, ignore
the wedding email.
>
>
> Homework
>
> 1. What is the format for an American Income Statement?
>
> Revenue
>
> Less: Cost of Goods Sold
>
> Equals: Gross Miargin
Equals: Gross Margin
>
> 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.
>
> 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.Does the purchase price of inventory rise or fall 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?
>
> LIFO is better for Beach Toys, Inc to use.
Correct!
>
>
> Vocabulary - Income Statement (Part 1)
Thank you for the vocabulary list.