Dear　Prof．Stiner

Thank　you for your reply!  It is the rainy season now.

     Today is rainy, but not cool.What is it like in America now?

     In my part of America it is sunny and warm.  Today is cooland breezy,

     with a very bright blue sky.  There are a few white clouds.  The humidity is low. It is a gorgeous day.  Today is an unusual day.

    Usually it is hotter and more humid in June.  This year there is much more rain.  

Right now, the temperature is eighty degrees Fahrenheit (twenty-seven degrees Celsius).

    Is it humid during the rainy season in Japan?

  Here in the mid-Atlantic US, the rains bring cool air usually. 

    Have you ever ride a motorcyle? 

    Yes , I have . I love the feel of the wind, too!

  What is the most exciting thing you have ever done in your life?

    Would you please give me some time to think about this question?

    Sure!  Take all the time you need.

Homework:

１．What is the format for an American Income Statement?

 Revenues

 less:       Cost of Goods Sold

 Equal：  Goss of Goods Sold

 Equals: Gross Margin

 Less: Operating Expenses

 Equals:   Net Income(Loss)

The formula is correct, Lin.  I corrected your spelling.

2. Use your words to tell me how to calculate cost of goods sold.  You do not need to use any numbers.

     At first put Beginning Inventory plus Purchases then less Ending Inventory equals Cost of Goods Sold.

 Correct!

3. Did Beach Toys use LIFO or FIFO to calculate the cost of goods sold?

    Beach Toys used FIFO to calculate the cost of goods sold.

Correct!

4. Does the purchase price of inventory rise or fall for Beach Toys, Inc?

     The purchase price of inventory rises for Beach Toys.

Correct!

5.Which inventory method (LIFO or FIFO) is better for Beach Toys, Inc to use? ."Better" means "results in lower income tax".

    Inventory method LIFO is better for Beach Toys.The better inventory method is LIFO.

Correct!

 Vocabulary -Income Statement(part 1)

 English                Japanese

 Thank  you for the vocabulary list.

 This week we finish the income statement.  This week we learn about

 operating expenses.  

 Sincerely yours,

 Lin