The seventh message
Dear Professor Garreis.
Thank you for your reply and corrections of my English.
I will answer your questions.
1. What is the format for an American
Income Statement?
The American Income Statement starts with Revenue. Then come the other items in your list.
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 beginning inventory + purchases - ending inventory.
3. Does the purchase price of inventory
rise or fall for Beach Toys, Inc?
The
purchase price of inventory rises from $100 to $150. Correct!
I'm waiting for your reply.
Sincerely yours,
Cong Ming