The seventh message
Homework:
1. What is the format for an American Income Statement?
It is Revenues less Expenses=Net Income.
2. Use your words to tell me how to calculate cost of goods sold.
You do not need to use any numbers.
It is Beginning Inventory plus Purchases less Ending Inventory.
2. Did Beach Toys use LIFO or FIFO to calculate the cost of goods sold?
Beach toys used FIFO to calculate the cost of good sold.
3. Does the purchase price of inventory rise or fall for Beach
Toys, Inc?
The purchases price of inventory is rising from $100 to $150.
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.
My three oldest granddaughters spent the week at my house. We baked two kinds of cookies. They were tasty! We ate a lot of ice cream since it was so hot. This is my favorite brand of ice cream: http://www.icecreamusa.com/breyers/
We shopped for food at Giant Food, a grocery store. This is part of the ad that shows food prices in my town: http://giantfood.shoplocal.com/index.aspx?pagename=shopmain&zipcode=21012&dssid=1dbc129f-90c5-49ca-ba7e-bfa851537ceb&storeid=1038634&sf=true
The oldest granddaughter went to a gun club with my husband. She shot a rifle for the first time. This is the gun club's
website: http://www.scfhclub.org/
The next lesson is about the rest of the income statement.
We learn about operating expenses.
We finish writing the income statement.
The next lesson is at: http://www72.homepage.villanova.edu/susan.stiner/cgu/income206.htm