lesson7
Dear Nao,
Thank you for your seventh message. My comments follow.
Sincerely,
Prof. Sue Garreis
Dear Prof G,
Thank you for your reply and corrections of my English.
I will answer your last question.
Homework
1. What is the format for an American Income Statement?
→ The format for an American Income Statement is this order. Revenue, Cost of Goods Sold, Gross Margin, Operating Expenses, Net Income (Loss).
2. Use your words to tell me how to calculate cost of goods sold. You do not need to use any numbers.
→ A calculation method of cost of goods sold uses FIFO or LIFO.
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.
4. Does the purchase price of inventory rise or fall for Beach Toys, Inc?
→ The purchase price of inventory is rising.
5. 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.
Vocabulary - Income Statement (Part 1)
Thank you for the vocabulary list.
I'm waiting for your reply.
Sincerely. Nao
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