Dear Professor
Garreis,
Thank you for your
reply and corrections of my English.
I will answer your
last question.
[Home work]
1. What is the format for an American Income Statement?
→ The American Income Statement format is Revenue, Cost of Goods Sold, Gross Margin, Operating Expenses, Net Income (Loss).
Correct!
2. Use your words to tell me how to calculate cost of goods sold. please do not use any numbers.
→ A calculation method of cost of goods sold uses FIFO or LIFO.
To calculate cost of goods sold, add beginning inventory and purchases. From that amount, subtract ending inventory.
The result is cost of goods sold.
FIFO or LIFO let us find the value of the beginning and ending inventory.
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 is rising.
Correct!
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.
Correct!
6. How easy was this lesson for you?
→
The accounting lesson was about right.
The English lesson
was somewhat hard.
Finding and using the linked web pages was somewhat hard.
Thank you for the feedback.
Vocabulary - Income Statement (Part 1)
Thank you for the vocabulary list.
I'm waiting for your reply.
Sincerely,
Masa