lesson7
Dear Jessica,
Thank you for your seventh message. My comments follow.
Sincerely,
Prof. Sue Garreis
Dear
Professor Garreis,
There is my homework
following:
1. What is the format for an American Income Statement?
The American Income Statement presents the results of the
operating activities of a firm for a period of time. The terms Net
Income, Revenue and Expense are three important elements in the Income
Statement. The Income Statement reports the firm's success in achieving this
goal for a given time span. The Income Statement reports the sources and
amounts of a firm's revenues and the nature and amount of a firm's expenses
that net to earnings for the period.
Correct!
2. Use your words to tell me how to calculate cost of goods sold. Please
do not use any numbers.
Cost of Goods Sold = Beginning Merchandise Inventory + Net
Purchases of Merchandise - Ending Merchandise Inventory.
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?
Inventory purchase prices are
rising.
5. Which inventory method (LIFO or FIFO) is better for Beach Toys, Inc to use?
"Better" means "results in lower income tax."
In my opinion, I think LIFO is better for Beach Toys, Inc to
use.
Correct!
When inventory purchase prices rise, LIFO is generally better. It will be
interesting to note if companies switch to FIFO, if inventory prices decline in
this bad economy.
6. How easy was this lesson for you?
All of the three are about right.
Thanks for the
feedback.
English
Japanese
cost of goods sold
uriagegenka
first-in, first-out
sakiiresakidashihou
gross margin
uriagesourieki
inventory
tanaoroshishisan
invoice
okurijyou
last-in, first-out
atoiresakidashihou
net income
jyunrieki
purchase
shiire
revenue
syuueki
sale
uriage
Thanks for vocabulary words.
Sincerely, yours
Jessica