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

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