lesson8
Dear Jessica,
Thank you for your eighth message. My comments follow.
Sincerely,
Prof. Sue Garreis
Dear
Professor Garreis,
Thank you for your corrections of my English as well as Accounting.
There is my homework following:
1. What is Net Income if
revenues change to $40,000 and
all other transactions are the same?
Net Income is $29,546.
Correct!
2. What is Net Income if
revenues change to $30,000,
cost of goods sold changes to $20,000 and
operating expenses are the same?
Net Income is $9,546.
Correct!
3. What is Net Income if
revenues are $30,000,
cost of goods sold is $10,000, and
total operating expenses change to $25,000?
Net Income is -$5,000.
Correct!
In US
accounting conventions, we would write ($5,000). We use parentheses to
show a loss, rather than a minus sign. We are afraid that a rapid reader would
miss the minus sign. The difference between a positive $5K and a negative
$5K is great! We do not want that mistake to happen.
4.How easy was this lesson for you?
All of the three are about right.
Thank
you for your feedback.
5.Vocabulary - Income Statement
Thank you for the vocabulary
list.
Sincerely, yours
Jessica