Lesson9
Dear Ichi,
Thank you for your ninth message. My comments follow.
Ichi, I had a very good summer.
I am glad you had a very good summer.
I am glad we do this course again.
Thank you for working so hard on it.
Sincerely,
Prof. Sue Garreis
<Mail>
Dear Professor Sue Garreis，
Thank you for your reply and corrections of my English.
It has been a long time since we talked.
We restart the mail this week.
I enjoyed the summer.
I went to many places in the summer.
I went to Tateyama in the summer.
Tateyama is a tourist destination.
I went there with a friend.
I enjoyed it very much.
Professor Garreis, did you go somewhere in the summer?
==>Yes, I did!
Please see the attachment file called "summervacation2011.docx".
I write this from West Virginia.
It is the state where I was born.
I visit a friend here.
This is my second visit this summer.
What did you do in Tateyama?
Thank you for reading my email.
I’m waiting for your reply.
Sincerely yours,
ichi
<Homework>
1, Why is the Statement of Cash Flows important to U.S. users of accounting
information?
⇒American investors and creditors (lenders) in
need of cash flow statement.
Because Cash Flow Statement of need for a healthy cash flow.
Healthy cash flow means a company receives more cash than it spends.
Healthy cash flow makes the company very stable today.
Healthy cash flow lets the company grow in the future.
And
Cash flow information helps creditors decide if the borrower can repay the
loan.
Because a good cash flow statement shows a good cash increase from the main
business of the company.
A good cash flow statement helps get the loan.
==>Excellent answer, Ichi!
2, Look at the table that compares the direct and indirect methods.
What is the main difference between the indirect and direct methods:
in operating activities?
⇒The direct method independently analyzes the changes that cash transactions cause in each balance sheet non-cash account.
⇒The indirect method starts with Net Income on the Income Statement.
Cash
transactions omitted from income are added. Non-cash transactions included
in income are removed. This is called a "Reconciliation to Net
Income."
==>Your answers are correct. I changed the grammar.
in investing activities?
⇒no differences.
==>Correct.
in financing activities?
⇒no differences.
==>Correct.
3,How do Japanese companies report their changes in cash during the year?
⇒Japanese company can choose the direct method and indirect method.
However, the indirect method is used in many companies.
==>Correct.
4,How easy was this lesson for you?
The accounting was:About right.
The English was:about right.
Getting to and using the linked web pages was:some what easy.
==>Thank you for the feedback.