Lesson 9
Dear Professor Sue Garreis:
==> Dear Emily,
Thank you for your ninth message. My comments follow.
I’m sorry that I didn’t reply your last letter immediately. The summer
vacation began earlier than usual. The university is working on saving
electricity because of the earthquake on March 11th.
==>Thank you for this
explanation. I am glad the university is saving electricity. I think all of
Japan is saving electricity. At least that is what we hear here in the US. I am
so sorry you still suffer the consequences of the earthquake and tsunami. I
wish a speedy recovery to the entire country, to the university and especially
to you, Ichi, your professors and your families.
Today is the first day of the new semester. How was your summer holiday? I
went back to China and had a very good time with my family and my friends.
And in this weekend, I will give a speech in Japanese about international
relations between China and Japan. I hope I would have a good performance.
==>My summer break was great. More detail is in the file called
summervacation2011.docx. In fact, I am travelling now. I write this from West
Virginia. I was born in West Virginia and one friend lives here for part of the
year. This is my second visit to her this summer. In an hour or so we leave to
ride a tourist train. I am looking forward to that! I love to ride trains.
I am so glad you got to return home for the summer break. Best of luck with your speech about Chinese-Japanese relations. I am sure you will do well. I do understand about being a little apprehensive before the event. As we say here: break a leg. There is a superstition (folk belief) that if we say good luck to someone before a speech, play or other artistic performance that they will have bad luck. Conversely, if we wish them bad luck they will have good luck. So break a leg! What do you say in China or Japan to someone before a speech or performance?
There are two files attached. One tells of my summer vacation. One previews the second half of the course. Talk to you again next week! Let me know how your speech wenty.
Homework:
1. Why is the Statement of Cash Flows important to
U.S. users of
accounting information?
--Because healthy cash flow means a company receives more cash than it
spends, makes the company very stable today, and lets the company grow in
the future. U.S. investors respond to changes in cash flows. Stockholders
study cash flow to predict dividends and the long-term health of the
company. Most dividends are paid in cash. Liabilities are repaid in cash.
When a loan is made, the borrowing company (borrower) receives cash. When
the loan is repaid, the borrower pays cash to the lender. The borrower pays
interest in cash. Cash flow information helps creditors decide if the
borrower can repay the loan. 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, Emily. And
your grammar is flawless.
2. Look at the table that compares the direct and
indirect methods.
What is the main difference between the indirect and direct methods:
a. in operating activities?
--Direct method: Independently analyzes the changes that cash transactions
cause in each balance sheet non-cash account.
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."
==>Correct.
b. in investing activities?
-- No differences
==>Correct.
c.
in financing activities?
-- No differences
==>Correct
3. How do Japanese companies report their changes in
cash during the
year?
-- Japanese companies report is the Statement of Cash Flows. They used
indirect method.
==>Correct. Do Japanese companies have the option of
using the Direct Method? If yes, do any ever use it?
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: About right
==>Thank you for your feedback.
Sincerely,
Emily