Lesson 8
Dear Taku,
Thank you for your eighth message. My comments and corrections follow.
Sincerely,
Prof. Sue Garreis
Dear Professor M.Susan Garreis,
Thank you for your reply and corrections of my English.
Replies to the questions.
I prefer small theaters.
> Why do you like small theaters?
>>.I am closer to the stage. It is easier to see the actors.
There is a good one in Baltimore, Maryland. It is called Center Stage.
> I looked at the web site. I thought THE SECRET GARDEN would like to see.
I do not see much of the theater. But I'm interested. So Such knowledge will be helpful . Thank you.
What festivals in Japan have fireworks?
> Most of the festivals in Japan have fireworks.
>>That is interesting. Most of the festivals and holiday celebrations in the U.S. do not have fireworks.
Where did you see a good fireworks show?
> It is the local biggest summer festival that I live.
What is your favorite summer festival food?
>My favorite summer festival food is (1) kakigoori (2) yakitori (3) baby castella.
I have two favorite summertime American foods: (1) watermelon and (2) hot dogs.
>I both think the best food in the festival.
>>I think all three of your festival foods sound delicious.
>> I agree that festival food is the best food.
>To three companies festivals and Aomori nebuta festival there are a lot of festivals. There seem to be three major fireworks in Japan.
<Homework>
1. What is Net Income if revenues change to $40,000 and all other transactions are the same?
>It becomes $29,346 when going in the terms and conditions above.
>>If revenues are $40,000, then gross margin is $30,000 (40,000 - 10,000) and net income is $29,346.
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Beach Toys, Inc. |
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|
Income Statement |
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For the month ended April 30, 2015 |
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Revenues |
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$40,000 |
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Cost of Goods Sold: |
||
|
Beginning Inventory |
$ - 0 - |
|
|
Purchases |
37,000 |
|
|
less: Ending inventory |
27,000 |
|
|
Cost of Goods Sold |
|
10,000 |
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Gross Margin |
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$20,000 |
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Operating expenses: |
||
|
Depreciation |
104 |
|
|
Salary |
400 |
|
|
Telephone |
150 |
|
|
Total operating expenses |
|
654 |
|
Net Income |
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$29,346 |
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?
When I go under conditions of the above, the net income is $ 9,346.
>>If revenues are $30,000 and cost of goods sold is $20,000, then gross margin is $10,000 (30,000 - 20,000 = 10,000). Net income is $9,346 (10,000 - 654 = 9,346).
|
Beach Toys, Inc. |
||
|
Income Statement |
||
|
For the month ended April 30, 2015 |
||
|
Revenues |
|
$30,000 |
|
Cost of Goods Sold: |
||
|
Beginning Inventory |
$ - 0 - |
|
|
Purchases |
37,000 |
|
|
less: Ending inventory |
27,000 |
|
|
Cost of Goods Sold |
|
20,000 |
|
Gross Margin |
|
$20,000 |
|
Operating expenses: |
||
|
Depreciation |
104 |
|
|
Salary |
400 |
|
|
Telephone |
150 |
|
|
Total operating expenses |
|
654 |
|
Net Income |
|
$9,346 |
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?
When applied to the above conditions, a net loss of $ 5,000 will occur. It is because the total operating expenses exceed the gross margin.
>>Correct.
|
Beach Toys, Inc. |
||
|
Income Statement |
||
|
For the month ended April 30, 2015 |
||
|
Revenues |
|
$30,000 |
|
Cost of Goods Sold: |
||
|
Beginning Inventory |
$ - 0 - |
|
|
Purchases |
37,000 |
|
|
less: Ending inventory |
27,000 |
|
|
Cost of Goods Sold |
|
10,000 |
|
Gross Margin |
|
$20,000 |
|
Operating expenses: |
||
|
Depreciation |
104 |
|
|
Salary |
400 |
|
|
Telephone |
150 |
|
|
Total operating expenses |
|
25,000 |
|
Net Income |
|
$-5,000 |
4. How easy was this lesson for you?
Though the accounting was about right, it was difficult to understand clearly.
It is still very hard to understand English.
>>English is a hard language. So is Japanese!
Getting to and using the linked web pages was: About right.
Vocabulary Income Statement (Part 2)
>>Thank you for the vocabulary list.
Thank you for reading my e-mail.
Sincerely,
Taku.