Lesson7

Dear Professor Garreis,

Hello.

Thank you for your reply and corrections of my English.

I will answer your last questions.

Sixth homework's answer.
1. What is the format for an American Income Statement?
> The format for an American Income Statement is revenue less cost of goods
> sold and operating expenses equals net income.
>>Correct.

2. Use your words to tell me how to calculate cost of goods sold.  Please do not use any numbers.
> Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold.
>>Correct.

3. Did Beach Toys use LIFO or FIFO to calculate the cost of goods sold?
> Beach Toys uses FIFO to calculate the cost of goods sold.
>>Correct.

4. Does the purchase price of inventory rise or fall for Beach Toys, Inc?
> The purchase price of inventory rises.
>>Correct.

5. Which inventory method (LIFO or FIFO) is better for Beach Toys, Inc to use? "Better" means "results in lower income tax."
> It is better to use the LIFO for Beach Toys. 
>>Correct.

6. How easy was this lesson for you?
>The accounting was: Somewhat hard.
>The English was: Somewhat hard.
>Finding and using the linked web pages was: Somewhat hard.
>>Thank you for your feedback.

I’ m waiting for your reply.

Sincerely,
Yuu.


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