Impact Of Globalization On The Coffee Industry - 1178 Words

Globalization is the process of interaction and integration between the people, companies, and the governments of different nations. Coffee is the second largest commodity in the world. Globalization has had an immense impact on various goods none being as big as its impact on the coffee industry. In the 1970 coffee beans went for three dollars a pound, but since that 1970 it has gradually decreased due to the increase in the production of coffee. Even though demand has increased, it was met with over production. Which in 2000 coffee prices reached a historic low, impacting farmers all around the world. This crisis came from very poor quality Vietnamese coffee flooding the market, causing the balance between supply and demand to be dramatically altered. The poor quality coffee beans forced Arabica farmers to lower their prices. In the long run this caused a lower quality in coffee beans, lower customer expectation, and low interest in coffee. Most importantly families of Coffee growe rs saw their incomes diminish to half what is was or worst. Farmer families struggled to have enough money to live on, some families decided to give up on growing Coffee beans and other gave up on farming completely. The Coffee bean industry still hasn’t recovered from these events, and it’s estimated that the industry has lost hundreds of millions of dollars in revenues due to low production. And hundreds of thousands of jobs have been lost as there is less coffee to pick, process and export.Show MoreRelatedThe Globalization Of Coffee : The Positive Impact Of Globalization1561 Words   |  7 PagesGlobalization as impacted numerous fields of business, the coffee industry is been impacted equally directly and indirectly. Some corporations have taken such a simple product and turned into an everyday life. According with the article â€Å"Coffee days† (2011), cheap chain coffee shops have significantly changed the social space. Globalization impacts all aspects of the coffee supply chain since the consumption of coffee in the developed world influences those in the developing world. It is obviousRead MoreGlobalization and Human Resource Management Strategies1608 Words   |  6 Pagesï » ¿ Globalization and HRM Strategies The Enterprise - Starbucks This paper will discuss the Starbucks Corporation concerning globalization and its HRM strategies. Starbucks is a company which prides itself on being a leader in the industry of coffee-brewers and coffee-houses, brewing the highest quality, most ethically grown beans for the most superior roasting experience, as stated on their official website. The Starbucks Company has always believed in fostering a high level of excellence thatRead MoreGlobalization Of Coffee : Starbucks1254 Words   |  6 PagesDevon Jones-Stewart Professor Solomon Globalization 22 March 2015 Globalization of Coffee: Starbucks Globalization is the process of interaction and integration between the people, companies, and the governments of different nations. Coffee is the second largest commodity in the world. Globalization has had an immense impact on various goods none being as big as its impact on the coffee industry. In the 1970 coffee beans went for three dollars a pound, but since that 1970 it has gradually decreasedRead MoreGlobalization Trade : A Positive Aspect1288 Words   |  6 PagesLeonela Gomez History 105 [22] Issue Paper #2 October 2, 2016 Globalization-Trade Globalization has generally been viewed as a positive aspect. Although it’s viewed as a positive thing, it also has its negative aspects that people usually choose to over-see and ignore. The most positive aspect of it was importing and exporting goods for other merchandise that may be needed more than what you have or in which crowded places it was not self-sufficient. In Pomeranz and Topik 2.7 Trade, Disorder, andRead MoreThe Impact Of Globalization On The People Of China1413 Words   |  6 PagesIntroduction Globalization is a worldwide growth phenomenon where economies, communities, and traditions are being integrated through increased interaction (Goodman). However, the phenomenon has come amid controversies. It has both positive and negative effects on the globe. Positive effects include globalization of western corporations that at some point had their businesses solely operating in the western nations (Goodman). Fast communication channels have interconnected people around the worldRead MoreHow Globalization And Technology Changes Have Impacted The Corporation You Researched1101 Words   |  5 PagesAssess how globalization and technology changes have impacted the corporation you researched What is Globalization? What does it do for a country? How does it affect a company? Who are the recipients of these benefits, if there are any? What are some major benefits of going global? â€Å"Globalization is the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders† (Hitt, IrelandRead MoreGlobalization Is Defined As A Process Of Interaction And Integration Arising From The Interchanging World1356 Words   |  6 PagesHutchens Cultural Anthropology Globalization Unit October 17, 2014 Globalization Globalization is defined as â€Å"a process of interaction and integration arising from the interchanging world views, products, ideas, and other aspects of culture.† In other words, it is interactions and trade between people and other countries including governments. There are many effects that come along with globalization, both negative and positive. Negative aspects of globalization start with non-economists andRead MoreCultural Globalization and Westernization698 Words   |  3 PagesGlobalization is the process of international integration arising from the interchange of worldviews, products, ideas, and other aspects of culture. Cultural globalization is dealt with in our everyday lives. It deals with different ideas, meanings, and values throughout the world, globally. International travel, television, music, the Internet and many different popular cultures influence it. Globalization has been questioned whether or not it actually leans towards the Western culture, or if itRead MoreImportance of Globalization in Hospitality1346 Words   |  6 PagesQuestion- Critically analyse the relevance and utility of globalization for the international hospitality industry. In the recent years hospitality industry over the years has expanded their business all around the world. Big hotel chains such as Marriott’s and Accor group are opening their hotels in developing countries such as India, Singapore etc. The process of globalization has played a major role in expanding their profits and laying their business across their own boundaries. Majority countriesRead MoreStarbucks : What Key Driving Forces Coffee Shop Retailers?1352 Words   |  6 Pagespresent and future, it’s important to look at the external situation that surrounds them. By performing a five forces analysis it can be decided if the industry is strong enough for outsiders to enter and prevail. The next consideration is what key driving forces coffee shop retailers should concentrate. Those forces are: increasing globalization, marketing innovation, changes in cost and efficiency and changing societal concerns, attitude and lifestyles. It’s also important to recognize the strengths

Introduction. The Idea Of Fairtrade Emerged In The Late

Introduction The idea of Fairtrade emerged in the late 1940s, which aims to rise the living standard of the disadvantaged producers and farmers in the developing countries. Providing sustainable supports to them, including investments, training, decent working conditions and better prices. The first Fair Trade label was introduced in 1988 to certify Fairtrade product and thus Fairtrade products become saleable in both supermarkets and other mainstream actors (Bezencon, 2011, p.61). This essay argues that producers and workers cannot gain notable benefits from Fairtrade. It will begin by looking at the Fairtrade minimum price and wages, then move on to the financial stability guarantee from Fairtrade Foundation and finally with the factors†¦show more content†¦Bezencon (2011, pp.64,65) states that the earnings of Fair Trade farmers will be protected by price floor set by Fairtrade Foundation to ensure selling price of Fairtrade certified products is higher than market price and independen t of the current market condition. Taking the coffee industry in 2013 as an example, despite the fact that coffee prices was low, Fairtrade farmers in Mexico, Peru, Tanzania and Indonesia sold around 8 to 26 percent higher, are mentioned in Fairtrade International (2016, p.1). It seems that Fairtrade farmers’ income can be secured. Yet data gathered in the Dragusanu et al. (2014, pp. 228-229) suggests a considerable proportion of crops produced by Fairtrade-certified farmers can be sold for the Fairtrade price: coffee (45 percent), cane sugar (54 percent), cocoa (61 percent), bananas (72 percent), and cotton (60 percent). It shows the exceptions do occur in the prevention of earning below the minimum price. As a result, Fairtrade growers cannot gain better price as the targets of Fairtrade and hence income stability cannot be guaranteed. Knowledge Application Finally, it can be argued that income generation training is ineffective for Fairtrade producers and workers. Fairtrade International (2016, p.1) reports greater proportion of Fairtrade famers received training than that of non-Fairtrade farmers. According to Bezencon (2011, pp. 64-65), training provided by Fair Trade is aboutShow MoreRelatedCoffee and Crisis Management Team21317 Words   |  86 Pagesimpact. Notify the Starbucks Crisis Management Team of the crisis and provide an initial assessment. General Response Priorities 4 Overview of Starbucks Coffee Named after a character in the classic story of Moby Dick, Starbucks Coffee has emerged as the world s leader in retail, roasting, and branding of specialty coffees for millions of customers worldwide since its 1971 founding in Seattle s Pike Place Market in the state of Washington. Still headquartered in Seattle, Starbucks CoffeeRead MoreInternational Management67196 Words   |  269 Pagesinteract and how businesses market, promote, and distribute their products globally. The same can be said for mass collaboration efforts occurring through digital, online technology for the development of new and innovative systems, products, and ideas. Both social networking and mass collaboration bring new power and influence to individuals across borders and transform the nature of their relationships with global organizations. As in the past, these developments underscore and reinforce the importance

What Is the Purpose of Business Discuss free essay sample

Would he have said is it all about money and making profit? Or would he have answered like Peter Drucker that the customer should have the highest priority in business life and everything should be done to satisfy him1. Or would he have responded like Dave Packard once said: â€Å"I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being † 2 These quotes describe very well the difficulty in answering the question what the purpose of business is and the need for detailed analysis. As everybody is affected and surrounded by business every day, and since one can hardly imagine a world without business, it is crucial to know its purpose. Therefore it is the objective of this paper to examine in greater detail the nature and purpose of business and to demonstrate its importance to the whole world. We will write a custom essay sample on What Is the Purpose of Business? Discuss or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page â€Å"A business is any enterprise which makes, distributes or provides any article or service which the other members of the community need and are able and willing to pay for. â€Å" 3 This is one of an abundant number of definitions of business. The following study will consider reasons for many different descriptions and objectives of business. It will also examine why and how business has developed throughout the course of time as well as who are the stakeholders of a company and what different interests and objectives drives them to do business. 1 2 Peter F. Drucker,(1954), The Essential Drucker, 7th ed. ,Oxford: Elsevier Ltd. ,p. 15 Harvard Business School Press, (2003), Harvard Business Review on Corporate Responsibility, Harvard Business School Publishing Corporation, Boston, MA, p. 80/81 l. 26 ff. 3 th R. P Maheswari, ,(2006),Principles of Business, 6 ed. , New Delhi: Pitambar Publishing Company, p. 1 What is the purpose of business? Discuss. DISCUSSION 2 When talking about business and especially about the purpose of business we first of all have to distinguish between two perspectives, under which business can be seen from. On one hand there is the perspective of the customer, we all know and experience every time we go shopping, get a coffee or take the bus. On the other hand there is the perspective of the producer or provider of goods and services performed by businessmen in companies. Before scrutinizing each aspect individually, it is important to know what drives us to give business and economic behaviour such an important role in our life. The root of economic behaviour and business activity is deeply entrenched in the human mankind. We are willing to act economically and join business because of our self-interest in obtaining the maximum of wealth and prosperity. Adam Smith was one of the first to introduce this idea by establishing the picture of the Homo Oeconomicus. It describes the nature of human beings as â€Å"animals seeking after individual advantages† 5 This sketch of a man who is trying to reach the highest level of satisfaction is strongly connected with the economic problem of the shortage and lack of goods. Each of us has an abundant number of wishes and needs, but the possibilities to fulfil these endless desires are limited. This compels us to act economically and to limit our demands to the most essential ones. The result of this process is summarized in maximum and minimum values, which implies that you try to reach a maximum with a minimum effort employing given means. This is only possible and realisable if we form communities and subdivide the work among all people. This idea was already suggested by Plato, in his famous work Plato’s Republic, written around 380 BC. Step by step he visualized the requirements which are crucial for the existence of a city or a community. His treatise did not only deal with food, cl othing, or shelter but also included the sketch of work division and a simple market structure to simplify and optimize the life and standard of living of the citizens. 7 4 5 R. Lazaro,(2006), Philosophy of Business, Nicanor Reyes: Rex Book Store Inc. . 21 A. Smith, (1776),An inquiry into the Nature and Causes of the Wealth of Nations,New York: Hackett Publishing Company, p. 210 6 Herbert Sperber,(2007),Wirtschaft verstehen (Understanding Business),Stuttgart: Schafer-Poeschel,p. 14 7 Nicholas D. Plato (c. 427-347 BC), Plato’s Republic, Millis: Agora Publications Inc. ,p. 56ff What is the purpose of business? Discuss. 3 It was again Adam Smith who declared the division of work to one of the most important instruments in order to increase wealth and productivity among the nation. In his well-known book, â€Å"Inquiry into the Nature and the Causes of The Wealth of Nations† he describes, using an example of fixing pin production, how the division and specialising of work increases productivity extremely and in the end also prosperity among people. 8 If all the mentioned aspects are taken into account the general purpose of business would arise out of the desire to continuously increase and improve the standard of living in society. 9 But why do millions of people and business text books state that the purpose of business is to earn money and make profit? In order to find out which role profit and money play in the context of business purpose we will now examine business and its objectives as an economic institution. Today in a capitalistic society it is common to narrow the purpose of business down to the objective of earning money and making profit. Child labour and sweatshops are just two examples which underline this behaviour and show businessmen as unscrupulous people only trying to maximize their individual objectives of earning profits. But this performance distorts the picture of profits being a very important impact for economic behaviour and depicts even a very dangerous image of profit-fixed business activity in todays’ society. 10 Nowadays one has to differentiate between profits which result out of economic related transactions and profits produced out of egoism, greed and selfishness. 11 In order to realize who is actually affected by economic activity and who benefits from profits, the study will examine the eight stakeholder of a company shown in the following graphic. Eric D. Beinhocker ,(2007), Die Entstehung des Wohlstandes (The origin of wealth),Landsberg am Lech: MiFachverlag,p. 51 9 R. Lazaro,(2006), Philosophy of Business, Nicanor Reyes: Rex Book Store Inc. p. 54 10 R. P Maheswari, ,(2006),Principles of Business, 6th ed. , New Delhi: Pitambar Publishing Company, p. 10 11 David Henderson,(2002),The role of business in the modern world, University of Notre Dame, Fremantle, Australia, http://cei. org/studies-books/role-business-modern-world-progress-pressures-and-prospects-marketeconomy What is the purpose of business? Discuss. 4 Customers Suppliers Community Employees Organization Creditors Managers Owners Government [12] Stakeholders are individuals or a group of people interested in an organisation or affected by the actions or projects of a company13. One can mainly distinguish between external stakeholders such as customers, suppliers, creditors, government and the general community and the internal stakeholders represented by the employees, managers and owners. Each group has individual objectives and strives for different interests. 4 This understanding is very important while referring to the purpose of business because for each group the purpose of their performance and the being of the organisation can differ and even interfere quite a lot. Nevertheless, altogether they are playing a crucial role in order to maintain sustainability in society as well as to create shareholder prosperity. 15 12 Cf. Futrell,C. M. ,(2003), ABC’s of Relationship Selling, 7th ed. , New York: McGraw-Hill Companies, p. 36 13 (2007),Stakeholders Engagement, Washington D. C. : International Finance Corparation,p. 21, http://www. ifc. rg/ifcext/enviro. nsf/attachmentsbytitle/p_stakeholderengagement_full/$file/ifc_stakeholdere ngagement. pdf 14 Claire Carpon,(2008),Understanding Strategic Management,Essex,UK: Pearson Education Limited, p. 138 15 Sanjay Sharma, Mark Starik,(2004),Stakeholder, the Environment and Society,,Massachussets,USA: Edward Elgar Publishing Inc. ,p. 1 What is the purpose of business? Discuss. 5 While for an employee the first priority is to secure employment in order to afford a living and a higher living standard, managers are interested in yielding the greatest profits in order to get rewarded by e. . fringe benefits and increase the efficiency of their company. 16 Shareholders and creditors are known to be the most interested in profits the higher the profit is the higher is the dividend they get paid out and the reward they obta in for taking the risk of investing their money and time into the organization as well as carrying all the responsibilities which are linked to it. 17 So considering the purpose of business for the owners the shareholders, we might assume their first priority concerns obtaining the highest profit as possible. Does this mean profit is their only purpose of business or is it just one objective which needs to be fulfilled in order to even run the company? – This will be considered more in detail later. Besides the internal stakeholders, the external stakeholders are just as important as the people who directly influence the companies’ actions. The external stakeholders are closely related to the organisations decisions and performance and it is of great importance to identify their impact on the objectives of a company. 8 The interest of the customer in business depicts the satisfaction of his demands and needs he is establishing while living life. He is concerned about quality and availability of goods and services and the company needs to fulfil his requirements in order to maintain his value and purchasing power. 19 The purpose of business between owner, customer and supplier is slowly emerging: It is about taking and giving. Owner and supplier must both ensure quality of pr oducts and a good price performance ratio in order to ensure the satisfaction of their customers. Therefore, the customer has to be seen as the most important part of business, because he determines which products are necessary on the market and thus, which businesses will survive. Therefore the earning of profit is a necessary element and result- but not purpose- in doing business and acting economically in the pursuit of the objective to satisfy human needs. 24 21 (2007),Stakeholders Engagement, Washington D. C. : International Finance Corparation,p. 21, http://www. ifc. org/ifcext/enviro. nsf/attachmentsbytitle/p_stakeholderengagement_full/$file/ifc_stakeholdere ngagement 22 Drucker, P. F. , (1955), The Practice of Management, Oxford, UK: Elsevier Linacre House, p. 32 ll. 3-4 23 R. P Maheswari, ,(2006),Principles of Business, 6th ed. , New Delhi: Pitambar Publishing Company, p. 12 24 Drucker, P. F. , (1955), The Practice of Management, Oxford, UK: Elsevier Linacre House, p. 32 ll. 3-4 What is the purpose of business? Discuss. CONCLUSION 7 Having discussed the source of business and consulted the position of some experts as well as having scrutinized the different interests and objectives of the internal and external stakeholders, what is the main purpose of business? [25] Such as this graph is illustrating, business can be considered as a fundamental social progression â€Å"which proceeds from the very nature of man and of society†. 26 Its main purpose can be pictured as a mosaic which is composed of many different pieces: The mosaic – the final purpose of business- is to serve the community by supplying them with goods and services while at the meantime enhancing and spreading prosperity among all people. 25 26 R. Lazaro,(2006), Philosophy of Business, Nicanor Reyes: Rex Book Store Inc. p. 31 R. Lazaro,(2006), Philosophy of Business, Nicanor Reyes: Rex Book Store Inc. p. 31 What is the purpose of business? Discuss. 8 This results in the crucial aim of business to show value and best quality products to the customer in order to satisfy him because he is the one who will decide which products to buy, hence where to spend his money. Profit and money are instruments which are needed to ensure this process and keep it running. All these factors- or pieces, which contribute to the formation of the final mosaic -the purpose of business- are connected with each other- connected with each of us, for the reason that we are all part of the business cycle and therefore must be seen in relation to each other. 7 After a few minutes the man stands up, looks at the others and says: â€Å"Well, with all due respect gentlemen, as far as I am concerned each of us is a businessman and even if you don’t notice, you do business every single day – but to come back to your question, I see the purpose in my work, as to contribute to the wealth and prosperity of our whole society which is you, me and basically everybody living on this earth.

Looking In-Depth At Storytelling By Silko Essays - Literature

Looking In-Depth at Storytelling by Silko Leslie Marmon Silko is a Laguna Pueblo Indian who has written many novels and poems in her lifetime. One of these poems, Storytelling, is very interesting to me. This poem excites me because it tells of the impact that storytelling has on people in Laguna culture. I will analyze and explore many parts of this poem. One of these subjects is theme. The theme of Storytelling is actually the art of storytelling. Another aspect of the poem I will look at is tension. There is a specific tension between the husband and the wife in this poem. Next, I will explore how imagery helped Silko strengthen her writing. Then, I will look at how the form of Storytelling is different from that of other poems. Finally, I will compare Storytelling to another poem, written by Luci Tapahonso entitled, Blue Horses Rush In. All these aspects put together will enable me to do a complete textual analysis of Storytelling. Larson 2 To start, I will begin with the theme of Storytelling. The theme of the poem is the art of storytelling, hence the name. At the end of the poem the author says, My husband left after he heard the story and moved back in with his mother. It was my fault and I don't blame him either(Silko 424). As the reader, you think that the woman is feeling bad about lying to her husband and she doesn't blame him for leaving her because she has sinned. Then the next line reads, I could have told the story better than I did(Silko 424). This surprises the reader because the ending's not expected. This shows that the woman isn't really feeling bad about what she did, or what happened; she only wishes that she could have told a better story so her husband would stay with her. These quotes prove the theme of the poem; that storytelling is very important in the Laguna culture. It is what the people pride themselves on and the woman in the poem could have done a better job. Earlier on in the poem the husband says, You better have a damn good story(Silko 423). It is almost as if the husband is expecting a better story than w hat he receives, so not satisfied with the lines his wife feeds him, he leaves. From these lines it is obvious that the stories told, and how the people tell them is the theme of the poem Storytelling. This is not only a theme in the poem, but I Larson 3 believe that it also represents a very prominent theme in the Laguna culture. Other themes in the poem are adultery and lying, but these also portray the main tensions in the poem in addition to themes. The tension is between the husband and the wife. A mysterious being shows up and kidnaps the wife. When she returns she tries to tell her husband what happened in terms that he would understand. The husband, now very upset, believes that his wife committed adultery. The tension starts when the husband says, You better have a damn good story about where you have been for the past ten months and how you explain these twin baby boys(Silko 423). You can tell from this quote that the husband is not happy and wants an explanation; and it better be a good one. The wife retaliates by saying, No! That gossip isn't true(Silko 423). The wife feels that she needs to defend herself against the false accusations that her husband made. The rest of the poem the wife tells her story in order to try to persuade her husband of the truth. She wants to resolve the tension. Her atte mpts to persuade her husband are unsuccessful. So the tension is never really resolved because the husband leaves. Therefore, there is probably still tension surrounding the subject. Larson 4 There are many images in Storytelling that help set the scene and develop a mood. A couple images that help to set the scene are, ...the sun came over the long red mesa(Silko 422) and, She looked into the shallow clear water(Silko 423). This gives an image of how mystical and magical the scene was when the Buffalo Man

Liquid Nitrogen Activities and Projects

Liquid Nitrogen Activities and Projects Are you looking for an activity or project with liquid nitrogen? This is the most extensive list of liquid nitrogen ideas youre likely to find: Make liquid nitrogen ice cream.Make Dippin Dots type of ice cream.Fill a whistlings include wine or soda. Youll get a cool fog effect, plus a cool drink.For a party or group, freeze graham crackers in liquid nitrogen. Wave the cracker around to warm it up a bit and eat the cracker. The cracker has an interesting texture, plus people eating crackers will be spouting clouds of nitrogen vapor. Miniature marshmallows also work quite well. The risk of injury from either food is quite low. Freeze a banana in liquid nitrogen. You can use it to hammer a nail.As a demonstration that even antifreeze freezes if its cold enough, solidify antifreeze using liquid nitrogen. Dip a carnation, rose, daisy, or other flower in liquid nitrogen. Remove the flower and shatter its petals in your hand.Use a squirt bottle of water to spray designs into liquid nitrogen vapor.Spin a tub of liquid nitrogen to create a vapor vortex. You can float paper boats or other lightweight objects in the maelstrom.Pour a cup of liquid nitrogen into about a liter of warmed bubble solution to produce a mountain of bubbles.Pour a small amount of liquid nitrogen into a Pringles can and pop the lid on. The vapor will (loudly and forcefully) pop the lid off.Break an incandescent light bulb (type with a filament). Turn it on in the liquid nitrogen. Cool glow!Bounce a lightweight hollow ball on a hard surface. Immerse the ball in liquid nitrogen and try to bounce it. The ball will shatter rather than bounce.Pou r liquid nitrogen onto weeds to kill them. The plant will die with no toxic residue or other harm to the soil. Examine the color change of LEDs under normal temperatures and in liquid nitrogen. The band gap of the LED increases at lower temperature. Cadmium red or cadmium orange- bandgap of Cd(S,Se)- are good choices.Foods high in water will break with a tinkling sound like glass when smashed. Orange segments are a good choice for this project.Insert flexible rubber or plastic tubing into a dewar of liquid nitrogen. The nitrogen will spray out the end of the tubing onto you or the audience, etc. so use care that you have protection on the hand holding the tubing and that there is enough distance at the top of the tubing for the nitrogen to vaporize before contacting with people. Although the tubing is flexible at room temperature, at liquid nitrogen temperature it becomes brittle and will shatter if hit with a hammer or whacked on a lab bench. If you twist the tubing around itself before putting it in the nitrogen, the tubing will uncoil itself as it thaws, in a sort of serpentine manner.

6 Career Risks You Should Definitely Take if You Want to be Successful

6 Career Risks You Should Definitely Take if You Want to be Successful You’ve probably heard stories about people who have found career success by taking crazy leaps of faith. These days, playing it totally safe isn’t necessarily the way to reach the goals you hope to attain. While you certainly shouldn’t be reckless and take wild risks that could end your career (or damage it), there are some risks that are consistently worth taking across the board. But how can you tell the difference between a risk that’s silly and a risk that will pay off? Here are a few examples of risks worth taking, whenever the opportunity knocks.1. Ask for more.Are you growing enough in your current position? Are you being challenged? Are you making what you’re worth? Do you have the training or certification you need to flourish in your job? If the answer to any of these is no, then do your homework, figure out what you would need to succeed, and then propose a plan to your boss about how you can get to where you want to be. Even if you donâ €™t get everything you want, you’ll at least show your boss that you mean business- and that you know your own value. Start networking above your pay grade, and explore opportunities that would require you to stretch.2. Don’t think of salary as the ultimate goal.Keep your work-life balance squarely in your head. Anytime you think you aren’t being compensated enough, think of any non-monetary perks or benefits you receive. Also consider the culture of your company, and any life perks it affords you. If you’re sublimely happy where you are socially, professionally, and personally- and you’re getting enough time to flourish outside your job as well as in- then more money might actually hurt  your life rather than help you to continue at a pace and style you enjoy.3. Do what it takes to learn stuff.Never ever pass up an opportunity to learn something new. Whenever you feel stuck, think about whether you could pick up another skill, certification, or even a degree. It’s never ever a bad idea to gain more knowledge, because along with it comes confidence, expertise, and credentials you can use to enhance your career!4. Take a big move in the direction of your passion.If you’re stagnating at work and you’ve thought of every possible way to make it better, but just can’t, then try something new. Strike out in a different direction. Maybe you can cut back on your hours and add on a part-time job doing something else to dip your toe in new waters. Or you can think about how to start your own side business and go it alone. Only bold moves can get you out of real ruts. Don’t be afraid to make them and move away from the cushy trap of â€Å"what you know.†5. Learn to say â€Å"no.†In this cutthroat economy where companies are downsizing and merging left and right, make sure you aren’t too afraid to say â€Å"no† when you’re getting dumped on. If you’re bein g asked to handle more work than you can do effectively, then it’s really okay to say â€Å"no.† You’re not being lazy; you’re making sure to take care of your professional and mental health and get your work done well.6. Follow your bliss.If you don’t have a passion for what you’re doing, then the bottom line is that you can and should pursue every opportunity that comes up to get you moving in the direction of your bliss. Even baby steps in the direction of happiness are better than no steps at all.

Dances With Wolves Essay Example | Topics and Well Written Essays - 500 words

Dances With Wolves - Essay Example shows a deep understanding and appreciation for the cultures he comes into contact with and goes so far as to adopt their way of life as superior to that of his own previous way of life. When the film opens, Lieutenant Dunbar is faced with the unpleasant choice of either having his wounded leg amputated or choosing to die with it still attached; as did so many other soldiers of his time. However, rather than choosing the amputation, Dunbar decides he will commit suicide by charging the lines of the enemy and dying in a hail of bullets. However, his plan does not go according to planned as his action has the effect of rallying the troops behind him and winning the battle. As a reward for his actions, Dunbar is offered a transfer to any unit or regiment he can choose. Dunbar chooses to move West away from the horrors of the Civil War and into the mystery of the frontier (Costner 1990). His frontier life is far from what he expected as he soon finds himself all alone at an abandoned base; completely cut off from the outside world. It is at this point that the film develops into the story of how Dunbar begins to come into contact with the Native Americans in the surrounding regions to that of the base in which he alone guards. Rather than being hostile to these natives, Dunbar seeks to strike up a relationship with them and engage them in a form of conversation (although his language skills are non-existent). Rather than viewing the Native Americans around the fort as natural born enemies, Dunbar is intrigued by their lifestyle, their curiosity, and the means by which they have sought to survive even in the face of continuous attacks from white frontiersmen. Dunbar becomes so taken by the culture and lifestyle of these Native Americans that he abandons his post and seeks to live a life among them. The story further develops as Dunbar returns to the fort to retrieve a notebook of valuable information he encounters his former colleagues who capture and beat

Water Contamination Assignment Example | Topics and Well Written Essays - 500 words

Water Contamination - Assignment Example Farms do two things to chicken manure: dump it in any available water resource or use it on the fields. Pohlmann decided to 14.1 tons of land-applied manure to one acre. This was done despite the recommendation limiting manure to six tons per acre (Rish). According to the Natural Resources Defense Council, Ohio has no Clean Water Act permits that specify control over livestock operations like Buckeye’s chicken farm. Also, Ohio’s Trade Secrecy act permits factories like the Buckeye farm to dump their manure in an off-site location without revealing the area. However, it is not the manure spill alone that affects the poison content of the water. The intensive confinement of thousands of chickens can result in manure that is far beyond the soil’s absorption rate. The runoff that results from this heavy manure can cause not only water pollution but also affect the land. In the water, it causes eutrophication which makes the soil so rich in organic and mineral content that the amount of oxygen in the water is depleted (HSUS 2005). The difference is that while the plants in the water thrive, the animal life in the water body suffers. This contamination is not a problem for the land and animals alone. The polluted water that drains into the rivers is a percentage of the drinking water for the humans in that area. Grant claims that 60% of the water dumped into these rivers is used as drinking water by the locals of Ohio (1998). Thus, Buckeye farm profited from a number of loopholes in Ohio’s state program. The farm was not forced to reveal the places it dumped the manure preventing the citizens from knowing if the manure is not being properly disposed of in streams or wells. Ohio’s environmental body also has the permission to ask for the management of livestock manure if any farm has more than 1000 livestock units: like the Buckeye Farm.

Research Ethics Stanford Prison Experiment Summary Essay Example for Free

Research Ethics Stanford Prison Experiment Summary Essay The Stanford Prison Experiment (SPE) was conducted in 1971 at Stanford University in the basement of the psychology building. Philip Zimbardo as lead researcher headed the research team to study the impact of situational variables on human behaviour. Zimbardo and his team advertised for volunteers to a social experiment offering $15 in payment per day. Wanting to examine the â€Å"dark side† of human nature, applicants were required to have no criminal record, no psychological issues and no major medical conditions. Each of the 70 applicants were psychologically tested and the 24 most â€Å"normal† were selected to take part in the SPE. The 24 selected participants were then divided into two groups randomly, with one half being prisoners and the other half being guards. The guards were taken to the mock prison before the prisoners arrived to help in the final stages of the prison’s construction and to help select their military style uniforms, this was to give the guards a sense of ownership over the prison environment. Alternatively the prisoners were surprised with real police and authentic processing before being incarcerated into the prison. Despite it being an artificially created environment the guards and prisoners quickly altered their behaviour in response to the situational variables of the experiment. Prisoners were dehumanized and their individuality stripped away, while the guards became increasingly more sadistic and degrading towards the prisoners. After the guards crushed an early attempted rebellion by the prisoners, one prisoner was released for acting irrationally to a point that seemed pathological. After this some of the prisoners became super-conformist, following rules to the letter. While other prisoners began to act crazy in an effort to passively escape like the first released prisoner. The guards fell into three categories with some acting sadistically and degrading towards the prisoners, others going completely by the book and some guards acting kindly and doing small favours for the prisoners. None of guards ever intervened or questioned the actions of other guards however no matter what kind of guard they were. The experiment was terminated early after just six days when an outsider, a recent PhD graduate came in from the outside and saw how out of control the experiment had become. Ethical issues that arose during the SPE were the harm done to the participants. Guards were allowed to inflict real pain and humiliation on the prisoners over an extended period of time. The experiment was allowed to continue for longer than it should have because the participants and observers fell too deeply into their roles. There was also little or no regard for the participants’ confidentiality during the SPE.

The Role of Postmodern Military Coup of 1997 on Transformation of Turk

INTRODUCTION Since the early days of the Turkish Republic, Islamist parties and groups positioned themselves against the values and institutions of the secular republic. Their stance against the secular state also defined their position against the west and modernization. For Islamists, the Kemalist state was in cooperation with the West and all the decisions made by the secular state against religion were inspired by the West. According to them, all the attempts to modernize and westernize the state specifically were aimed at undermining Islamic values. The struggle between state and Islamists, initiated by the reforms to create a modern nation state, such as the abolition of the Caliphate, the abolition of Islamic schools, the abolishment of sharia law, the introduction of Latin script, the removal of state religion from the constitution, deepened after `the transition to multi-party period. This struggle shaped the mindset of Islamist political parties until mid-1990s. During this period of time, Islamic parties defined themselves as â€Å"anti-western† and rejected political culture and values of the West. Therefore, their political discourse always attacked to liberalism, democracy, secularism and the European Union since they were the products of the Western world. However, the liberalization of the Turkey after 1980 in economic and political realms and the developments in global political order transformed the political nature of Turkish Islamist movement and Islamist parties have turned to a liberal and democrat wing in Turkish political life. In this paper, I will focus on the dynamics of the transformation of Islamist groups and argue that the military intervention on February 1997 became a turning point for the Islamis... ...Partisi Seà §im Beyannamesi (2002 and 2007). Ankara: Saadet Partisi. SayarÄ ±, Sabri (1996). "Turkey's Islamist Challenge†, Middle East Quarterly, September, Volume 3, Number, 3 TanÄ ±yÄ ±cÄ ±, Åžaban (2003). â€Å"Transformation of Political Islam in Turkey: Islamist Welfare Party’s Pro-EU Turn.† Party Politics 9(4):63-83. White, B. Jenny (2002). â€Å"Ak Parti’nin BaÅŸarÄ ±sÄ ±nÄ ±n ArdÄ ±nda Yerele DayalÄ ± Siyaset YatÄ ±yor†, Interview by Åžahin Alpay, Zaman, December 18, 2002. Yavuz, Hakan (2009). Secularism and Muslim democracy in Turkey, New York: Cambridge University Press, YeÅŸilada, A. Birol (2002). â€Å"Virtue Party†, Turkish Studies, Volume 3, Number: 1, Spring. Zarcone, Thierry (2004), La Turquie moderne et l’islam, Paris : Flammarion Periodicals Milliyet, YeniÅŸafak, Hà ¼rriyet, Zaman, Birikim Web Site: www.akparti.org.tr www.saadet.org.tr www.milligorus-forum.com.tr www.tbmm.gov.tr The Role of Postmodern Military Coup of 1997 on Transformation of Turk INTRODUCTION Since the early days of the Turkish Republic, Islamist parties and groups positioned themselves against the values and institutions of the secular republic. Their stance against the secular state also defined their position against the west and modernization. For Islamists, the Kemalist state was in cooperation with the West and all the decisions made by the secular state against religion were inspired by the West. According to them, all the attempts to modernize and westernize the state specifically were aimed at undermining Islamic values. The struggle between state and Islamists, initiated by the reforms to create a modern nation state, such as the abolition of the Caliphate, the abolition of Islamic schools, the abolishment of sharia law, the introduction of Latin script, the removal of state religion from the constitution, deepened after `the transition to multi-party period. This struggle shaped the mindset of Islamist political parties until mid-1990s. During this period of time, Islamic parties defined themselves as â€Å"anti-western† and rejected political culture and values of the West. Therefore, their political discourse always attacked to liberalism, democracy, secularism and the European Union since they were the products of the Western world. However, the liberalization of the Turkey after 1980 in economic and political realms and the developments in global political order transformed the political nature of Turkish Islamist movement and Islamist parties have turned to a liberal and democrat wing in Turkish political life. In this paper, I will focus on the dynamics of the transformation of Islamist groups and argue that the military intervention on February 1997 became a turning point for the Islamis... ...Partisi Seà §im Beyannamesi (2002 and 2007). Ankara: Saadet Partisi. SayarÄ ±, Sabri (1996). "Turkey's Islamist Challenge†, Middle East Quarterly, September, Volume 3, Number, 3 TanÄ ±yÄ ±cÄ ±, Åžaban (2003). â€Å"Transformation of Political Islam in Turkey: Islamist Welfare Party’s Pro-EU Turn.† Party Politics 9(4):63-83. White, B. Jenny (2002). â€Å"Ak Parti’nin BaÅŸarÄ ±sÄ ±nÄ ±n ArdÄ ±nda Yerele DayalÄ ± Siyaset YatÄ ±yor†, Interview by Åžahin Alpay, Zaman, December 18, 2002. Yavuz, Hakan (2009). Secularism and Muslim democracy in Turkey, New York: Cambridge University Press, YeÅŸilada, A. Birol (2002). â€Å"Virtue Party†, Turkish Studies, Volume 3, Number: 1, Spring. Zarcone, Thierry (2004), La Turquie moderne et l’islam, Paris : Flammarion Periodicals Milliyet, YeniÅŸafak, Hà ¼rriyet, Zaman, Birikim Web Site: www.akparti.org.tr www.saadet.org.tr www.milligorus-forum.com.tr www.tbmm.gov.tr

Regional Integration for and Against Article-EU Essay

With all complex political and economic ventures there are pros and cons. Regional integration is no different and has many benefits and risks. In order for one to gain a better understanding of the issue, it is necessary to examine both the advantages and disadvantages of regional integration. In this paper I will look at some of the advantages and disadvantages of regional integration in the European Union. I will also discuss the economic stages and growth of France and Austria. The European Union (EU) was created in the late 1950’s to bring about peace, equality, and the value of human rights. It has grown into one of the strongest regional groups in the world and has acquired a total of 27 members. With these values at the helm of the European Union’s work its membership has grown. Many countries flock to join the EU because of its numerous benefits. These benefits validate the formation of regional integration as an effective means to achieve peace, security, and prosperity. There are many economic advantages of regional integration. It can produce bigger markets with more trading opportunities, while boosting competition and reducing prices for consumers. It has also been shown that integration introduces higher levels of domestic and foreign investment. EU has advanced by introducing common currency-Euros. The presence of a common currency is a benefit to consumers because some of the transaction costs are reduced. When members of EU trade there is not a need to buy or sell foreign currencies; therefore the losses of exchange is removed due to regional integration. In this situation firms are able to pass on their savings to consumers by reducing their prices. Trading generates a lot of wealth which helps European Union give its citizens a better life and future. The EU works to achieve fair trade and wants to ensure that its partners in developing countries can join their system. With the formation of the regional organization, firms are able to have greater and easier access to the markets of other members. This increases market size and allows firms to enjoy higher potential profits. Firms also  are able to have greater access to resources from other member’s states. This has been said to lower costs of inputs to allow them to increase their profits as well. Regional integration also allows firms to expand and increase profits and when profits and output increase, this will assist to promote economic growth in the country and the region. With regional integration member states have the support of other member states and this increases investors’ confidence in the region. With more confidence in a region investors are willing and able to invest in EU with confidence. All of these things will help EU to achieve its goal, promote growth and increase standard of living across the entire region. Austria and its economy greatly benefited after entry into the EU in the late 1990’s but with this interdependency Austria has become vulnerable to financial instability. A few of the banks there required assistance from the government such as nationaliz ation. In an effort to strengthen banking groups Austria National Bank came up with a system of measures and moved up implementation of the Basel III rules. They will continue to restructure and encourage greater labor flexibility and increase participation of labor to offset many of its problems. France came up with a series of economic plans that would provide a growing governmental direction of the economy. Some of their plans included an expansion of their basic sectors which exceeded the goals they set. Another plan was to create monetary stability and balance foreign payments. This increased production by 20% and brought forth a major economic expansion. France faced poor growth, lowered public finances, and elevated unemployment before joining the EU. After joining France moved into liberalization. Large shares of utilities and telecommunications were privatized. In spite of the European Union (EU) being most influential regional in the world many countries aren’t interested in joining. This is largely due to the disadvantages of regional integration. One disadvantage to regional integration would be the loss of sovereignty . To establish integration member nations are made to give up their sovereignty to a regional parliament, council, or other body. This body will have authority and make decisions that may affect every member. Regional integration also makes it hard for national governments to issues and carries out policies based on what they need. These policies which may be beneficial to one member could hinder the economies of other member nations. (Alfredo, D.  2011) In regional integration members enjoy lower tariffs for trade but this could result in an unfair comparative advantage over non-member states. This would mean countries are no longer able to trade based on their comparative advantage because of the discriminatory tariffs and barriers that EU practices. When countries are unable to trade according to their comparative advantage, production is less efficient and they will no longer reap the benefits of free trade such as higher world output and lower prices. Even though it has been argued that regional integration allows firms to gain greater access to markets of other member states and thus enjoy higher potential profits. Regional integration also exposes firms to greater competition from firms of other member states as well. Failure to compete with firms may cause local firms to close down. This will increase unemployment rate in the country. (Advantages & Disadvantages.2010) After reading this paper it appears evident that regional integration brings member nations together in times of prosperity and times of difficulty. The advantages and disadvantages discussed in this paper can each be seen as beneficial, harmful, or neutral, depending on what is going on in the world economy and the domestic situation of member nations. References Advantages & Disadvantages. Retrieved April 18, 2010 from: http://library.thinkquest.org/19110/english/advantag/advantag.html Alfredo, D. 2011. Advantages & Disadvantages of Regional Integration. Updated on May 21, 2011 http://www.ehow.com/info_8461841_advantages-disadvantages-regional-integration.html

Mondavi Wines Competitive Threats

Mondavi: What threats in the business environment does Mondavi face and how is it addressing them? High quality premium wines produced by France, Italy, Spain, Chile and Argentina. In the past years, Demand increased for premium wines, while consumption of inexpensive, lower quality wine had fallen. As a result of changes in consumption patterns, Europe had created a great deal of excess capacity, while wineries of the new world (South America) continued to increase vineyard acreage in response to strong demand for high quality wines. The size of the global wine industry was estimated by 155 billion dollars (approximately), where Europe and South America dominated global consumption of wine with a market share of 70%. Mondavi addresses this issue by leading the production of premium table wines in the US instead. This market participated with 11% of total world consumption representing 17 billion dollars. Analysts expected demand for premium wines to grow at 8% to 10% per annum. Thus, Mondavi focused 90% of its sales in the US through 15 top retailers and 10% to the rest of the world through exporters. Leverage Risks and Capital requirements The premium wine industry is a capital intensive business. Historically, Tim Mondavi and his team had financed its operations and capital spending principally through borrowings, as well as through internally generated funds. They owned vineyards in California, and the joint ventures controlled land in California, US and Italy, which produced 7% of the company’s total grape supply. The company purchased the rest of its grape supply from 360 independent growers through long term legal agreements. Because in the last years property value had risen and competitors had spent large amounts of money pursuing aggressive acquisition strategies, they could not face further growth with the same strategy due to the increasing high cost of capital. On the other hand, they could not outsource more grape from independent growers, since Mondavi worked closely with the growers to guarantee prime quality and the use of the new farming techniques developed by the company’s own vineyards. So Mondavi chose to focus on a different strategy for the future. He planed to grow its internal grape sourcing by 25% by 2005, focusing on organic growth of the wine and appealing to a new segment of consumers. Management plans to take the company to the next phase by enhancing the high quality of their existing brands, appealing to the organic sectors of healthy consumers and strengthening market positions. Product Substitutes Mondavi faced three types of competitors: rival firms that were focused on making premium wines, large-volume producers moving aggressively into the premium wine business, and global alcoholic beverage companies that were acquiring wineries to complement their beer and/or distilled spirits businesses. He estimated that only 12% of the consumers drank 88% of wines purchased in the US. To stimulate demand for his products, Robert Mondavi set out to educate American consumers and to enhance their appreciation of fine wine. Over the years, he became a leading promoter of the California wine industry. He encouraged visitors to tour the winery and to taste the new wines that he created. In addition, Mondavi began to host concerts, art exhibits, and other cultural events at the To Kalon vineyard. In 1976, the company established the Great Chefs program, the first winery culinary program in the US. Robert Mondavi explained his philosophy regarding fine wine, food, and the arts: â€Å"People who enjoy food, art, music, also enjoy fine wines, and they enjoy them more together. . . . Wine is more than a drink. It’s a culture. † Over time, the company began to advertise more extensively to broaden its customer base. Mondavi launched its first major radio advertising campaign to promote the Woodbridge and Coastal brands in 1998 and its first national television advertising in the fall of 2000. The firm’s advertising expenditures, including point-of-sale materials, reached $20 million in 2001. Michael Mondavi reflected back on the limitations of the firm’s marketing strategy of the early 1990s: â€Å"All those black tie events. We were complacent, cocky, and started believing our own press. For decades, our industry sent the wrong message, that wine is for special occasions, while the breweries told people that beer is the beverage of every occasion. That’s crazy. In the old country (Italy), wine was a blue collar beverage, not an elitist, white collar drink. Our goal is to grow the customer base by removing wine’s mystery, while still maintaining the magic. † As previously mentioned, the next step is becoming organic wine producers of its premier brands. While maintaining high quality standards, he will reach the new target audience of green consumers.

Free Essays on VOIP

(VoIP) INTRODUCTION: In the eyes of most, all packets are created equal. One of the most active areas of telecommunications today is in the area of Voice over Internet Protocol (VoIP). The logic behind this trend makes perfect sense. If we have invested heavily in an Internet Protocol (IP) network, why can't we make full use of it? This is a question posed by many managers and Information Technology (IT) professionals in a wide range of businesses. Many businesses would prefer to have one network in and out of their business for reasons ranging from cost effectiveness to manageability. IP telephony offers a promise of consolidation. This will allow an enterprise to converge its traditional phone system and newer data network for greater efficiency. Arieh Dranger, president of neXTel Systems LLC says, "I don't think it's a question of whether we need VoIP, but when it will come together, because it represents a natural progress of integrating data- period. The IP protocol is probably the most efficient at combining a universal communications network." Basically, IP telephony is taking the telecom world by storm. It has evolved from a little known and used application in 1995 to an application that is poised for global adoption. But as with all technology, there is a price to be paid, and several entities vying for a piece of the pie. WHAT IS VoIP and HOW DOES IT WORK? To put it simply, VoIP means Voice over Internet Protocol. It's a technology that allows network managers to route phone call over the network they use for data transmission. A voice travels over a corporate Intranet or the Internet instead of the public telephone system. Special gateways installed at both the sending and receiving end of a communications channel converts voice to IP packets and back again to voice. This process must take place in a time frame of less than 100 milliseconds to sustain the Quality of Service (QoS) that users are acc... Free Essays on Voip Free Essays on Voip (VoIP) INTRODUCTION: In the eyes of most, all packets are created equal. One of the most active areas of telecommunications today is in the area of Voice over Internet Protocol (VoIP). The logic behind this trend makes perfect sense. If we have invested heavily in an Internet Protocol (IP) network, why can't we make full use of it? This is a question posed by many managers and Information Technology (IT) professionals in a wide range of businesses. Many businesses would prefer to have one network in and out of their business for reasons ranging from cost effectiveness to manageability. IP telephony offers a promise of consolidation. This will allow an enterprise to converge its traditional phone system and newer data network for greater efficiency. Arieh Dranger, president of neXTel Systems LLC says, "I don't think it's a question of whether we need VoIP, but when it will come together, because it represents a natural progress of integrating data- period. The IP protocol is probably the most efficient at combining a universal communications network." Basically, IP telephony is taking the telecom world by storm. It has evolved from a little known and used application in 1995 to an application that is poised for global adoption. But as with all technology, there is a price to be paid, and several entities vying for a piece of the pie. WHAT IS VoIP and HOW DOES IT WORK? To put it simply, VoIP means Voice over Internet Protocol. It's a technology that allows network managers to route phone call over the network they use for data transmission. A voice travels over a corporate Intranet or the Internet instead of the public telephone system. Special gateways installed at both the sending and receiving end of a communications channel converts voice to IP packets and back again to voice. This process must take place in a time frame of less than 100 milliseconds to sustain the Quality of Service (QoS) that users are acc... Free Essays on VOIP INTRODUCTION VOIP means voice over Internet Protocol. A term used in IP telephony to manage the delivery of voice information using the Internet Protocol. It is used to send voice information in digital form in packets rather than using the telephone network. VOIP uses a real-time protocol to help ensure timely and prompt delivery. It also has the potential to change communication and to speed up the delivery of advanced services to all Americans. ADVANTAGES A major advantage of VOIP and Internet telephony is that it avoids the tolls charged by ordinary telephone services. Other advantages include, integration of voice and data, simplification, network efficiency, cost reduction, and many more. The comparison between data and voice network is very similar and the Internet is a huge part for both. The industry trends work over telephone services also. However, the benefits of using IP as a generic platform for both data and real-time application are compelling enough to resolve all issues. MAJOR SYSTEMS A major system component would be the gateways. They are devices that control the communication between the telephone signals and the IP endpoints. It is also an information services that delivers voice communications and joins voice coverage with other data applications and devices. The gateways perform six functions, search function, connection function, digitizing function, demodulation functions, compression function, and decompression and remodulation functions. When the gateway is still performing steps it also receives packets that is where gatekeepers take place. The gatekeeper performs address translation, admissions control, bandwidth management and zone management. An IP telephone is another system component. These devices replace the old telephones by providing enhanced services that are best used for VOIP. QUALITY The voice quality is very important to VOIP technology. There are certain factors tha...

Habits and Traits of Owlet Moths

Habits and Traits of Owlet Moths The owlet moths (family Noctuidae) account for over 25% of all butterflies and moths. As you might expect in a family this large, theres a good deal of diversity within this group. Though there are exceptions, most noctuids share a common set of traits outlined here. The family name, Noctuidae, derives from the Latin noctua meaning little owl or night owl (which in turn derives from nox, meaning night). What Do Owlet Moths Look Like? As youve undoubtedly already deduced from the family name, owlet moths tend to be nocturnal. If youve ever tried black lighting for insects, you must have collected some noctuids, because most will readily come to lights. The owlet moths are robust, stout-bodied insects, usually with filiform antennae. The fore wings tend to be mottled in color, often cryptic, and slightly longer and more narrowed than the hind wings. In most, the hind wings will be brightly colored but kept hidden under the forewings when at rest. Some owlet moths have tufts on the dorsal surface of the thorax (in other words, theyre furry!). For those readers who enjoy confirming their IDs by studying wing venation details, you should note the following traits in the owlet moths you collect: The subcosta (Sc) arises near the base of the hind wing.The subcosta (Sc) fuses briefly with the radius near the discal cell in the hindwingThree medio-cubital veins extend to the distal edge of the hind wing As David L. Wagner notes in Caterpillars of Eastern North America, there are no unique identifying traits of caterpillars in this family. In general, noctuid larvae are dull in color, with smooth cuticles and five pairs of prolegs. Owlet moth caterpillars go by varied common names, including loopers, earworms, armyworms, and cutworms. Owlet moths sometimes go by other common names, such as underwing moths or cutworm moths. The family is divided into several subfamilies, although there is some disagreement about their classification, and some sources may consider these groups separate families entirely. I generally follow the classification system found in the latest edition of Borror and Delongs Introduction to the Study of Insects. How Are Owlet Moths Classified? Kingdom – AnimaliaPhylum – ArthropodaClass – InsectaOrder – LepidopteraFamily - Noctuidae What Do Owlet Moths Eat? Noctuid caterpillars vary greatly in their diets, depending on the species. Some feed on foliage, living or fallen, some on detritus or decaying organic matter, and still others feed on fungus or lichens. Some noctuids are leaf miners, and others stem borers. The family Noctuidae includes some significant pests of agricultural crops and turfgrass. Adult owlet moths usually feed on nectar or honeydew. Some are capable of piercing fruit, thanks to a sturdy, sharp proboscis. One very unusual noctuid moth (Calyptra eustrigata feeds on the blood of mammals. You only need to worry about these blood-sucking moths if you live in Sri Lanka or Malaysia, fortunately. The Owlet Moth Life Cycle Noctuid moths undergo a complete metamorphosis, just like any other butterflies or moths. Most owlet moth caterpillars pupate in the soil or leaf litter. Special Adaptations and Behaviors of Owlet Moths The nocturnal noctuids can detect and avoid hungry bats, thanks to a pair of tympanal organs located at the base of the metathorax. These auditory organs can detect frequencies from 3-100 kHz, enabling them to hear a pursuing bats sonar and take evasive action. Where Do Owlet Moths Live? Globally, the noctuids number well over 35,000 species, with the worldwide distribution you would expect within such a large group. In North America alone, there are approximately 3,000 known species of owlet moths. Sources Borror and DeLongs Introduction to the Study of Insects, 7th Edition, by Charles A. Triplehorn and Norman F. Johnson Caterpillars of Eastern North America, by David L. Wagner Kaufman Field Guide to Insects of North America, by Eric R. Eaton and Kenn Kaufman Family Noctuidae, North Dakota State University. Accessed January 14, 2013. Family Noctuidae, Butterflies and Moths of North America website. Accessed January 14, 2013. Family Noctuidae, by Dr. John Meyer, North Carolina State University. Accessed January 14, 2013.

CASE STUDY Example | Topics and Well Written Essays - 1250 words

Case Study Example The consultant’s main role is to analyze the factors that can impact the business activities of the company and recommend an appropriate strategy that will be aligned with the corporation’s primary objectives. The UK apparel and textile industry is undergoing drastic changes to provide favorable conditions to the players of the sector (â€Å"Textile Industry†, 2010). In UK, the textile industry is among the major contributors in its economic growth and it employs more than 340,000 people (Macbeth & Miln, 2012). It has been reported by Rogers (2012) that Gross Value Added (GVA) of UK textile sector is about 11.5 billion pounds and clothing manufacture, textile manufacture, dry-cleaning and footwear services are worth one billion pound within the sector (Begum, 2012). As the barriers for trade have been reduced along with decline in transportation cost, the manufacturing plants are shifted to lower cost areas such as China and India (â€Å"Textile and Apparel Compendium†, 2012). In the UK textile sector, there has been a sharp decline in the domestic manufacturing of goods as majority of the textile companies have moved to offshore destinations. Despite the relocation of these plants, the sales and design capacity of the sector has remained constant (Rogers, 2012). The foremost reasons for the surging demand of UK based textiles is that the apparel is manufactured with strong emphasis on high value products that allow the customers to get their goods designed in a customized way (Norris, 2012). As a result of the Industrial Revolution in the global textile industry, the Techtextil has become the latest norm in the textile sector. It encompasses a wide variety of taxonomy that is utilized by all the players operating within the industry (Goworek, 2010). In order to address the key challenge faced by the company, it has become imperative to analyze the alternatives that can be

EMBA 560 Executive position week 3 journal 3 Essay

EMBA 560 Executive position week 3 journal 3 - Essay Example When my hopes have been pinned on the outcome of an event that does not turn out as I had expected, I turn to self-denial and refuse to give up my original position. I hope against hope that things will eventually turn out how I expected them to, only for those hopes to be dashed by the throw of the dice. When my expectations go unfulfilled, it takes some time – in fact, a lot of time – for me to overcome my disbelief and extreme disappointment. Sometimes I take it as a personal affront that luck did not turn may way; there are just some changes that are too difficult to accept. I also give myself a thumbs down, though to a lesser degree, to behaviours 1 (separating strategy from tactics) and 3 (feeling threatened by obstacles rather than challenged). (2) I deserve a thumbs sideways in my ability to â€Å"see patterns and make logical connections or resolve contradictions and anticipate their consequences.† There are times when these happen and I am able to respond in an appropriate and timely manner, in which case I give myself a nice on the back and say job well done. There are also times when I completely miss the boat, and depending on my personal emotional investment in the occurrence, I either: act in the manner I described in attribute (1) above in the important matters and for which I gave myself a thumbs down; or merely shrug my shoulders and say, better luck next time, if the issue was not that important. I give myself thumbs sideways to all the other behaviours not classified as thumbs-up or thumbs-down for me. (3) I can give myself a resounding thumbs-up for being able to â€Å"prioritize seemingly conflicting goals†¦to zero in on the critical few and put aside the trivial many when allocating time and resources.† I pride myself in quickly identifying what is important and devoting for the moment my full attention and abilities on the quick resolution of the most important task at hand. I figure out it is best to get those

The Scarlet Letter by Nathaniel Hawthorne Research Paper - 1

The Scarlet Letter by Nathaniel Hawthorne - Research Paper Example Her lover Reverend Dimmesdale whom she had chosen to protect later confessed at the gallows where Hester was punished earlier and dies. Chillingworth, who was Hesters husband, also dies leaving Hester and pearl alone. After several years, Hester died and buried near Dimmesdales’s grave; they shared the gravestone with writings â€Å""On a field, sable. The letter A, gules" (Hawthorne). In Chapter one, the prison door is symbolic, it is introduced in this chapter, and it is used when a crowd of people was standing outside the prison. It is built with heavy oak and is studded with iron spikes. There is a rose bush that grows near the same prison door; this shows how nature is kind despite being criminal it is said to provide â€Å"sweet moral blossom† (Hawthorne). The character Hester Prynne is introduced in chapter two. Sin, social order, and knowledge are clearly shown. The writer uses the symbol to depict sin, and that sinner must be punished in public according to puritan customs and belief. Hester’s punishment was to be an example to other people who were planning to commit adultery. However, only the woman was punished, and the man left, the women did not seek to pity, Hester instead they condemned her as a sinner, an adulterer. They saw her as a great sinner, they never imagined they being sinners. Hester fights it by accepting the condemnation for the need for love after his husband going along with the possibility of being dead. The perfect embroidery of the â€Å"A† letter on her dress was a sign of acceptance the women saw it as Hester was proud of the sin she had committed. She accepted the reality rather than resisting since her child was the fruit of the act. Resisting it was like opposing her child, Pearl. Hester from the beginning was different from other women she was said to be beautiful, tall and radiates natural dignity, unlike other women. The third Chapter introduces Hester punishment as an act against humanity; the puritan order makes

Effects of Japans Ageing Population on Business

Effects of Japans Ageing Population on Business Introduction Many nations in the world have faced with many problems of their population growth. However, the dominant factor in the next society might expose these problems in more details, which most people might begin to pay attention deeper on these problems such as the rapid growth in the amount of older population and the rapid shrinking of the younger generation, with the threats of demographic development such as welfare effects, social conflicts and reducing workforce, etc. Therefore, the government in each nation should have more considerations on these problems before it is growing to be the unsolved problems. Recently, this phenomenon is spreading its effect to many nations in this globe. Specifically in Japan, there are many researches and figures which can be clearly shown that Japan are staying at the highest position of the middle ages average and also leading in the decline of population growth. This scale of the problem in Japan is unprecedented for the world. Therefore, Japan could be an example for many nations that are facing the same crisis which could learn how to handle or find out any solutions or policies to cope with this problem. In one effect, this change created many problems in Japan such as the declination of workforce, extra welfare burden and the lack of opportunities and chances for new generation. It is also includes the issue integration of young and old people in workplaces. Nevertheless, aging population has not had only drawbacks. On the other hand, it is the opportunities for many companies to invent any innovations which suit with middle aged and old age groups. This essay consists of three sections. The first section will focus on two topics which comprised by increasing life expectancy and declining population in Japan. The second section of the essay will examine on shrinking population of working age and Japans health care service industry. The final section of the essay will present the opportunities opened up for business by population aging such as how to develop products, design, innovation and services for silver market customer that suitable for the elderly target groups. Part I: Demographic changes and economic growth in Japan To comprehend the demographic component that caused population aging that would be refer to stable populations. According to the graph that presents age-specific fertility and the figure of mortality rates remain stable over time, from this conclusion in a number of contribute to population aging that remain constant and eventually becomes time instant as well. The report shows that in a global context, Japans ageing is remarkable for its pace. The country took only 24 years to transform from the elderly society, where the older population accounted for 7% from the total population to the elderly society, where it doubled of the share, according to UN definitions. Source: World population prospects, 2008 Revision, United Nations. ( http://www.gereports.com/healthymagination-studies-japans-aging-population/) The abstract foundation of a decreased form models applied in econometric studies are: (1) saving and investment in the life cycle model (2) age-specific modification in labour productivity. The reason why this theoretical is that important to focus on is peoples economic needs modulate at different the way of life and peoples behavior, the effect of economic performance that effects in a countrys age structure has been changed. By contrast, most of young people demand investment in education and health, adults contribute labour and savings, and the aged demand retirement income and health care. (Kohlbacher, Herstatt, 2008) Life expectancy Some people said that the experience of happiness could be changed in case of getting older. According to a research from 80 countries over the world shows a notably in a same pattern. Happiness is looks like a U-shaped curve, many people are happiest from the beginning until end of their lives. Most people reach at the bottom at age 44. At the lowest point of the graph, they will be stuck in this point until age 50 as long as their healthy, the level of their happiness will increase and the risk of depression will decline. This pattern is still the same even in rich or poor persons. (Moynagh and Worseley) Furthermore, those people who born between 1925 to 1945 will count in the ranks of the extreme older age. This group has faced difficult improvements in their life expectancy over the past 40 years than earlier generations. However, the propellant of longer life will increase in the elderly following by changes in lifestyle such as less smoking, advances in medicine such as the use of antibiotics, environmental improvement such as living in the place that have less pollution and healthier diets such as eat more fibre. Declining population in Japan Japan is one of the most recently a rapid growing of aging country but low birth rate. In 2005, over the next several decades, the figure of people who aged over 64 will increase rapidly whereas the possibility of actual population has been declined. In Germany and Japan that facing the fertility rates that are far under the replacement rate wanted to maintain a steady population. Nowadays the number of birth rate in Japan and German y are approximately 2.1 children per woman. Assuming of authentic projections, which is the figure of fertility rate might be slowly revert to the replacement proportion in Japan. By contrast this figure could be remaining nearly to the recent level (1.4) in Germany. In fact, Assuming of German forecasts are durable but still declining of the immigration, which is approximately 2 immigrants per 1,000 residents within an annual, compared with 5.6 earlier from this decade. In Japan, the immigration is assumed to be negligible compared with Germany. (http://www.brookings.edu/articles/1997/summer_saving_bosworth.aspx) Part II: Effect of population aging on the countrys economy According to the increasing number of Japans population aging that have many effects on their country such as decreasing of working age as the quantity of retirement has risen rapidly and one more reason that effect on this country is the quality of Japans health care service industry which is very important section for the elderly due to an increasing demand of the elderly therefore health care services will be necessary to prepare their equipments and services to deal with the rising number of older people from now on. Shrinking population of working age As Japan has explored, when a large amount of the population who is in a sector of retirement-planning years (34 percent are aged 40-64 versus 27 percent in the U.S.) the figure of saving rates can increase to levels that lower economic growth and consumption. In a situation known as Ricardian equivalence when budget deficits have fueled an increasing concern about Japans economic in the future, these caused ageing workforce due to respond to prepare their saving. Never the less, most of countries, the numbers of retirement are probably to have an opposite effect. One OECD analysis found that in the industrial, the figure of saving rates world might be decreased approximately eight percent of GDP during the late 2020s. Especially in Japan, where the number of retirees depends on their personal savings to finance in their old age and these has also caused all companies that have to train new employees due to the increasing of retirement of aging people so far. (http://www.globalaging.org/health/world/depopulationeuropejapan.htm) Japans health care service industry This is the most pledge industry of the health care service industry because of a constantly growing customer base and many factors that followed by requiring among the elder people in health care services. Normally, the consumption on health care services of elder people who aged 70 and above are around three times those compared with their age average. Even if this effect on the aid from the health insurance plans, it is evident that the possible demand of elder people for health care services should rise with rising number of the elderly. Furthermore, same as other quality services, the income flexibility of health care services is usually higher than to live together in unity. This means that most of elder people are willing to pay without considering for the quality further than quantity of the services. According to the statement, the health care service industry should produce only the good value services that most of people are willing to pay. On the other hand, the government with fewer considerations and fewer responses for the difference of the quality services legislated to fix the price for the health care services. This frequently according to ineffective resource allocations, incorporating the creation in black markets. Eventually, the condition of health care services is extremely arranged by two layers of arrangements. The first one is the arrangement on clinics and hospitals. The qualification of medical services staffs, nurses and doctors. Another condition is a process to apply to the health care services of the public health insurance. These conditions were primordially set for patients profits. However, sector fact are commonly used in subsist poor health care supplier for the protection. Consequently, they actually obviate in supply increased of capable health care services encounting with the potential require. If the conditions were removed, all of the health care services can be mushrooming substantially. Part III, Opportunities opened up for business by population aging Among of the problems that many nations have faced to including in Japan whereas there still have the opportunities for certain business to prevent many products, design, innovation and improve their services including the way to manage business to handle with changing consumer values and lifestyle of the elderly. Developing products, design, innovation and services for silver market customer According to the aging of industrialized, led by Japan, demand of the facilities of elderly people to help them manage everything in their life easier than common life. For this reasons, many companies in Japan are trying to find the methods, ideas and helpful facilities to create a new product for providing attractive and helpful solutions dealing with elderly people to very old consumers. This is a great chance for companies, commerce, manufacturers and service providers to develop their products for these aging groups. Until now, the figure of the elderly people are remain rising share in the total population, also a rise in life expectancy, products and services have been considered and researched so far for old age to support them lead their lives easier as an independent. These problems have become important hardly contain any attention for a long time in the past and the elderly users rejected the common friendly solution because these solutions clearly created from the technology of handicapped and rehabilitation. Thus, developing the new innovative products should be covered for all age in a concept design for all however, all products should be thoroughly considered on safety and comfort especially for elderly age. From the idea as above, the new research project Sentha has prevented. Sentha is stand for Everyday Technology for Senior Households and it also start establishing to develop new product concepts and new approaches. With the mission for the research, contributory observation for Sentha achieved quite fundamental importance. The advantage of Contributory observation has been sensitive including habitual, unreflective and everyday action. There is no accident that contributory observation which is regarded as the royal road area research due to the linguistic-interrogative methods such as interviews and group discussions which cannot be explored by a position to train ones sights on things. Contributory observation is thus, different from an interview, sensitive and usable equipment for researching everyday life. Hand movement and motions that can go on in a completely routine manner, especially it can be a point of departure for ones work. This can be a trick from spending life of an elderly people. For instance, a screwed-in light bulb as a darning mushroom which is illuminated from within for elderly age who cannot see well in dim light. These are some hi-tech products and services in Japan that they created for the elderly which is dominated by nursing care, pharmaceuticals and medical equipment. Intelligent toilets In many Japanese hotels, the healthiness of defecations can be showed by this machine, variety of heat functions are set at the seat to push up elderly people in order to help them getting off the toilet easier. Now, with a co-operation of two large companies Toto and Daiwa house installed toilets for pensioners which is a concept for this mergence. These toilets are installed medical sugars that can measure blood pressure, body fat and blood sugar rates of the user. Including a built-in internet device that can email any healthy information directly to the doctor to ensure their health. Cars Carmakers have created intelligent cars with dashboards that have large numbers and letters to let the driver especially the elderly people see the dashboards easily. Moreover, this car is including accelerator and hand controls for the brake, and swiveling seats to make it easier when the driver want to get in and out. Robot pets It quite difficult to the elderly who want to have a pet therefore this is a high technology to create a robot pet that seems like a real pet which can be responded the owners with opening and closing its eyes and it also moving its tail as well. Furthermore, The Institute of Physical and Chemical Research in Japan has developed the robots which is working as a nurse that can help and lift the elderly up and help them out of bed. (http://www.guardian.co.uk/money/2010/mar/20/japan-ageing-population-technology) Changing consumer values and lifestyle Japans recent dynamic social environment, merged with economic globalization the development of information technology, mostly influences the diversification of people with their values and lifestyles. To be more precise, people become more liberal toward different ways of thinking therefore not only the internet and communication technology that infiltrate on peoples lifestyle and values but also the way that their communication styles and personal relations as well. The important factors that affect in changing consumer values and lifestyles are the spread of epidemic. For instance, tainted food and avian flu and also disasters from other natural that cause greater concern for security and disease prevention. This enhanced concern encourages consumer for safe, healthy food also in other health-related goods. However, it would be difficult to analyze or specific factors to influence them to change their habits. These are mechanism of change in and diversification of values in Japan: awareness of health ,safety and prevention, will to learn, value seeking, generosity in differences, view of family and marriage (Kohlbacher, Herstatt, 2008) Marketing for the silver market The demand of the older customers is very necessary in a market of retailing trade due to the possible of the best-agers is quite underestimated. This is varied target group, including the elderly who age over 50 years with the difference of socio-demographic characteristics, leisure time activities, value orientations and consumer preferences. In fact, these can be considered that, negligence of the specific interests and consumption habits of the elderly, in common they share the basic needs to provide themselves by retail shopping as long as they are able to do these activities. The report in German, the amount of the spending power of aging people is also attractive. Aging people between 50-59 years old spent approximately 24000 euro in the retail trade whereas those aged over 60 had 20000 euro in each year to spend. However, the implication of the demographic on retail trade affects the decision on the location of commercial establishments. Demanding of the elderly groups regard ing comfort and convenience when they need shopping coincide with the target groups of younger people. Purchase outlets should be accessible includes the design of products that can make the consumer feel satisfied. (Kohlbacher, Herstatt, 2008) Conclusion

An Image of Truth :: Essays Papers

An Image of Truth Plato teaches that reality is to be found in universal â€Å"forms.† Images of objects are therefore pale imitations of reality: that is, at least twice removed from the truth. Nevertheless, Jane Austen in Pride and Prejudice suggests that the image of a person can offer true insights that the actual person might not. In her very first meeting with Mr. Darcy, Elizabeth is left â€Å"with no very cordial feelings towards him† and after spending â€Å"four days in the same house with him† she still â€Å"think[s] him very disagreeable† (9, 53).1 Even after Mr. Darcy has directly and blatantly declared his love for Elizabeth she cannot consider him favorably and exclaims â€Å"I have never desired your good opinion† (125). Just to walk with him in the park â€Å"seem[s] like willful ill‑nature or a voluntary penance† (120). However, Elizabeth’s feelings for Darcy change after she views the portrait of him at Pemberley. She d evelops a â€Å"more gentle sensation toward the original† after seeing the painting and may even consider Darcy’s â€Å"regard with a deeper sentiment of gratitude than it had ever raised before† (162). Elizabeth needs the indirect image of Darcy in this portrait to view the man himself more accurately than she can when she faces him in person. The painting offers her time to contemplate Darcy’s true character. Furthermore, the frozen image creates a distance from which Elizabeth may consider Darcy without the interference of her intense emotions. When Elizabeth is face to face with Darcy, she must engage him in conversation, but when she examines the portrait, she does not have to speak: she can look at the painting for â€Å"several moments†¦in earnest contemplation† and even â€Å"return to it again† before leaving (162). Socially, great importance is placed on witty dialogue and polite conversation. At the first ball, the newly arrived Mr. Darcy is criticized for his reserve; rather than extend himself to form new acquaintances, he speaks only â€Å"occasionally to [a lady] of his own party† (8). Yet by refraining from conventional conversation, Mr. Darcy is able to form sound opinions. When he â€Å"wish[es] to know more of [Elizabeth]† he first â€Å"attend[s] to her conversations with others† before directly engaging her in dialogue (17). He even advises Elizabeth to take her time in getting to know him, urging â€Å"I could wish, Miss Bennet, that you were not to sketch my character at the present moment†¦the performance would reflect no credit on either.

Additional Solved Sums, Financial Management, Prassanna Chandra

CHAPTER 2 1. As a rule of thumb, real rates of interest are calculated by subtracting the inflation rate from the nominal rate. What is the error from using this rule of thumb for calculating real rates of return in the following cases? Nominal rate (%)7121822 Inflation rate (%)4 6 810 Solution: [pic] 2. As a rule of thumb, real rates of interest are calculated by subtracting the inflation rate from the nominal rate. What is the error from using this rule of thumb for calculating real rates of return in the following cases? Nominal rate (%)481119 Inflation rate (%)13 2 4 Solution: [pic] CHAPTER 3 1. At the end of March, 20X6 the balances in the various accounts of Dhoni & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash and bank 35 Debentures (secured) 100 Marketable securities 18 Term loans (secured) 90 Receivables 200 Short-term bank borrowing (unsecured) 70 Inventories210 Trade creditors 60 Provisions 20 Pre-paid expenses 10 Required: Prepare the balance sheet of Dhoni & Company as per the format specified by the Companies Act. Solution: Balance Sheet of Dhoni & Company As on March 31, 20 X 6 Liabilities | |Assets | | |Share capital | |Fixed assets |   | |Equity |120 |Net fixed assets |217 | |Preference |30 | |   | |Reserve & surplus |200 |Investments |   | |   | |Marketable securities |18 | |Secured loans | |Current assets, loans & advances |   | |Debentures |100 | |   | |Term loans |90 | | | |   | |Pre-paid expenses |10 | |Unsecured loans | |Inventories |21 0 | |Short term ank borrowing |70 |Receivables |200 | |Current liabilities & provisions | |Cash & Bank |35 | |Trade creditors |60 | |   | |Provisions |20 | |   | |   |690 |   |690 | 2. At the end of March, 20X7 the balances in the various accounts of Sania Limited are as follows: Rs. in million Accounts Balance Equity capital 250 Preference capital 80 Fixed assets (net)380 Reserves and surplus350 Cash and bank100 Debentures (secured)190 Marketable securities 30 Term loans (secured)120 Receivables420 Short-term bank borrowing (unsecured) 110 Inventories310 Trade creditors 90 Provisions 70 Pre-paid expenses 20 Required: Prepare the balance sheet of Sania Limited as per the format specified by the Companies Act. Solution: Balance Sheet of Sania Limited as on March 31, 20 X 7 Liabilities | |Assets | | |   | | |   | |Share capital | |Fixed assets |   | |Equity |250 |Net fixed assets |380 | |Preference |80 | |   | |Reserve & surplus |350 |Investments |   | |   | |M arketable securities |30 | |Secured loans | |Current assets, loans & advances |   | |Debentures |190 | |   | |Term loans |120 | | | |   | |Pre-paid expenses |20 | |Unsecured loans | |Inventories |310 | |Short term bank borrowing |110 |Receivables |420 | |Current liabilities & provisions | |Cash & Bank |100 | |Trade creditors |90 | |   | |Provisions |70 | |   | |   |1260 |   |1260 | 3. The comparative balance sheets of Evergreen Company are given below: (Rs. in million) Owners' Equity and Liabilities As on 31. 3. 20X6 As on 31. 3. 20X7 Share capital 70 70 Reserves and surplus 40 80 Long-term debt 80 90 Short-term bank borrowings 80 85 Trade creditors 40 70 Provisions 10 20 Total320415 Assets Fixed assets (net)120210 Inventories 90 95 Debtors 60 65 Cash 25 30 Other assets 25 15 Total320415 The profit and loss account of Evergreen Company for the year ending 31st March 2007 is given below: (Rs. in million) Profit & Loss Account for the Period 1. 4. 20X6 to 31. 3. 20X7 Net sales750 Cost of goods sold 505 Stocks290 Wages and salaries105 Other manufacturing expenses110 245 Gross profit Operating expenses135 Selling, administration and general120 Depreciation 15 Operating profit110 Non-operating surplus or deficit(20) EBIT 90 Interest 25 Profit before tax 65 Tax 15 Profit after tax 50 Dividends 10 Retained earnings 40 Required: (a) Prepare the classified cash flow statement for the period 1. 4. 20X6 to 31. 3. 20X7 b) Develop the cash flow identity for the period 1. 4. 20X6 to 31. 3. 20X7 Solution: |A. Cash flow from operating activities | | |- |Net profit before tax and extraordinary items | |85 | | |- |Adjustments for | | | | | |Interest paid | |25 | | | |Depreciation | |15 | | |- |Operating profit before working capital changes |125 | | |- |Adjustments for | | | | | |Inventories | |(5) | | | |Debtors | |(5) | | | |Trade creditors | |30 | | | |Provisions | |10 | | | |Increase in other assets | |10 | | |- |Cash generated rom operations | |165 | | | |Income tax paid | |(15) | | |- |Cash flow before extraordinary items | |150 | | | |Extraordinary item | |(20) | | |- |Net cash flow from operating activities | |130 | |B. |Cash flow from investing activities | | | | |- |Purchase of fixed assets | |(105) | | |- |Net cash flow from investing activities | |(105) | | | | | | | |C. Cash flow from financing activities | | | | |- |Increase in loans | |15 | | |- |Dividends paid | |(10) | | |- Interest paid | |(25) | | |Net cash flow from financing activities | |(20) | | | | | | | |D. |Net increase in cash and cash equivalents | |5 | | |- |Cash and cash equivalents as on 31. 03. 0X6 |25 | | |- |Cash and cash equivalents as on 31. 03. 20Ãâ€"7 | |30 | NoteIt has been assumed that â€Å"other assets† represent â€Å"other current assets†. (b) A. Cash flow from assets -Operating cash flow90 -Net capital spending (105) -Decrease in net working capital35 -Cash flow from assets20 B. Cash flow to creditors -Interest paid25 -Repayment of long term debt (15) -Cash flow to creditors10 C. Cash flow to shareholders -Dividends paid10 -Net new equity raised 0 -Cash flow to shareholders10 We find that (A)=(B) + ( C) i. e. Cash flow from assets=Cash flow to creditors + Cash flow to shareholders 4. The comparative balance sheets of Xavier Limited are given below: (Rs. in million) Owners' Equity and Liabilities As on 31. 3. 20X6 As on 31. 3. 20X7 Share capital 20 30 Reserves and surplus 10 18 Long-term debt 30 25 Short-term bank borrowings 15 15 Trade creditors 10 15 Provisions 5 8 Total 90 111 Assets Fixed assets (net) 16 20 Inventories 44 55 Debtors 20 21 Cash 5 8 Other assets 5 7 Total 90 111 The profit and loss account of Xavier Limited for the year 2007 is given below: (Rs. in million) Profit & Loss Account for the Period 1. 4. 20X6 to 31. 3. 20X7 Net sales220 Cost of goods sold 140 Stocks 90 Wages and salaries 35 Other manufacturing expenses 15 80 Gross profit Operating expenses 40 Selling, administration and general 20 Depreciation 5 Operating profit 15 Non-operating surplus or deficit 1 EBIT 16 Interest 4 Profit before tax 12 Tax 2 Profit after tax 10 Dividends 2 Retained earnings 8 Required: (a) Prepare the classified cash flow statement for the period 1. 4. 20X6 to 31. 3. 20X7 b) Develop the cash flow identity for the period 1. 4. 20X6 to 31. 3. 20X7 Solution: |A. Cash flow from operating activities | | | | |- |Net profit before tax and extraordinary items | |11 | | |- |Adjustments for | | | | | |Interest paid | | 4 | | | |Depreciation | | 5 | | |- |Operating profit before working capital changes | 20 | | | | Adjustments for | | | | |- | | | | | | |Inventories | |(11) | | | |Debtors | | (1) | | | |Trade creditors | | 5 | | | |Provisions | | 3 | | | |Increase in other assets | | (2) | | |- |Cash generated from operations | | 14 | | | |Income tax paid | | (2) | | |- |Cash flow before extraordinary items | | 12 | | | |Extraordinary item | | 1 | | |- |Net cash flow from operating activities | | 13 | |B. |Cash flow from investing activities | | | | |- |Purchase of fixed assets | | (9) | | |- |Net cash flow from investing activities | | (9) | | | | | | | |C. Cash flow from financing activities | | 10 | | |- Increase in equity | | | | |- |Repayment of term loans | | (5) | | | |-Dividend paid | |(2) | | |- |Interest paid | | (4) | | |Net cash flow from financing activities | | (1) | | | | | | | |D. |Net increase in cash and cash equivalents | | 3 | | |- |Cash and cash equivalents as on 31. 03. 20X6 | 5 | | |- |Cash and cash equivalents as on 31. 03. 20Ãâ€"7 | | 8 | NoteIt has been assumed that â€Å"other assets† represent â€Å"other current assets†. (b) ACash flow from assets -Operating cash flow19 -Net capital spending(9) -Decrease in net working capital(9) Cash flow from assets 1 B. Cash flo w to creditors -Interest paid 4 -Repayment of long term debt 5 -Cash flow to creditors 9 C. Cash flow to shareholders -Dividends paid 2 -Net new equity raised(10) -Cash flow to shareholders (8) We find that (A)=(B) + ( C) i. e. , Cash flow from assets=Cash flow to creditors + Cash flow to shareholders CHAPTER 4 1. Premier Company's net profit margin is 8 percent, total assets turnover ratio is 2. 5 times, debt to total assets ratio is 0. 6. What is the return on equity for Premier? Solution: Net profit Return on equity = Equity = Net profit Net sales Total assets x x Net sales Total assets Equity 1 = 0. 08 x 2. 5 x = 0. 5 or 50 per cent 0. 4 Debt Equity Note : = 0. 6 So = 1- 0. 6 = 0. 4 Total assets Total assets Hence Total assets/Equity = 1/0. 4 2. The following information is given for Alpha Corporation Sales3500 Current ratio1. 5 Acid test ratio1. 2 Current liabilities1000 What is the inventory turnover ratio? Solution: Current assets = Current liabilities x 1. 5 = 1000 x 1. 5 = 1500 Quick assets= Current liabilities x 1. 2 = 1000 x 1. 2 = 1200 Inventories= 300 3500 Inventory turnover ratio == 11. 7 300 3. The following information is given for Beta Corporation. Sales5000 Current ratio1. 4 Inventory turnover5 ratio Acid test ratio1. 0 What is the level of current liabilities? Solution: 4. Safari Inc. has profit before tax of Rs. 90 million. If the company's times interest covered ratio is 4, what is the total interest charge? Solution: PBT= Rs. 90 million PBIT Times interest covered = = 4 Interest So PBIT = 4 x Interest PBT = PBIT – interest = 4x interest- interest = 3 x interest = 90 million Therefore interest = 90/3 = Rs. 30 million 5. A has profit before tax of Rs. 0 million. If its times interest covered ratio is 6, what is the total interest charge? Solution: PBT= Rs. 40 million PBIT Times interest covered = = 6 Interest So PBIT = 6 x Interest PBIT – Interest = PBT = Rs. 40 million 6 x Interest – Interest = Rs. 40 million 5 x Interest = Rs. 40 million Hence Interest = Rs. 8 million 6. McGill Inc. h as profit before tax of Rs. 63 million. If the company's times interest covered ratio is 8, what is the total interest charge? Solution: PBT= Rs. 63 million PBIT Times interest covered = = 8 Interest So PBIT = 8 x Interest PBIT – Interest = PBT = Rs. 63 million x Interest – Interest = 7 x Interest = Rs. 63 million Hence Interest = Rs. 9 million 7. The following data applies to a firm : Interest chargesRs. 200,000 SalesRs. 6,000,000 Tax rate40 percent Net profit margin5 percent What is the firm's times interest covered ratio? Solution: Sales = Rs. 6,000,000 Net profit margin = 5 per cent Net profit = Rs. 6,000,000 x 0. 05 = 300,000 Tax rate = 40 per cent 300,000 So, Profit before tax = = Rs. 500,000 (1-. 4) Interest charge = Rs. 200,000 So Profit before interest and taxes = Rs. 700,000 Hence 700,000 Times interest covered ratio = = 3. 5 200,000 8. The following data applies to a firm: Interest chargesRs. 50,000 SalesRs. 300,000 Tax rate 25 percent Net profit margin 3 percent What is the firm's times interest covered ratio? Solution: Sales = Rs. 300,000 Net profit margin = 3 per cent Net profit = Rs. 300,000 x 0. 03 = 9,000 Tax rate = 25 per cent 9,000 So, Profit before tax = = Rs. 12,000 (1-. 25) Interest charge = Rs. 50,000 So Profit before interest and taxes = Rs. 62,000 Hence 62,000 Times interest covered ratio == 1. 24 50,000 9. The following data applies to a firm : Interest chargesRs. 10,000,000 SalesRs. 80,000,000 Tax rate 50 percent Net profit margin 10 percent What is the firm's times interest covered ratio? Solution: Sales = Rs. 80,000,000 Net profit margin = 10 per cent Net profit = Rs. 80,000,000 x 0. 1 = 8,000,000 Tax rate = 50 per cent 8,000,000 So, Profit before tax = = Rs. 16,000,000 (1-. 5) Interest charge = Rs. 10,000,000 So Profit before interest and taxes = Rs. 26,000,000 Hence 26,000,000 Times interest covered ratio == 2. 6 10,000,000 10. A firm's current assets and current liabilities are 25,000 and 18,000 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1. 5? Solution: CA = 25,000CL = 18,000 Let BB stand for bank borrowing CA+BB = 1. 35 CL+BB 25,000+BB = 1. 35 18,000+BB 1. 35x 18,000 + 1. 35 BB = 25,000 + BB 0. 35BB = 25,000- 24,300 = 700 BB = 700/0. 35 = 2,000 11. LNG’s current assets and current liabilities are 200,000 and 140,000 respectively. How much additional funds can it borrow from banks for short term, withou t reducing the current ratio below 1. 33? Solution: CA = 200,000CL = 140,000 Let BB stand for bank borrowing CA+BB = 1. 33 CL+BB 200,000+BB = 1. 33 140,000+BB 1. 33 x 140,000 + 1. 33BB = 200,000 + BB 0. 33 BB = 200,000- 186,200 = 13,800 BB =13,800/0. 33 = 41,818 12. Navneet’s current assets and current liabilities are 10,000,000 and 7,000,000 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1. 4? Solution: CA = 10,000,000CL = 7,000,,000 Let BB stand for bank borrowing CA+BB = 1. 4 CL+BB 10,000,000+BB = 1. 4 7,000,000+BB 1. 4 x 7,000,000 + 1. 4BB = 10,000,000 + BB 0. 4 BB = 10,000,000- 9,800,000 = 200,000 BB = 200,000/0. 40 = 500,000 13. A firm has total annual sales (all credit) of 25,000,000 and accounts receivable of 8,000,000. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to 6,000,000? Solution: 25,000,000 Average daily credit sales = = 68,493 365 If the accounts receivable has to be reduced to 6,000,000 the ACP must be: 6,000,000 = 87. 6 days 68,493 14. A firm has total annual sales (all credit) of 1,200,000 and accounts receivable of 500,000. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to 300,000? Solution: 1,200,000 Average daily credit sales = = 3287. 67 365 If the accounts receivable has to be reduced to 300,000 the ACP must be: 300,000 = 91. 3 days 3287. 67 15. A firm has total annual sales (all credit) of 100,000,000 and accounts receivable of 20,000,000. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to 15,000,000? Solution: 100,000,000 Average daily credit sales = = 273,972. 6 365 If the accounts receivable has to be reduced to 15,000,000 the ACP must be: 15,000,000 = 54. 8 days 273,972. 6 16. The financial ratios of a firm are as follows. Current ratio = 1. 25 Acid-test ratio = 1. 10 Current liabilities=2000 Inventory turnover ratio=10 What is the sales of the firm? Solution: Current assets = Current liabilities x Current ratio = 2000 x 1. 25 = 2500 Current assets – Inventories = Current liabilities x Acid test ratio 2000 x 1. 10 = 2200 Inventories = 300 Sales = Inventories x Inventory turnover ratio = 300 x 10 = 3000 17. The financial ratios of a firm are as follows. Current ratio = 1. 33 Acid-test ratio = 0. 80 Current liabilities=40,000 Inventory turnover ratio=6 What is the sales of the firm? Solution: Current assets = Current liabilities x Curre nt ratio = 40,000 x 1. 33 = 53,200 Current assets – Inventories = Current liabilities x Acid test ratio = 40,000 x 0. 80 = 32,000 Inventories = 21,200 Sales = Inventories x Inventory turnover ratio = 21,200 x 6 = 127,200 18. The financial ratios of a firm are as follows. Current ratio = 1. 6 Acid-test ratio = 1. 2 Current liabilities=2,000,000 Inventory turnover ratio=5 What is the sales of the firm? Solution: Current assets = Current liabilities x Current ratio = 2,000,000 x 1. 6 = 3,200,000 Current assets – Inventories = Current liabilities x Acid test ratio = 2,000,000 x 1. 2 = 2,400,000 Inventories = 800,000 Sales = Inventories x Inventory turnover ratio = 800,000 x 5 = 4,000,000 19. Complete the balance sheet and sales data (fill in the blanks) using the following financial data: Debt/equity ratio= 0. 80 Acid-test ratio= 1. 1 Total assets turnover ratio= 2 Days' sales outstanding in Accounts receivable= 30 days Gross profit margin= 30 percent Inventory turnover ratio = 6 Balance sheet Equity capital 80,000Plant and equipment. . . . Retained earnings 50,000Inventories. . . . Short-term bank borrowings . . . . Accounts receivable. . . . Cash. . . . . . . .. . . . Sales. . . . Cost of goods sold †¦Ã¢â‚¬ ¦.. Solution: Debt/equity = 0. 80 Equity = 80,000 + 50,000 = 130,000 So Debt = Short-term bank borrowings = 0. x 130,000 = 104,000 Hence Total assets = 130,000+104,000 = 234,000 Total assets turnover ratio = 2 So Sales = 2 x 234,000 = 468,000 Gross profit margin = 30 per cent So Cost of goods sold = 0. 7 x 468,000 = 327,600 Day’s sales outstanding in accounts receivable = 30 days Sales So Accounts receivable = x 30 360 468,000 = x 30 = 39,000 360 Cost of goods sold 327,600 Inventory turnover ratio === 6 Inventory Inventory So Inventory = 54,600 As short-term bank borrowing is a current liability, Cash + Accounts receivable Acid-test ratio = Current liabilities Cash + 39,000 = = 1. 1 104 ,000 So Cash = 75,400 Plant and equipment = Total assets – Inventories – Accounts receivable – Cash = 234,000 – 54,600 – 39,000 – 75,400 = 65,000 Putting together everything we get Balance Sheet Equity capital 80,000Plant & equipment65,000 Retained earnings50,000Inventories54,600 Short-term bank borrowings 104,000Accounts receivable39,000 Cash75,400 234,000 234,000 Sales 468,000 Cost of goods sold327,600 20. Complete the balance sheet and sales data (fill in the blanks) using the following financial data: Debt/equity ratio= 0. 40 Acid-test ratio= 0. 9 Total assets turnover ratio= 2. 5 Days' sales outstanding in Accounts receivable= 25 days Gross profit margin= 25 percent Inventory turnover ratio = 8 Balance sheet Equity capital 160,000,000Plant and equipment——–Retained earnings 30,000,000Inventories †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Short-term bank borrowings . . . †¦Ã¢â‚¬ ¦ Accounts receivable †¦.. . . . Cash . . . . . . . . . . . . Sales †¦. †¦. Cost of goods sold †¦Ã¢â‚¬ ¦. Solution: Debt/equity = 0. 40 Equity = 160,000,000 + 30,000,000 = 190,000,000 So Debt = Short-term bank borrowings = 0. 4 x 190,000,000 = 76,000,000 Hence Total assets = 190,000,000+ 76,000,000 = 266,000,000 Total assets turnover ratio = 2. 5 So Sales = 2. 5 x 266,000,000 = 665,000,000 Gross profit margin = 25 per cent So Cost of goods sold = 0. 75 x 665,000,000 = 498,750,000 Day’s sales outstanding in accounts receivable = 25 days Sales So Accounts receivable = x 25 360 665,000,000 = x 25 = 46,180,556 360 Cost of goods sold 498,750,000 Inventory turnover ratio == = 8 Inventory Inventory So Inventory = 62,343,750 As short-term bank borrowings is a current liability, Cash + Accounts receivable Acid-test ratio = Current liability Cash + 46,180,556 = = 0. 9 76,000 ,000 So Cash = 22,219,444 Plant and equipment = Total assets – Inventories – Accounts receivable – Cash 266,000,000 – 62,343,750 – 46,180,556 – 22,219,444 = 135,256,250 Putting together everything we get Balance Sheet Equity capital 160,000,000Plant & equipment 135,256,250 Retained earnings 30,000,000Inventories62,343,750 Short-term bank borrowings 76,000,000Accounts receivable46,180,556 Cash22,219,444 266,000,000 266,000,000 Sales 665,000,000 Cost of goods so ld 498,750,000 21. Complete the balance sheet and sales data (fill in the blanks) using the following financial data: Debt/equity ratio= 1. 5 Acid-test ratio= 0. 3 Total assets turnover ratio= 1. 9 Days' sales outstanding in Accounts receivable= 25 days Gross profit margin= 28 percent Inventory turnover ratio = 7 Balance sheet Equity capital 600,000Plant and equipment. . . . Retained earnings 100,000Inventories. . . . Short-term bank borrowings . . . Accounts receivable. . . . Cash. . . . . . . .. . . . Sales. . . †¦.. Cost of goods sold†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Solution: Debt/equity = 1. 5 Equity = 600,000 + 100,000 = 700,000 So Debt = Short-term bank borrowings =1. 5 x 700,000 = 1050,000 Hence Total assets = 700,000+1050,000 = 1,750,000 Total assets turnover ratio = 1. 9 So Sales = 1. 9 x 1,750,000 = 3,325,000 Gross profit margin = 28 per cent So Cost of goods sold = 0. 2 x 3,325,000 = 2,394,000 Day’s sales outstanding in accounts receivable = 25 days Sales So Accounts receivable = x 25 360 3,325,000 = x 25 = 230,903 360 Cost of goods sold 2,394,000 Inventory turnover ratio === 7 Inventory Inventory So Inventory = 342,000 As short-term bank borrowings is a current liability , Cash + Accounts re ceivable Acid-test ratio = Current liabilities Cash + 230,903 = = 0. 3 1050 ,000 So Cash = 84,097 Plant and equipment = Total assets – Inventories – Accounts receivable – Cash = 1,750,000 – 342,000 – 230,903 – 84,097 = 1,093,000 Putting together everything we get Balance Sheet Equity capital 600,000Plant &equipment 1,093,000 Retained earnings100,000Inventories 342,000 Short-term bank borrowings 1050,000Accounts receivable 230,903 Cash 84,097 1,750,000 1,750,000 Sales 3,325,000 Cost of goods sold2,394,000 22. Compute the financial ratios for Acme Ltd. Evaluate Acme's performance with reference to the standards. Acme Limited Balance Sheet, March 31, 20X7 Liabilities and Equity Equity capital Rs. 60,000,000 Reserves and surplus45,000,000 Long-term debt72,000,000 Short-term bank borrowing40,000,000 Trade creditors30,000,000 Provisions15,000,000 Total 62,000,000 Assets Fixed assets (net) Rs. 110,000,000 Current assets Cash and bank 30,000,000 Receivables45,000,000 Inventories 61,000,000 Pre-paid expenses 10,000,000 Others 6,000,000 Total 262,000,000 Acme Limited Profit and Loss Account for the Year Ended March 31, 20X7 Net sales Rs. 320,000,000 Cost of goods sold 204,000,000 Gross profit 116,000,000 Operating expenses 50,000,000 Operating profit 66,000,000 Non-operating surplus 4,000,000 Profit before interest and tax 70,000,000 Interest 12,000,000 Profit before tax 58,000,000 Tax 20,000,000 Profit after tax 38,000,000 Dividends 4,000,000 Retained earnings 34,000,000 AcmeStandard Current ratio 1. 3 Acid-test ratio 0. 70 Debt-equity ratio 2. 0 Times interest covered ratio 4. 5 Inventory turnover ratio 5. 0 Average collection period 45 days Total assets turnover ratio 1. 5 Net profit margin ratio 8 % Earning power 20 % Return on equity 18 % Solution: For purposes of ratio analysis, we may recast the balance sheet as under. Let assume that ‘Others’ in the balance sheet represents other current assets. Liabilities and Equity Equity capital . 60,000,000 Reserves and surplus45,000,000 Long-term debt72,000,000 Short-term bank borrowing40,000,000 Total 217,000,000 Fixed assets (net) 110,000,000 Current assets Cash and bank30,000,000 Receivables45,000,000 Inventories61,000,000 Pre-paid expenses10,000,000 Others 6,000,000 152,000,000 Less: Current liabilities Trade creditors30,000,000 Provisions15,000,000 45,000,000 Net current assets 107,000,000 Total 217,000,000 Current assets (i) Current ratio = Current liabilities 152,000,000 == 1. 8 85,000,000 (Current liabilities here includes short-term bank borrowing also) Current assets – Inventories 91,000,000 (ii) Acid-test ratio = == 1. 1 Current liabilities 85,000,000 Current liabilities here includes short-term bank borrowing also) Long-term debt + Short-term bank borrowing (iii) Debt-equity ratio = Equity capital + Reserves & surplus 72,000,000 + 40,000,000 = = 1. 1 60,000,000 + 45,000,000 Profit before interest and tax (iv) Times interest coverage ratio = Interest 70,000,000 == 5. 83 12,000,000 Cost of goods sold204,000,000 (v) Inventory turnover period = = = 3. 34 Invent ory61,000,000 365 (vi) Average collection period = Net sales / Accounts receivable 365 = =51. 3 days 320,000,000/45,000,000 (vii) Total assets =Equity + Total debt =( 60,000,000 + 45,000,000 ) +(72,000,000+40,000,000) = 217,000,000 Net sales320,000,000 Total assets turnover ratio = == 1. 5 Total assets217,000,000 Profit after tax 38,000,000 (ix) Net profit margin= = = 11. 9% Net sales 320,000,000 PBIT 70,000,000 (x) Earning power = = = 32. 3 % Total assets 217,000,000 Equity earning 38,000,000 (xi) Return on equity = = = 36. 2 % Net worth 105,000,000 The comparison of the Acme’s ratios with the standard is given below AcmeStandard Current ratio 1. 8 1. 3 Acid-test ratio 1. 1 0. 7 Debt-equity ratio 1. 1 2. 0 Times interest covered ratio 5. 8 4. 5 Inventory turnover ratio 3. 3 5. 0 Average collection period 51. 3 days 45 days Total assets turnover ratio 1. 5 1. 5 Net profit margin ratio 11. 9 % 8 % Earning power 32. 3 % 20 % Return on equity 36. 2 % 18 % 23. Compute the financial ratios for Nainar Ltd. Evaluate Nainar's performance with reference to the standards. Nainar Limited Balance Sheet, March 31, 20X7 Liabilities and Equity Equity capital Rs. 100,000,000 Reserves and surplus 65,000,000 Long-term debt 140,000,000 Short-term bank borrowing 70,000,000 Trade creditors 24,000,000 Provisions 19,000,000 Total 418,000,000 Assets Fixed assets (net) Rs. 206,000,000 Current assets Cash and bank 25,000,000 Receivables 70,000,000 Inventories 85,000,000 Pre-paid expenses 20,000,000 Others 12,000,000 Total 418,000,000 Nainar Limited Profit and Loss Account for the Year Ended March 31, 20X7 Net sales Rs. 740,000,000 Cost of goods sold 520,000,000 Gross profit 220,000,000 Operating expenses 102,000,000 Operating profit 118,000,000 Non-operating surplus 12,000,000 Profit before interest and tax 130,000,000 Interest 22,000,000 Profit before tax 108,000,000 Tax 46,000,000 Profit after tax 62,000,000 Dividends 20,000,000 Retained earnings 42,000,000 NainarStandard Current ratio 1. 7 Acid-test ratio 1. 0 Debt-equity ratio 1. 4 Times interest covered ratio 5. 5 Inventory turnover ratio 6. 0 Average collection period 40 days Total assets turnover ratio 2. 0 Net profit margin ratio 8 % Earning power 30 % Return on equity 35 % Solution: For purposes of ratio analysis, we may recast the balance sheet as under. Let assume that ‘Others’ in the balance sheet represents other current assets. Liabilities and Equity Equity capital 100,000,000 Reserves and surplus 65,000,000 Long-term debt 140,000,000 Short-term bank borrowing 70,000,000 Total 375,000,000 Assets Fixed assets (net) 206,000,000 Current assets Cash and bank 25,000,000 Receivables 70,000,000 Inventories 85,000,000 Pre-paid expenses 20,000,000 Others 12,000,000 212,000,000 Less: Current liabilities Trade creditors24,000,000 Provisions19,000,000 43,000,000 Net current assets 169,000,000 Total 375,000,000 Current assets (i) Current ratio = Current liabilities 212,000,000 == 1. 9 113,000,000 ( Current liabilities here includes short-term bank borrowing also) Current assets – Inventories 127,000,000 (ii) Acid-test ratio = == 1. 1 Current liabilities 113,000,000 ( Current liabilities here includes short-term bank borrowing also) Long-term debt + Short-term bank borrowing (iii) Debt-equity ratio = Equity capital + Reserves & surplus 140,000,000 + 70,000,000 = = 1. 3 100,000,000 + 65,000,000 Profit before interest and tax (iv) Times interest coverage ratio = Interest 130,000,000 == 5. 9 22,000,000 Cost of goods sold520,000,000 (v) Inventory turnover period = = = 6. 1 Inventory85,000,000 365 (vi) Average collection period = Net sales / Accounts receivable 365 = =34. 5 days 740,000,000/70,000,000 (vii) Total assets = Equity + Total debt =(100,000,000 + 65,000,000 ) +(140,000,000+70,000,000) = 375,000,000 Net sales740,000,000 Total assets turnover ratio = == 2. 0 Total assets375,000,000 Profit after tax 62,000,000 (ix) Net profit margin= = = 8. 4 % Net sales 740,000,000 PBIT 130,000,000 (x) Earning power = = = 34. 7 % Total assets 375,000,000 Equity earning 62,000,000 (xi) Return on equity = = = 37. 6 % Net worth 165,000,000 The comparison of the Nainar’s ratios with the standard is given below NainarStandard Current ratio 1. 9 1. 7 Acid-test ratio 1. 1 1. 0 Debt-equity ratio 1. 3 1. 4 Times interest covered ratio 5. 9 5. 5 Inventory turnover ratio 6. 1 6. 0 Average collection period 34. 5 days 40 days Total assets turnover ratio 2. 0 2. 0 Net profit margin ratio 8. 4 % 8 % Earning power 34. 7 % 30 % Return on equity 37. 6 % 35 % 24. The comparative balance sheets and comparative Profit and Loss accounts for Nalvar Limited, are given below: Comparative Balance Sheets, Nalvar Limited (Rs. in million) | |20X3 |20X4 |20X5 |20X6 |20X7 | |Share capital |1. 6 |1. 6 |1. |1. 8 |2 | |Reserves and surplus |1. 0 |1. 6 |2. 4 |2. 3 |3 | |Long-term debt |1. 4 |1. 5 |1. 8 |1. 6 |1. 4 | |Short-term bank borrowing |1. 3 |1. 5 |1. 7 |1. 5 |1. 2 | |Current liabilities |1. 1 |1. 3 |1. 5 |1. 6 |1. 8 | |Total |6. 4 |7. 5 |9. 2 |8. |9. 4 | |Assets | | | | | | |Net fixed assets |1. 2 |1. 4 |2 |1. 7 |2 | |Current assets | | | | | | | Cash and bank |0. 3 |0. 3 |0. 2 |0. 4 |0. 3 | | Receivables |1. 8 |2. 1 |2. 5 |2. 4 |2. | | Inventories |1. 8 |2. 2 |2. 8 |2. 4 |2. 8 | | |1. 3 |1. 5 |1. 7 |1. 9 |1. 8 | |Other assets | | | | | | |Total |6. 4 |7. 5 |9. 2 |8. 8 |9. 4 | | | | | | | | Comparative Profit and Loss Accounts, Nalvar Limited (Rs. in million) | | |20X4 |20X5 |20X6 |20X7 | | |20X3 | | | | | | | | | | | | |Net sales |3. 8 |4. 2 |5. 3 |6. 5 |7. 8 | |Cost of goods sold |2. 6 |3. |3. 9 |4 |4. 8 | |Gross profit |1. 2 |1. 1 |1. 4 |2. 5 |3 | |Operating expenses |0. 3 |0. 3 |0. 4 |0. 6 |0. 6 | |Operating profit |0. 9 |0. 8 |1 |1. 9 |2. 4 | |Non-operating surplus deficit |0. 1 |0. 2 |0. 1 |0. 3 |0. 3 | |Profit before interest and tax |1 |1 |1. |2. 2 |2. 7 | |Interest |0. 1 |0. 1 |0. 2 |0. 1 |0. 1 | |Profit before tax |0. 9 |0. 9 |0. 9 |2. 1 |2. 6 | |Tax |0. 05 |0. 08 |1 |1. 2 |1. 2 | |Profit after tax |0. 85 |0. 82 |-0. 1 |0. 9 |1. 4 | Required: Compute the important ratios for Nalvar Limited for the years 20X3-20X7. You may assume that other assets in the balance sheet represent other current assets. †¢ Current ratio †¢ Debt-equity ratio †¢ Total assets turnover ratio †¢ Net profit margin †¢ Earning power †¢ Return on equity Solution: We will rearrange the balance sheets as under for ratio analysis. It is assumed that ‘Other assets’ are other current assets |Liabilities and Equity | | | | | | |†¢ Current ratio |2. 2 |2. 2 |2. 3 |2. 3 |2. 5 | |†¢Ã‚  Ã‚  Ã‚  Debt-equity ratio |1. 0 |0. 9 |0. 8 |0. 8 |0. | |Total assets turnover ratio |0. 7 |0. 7 |0. 7 |0. 9 |1. 0 | |†¢Ã‚  Ã‚  Ã‚  Net profit margin(%) |22. 4 |19. 5 |-1. 9 |13. 8 |17. 9 | |†¢Ã‚  Ã‚  Ã‚  Earning power (%) |18. 9 |16. 1 |14. 3 |30. 6 |35. 5 | |†¢Ã‚  Ã‚  Ã‚  Return on equity (%) |32. 7 |25. 6 |-2. 4 |22. 0 |28. 0 | 26. The comparative balance sheets and comparative Profit and Loss accounts for Somani Limited, a machine tool manufacturer, are given below: Comparative Ba lance Sheets, Somani Limited (Rs. in million) | | | 20X5 | 20X6 | 20X7 | | | |20X4 | | | | | |20X3 | | | | | |Share capital |41 |50 |50 |50 |55 | |Reserves and surplus |16 |36 |72 |118 |150 | |Long-term debt |28 |25 |30 |29 |22 | |Short-term bank borrowing |35 |30 |36 |38 |38 | |Current liabilities |24 |28 |30 |30 |25 | |Total |144 |169 |218 |265 |290 | |Assets | | | | | | |Net fixed assets |72 |80 |75 |102 |103 | |Current assets | | | | | | | Cash and bank |8 |9 |15 |12 |11 | | Receivables |24 |30 |59 |62 |85 | | Inventories |35 |42 |55 |75 |79 | |Other Assets |5 |8 |14 |14 |12 | |Total |144 |169 |218 |265 |290 | | | | | | | | |Comparative Profit & Loss Account of Somani Ltd | | (Rs. n million) | | | |20X4 |20X5 |20X6 |20X7 | | |20X3 | | | | | |Net sales |285 |320 |360 |350 |355 | |Cost of goods sold |164 |150 |170 |175 |174 | |Gross profit |121 |170 |190 |175 |181 | |Operating expenses |64 |66 |68 |68 |64 | |Operating profit |57 |104 |122 |107 |117 | |Non-operating surplus defic it |3 |4 |4 |3 |3 | |Profit before interest and tax |60 |108 |126 |110 |120 | |Interest |8 |6 |10 |12 |12 | |Profit before tax |52 |102 |116 |98 |108 | |Tax |15 |26 |30 |26 |29 | |Profit after tax |37 |76 |86 |72 |79 | | | | | | | | Compute the following ratios for years 20X3-20X7: †¢ Current ratio †¢ Debt-equity ratio †¢ Total assets turnover ratio †¢ Net profit margin †¢ Earning power †¢ Return on equity For ratio analysis purpose, we will rearrange the balance sheet as under. It is assumed that ‘Other assets’ are other current assets 20X3 20X4 20X5 20X6 20X7 |Share capital | |41 | |50 | | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Current ratio |1. 2 |1. 5 |2. 2 |2. 4 |3. 0 | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Debt-equity ratio |1. 1 |0. 6 |0. 5 |0. 4 |0. | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Total assets turnover ratio |2. 4 |2. 3 |1. 9 |1. 5 |1. 3 | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Net profit margin (%) |13. 0 |23. 8 |23. 9 |20. 6 |22. 3 | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Earning power (%) |50. 0 |76. 6 |67. 0 |46. 8 |45. 3 | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Return on equity (%) |64. 9 |88. 4 |70. 5 |42. 9 |38. 5 | 26. The Balance sheets and Profit and Loss accounts of LKG Corporation are given below. Prepare the common size and common base financial statements |Balance Sheets (Rs. n million) | | |20Ãâ€"6 |20Ãâ€"7 | |Shareholders’ funds |256 |262 | |Loan funds |156 |212 | |Total |412 |474 | |Fixed assets |322 |330 | |Investments |15 |15 | |Net current assets |75 |129 | |Total |412 |474 | |Profit & Loss Accounts | |(Rs. n million) | | |20Ãâ€"6 |20Ãâ€"7 | |Net sales |623 |701 | |Cost of goods sold |475 |552 | |Gross profit |148 |149 | |PBIT |105 |89 | |Interest |22 |21 | |PBT |83 |68 | |Tax |41 |34 | |PAT |42 |34 | Solution: Common Size statements: Profit and Loss Account | |Regular ( in Rs. |Common Size(%) | | |million) | | | | |20Ãâ€"6 |20Ãâ€"7 | |20Ãâ€"6 |20Ãâ€"7 | |Net sales |623 |701 | |100 |100 | |Cost of goods sold |475 |552 | |76 |79 | |Gross profit |148 |149 | |24 |21 | |PBIT |105 |89 | |17 |13 | |Interest |22 |21 | |4 |3 | |PBT |83 |68 | |13 |10 | |Tax |41 |34 | |7 |5 |PAT |42 |34 | |7 |5 | | | | Balance Sheet | | |Regular ( in million)| |Common Size(%) | | |20Ãâ€"6 |20Ãâ€"7 | |20Ãâ€"6 |20Ãâ€"7 | |Shareholders' funds |256 |262 | |62 |55 | |Loan funds |156 |212 | |38 |45 | |Total |412 |474 | |100 |100 | |Fixed assets |322 |330 | |78 |70 | |Investments |15 |15 | |4 |3 | |Net current assets |75 |129 | |18 |27 | |Total |412 |474 | |100 |100 | 27. The Balance sheets and Profit and Loss accounts of Grand Limited are given below. Prepare the common size and common base financial statements Balance Sheet | | |20Ãâ€"6 |20Ãâ€"7 | |Shareholders’ fund |85 |85 | |Loan funds |125 |180 | |Total |210 |265 | |Fixed assets |127 |170 | |Investments |8 |10 | |Net current assets |75 |85 | |Total |210 |265 | |Profit & Loss Account | | |20Ãâ€"6 |20Ãâ€"7 | |Net sales 450 |560 | |Cost of goods sold |320 |410 | |Gross profit |130 |150 | |PBIT |85 |98 | |Interest |12 |17 | |PBT |73 |81 | |Tax |22 |38 | |PAT |51 |43 | Solution: |Balance Sheet |Regular (Rs. n million) |Common Size(%) | | |20Ãâ€"6 |20Ãâ€"7 |20Ãâ€"6 |20Ãâ€"7 | |Shareholders' funds |85 |85 |40 |32 | |Loan funds |125 |180 |60 |68 | |Total |210 |265 |100 |100 | |Fixed assets |127 |170 |60 |64 | |Investments |8 |10 |4 |4 | |Net current assets |75 |85 |36 |32 | |Total |210 |265 |100 |100 | |Profit & Loss Account |Regular (Rs. n million) |Common Size(%) | | |20Ãâ€"6 |20Ãâ€"7 |20Ãâ€"6 |20Ãâ€"7 | |Net sales |450 |560 |100 |100 | |Cost of goods sold |320 |410 |71 |73 | |Gross profit |130 |150 |29 |27 | |PBIT |85 |98 |19 |18 | |Interest |12 |17 |3 |3 | |PBT |73 |81 |16 |14 | |Tax |22 |38 |5 |7 | |PAT |51 |43 |11 |8 | |Common base year statements | |Balance Sheet |Regular (Rs. n million) |Common base year (%) | | |20Ãâ€"6 |20Ãâ€"7 |20Ãâ€"6 |20Ãâ€"7 | |Shareholders' funds |85 |85 |100 |100 | |Loan funds |125 |180 |100 |144 | |Total |210 |265 |100 |126 | |Fixed assets |127 |170 |100 |134 | |Investments |8 |10 |100 |125 | |Net current assets |75 |85 |100 |113 | |Total |210 |265 |100 |126 | |Profit & Loss Account |Regular (Rs. n million) |Common base year (% ) | | |20Ãâ€"6 |20Ãâ€"7 |20Ãâ€"6 |20Ãâ€"7 | |Net sales |450 |560 |100 |124 | |Cost of goods sold |320 |410 |100 |128 | |Gross profit |130 |150 |100 |115 | |PBIT |85 |98 |100 |115 | |Interest |12 |17 |100 |142 | |PBT |73 |81 |100 |111 | |Tax |22 |38 |100 |173 | |PAT |51 |43 |100 |84 | CHAPTER 5 1. The profit and loss account of Sasi Industires Limited for years 1 and 2 is given below: Using the percent of sales method, prepare the pro forma profit and loss account for year 3. Assume that the sales will be 3500 in year 3. If dividends are raised to 40, what amount of retained earnings can be expected for year 3? |Year | | |1 |2 | |Net sales |2300 |2700 | |Cost of goods sold |1760 |2000 | |Gross profit |540 |700 | |Selling expenses |150 |180 | |General and administration expenses |120 |124 | |Depreciation |94 |84 | |Operating profit |176 |312 | |Non-operating surplus deficit |12 |10 | |Earnings before interest and tax |188 |322 | |Interest |30 |38 | |Earnings before tax |158 |284 | |Tax |56 |96 | |Earnings after tax |102 |188 | |Dividends |35 |35 | |Retained earnings |67 |153 | Solution: |Year | | | | |1 |2 |Average percent |Proforma Profit & Loss| | | | |of sales |account for year 3 | | | | | |assuming sales of 3500| |Net sales |2300 |2700 |100 |3500 | |Cost of goods sold |1760 |2000 |75. 30 |2635. 43 | |Gross profit |540 |700 |24. 70 |864. 57 | |Selling expenses |150 |180 |6. 59 |230. 80 | |General and administration expenses |120 |124 |4. 90 |171. 7 | |Depreciation |94 |84 |3. 60 |125. 97 | |Operating profit |176 |312 |9. 60 |336. 14 | |Non-operating surplus deficit |12 |10 |0. 45 |15. 61 | |Earnings before interest and tax |188 |322 |10. 05 |351. 75 | |Interest |30 |38 |1. 36 |47. 46 | |Earnings before tax |158 |284 |8. 69 |304. 29 | |Tax |56 |96 |3. 00 |104. 3 | |Earnings after tax |102 |188 |5. 70 |199. 46 | |Dividends(given) |35 |35 | |40 | |Retained earnings |67 |153 | |159. 46 | 2. The profit and loss account of KG Electronics Limited for years 1 and 2 is given below: Using the percent of sales method, prepare the pro forma profit and loss account for year 3. Assume that the sales will be 26,000 in year 3. If dividends are raised to 500, what amount of retained earnings can be expected for year3 . |Year | | |1 |2 | |Net sales |18,230 |22,460 | |Cost of goods sold |13,210 |16100 | |Gross profit |5020 |6360 | |Selling expenses |820 |890 | |General and administration expenses