Wednesday, November 27, 2019
6 Effective Ways to Survive Through College Finals
6 Effective Ways to Survive Through College Finals College finals are challenging, we all know that. The pressure on a student in this period is immense. But you can pull it through! To help you out, we have prepared a few college finals tips and tricks on how you can avoid stress and increase your productivity during your exams. When finals week gets closer, one can often meet students with bags under their eyes holding the fifth cup of coffee. You can almost see this stressing tension in the air. So, when the finals week is the only thing that stands between you and hot summer days of chilling and fun, its not surprising that you might feel a little overwhelmed. When feeling so, its hard for your brain to be focused and organized. Its not a rare case when students fail exams in spite of being well acquainted with the subject and because of not being able to pull themselves together. So, we are going to give you tips on how to survive finals week and stay calm. 1 Eat and Drink Well A lot of students feel like they are running out of time before final examinations. In pursuit of saving time, they commonly skip their meals and eat poorly. However, its not the best choice for you during this period because your body needs a lot of energy in order to keep you organized and productive. Before the finals, your body and your brain need a lot of nutritious components and water to stay hydrated. Your meal plan for this time should contain: Omega-3 fatty acids (salmon, trout, herring, nuts, olive oil, coconut oil) Iron (apples, pumpkin seeds) Vitamin C (oranges, lemons) Vitamin E (pumpkin, spinach) Flavonoids, caffeine (dark chocolate, coffee) Lutein and Zeaxanthin (eggs, broccoli, grapes) Drink at least 4-5 glasses of water every day to stay healthy and energized. If you face difficulties with eating healthy and inexpensive in college, our tips will be useful to you. 2 Plan and Prioritize When you have a lot of material to revise, its easy to fall into a chaotic state when you are just flipping through your books and notes. However, when you have a detailed plan, you can structure information better and remember it without mixing it up in your head. Create a plan of studying and put the most challenging exams first and dedicate more time to them. Make sure to review your notes right before the exam to freshen up your memory. 3 Follow a Schedule Having a schedule is the most important step when preparing for exams. Its quite easy to succumb to anxiety and sit with your notes till the late night. But this is not the best way to make your brain and concentration work. Get up in the morning and go to bed at the same time every day. Make the list of subjects that you are going to dedicate time on a certain day and schedule little breaks in between your study sessions to relax. For example, you can watch your favorite TV show or listen to music. This way it will be easier for you to stay focused and process the information. 4 Have a Great Sleep Pulling all-nighter is never good for you, so take naps whenever you can. During sleep, your body relaxes and accumulates energy for you to continue your studying. Moreover, good sleep for at least 8 hours a day increases your productivity and attentiveness. 5 Prepare Your Notes Even though you might think that its better to study for an extra hour, your ability to retain information at the end of late studying sessions is getting drastically low. So, there is no need to force yourself to stay up, better go to bed earlier. Structuring information helps with retaining and perceiving information better. Find the most effective way for you to remember the information and match your notes with the method that you chose. For example, people of the visual learning style will find organizing information on the paper effective. Different diagrams, infographics and educational videos on platforms like Coursera or Youtube will work the best. For people of auditory learning style podcasts and recorded lectures will be the best way to rehearse the material. So, prepare your notes and organize them in the best way for you. You might also use markers to highlight some points while you are rereading them or write down some quick thesis statements. Check out other useful pieces of advice for higher grades. 6 Exercise A lot of students find exercising very useful during intense study sessions, and this is not surprising. Besides helping you lose weight, sport releases hormones and helps your brain fight with stress and anxiety. Moreover, sometimes you just need to distract yourself from depressing thoughts and a good run or workout will do the magic. If a gym is not your cup of coffee, try out yoga, meditation or swimming. You will see that these simple activities will boost your energy and positive mood. The time of the day when you are the most productive is also essential when planning your study sessions. So, check out our tips on how to choose the best time to study for finals. These were our tips on how you can pull yourself through hard times of college finals and help your stress go away without using any medications.
Saturday, November 23, 2019
Cretoxyrhina - Facts and Figures
Cretoxyrhina - Facts and Figures Name: Cretoxyrhina (Greek for Cretaceous jaws); pronounced creh-TOX-see-RYE-nah Habitat: Oceans worldwide Historical Period: Middle-late Cretaceous (100-80 million years ago) Size and Weight: About 25 feet long and 1,000-2,000 pounds Diet: Fish and other marine animals Distinguishing Characteristics: Medium size; sharp, enameled teeth About Cretoxyrhina Sometimes, a prehistoric shark just needs a catchy nickname to attract the attention of the general public. Thats what happened with the awkwardly named Cretoxyrhina (Cretaceous jaws), which surged in popularity a full century after its discovery when an enterprising paleontologist dubbed it the Ginsu Shark. (If youre of a certain age, you may remember the late-night TV commercials for the Ginsu Knife, which purportedly sliced through tin cans and tomatoes with equal ease.) Cretoxyrhina is one of the best-known of all prehistoric sharks. Its type fossil was discovered fairly early, in 1843 by the Swiss naturalist Louis Agassiz, and followed up 50 years later by the stunning discovery (in Kansas, by the paleontologist Charles H. Sternberg) of hundreds of teeth and part of a spinal column. Clearly, the Ginsu Shark was one of the top predators of the Cretaceous seas, able to hold its own against giant marine pliosaurs and mosasaurs that occupied the same ecological niches. (Still not convinced? Well, a Cretoxyrhina specimen has been discovered harboring undigested remnants of the giant Cretaceous fish Xiphactinus; then again, we also have evidence that Cretoxyrhina was preyed on by the even bigger marine reptile Tylosaurus!) At this point, you may be wondering how a Great White Shark-sized predator like Cretoxyrhina wound up fossilized in landlocked Kansas, of all places. Well, during the late Cretaceous period, much of the American midwest was covered by a shallow body of water, the Western Interior Sea, which teemed with fish, sharks, marine reptiles, and just about every other variety of Mesozoic marine creature. The two giant islands bordering this sea, Laramidia and Appalachia, were populated by dinosaurs, which unlike sharks went completely extinct by the start of the Cenozoic Era.
Thursday, November 21, 2019
Cold War Essay Example | Topics and Well Written Essays - 2000 words
Cold War - Essay Example It is called Cold War because the relations were icy at the least and never reached boiling point to bring on a shooting war. It is also 'cold' because each try to undermine each other's political power. There were several zones where potentially both were at loggerheads and where another WW III could have ensued had hotter heads prevailed. In West Berlin, Russia blockaded this US,UK and France-controlled zone with a wall that made the latter construe that they were intentionally entrapped. A dtente ensued when US did a massive airlifting of supplies instead of using force. In the Iron Curtain, Stalin convinced these Slav and Balkan countries to accept communism as form of government because Russia needed them as buffer states against Germany but the Allies construed this as an intense its brand of government. In Greece and Turkey, Russia frowned upon when there the Truman Doctrine was applied i.e. US provided funds and massive aid so that both may be able to resist communist attempts to subjugate them. In Western Europe, the US came up with the Marshall Plan, which was a multi-billion aid program to reconstruct the almost bankrupt nations ravaged by WW II. Russia reacted with consternation because that would make it difficult for them to foment dissension and discontent. Then the NATO, composed of USA, Britain, Canada and Western Europe including West Germany was established for the purpose of mutually securing themselves from possible communist military aggression. Despite the overweening tension and intensified hostilities, no full-scale war emanated. And this was because USA had invented the atomic bomb and displayed how it can resolve conflicts with dire consequences. It is because of the development of these atomic and hydrogen bombs, missiles and other arsenals of war and because of the complexity of plans involved in upsetting the rival that espionage became a necessary tool to outwit the rival. As early as the 1920's, USSR through its NKVD and OGPU intelligence agents, had already penetrated the State and the War Departments and other government agencies by recruiting left-leaning Americans, foreign-born Americans and Russians as spies to obtain classified and confidential secrets and transmit3 them to Moscow as microfilms or as encrypted cables. Then, the interest of the Russian spy ring was the industrial and military secrets of USA and the first target for infiltration was the FAECT(Federation of Architects, Engineers, Chemists and Technicians) and with satisfying results (Usdin 28). In one case, it was discovered that espionage had reached the top echelon of the State Department with Alger Hiss, one of its top officials caught flatfooted when Time Magazine editor Whittaker Chambers, himself a confessed Soviet agent, showed and testified that Hiss passed on to him a microfilm of State Department documents. Even the film industry was not spared as the HUAC (House Un-American Activities Committee), alarmed by the trend of left-leaning films, interrogated directors
Tuesday, November 19, 2019
Analysis paper Case Study Example | Topics and Well Written Essays - 500 words
Analysis paper - Case Study Example Jane has been motivated to undertake treatment in seeking to ensure she recovers from the condition. This changes the behaviour patterns in relation to the ability for the person to meet their expectations. According to the Freud’s theory, Jane is undergoing a subconscious minds situation. She believes that the traditional medicine can be able to cure her as opposed to the medication which people. Unconscious mind includes beliefs which people hold and which come from religious elements and they are affected by the subconscious mind. These beliefs have been fundamental in shaping the belief of the patient. The patient is being held by the religious beliefs in seeking medication and believes the traditional healers have the capability to perform better than the other medication. One of the fundamental problem which is facing the care team is the process of understanding the thoughts and perceptions of the patient. The diagnostic approaches have been made difficult by the mixed reactions of the patient as a result of religious beliefs. Various therapeutic communication techniques can be utilised in undertaking the treatment of the patient and these will be critical to overcoming the difficulties being experienced in presenting a working intervention to the patient (Dossey & Keegan, 2012). These communications therapies have a significant effect in ensuring that the patient is capable of accepting the medical interventions which will be applied by the medial team. The following approaches would be suggested for Jane Using silence – Jane normally drinks with friends and does not appear to have any issues in relation to that fact. The use of silence by the professional medical teams can enable her to provide information voluntarily which will be able to assist the medical teams to understand her behaviour. Encouraging description of
Sunday, November 17, 2019
Computerisation in a business like Craven Plc Essay Example for Free
Computerisation in a business like Craven Plc Essay Plotters: A device designed to produce charts, drawings, maps and other forms of graphical information on paper. The images can be produced by pens, electro-statically, or ink jets. Storage Methods There are two different forms of storage available these are main storage and backing storage. Main Storage: This consists of the Hard disk drive (HDD) and the floppy disk drive. These are storage facilities present within the computer. Information can be saved onto the HDD ready to be opened at some future date. Application software packages and programmes are also stored on the hard disk. The average PC will have an internal HDD of at least 6Gb. The floppy disk drive is another type of main storage. It uses floppy disks to store information in a similar way to a hard drive. Backing Storage: The performance of a computer system can be improved by the addition of more memory. If there is too little memory then more frequent access to the hard disk is required and this will slow down the overall system performance. Therefore many computer applications require quick, direct access to individual records within a file. For this reason, we need backing storage. Backing storage comes in various forms for example compact disks and floppy disks. Backing storage is a portable and convenient way of saving information. To reduce the risk of data loss it is wise to save information on the computers hard drive and make a copy onto a disk or another type of backing storage for insurance purposes. Types of backing storage:  Floppy disks: The most common storage device available, these provide extremely cheap storage and have a capacity of 1. 5 Mb.  Compact Disk (CD-ROM): These have been used for some years as storage devices for computer software. It only accesses information which is already stored on it and is able to store 650 Mb of information.  Zip Drives: A storage device that has become popular over the last few years because it offers the convenience and portability of a floppy disk, combined with a 100 Mb capacity. CD-R and CD-RW:The difference being that CD-R disks can only have data saved to them once, While CD-RW can be used in the same manner as other storage devices having data saved to them on a re-usable basis.  DVD (digital versatile disc) using the same basic principles as the CD, DVD packs the data more densely and can store 4. 7Gb compared with the CDs 650Mg, can hold 133 minutes of video, with Dolby surround sound. Data pens: A new storage device that plugs into the computers USP drive. These are small and compact and have a capacity of 80Mb. Magnetic Tape: Convenient and cheap medium for backing up hard disks onto computers. Mostly used for mainframe computers for storing information for a long duration. Magnetic tapes will not be suitable for a small company like Craven Plc. Data Protection: Craven Plc must comply with the data protection act in order to hold personal information of customers. The data protection act works in two ways. It gives you certain rights. It also says those who record and use personal information must be open about how the information is used and must follow the eight principles for good handling. The eight principles were put in place to make sure that your information is handled properly. They say that data must be: 1. Fairly and lawfully processed. 2. Processed for limited purposes. 3. Adequate, relevant and not excessive. 4. Accurate. 5. Not kept for longer than is necessary. 6. Processed in line with your rights. 7. Secure, and 8. Not transferred to countries without adequate protection. Micro computers: Micro computers include personal computers and laptop computers, they are usually equipped with hard disk, floppy disk drive, between 1 and 32 megabytes of memory, a keyboard and a VDU unit. Microcomputers will be suitable to fulfil the needs of Craven Plc. Mainframe Computers: These are large systems that can hold vast amounts of data. Mainframe computers occupy a whole floor of a fair sized building. These powerful mainframe computers are present in very large companies storing huge amounts of data on to disk. Mainframe computers cost tens of thousands of pounds, therefore they are not suitable for a small business like Craven Plc. File Server: This is a specially configured microcomputer to control the exchange of files between network users. A file server also has more memory and disk storage than normal microcomputers. These classifications of computers are usually based on physical size, speed, processing capabilities, memory size, disc storage, capacities and cost. Direct and Sequential Access: Direct access devices can go directly to the file or record. For example a CD can go directly to track number 10. Sequential access devices have to run through the file sequentially, for instance, if we want track 10 on a cassette, The cassette moves from the beginning from track 1 to 9 until it comes to track 10. 4) Proposed purchases and prices of equipment 2x Sony Intel 2. 6GHZ DVD CDRW Laptop  256Mb RAM, 40Gb Hard Drive  DVD/CDRW Drive  15 inch TPT screen i 899 each = i 1798 4x Packard Bell 6111 Intel Pentium 42. 8GHZ processor and 15 TFT monitor  Intel P4 2. 8 GHz processor 512 Mb RAM  160 GHb Hard Drive i 1199 each =i 4796 4x PacKard Bell 5050 and Xp2600+ PC and 17 CRT monitor  Athlon Xp 2600 processor  256Mb RAM. 60 Gb hard Drive i 549 each =i 2196 4x Hewlet Packard DJ 9300 A3 Desktop printer i 279 each =i 1116 3x Hewlet Packard scanner i 99 each =i 396 Network- Windows 2000 professional i 3449 Web Designer Approx 3000to4000 Training costs i 2000 Specialist soft ware Sage Accounts i 2000 Web Train Video Conferencing i 1000 Total cost i 22751 5) Proposed method of change over from manual to the new computerised systems Before the change over can take place an extensive training programme needs to take place. This may take several months to train the current workforce in the correct operating procedures of the new system. To ensure information will not be lost in transition the old manual method needs to be in place for the first 2 months along side the new computerised system. In the unlikely case of system collapse information and data will still be on hand. This change over will inevitably endure a small cost of training and staff development. 6) Procedure to transfer the payroll from the old to the new system Payroll is something Craven Plc cannot afford to get wrong. Therefore manual systems need to be in place for 3-4 months along side the new computerised sage accounts system. This will again ensure against loss of data.
Thursday, November 14, 2019
American-made Aliens Essay -- essays research papers fc
A recent, nation wide poll shows that 45 percent of Americans today believe Unidentified Flying Objects (UFO's) have visited Earth in some form (Rhodes 18). The same poll taken in the 1950's shows that under four percent of the US people believed aliens even exist. What could have caused the American people to go from under four percent believing in the existence of UFO's in the 1950's, to almost half today? This question is easily answered when one opens a TV guide or checks the newspaper when deciding what movie to see on a Friday night. With the mass media hype, the ever-increasing movie production, and the millions spent on new merchandise every year, it is not hard to see how so many Americans today have been fooled into believing Aliens exist. Some time during the first week of July 1947, a local New Mexico rancher, Mac Brazel, was on his way out to check his sheep after a long, hard rain and lightning storm the night before. On his way out to the pasture, he noticed a large amount of unusual debris. As he looked closer, he noticed there was a long gouge several hundred feet in the ground with strange, unrecognizable debris all over the area (Missler 54). Brazel gathered a few of the pieces, took them to his neighbors to ask them what they thought it might be, and eventually decided to drive into Roswell, the local town, and show the pieces to the sheriff. The sheriff, George Wilcox, contacted the Roswell Army air field, and began investigating the matter. It wasn't long after, when the military stepped in, sealed off the area for a few days, and gathered all the debris, flying it to a different air field in Dayton, Ohio. Because of the way the military had covered up the findings, and the secrecy involved, it wasn't long before the press got a hold of the incident, and took off with it. Before a week had passed, almost all the locals of that Roswell town were believing that an alien space craft had crash landed in Mac Brazel's pasture, and that the government was stepping in to cover it up. Hundreds of people began stepping forward, claiming that they saw the wreckage, and that they believed themselves that it was the remains of a crashed alien space craft. Because of how hard the Air Force tried to convince the people it was nothing more than a weather balloon that had crash landed due t... ...int that even if these aliens are from another planet, they would still be under our laws of physics. The fact that so many of the reported sightings break our laws of physics, supports the conclusion that the sightings may be UFO's, but have nothing to do with aliens space crafts, or aliens period. Whether or not aliens do exist far, far away, Americans should realize the chance that they have or are currently visiting our planet are nearly impossible, and hasn't been close to proven in any way. This is something the media and pro-alien activists have worked hard at getting us all to believe in. Works Cited Easterbrook, Greg. (1989, February) "Anybody Out There?" Newsday Reprinted in 1998 SIRS Missler, Chuch, and Mark Eastman. Alien Encounters. Coeur d'Alene, Idaho: Koinonia House, 1997 Rhoded, Ron. Alien Obsession. Eugene, Oregon: Harvest House, 1998 "Space Invaders!" The Kansas City Star. [1997, June] reprinted in 1998 SIRS Unnatural Museum Hall of UFO Mysteries. "Hall of UFO Mysteries. [online] Available: http://unmuseum.mus.pa.us/ufo.htm
Tuesday, November 12, 2019
Managing Working Capital
MANAGING WORKING CAPITAL Cash Budgets and Current Assets Learning Objectives Upon reading this chapter, students should: †¢Ã‚       Be able to compare and contrast working and fixed capital †¢Ã‚       Understand the impact of the operating cycle on the size of investment in accounts receivable and inventories †¢Ã‚       Know the differences between the three motives †¢Ã‚       Be able to differentiate between float, collection float, and disbursement float †¢Ã‚       Know how to appraise a firm’s credit worthiness †¢Ã‚       Be able to appraise the effectiveness of a firm’s inventory management policiesChapter Summary A firm can invest in both working capital and fixed capital. Working capital is a firm’s current assets and includes cash, marketable securities, inventory, and accounts receivable. Fixed capital is a firm’s fixed assets and includes plant, equipment and property. Firms that cannot obtain short-term financing become candidates for bankruptcy. Management of working capital is particularly important to the entrepreneurial or venture firm because there is such a pull on resources.Two important concepts in managing working capital are the operating cycle and the cash conversion cycle: †¢Ã‚       The operating cycle measures the time between receiving raw materials and collecting the cash from credit sales posted to accounts receivable †¢Ã‚       The cash conversion cycle measures the time it takes to collect money from the company’s customers and use those funds to pay its suppliers Calculating three ratios will reveal the average length of these cycles: 1. Inventory days            = 365 / (Cost of goods sold / Inventories) 2.Accounts receivable period (average collection period ) = Accounts receivable / (Net sales / 365) 3. Average payment period = Accounts payable / (Cost of goods sold / 365) The operating cycle is the inventory conversion period plus the average collection period. The cash conversion cycle is the operating cycle minus the average payment period. In order to determine average investment in accounts receivable, multiply net sales per day by the average collection period. With this number, a manager can now estimate what the investment in accounts receivable will be fore ht following year given sales increases and average collection period.In order to determine investment required in inventories, multiply average cost of goods sold per day by inventory conversion period. The required amount of accounts payable can be found by multiplying the cost of goods sold per day by average payment period. Armed with these numbers, a manager can tweak the business practices and use these numbers as metrics for improvement. If savings can be wrung out of the operating cycle and conversion cycle, this means less money will have to be raised in financing. A cash budget details the cash inflows and outflows of a firm over a specific time frame.Small firms may prepare annual or monthly cash budgets while larger firms will forecast cash flows weekly or daily. Most firms have a minimum desired cash balance that depends on the firm’s ability to acquire financing on short notice, management preferences, and the predictability of cash inflows and outflows. Estimates of cash inflows are driven by two main factors: 1. Sales forecast (may exhibit seasonality) 2. Customer payment patterns Cash outflows will go to suppliers, payroll, taxes, operating expenses, and purchases of plant and equipment.In order to construct the cash budget, list all expected cash inflows and then all expected cash outflows for the particular period, generating a net cash flow amount. As a general rule of thumb, the average firm has 1/3 or more of i ts assets in the form of current assets (cash, accounts receivable and inventory). Seasonal production and forecasting can lead to idle plant capacity and laid-off workers during the off-season. Under a level production plan, the same amount of raw material is purchased and the same amount of finished product is manufactured every month.There are three types of motives for holding cash: 1. The transactions motives are demands for holding cash – cash is needed to conduct day-to-day operations 2. Precautionary motives are demands that may be caused by unpredictable events, such as delays in production or in the collection of receivables; marketable securities are held in such a contingency 3. Speculative motives are demands for funds to take advantage of unusual cash discounts for needed materials Cash and marketable securities include: †¢Ã‚       Cash itself †¢Ã‚       U. S. Treasury bills        Commercia l paper – short-term, unsecured notes of well-known business firms †¢Ã‚       Negotiable certificates of deposit – a receipt issued by a bank in exchange for a deposit of funds †¢Ã‚       Bankers’ acceptances – primarily used to finance exports and imports †¢Ã‚       Eurodollars – deposits placed in foreign banks that remain denominated in U. S. dollars There are several reasons why U. S. banks have entered the Eurodollar market through overseas branches: 1. To finance business activity abroad 2. To switch Eurodollars into other currencies 3. To lend to other Eurodollar banksIn general, managers try to speed up cash collections while slowing down the payment process. The float is the time between sending out payments and having them actually be charged to the bank account. The collection float is the time between when a payer sends payment and funds are credited to the payee ’s bank account. The disbursement float is the time between when a payer sends payment and when the funds are deducted from the payer’s bank account. Float has three components: 1. Delivery or transmission float – the delay in transferring the means of payment from the payer (customer) to the payee (provider of goods/services) 2.Processing float – once payment reaches the destination, it needs to be entered and processed 3. Clearing float – delay in transferring funds because of the banking system itself In order to speed up the process: †¢Ã‚       Preauthorized checks are regular (typically monthly) deductions by a vendor from a customer’s checking account. †¢Ã‚       Under the Check 21 law, enacted in 2004, payee banks can present electronic or digital images of checks to payer banks rather than having to physically deliver the paper checks for payment.In order to facilitate sales, firms of ten offer the customers credit for purchases; this process calls in credit analysis. The five Cs of credit analysis are: 1. Character – ethical quality of the applicant and the history of paying bills on time (credit checks) 2. Capacity – the ability to pay bills (liquidity ratios) 3. Capital – adequacy of owners’ equity relative to existing liabilities 4. Collateral – whether assets are available to provide security 5. Conditions – current economic climate and state of the business cycleCredit bureaus obtain credit information about business firms and individuals; two such organizations are Experian and Equifax. Dun & Bradstreet reports contain information assembled through many channels and is one of the best sources of information on privately-held companies; reports are typically divided into five sections: (1) rating and summary; (2) trade payments; (3) financial information; (4) operation and location; and (5) history. Trade credit is extended on purchases to a firm’s customers. Sometimes, customers are given a discount if they pay early.The financial manager must be careful not to impose onerous credit terms that will alienate customers and lower sales. With respect to global credit, the concern is forex. There are two ways to handle the issue: 1. Invoice customers in the firm’s home currency 2. Hedge the forex risk Inventory management: †¢Ã‚       The just-in-time (JIT) inventory control system is a system where there are enough materials in inventory to cover needs for a short time, but not more inventory than is needed for short-term needs.Vendor and manufacturer work together to reduce lead time, setup time, and production time so that inventory shows up â€Å"just in time† †¢Ã‚       JIT II further integrates the activity of vendor and purchaser, wherein the position of buyer’s purchasers or materials planners is eliminate d and replaced by a representative of the supplier †¢Ã‚       Tracking inventory also allows firms to reduce the inventory conversion period and the cash conversion cycle. RFID (radio frequency identification) tags send out a radio signal to electronic readers that allow companies to know the location of inventory at any timeInventory management can result in reduced cost of warehousing and handling inventory. Cost savings and smaller asset bases should lead to higher return on assets and increasing shareholder wealth. Technology is improving asset management by making information available with which managers make business decisions in a real-time setting. Technology may be the key to reducing procurement and supply chain costs. Portals are specialized and secure Web sites through which clients can access order and account information. Key TermsCapacity                                The ability to pay bills and often involves an examination of liquidity ratios. Capital                                   The adequacy of owners’ equity relative to existing liabilities as the underlying support for creditworthiness. Cash budget                          The cash inflows and cash outflows of a firm over a specific time frame. Cash conversion cycle          The time it takes to collect money from the company’s customers and use those funds to pay its suppliers.Character                              The ethical quality of the applicant and his/her willingness to pay bills on time and is best judged by reviewing the past credit hist ory for the company or person. Collateral                               Assets that secure credit. Collection float                      The time between when a payer sends payment and the            funds are credited to the payee’s bank account. Conditions                             The current economic climate and state of the business cycle.They are an important consideration in assessing whether the applicant can meet credit obligations. Credit bureaus                      Firms that obtain credit information about         business firms and individuals. Disbursement float               The time between when a payer sends payment and when the funds are deducted from the payer’s bank account. Fixed capital                          A firm’s fixed assets, which include plant, equipment, and property. Float                                       The time between sending out payments and having them actually be charged to the bank account.Level production plan           Schedule where the same amount of raw material is purchased and the same amount of finished product is manufactured every month. Operating cycle                     The time between receiving raw materials and collecting the cash from credit sales posted to accounts recei vables. Portals                                   Specialized and secure web sites through which clients can access order and account information. Pre-authorized checks          Regular (typically monthly) deductions by a vendor from a customer’s checking account.Precautionary motives          Demands for funds that may be caused by unpredictable events, such as delays in production or in the collection of receivables. Speculative motives              Demands for funds to take advantage of unusual cash discounts for needed materials. Trade credit                           Credit that is extended on purchases to a firm’s customers. Transactions motives            Demands for holding cash is that cash is needed to conduct day-to-day operations.Working capital                     A firm’s current assets as shown on the balance sheet and includes cash in the bank accounts, marketable securities, inventory, and accounts receivable. Suggestions for Additional Resources 1. http://en. wikipedia. org/wiki/Just_In_Time_%28business%29 2. http://www. lean. org/ 3. http://www. equifax. com/ 4. http://www. experian. com/ 5. http://www. investopedia. com/terms/c/creditbureau. asp 6. http://en. wikipedia. org/wiki/Credit_bureau 7. http://www. investopedia. com/terms/w/workingcapital. asp 8. http://en. wikipedia. org/wiki/Working_capitalAnswers to Summary Questions 2. Fixed capital would be defined as the firm’s fixed assets, which include plant, equipment and property. True or false? True. . 3. The operating cycle measures the time it takes between o rdering materials and collecting cash from receivables. True or false? True. . 4. If a firm has $50,000 in profit and pays out about one half to the owners of the company, the amount of profit retained in the firm would show up as: (a) an increase in owners’ equity (b) a decrease in owners’ equity (c) a decrease in retained earnings (d) a decrease in long-term debt . 5.The accounts payable period is the time between a firm’s paying its suppliers for inventory and collecting cash from inventories. True or false? False. . 6. Increases in the cash conversion cycle will lower the firm’s short-term financing needs. True or false? False. . 7. The inventory conversion period is calculated by inventory divided by costs of goods sold. True or false? False. . 8. Activities that decrease the cash conversion cycle will increase the firm’s need to obtain financing. True or false? False. . 9. More efficient management of working capital a ssets will lessen the firm’s needs for financing.True or false? True. . 10. A cash budget is a tool the treasurer uses to forecast future cash flows and estimate future short-term borrowing needs. True or false? True. . 11. To construct a cash budget, two sets of information are needed: estimated cash inflows and estimated cash outflows. True or false? True. . 12. The estimated cash inflows are affected by the sales forecast and customer payment patterns. True or false? True. . 13. Assume a firm’s production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold.If the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the short-term operating cycle be? (a) 110 days (b) 130 days (c) 190 days (d) 270 days . 14. If a firm has net sales of $400,000, annual cost of goods sold of $315,000, an inventory turnover of 4. 5 times a year, and an accounts re ceivable turnover of five times a year, the combined investment in inventories and accounts receivable would be: (a) $64,500 (b) $92,000 (c) $122,500 (d) $150,000 . 15. Calculation of a firm’s average collection period is the same as calculating the: (a) accounts receivable cycle (b) inventory cycle c) accounts payable cycle (d) short-term operating cycle . 17. A level production plan has problems, such as idle plant and laid-off workers during slow sales months and production bottlenecks during busy times. True or false? False. . 18. The account receivable period may be calculated as accounts receivable divided by sales. True or false? False. . 19. The account receivable period may be calculated as accounts receivable divided by daily sales. True or false? True. . 20. The transactions motive is the demand for holding cash. True or false? True. . 22. The federal funds rate is normally several points lower than the Treasury Bill rate.True or false? False. . 23. The five C†™s of credit analysis is a popular concept used by inventory managers. True or false? False. . 24. A mercantile credit bureau serves primarily as a (n): (a) collection agency for delinquent accounts (b) common meeting place where credit managers may exchange information (c) organization through which accounts receivable may be sold to other businesses (d) central record-keeping organization for credit information on business firms . 25. The objective of just-in-time (JIT) inventory control is to carry a minimum level of inventories.True or false? True. . 26. The delivery or transmission float is the delay in transferring the means of payment from the payer (customer) to the payee (the provider of goods or services). True or false? True. . 27. The disbursement float is the delay in transferring the means of payment from the payer (customer) to the payee (the provider of goods or services). True or false? False. Answers to â€Å"Review Questions†. 1. What is meant by wor king capital? Net working capital is defined as current assets minus current liabilities. . 2. Briefly describe a manufacturing firm’s operating cycle.The operating cycle measures the time between receiving materials and collecting cash from receivables. Raw materials are purchased and products are manufactured from them to become finished goods. Effort then is made to sell the finished goods. If the goods are sold on credit, then the receivables must be collected. . 3. Explain how the cash conversion cycle differs from the operating cycle. The cash conversion cycle typically is shorter than the operating cycle. The cash conversion cycle measures the time between when a firm pays for its supplies or raw materials and when it collects cash from receivables.  4. Describe how the length of the cash conversion cycle is determined. It is equal to the operating cycle (inventory period minus the accounts receivable period) minus the payables period. . 5. Explain how the length of the operating cycle affects the amount of funds invested in accounts receivable and inventories. All else being equal, a longer (shorter) inventory period and receivables period will increase (decrease) the amount of inventory and accounts receivable carried by the firm. . 6. What affects the amount of financing provided by accounts payable as viewed in terms of the cash conversion cycle?The level of the firm’s cost of goods sold and the average payment period affect the amount of financing provided by accounts payable. . 7. What is a cash budget? How does the treasurer use forecasts of cash surpluses and cash deficits? A cash budget lists, period by period, expected cash inflows and outflows. The treasurer can plan ahead to find suitable marketable securities in which to invest excess cash. If cash deficits are forecast, the treasurer can arrange for short-term financing sources. . 8. Three sets of information are needed to construct a cash budget.E xplain what they are. The firm’s minimum desired cash balance, forecasted cash inflows, and forecasted cash outflows are needed to construct a cash budget. . 9. Why might firms want to maintain minimum desired cash balances? Firms want to maintain minimum desired cash balance to ensure they can pay bills on time (transactions motive) and to have a cushion, as forecasts of cash flows may differ from actual future cash flows. . 10. What are the sources of cash inflows to a firm over any time frame? The main sources of cash inflows are cash sales and customer payments on credit sales. . 11.What are the sources of cash outflows from a firm over any time frame? The main sources of cash outflows are payments for raw materials, labor and overhead expenses, rent/lease payments, plant and equipment purchases, interest and principal payments, dividend payments, and taxes. . 12. How does the choice of level or seasonal production affect a firm’s cash over the course of a year ? Under level production, inventory becomes large before the peak selling season; whatever cash the firm has will probably be borrowed funds as cash is used to pay workers and suppliers over the course of the year as inventories are building.Under seasonal production, there is still a build-up of inventories prior to the selling season but probably less than under level production, as inventory can be sold shortly after it is made. Cash is conserved for much of the year; materials and labor expenses are less during the off-peak times when production is low. . 13. Describe what happens to a firm’s current asset accounts if the firm has seasonal sales and they use (a) level production; (b) seasonal production. a. Under a level production plan, the same amount of raw materials are purchased and the same amount of finished product is manufactured every month.Inventory builds up in anticipation of higher seasonal sales while cash and accounts receivable are quite low. When the sel ling season begins, inventories fall and receivables rise. After a time, inventories are nearly exhausted, and the firm is collecting cash from its customers. The changing composition of current assets for a firm with a seasonal sales pattern is illustrated in Figure 15. 4. b. Under seasonal production, raw material purchases will rise or fall in anticipation of higher or lower sales.Such a strategy can help minimize the effect of seasonal sales on inventory; goods are manufactured shortly before sale. Receivables will rise during the peak selling season but will fall thereafter as cash is collected. . 14. Describe the three motives or reasons for holding cash. a. need for day-to-day bill-paying? Transactions motive: b. hold funds to meet unexpected needsâ€â€a safety level of? Precautionary motive: cash hold funds? c. Speculative motive: to take advantage of attractive input prices or discounts 15. What characteristics should an investment have to qualify as an acceptable market able security?Marketable securities must be highly liquid (easily converted into cash at a price close to fair market value) with little chance of price risk or default risk. . 16. Identify and briefly describe several financial instruments used as marketable securities. Marketable securities that can be used as a means to â€Å"park†the firm’s excess cash include a. short-term securities issued and backed by the U. S.? U. S. Treasury Bills: government b. a bank’s temporary excess reserves that are lent to other banks? Federal Funds: on a day-to-day basis c. short-term unsecured notes of large financially stable? Commercial Paper: firms . large dollar CDs ($100,000 or more) for? Negotiable Certificates of Deposit: which a secondary market has evolved e. business paper used to finance international trade, backed? Bankers’ Acceptances: (accepted) by a bank with a high quality rating f. deposits placed in foreign banks that remain denominated in U. S.? Euro dollars: dollars (so there is no currency risk) . 17. What is float? Why is it important to cash management? Float is the delay between when funds are sent by a payer to a payee. Collection float is the time between when a payer sends payment and the funds are credited to the payee’s bank account.Disbursement float is the time lag between when a payer sends payment and when the funds are deducted from the payer’s bank account. It is important to cash management as the firm will have larger cash balances to invest and to reduce its own financing needs, all else being equal, the shorter the collection float and the larger the disbursement float. . 18. What are the three components of float? Which are under the control of the firm seeking to reduce collection float? The three components of float are delivery (or transmission) float, processing float, and clearing float.Delivery float and processing float are most directly under the control of the firm. Clearing float is c ontrolled mainly by the banking system’s check-clearing process but the firm can try to reduce it (and delivery float) by using lockboxes that are geographically closer to customers then the firm’s main office. . 19. What are some strategies a firm can use to speed up its collections by reducing float? Using a lockbox, incoming receipts are placed in a Post Office box which can be emptied several times a day by bank personnel, who process the payments and deposit the incoming funds into the firm’s accounts.This reduces mail delivery delay and processing delay, as the bank processes the payments rather than the firm. A second popular method, best used for regular payments such as utility, cable bills, or insurance premiums, is the use of preauthorized checks that allow the firm to deduct funds from the payer’s bank account. . 20 How can processing float be reduced? Vendors reduce processing float by improving the process of receiving payments and depositin g them. Large incoming payments (say, over $1 million) are automatically flagged and deposited expeditiously.Electronic check images and electronic payments (rather than the use of paper checks) remove the human component and thus can reduce processing delays. Lockboxes and preauthorized checks reduce processing delays, as processing is handled by banks, speeding deposit of incoming receipts. .. 21. How can a firm use float to slow down its disbursements? A firm can increase mail float by mailing payments from out-of-the-way locations, but that may hurt its reputation with suppliers who can direct the firm to send payments to another, closer, lockbox location.Another means are to use disbursement banks that are located around the country to increase disbursement float via the check-clearing process. So excess (and noninterest bearing) funds are not kept in a disbursement account, a firm can arrange to use a zero balance account for its disbursements. A bank will transfer sufficient funds every day into the ZBA to cover the day’s presented checks; other funds can remain invested in marketable securities. . 22. Why can’t a firm that wants to increase disbursement float simply make payments after the stated due date?There is an ethical issue with paying invoices late. If a vendor has provided needed goods and services the customer should pay for them in a timely and appropriate manner. Paying late can lead to negative notations on credit reports. Credit availability to late payers can be discontinued if the vendor’s credit standards are tightened. . 23. What is credit analysis? Identify the five C’s of credit analysis. Credit analysis involves appraising the creditworthiness or quality of a potential credit customer. Credit analysis includes examining the 5 C’s of credit. a. illingness to repay debts? Character: b. ability to repay debts (liquidity)? Capacity: c. equity cushion? Capital: d. what assets can provide security for t he credit? Collateral: e. the state of the business cycle and its expected movement during the? Conditions: credit period . 24. Describe various credit-reporting agencies that provide information on business credit applicants. Credit bureaus provide firms with information about a firm’s financial condition and its record on paying its past debts. Local credit bureaus service community credit information needs.The National Credit Interchange System facilitates exchange of information between bureaus. The National Association of Credit Management established the Foreign Credit Interchange Bureau to service firms with overseas customers. Dun & Bradstreet is perhaps the best-known private firm supplying credit information. . 25. How can a firm control the risk of changing exchange rates when billing an overseas customer? First, a firm can invoice the overseas customer in the firm’s home currency; this transfers the risk of changing exchange rates to the customer.Second, if the customer may pay in their own currency, the supplier can use currency futures or options contracts to hedge or reduce the risk of changing exchange rates. . 26. What risks arise when a firm lowers its credit standards to try to increase sales volume? Marginal and poor-risk customers may purchase the firm’s goods/services on credit. If they are unable to make payment, the firm must revise its sales figures and faces the added expense of trying to recover the goods and whatever funds it can from the delinquent customer. . 27. How do credit terms and collection efforts affect the investment in accounts receivable?All else being equal, lax credit terms increase the investment in accounts receivable and increase the chance for larger bad debts. Stricter credit terms will likely reduce receivables balances, but at the cost of possibly losing sales to competitors with easier standards. Collection efforts are aimed at having customers with overdue accounts pay their bills. Thus, successful collection efforts can reduce receivable balances and bad debt expense. On the other hand, collection efforts that offend customers can lead to lost future business. 28. How is the financial manager involved in the management of inventories? Inventory management concerns the financial manager because inventory, like all other assets, must be financed. Overly large inventories use warehouse space and have larger financing costs and insurance costs. Smaller inventories run the risk of selling out and causing customer dissatisfaction. Answers to â€Å"Applying this Chapter†Questions 2. The Robinson Company has the following current assets and current liabilities for these two years: 2004            2005 Cash and marketable securities |$50,000 |$50,000 | |Accounts receivable |300,000 |350,000 | |Inventories |350,000 |500,000 | |Total current assets |$700,000 |$900,000 | |Accounts payable |$200,000 |$250,000 | |Bank loan |0 |150,000 | |Accruals |150,000 |200,000 | |Total current liabilities |$350,000 |$600,000 | | | | | If sales in 2004 were $1. 2 million and sales in 2005 were $1. 3 million, and cost of goods sold was 70 percent of sales, how long were Robinson’s operating cycles and cash conversion cycles in each of these years? What caused them to change during this time?AR period = $350,000/($1,300,000/365) = 98. 27 days (2005)                  = $300,000/($1,200,000/365) = 91. 25 days (2004) Inventory period           = $500,000/($910,000/365) = 200. 55 days (2005)                            = $350,000/($840,000/365) = 152. 08 days (2004) AP period = $250,000/($910,000/365 ) = 100. 27 days (2005)                  = $200,000/($840,000/365) = 86. 90 days (2004) Operating cycle = AR period + Inventory period = 98. 27 + 200. 55 = 298. 82 days (2005)                           = 91. 25 + 152. 08 = 243. 33 days (2004) Cash conversion cycle = Operating cycle – AP period = 298. 82 – 100. 27 = 198. 5 days (2005)                                      = 243. 33 – 86. 90 = 156. 43 days (2004) Both the OC and CCC rose in 2005, primarily because of a large rise (almost 48 days) in the inventory period. 5. The Robinson Company from Problem 2 had net sales of $1,200,000 in 2004 and $1,300,000 in 2005. (a)      Determine the receivables turnover in each year. AR turnover      = Sales/AR = $1,300,000/$350,000 = 3. 71 (2005)                            = $1,200,000/$300,000 = 4. 00 (2004) (b)      Calculate the average collection period for each year. Average collection period       = AR/(Sales/365)                                                  = $350,000/($1,300,000/365) = 98. 7 days (2005)                                                  = $300,000/($1,200,000/365) = 91. 25 days (2004) (c)      Based on the receivables turnover for 2004, estimate the investment in receivables if net sales were $1,300,000 in 2005. How much of a change in the 2005 receivables occurred? Receivables investment     = Sales per day ? Average collection period Â Â à ‚                                           = ($1,300,000/365) ? 91. 25 days = $325,000 6. Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2004 and $1,200,000 in 2005. (a)      Calculate the inventory turnover for each year. Comment on your findings.Inventory turnover      = COGS/Inventory = $1,200,000/$500,000 = 2. 40 (2005)                                      = $1,000,000/$350,000 = 2. 86 (2004) Inventory turnover fell in 2005; inventory rose more quickly than cost of goods sold. (b)      What would have been the amount of inventories in 2005 if the 2004 turnover ratio had been maintained? Inventories investment     = COGS per day ? Inventory period                                            = $1,200,000/365 ? (365/2. 86) = $419,580. 42 7. Given Robinson’s 2004 and 2005 financial information presented in problems 2 and 4,     (a)      Compute its operating and cash conversion cycle in each year. Robinson Company | | | | | | |2004 | |2005 | | |Sales |$1,200,000 | |$1,300,000 | | |Cost of Goods sold |$1,000,000 | |$1,200,000 | | |profit margin |5. 0% | |5. 0% | | | | | | | | |Accounts Receivable |$300,000 | |$350,000 | | |Inventory |$350,000 | $500,000 | | |Accounts Payable |$200,000 | |$250,000 | | | | | | | | |Sales/ day = |$3,287. 67 | |$3,561. 64 |= $1,300,000/365 | |COGS/day= |$2,739. 73 | |$3,287. 67 |= $1,200,000/366 | | | | |à ‚ | | |Inventory conversion period = Inventory/COGS per day | | |127. 75 |days |152. 8 |days | | | | | | | |Average collection period = AR/sales per day | | | |91. 25 |days |98. 27 |days | | | | | | | |Average payment period = AP/COGS per day | | | |73. 0 |days |76. 4 |days | | | | | | | |Operating cycle = Inventory conversion + collection periods | | |219. 00 |days |250. 35 |days | | | | | | | |Cash cycle = Inventory conversion + collection period – payment period | | |146. 00 |days |174. 31 |days | (b)      What was Robinson’s net investment in working capital each year? |Net investment in working capital = AR + Inventory – AP (as used in his chapter) | | |2004 | |2005 | | | |=$300,000+$350,000-$200,000 |=$350,000+$500,000-$250,000 | | |=$450,000 | |=$600,000 | | 8. Robinson expects its 2006 sales and cost of goods sold to grow by 5 percent over their 2005 levels. (a)      What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2005 levels? What will be its net investment in working capital? If the ratios remain the same, a | | | |5 |percent increase in sales and COGS will increase AR, | |inventory, and AP proportionately in 2006 | | | |AR: $350,000 + 5%= |$367,500 | | | |Inv: $500,000 + 5%= |$525,000 | | | |AP: $250,000 + 5%= |$262,500 | | | |Net investment in working capital = AR + Inventory – AP | | |=$367,500 + $525,000 – $262,500 = |$630,000 | | | | | | | |The new sales will be |$1,300,000 + 5% = |$1,365,000 | | |Sales/day = | |$3,739. 3 | | |The new COGS will be |$1,200,000 + 5% = |$1,260,000 | | |COGS/day = | |$3,452. 05 | | (b)      What will b e the impact on its net investment in working capital in 2006 if Robinson is able to reduce its collection period by five days, its inventory period by six days, and increase its payment period by two days? |The new sales will be |$1,300,000 + 5% = |$1,365,000 | |Sales/day = | |$3,739. 3 | |The new COGS will be |$1,200,000 + 5% = |$1,260,000 | |COGS/day = | |$3,452. 05 | |Estimated AR if collection period reduced by |5 |days: | |New AR = sales/day x collection period | | | |Sales/ day = |$3,739. 73 | | | |Old collection period |98. 27 | | | |New collection period |93. 27 | | | |New AR estimate= |$348,801. 7 | | | | | | | | |Estimated inventory if conversion period reduced by |6 |days: | |New Inv = COGS/day x conversion period | | | |COGS/day |$3,452. 05 | | | |Old conversion period |152. 08 | | | |New conversion period |146. 08 | | | |New Inv estimate= |$504,287. 7 | | | | | | | | |Estimated AP if payment period increased by |2 |days: | |New AP = sales/day x payment period | | | |COGS/day |$3,452. 05 | | | |Old payment period |76. 04 | | | |New payment period |78. 04 | | | |New AP estimate= |$269,404. 1 | | | | | | | | |2006 working capital = AR + Inventory – AP | | | |=$360,020. 55 + $514,643. 84 – $259,047. 95 | | | |=$583,684. 93 | | | | |which is a reduction of |$46,315. 07 |from part a) | 9. Robinson expects its 2006 sales and cost of goods sold to grow by 20 percent over their 2005 levels. (a)      What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2005 levels? What will be its net investment in working capital? If the ratios remain the same, a | | | |20 percent increase in sales and COGS will increase AR, | |inventory, and AP proportionately in 2006 | | | |AR: $350,000 + 5%= |$420,000 | | | |Inv: $500,000 + 5%= |$600,000 | | | |AP: $250,000 + 5%= |$300,000 | | | |Net investment in working capital = AR + Inventory – AP | | |=$367,500 + $525,000 – $262,500 = |$720,000 | | | | | | | |The new sales will be |$1,300,000 + 20% = |$1,560,000 | | |Sales/day = | |$4,273. 97 | | |The new COGS will be |$1,200,000 + 20% = |$1,440,000 | | |COGS/day = | |$3,945. 21 | | b)      What will be the impact on its net investment in working capital in 2006 if Robinson is able to reduce its inventory period by ten days? |Estimated AR if collection period reduced by 0 days: | |New AR = sales/day x collection period | | | |Sales/ day = |$4,273. 97 | | | |Old collection period |98. 27 | | | |New collection period |98. 27 | | | |New AR estimate= |$420,000. 0 | | | | | | | | |Estimated inventory if conversion period reduced by 10 days: | |New Inv = COGS/day x conversion period | | | |COGS/day |$3,945. 21 | | | |Old conversion period |152. 08 | | | |New conversion period |142. 08 | | | |New Inv estimate= |$560,547. 5 | | | | | | | | |Estimated AP if payment period increased by 0 days: | |New AP = sales/day x payment period | | | |COGS/day |$3,945. 21 | | | |Old payment period |76. 04 | | | |New payment period |76. 04 | | | |New AP estimate= |$300,000. 0 | | | | | | | | |2006 working capital = AR + Inventory – AP | | | |=$360,020. 55 + $514,643. 84 – $259,047. 95 | | | |$680,547. 95 | | | | |which is a reduction of |$39,452. 05 |from part a) | | 10. Following are financial statements for the Genatron Manufacturing Corporation for the years 2004 and 2005: Selected Balance Sheet Information 2004            2005 Cash | $ 50,000 |$ 40,000 | |Accounts receivable |200,000 |260,000 | |Inventory |450,000 |500,000 | |Total current assets |$700,000 |$800,000 | |Bank loan, 10% |$ 90,000 |$ 90,000 | |Accounts payable |130,000 |170,000 | |Accruals |50,000 |70,000 | |Total current liabilities |$270,000 |$330,000 | |Long-term debt, 12% |300,000 |400,000 | Selected Income Statement Information 2004            2005 |Net sales |$1,300,000 |$1,500,000 | |Cost of goods sold |780,000 |900,000 | |Gross profit |$ 520,000 |$ 600,000 | |Net income |$93,000 |$ 114,000 |Calculate Genatron’s operating cycle and cash conversion cycle for 2004 and 2005. Why did they change between these years? Inventory period           = Inventory/(COGS/365)                            = $500,000/($900,000/ 365) = 202. 78 days (2005)                            = $450,000/($780,000/365) = 210. 58 days (2004) AR period = AR/(Sales/365) = $260,000/($1,500,000/365) = 63. 27 days (2005)                  = $200,000/($1,300,000/365) = 56. 15 days (2004) AP period = AP/(COGS/365) = $170,000/($900,000/365) = 68. 94 days (2005)                  = $130,000/($780,000/365) = 60. 83 days (2004) Operating cycle = Inventory period + AR period 202. 78 days + 63. 27 days = 266. 05 days (2005)                            = 210. 58 days + 56. 15 days = 266. 73 days (2004) Cash conversion cycle = Operating cycle – Average payment period                                      = 266. 05 days – 68. 94 days = 197. 11 days (2005)                                      = 266. 73 days – 60. 83 days = 205. 90 days (2004) The operating cycle remained constant in 2004 and 2005 as a reduction in the inventory period was balanced by an increase in the average collection period. The cash conversion cycle sell for 2005 was longer. Genatron took, on average, longer to pay its suppliers. 11.Genatron Manufacturing expects its sales to increase by 10 percent in 2006. Estimate the firm’s investment in accounts receivable, inventory, and accounts payable in 2006. If the inventory, collection, and payment periods remain constant, each account should rise by 10 percent. $260,000 (1. 10) =? Accounts receivable: $286,000 $500,000 (1. 10) = $550,000? Inventory: $170,000 (1. 10) = $187,000? Accou nts payable: 12 . With concerns of increased competition, Genatron is planning in case its 2006 sales fall by 5 percent from their 2005 levels. If cost of goods sold and the current asset and liability accounts decrease proportionately, (a) Calculate the 2006 cash conversion cycle.  | | | | |5% decline | | |2004 | |2005 | |2006 | |Sales |$1,300,000 | |$1,500,000 | |$1,425,000 | |Cost of Goods sold |$780,000 | |$900,000 | |$855,000 | |profit margin |7. 2% | |7. 6% | | | |Net income |$93,000 | |$114,000 | | | |Accounts Receivable |$200,000 | |$260,000 | |$247,000 | Inventory |$450,000 | |$500,000 | |$475,000 | |Accounts Payable |$130,000 | |$170,000 | |$161,500 | | | | | | | | |Sales/ day = |$3,561. 64 | |$4,109. 59 |= $1,500,000/365 |$3,904. 11 | |COGS/day= |$2,136. 99 | |$2,465. 75 |= $900,000/366 |$2,342. 47 | | | | | | | | |Inv entory conversion period = Inventory/COGS per day | | | |210. 58 |days |202. 78 | |202. 8 | | | | | | | | |Average collection period = AR/sales per day | | | |56. 15 |days |63. 27 | |63. 27 | | | | | | | | |Average payment period = AP/COGS per day | | | |60. 8 |days |68. 94 | |68. 4 | | | | | | | | |Operating cycle = Inventory conversion + collection periods | | | |266. 73 |days |266. 04 | |266. 04 | | | | | | | | |Cash cycle = Inventory conversion + collection period – payment period | | | |205. 90 |days |197. 10 | |197. 10 | (b) Calculate the 2006 net investment in working capital. Net investment in working capital = AR + Inventory – AP (as used in this chapter) | |2004 |2005 |2006 | | | | | |=$247,000+$475,000-$161,500 | |$520,000 |$590,000 |=$560,500 | | | 13. .In problem 10 we assumed t he current asset and liability accounts decrease proportionately with Genatron’s sales. This is probably unrealistic following a decline in sales.What will be the impact on the working capital accounts if its collection period lengthens by five days, its inventory period lengthens by seven days, and its payment period lengthens by three days if Genatron’s sales and COGS fall 5 percent from their 2005 levels? |The new sales will be |$1,500,000 – 5% = |$1,425,000 | | | |Sales/day = |$3,904. 11 | | |The new COGS will be |$900,000 – 5% = |$855,000 | | | |COGS/day = |$2,342. 7 | | | | | | | |Estimated AR if collection period lengthens by |5 |days: | |New AR = sales/day x collection period | | | |Sales/ day = |$3,904. 11 | | | |Old collection period |63. 27 |(from problem 10) | | |New collection period |68. 27 | | | |New AR estimate= |$266,520. 5 | | | | | | | | |Estim ated inventory if conversion period lengthens by |7 |days: | |New Inv = COGS/day x conversion period | | | |COGS/day |$2,342. 47 | | | |Old conversion period |202. 78 | | | |New conversion period |209. 8 | | | |New Inv estimate= |$491,397. 26 | | | | | | | | |Estimated AP if payment period increased by |3 |day: | |New AP = sales/day x payment period | | | |COGS/day |$2,342. 47 | | | |Old payment period |68. 4 | | | |New payment period |71. 94 | | | |New AP estimate= |$168,527. 40 | | | | | | | | |2006 working capital = AR + Inventory – AP | | | |=$266,520. 55 + $491,397. 26 – $168,527. 40 | | | |=$589,390. 1 | | | | |which is an increase of |$28,890. 41 |from problem 10. | | 14. .Suppose Global Manufacturing is planning to change its credit policies next year. It anticipates that 10 percent of each month’s sales wil l be for cash; two thirds of each month’s receivables will be collected in the following month, and one-third will be collected two months following their sale. Assuming the Global’s sales forecast in Table 10. 5 remains the same and the expected cash outflows in Table 10. 6 remain the same, determine Global’s revised cash budget. Nov. Dec. Jan. Feb. Mar. Apr.Sales                            $80,000  $100,000    $ 30,000  $ 40,000    $ 50,000    $ 60,000       Cash (10%)                                                         3,000        4,000        5,000        6,000       1 Month Later (2/3)                                          60,000      18,000      24,000      30,000 [pic][pic][pic][pic]      2 Months Later (1/3)                                        24,000      30,000        9,000      12,000       Total Cash Receipts                                       $ 87,000  $ 52,000    $ 38,000    $ 48,000 [pic][pic][pic][pic]      Less: Total Cash Payments                             60,000    127,000      44,000      40,000       Net Cash Flow                                                 $ 27,000  $ –75,000    $ –6,000    $ 8,000 [pic][pic][pic][pic]      Beginning Cash Balance                                  25,000      52,000      25,000      25,000       Cumulative Cash BalanceÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â à ‚      $ 52,000  $ –23,000    $ 19,000    $ 33,000Monthly Loan                                                        (or repayment) 0      48,000        6,000      –8,000       Cumulative Loan Balance                                        0      48,000      54,000     46,000       Ending Cash Balance       Â
Sunday, November 10, 2019
Deviance: Nature vs. Nurture Essay
Every society has developed their own rules and principles, and every society contains those who break away from these norms and expectations. These people are called deviants. All societies throughout history have had these deviants who refuse to follow the rules set up by the community in which they live. Deviance is necessary, to some degree, for societies to advance. Without deviance, human culture would stagnate. The causes of deviance, like many other topics, is up for debate. Some say people are genetically determined to either be deviant or not, some say deviance is caused by the environment in which they grow up: nature, or nurture. Throughout the late 19th and early 20th centuries, many families were studied in order to possibly find a connection between heredity and criminality or â€Å"feeble-mindedness†(feeble-mindedness was a term used in this time period that could mean a number of things: various forms of mental retardation, learning disabilities, and mental i llness). The two most well- known studies were of the Jukes and the Kallikak families. The Jukes were first studied in 1874 when a sociologist named Richard L. Dugdale studied the records of 13 prisons in New York. After researching a number of convicts’ genealogies, he found that there was a man, whom he gave the name Max, born somewhere between 1720 and 1740 who was the ancestor of 76 convicted criminals, 18 brothel owners, 120 prostitutes, over 200 people on welfare, and 2 cases of feeble-mindedness. In 1912, another study was published on the Jukes, this time by a man named Arthur H. Estabrook, who claimed Dugdale’s study hadn’t been thorough enough. Estabrook added more than 2,000 additional people into the group of subjects included under the pseudonym â€Å"Jukes,†raising the total to 2,820. The Kallikak family was first studied in the same year as the last study on the Jukes was published. Henry H. Goddard was an American psychologist who ran the New Jersey Home for the Education and Care of Feebleminded Children (now known as Vinel and Training School). In 1912, he began to study the genealogy of a woman in his facility, who he gave the pseudonym â€Å"Deborah Kallikak.†Goddard found that the woman’s great-great-great grandfather, Martin Kallikak, a Revolutionary War hero, at one point had an illegitimate child with a feeble-minded barmaid. This child, a son, had children of his own, who had their own children, and continued on through the generations. These descendants all wound up poor, insane, criminal, or mentally retarded. However, after further research into Martin Kallikak’s family tree, Goddard found that his other descendants, those not related to the feeble-minded barmaid, were completely different. These children grew up to be intelligent, prosperous, upright citizens; they went into careers like doctors, lawyers, and ministers. According to Dugdale, Estabrook, and Goddard, there is a very clear link between genetics and the behavior in which a person participates within their lifetime. These studies , however, are 100 years old. Some people would argue that unless more modern research is devoted to genetic-based deviance, that we cannot consider these studies valid today. There has been a significant amount of study given to genetically caused deviance, in particular to the MAOA gene. In a few different studies the low-expression variant of this gene, known as MAOA-L, has been linked to an increased risk of violence and aggressive behavior. The MAOA gene controls the production of monoamine oxidase A, an enzyme that lowers the body’s use of neurotransmitters like dopamine and serotonin. When the MAOA-L gene is present in a person, their body will use more of these neurotransmitters than normal, this can lead to sleep disorders, excessively impulsive or violent behaviors, and extreme mood swings. A 2006 study, headed by Andreas Meyer-Lindenberg, found that people with the MAOA-L gene were more likely to have a smaller limbic system. The limbic system includes the hippocampus, amygdala, anterior thalami c nuclei, and the limbic cortex. These parts of the brain help to control emotion, behavior, and long-term memory. The study also found that the amygdala became hyper responsive when the participants with the MAOA-L gene were given a task such as copying a facial expression. The amygdala is a part of what controls emotional processing in the brain; the researchers hypothesized that this group would be less likely to inhibit strong emotional impulses. Studies such as these can give great support to the nature side of the deviance debate. On the nurture side of the argument, numerous studies on the effects of a divorce or broken home on a child have led to some convincing statistics. Children of divorced parents are about two times more likely to drop out of high school than those whose parents continued to be together. Females who grew up in a family where the parents divorced are roughly twice as likely to become teenage mothers than those living with non-divorced, biological parents. Seventy percent of long- term convicted criminals were raised in a broken home. While 75% of juvenile criminals who are considered a threat to the public also came from a divorced family. A perfect example of deviance being a result of environment and not genetics is a man named Richard Ramirez. Ramirez was born in 1960 and was the youngest of six children; he and his siblings all grew up surrounded by the same home environment. The difference for Richard being that around ten years old, his cousin, Mike, became a role model after returning from the war in Vietnam and receiving numerous awards and medals. However, Mike was not a positive influence on Ramirez; he showed Richard pictures of women in Vietnam whom he raped, and then showed him pictures of the same women after they had been brutally murdered. Mike taught Richard how to hunt effectively, and eventually introduced him to drugs and theft. What many consider the final trigger for Ramirez, about 11 years old at the time, was when he witnessed Mike kill his wife. In 1983 Richard Ramirez moved to the Los Angeles, California area; soon after, in June of 1984, Ramirez claimed his first victim. â€Å"The Night Stalker,†as he was eventually labeled, continued on a string of murders, rapes, and mutilations until he was incarcerated in August of 1985. Ramirez was convicted of 13 murders, 5 attempted murders, 11 sexual assaults, and 14 burglaries. He is currently on death row.
Thursday, November 7, 2019
Goldinis Play essays
Goldinis Play essays On Friday, June 1, 2001 we had the pleasure of seeing Carlo Goldinis, A Servant To Two Masters, at the Dock Street Theatre. By now we were used to seeing performances at the Dock Street Theatre and I had experienced several different types of performances. However, this performance was nothing like I had expected. I knew we were going to see a play, but for some reason I had in my mind that I was going to see a musical or something silly. I knew from the very first moment that I was going to like this play. The main character Tuffaldino, played by Jason Watkins was absolutely hilarious. Since I have never seen this play before or anyone in the play I cannot picture anyone else performing better than Watkins. He was the highlight of the entire play. The plot was quite simple and basic, however the play did not seem basic at all. Truffaldino is quite simply caught between a rock and a hard place. He needs money and is starving therefore he takes on the role of loyal servant for two masters. That does not sound too hard, however the task becomes more difficult when it is revealed that his two masters actually used to be lovers. Truffaldino has to juggle himself between the two masters and also find time to fall in love with the maid, Smeraldina. If this doesnt sound confusing enough, remember that one of the men in the play was actually a woman and there are three main love stories. Along with Truffaldinos continuous balancing act between masters, came his interaction with the audience. At one point in the play, the action leaves the stage and is continued into the first row. If this was not enough to get the audience roaring with laughter, references to Monica Lewinsky and the Beatles were made. Watkins could not have played his part any better, I was at the edge of my seat waiting to see what he was going to say or do next. I also loved the way the stage was changed from scene to scene. ...
Tuesday, November 5, 2019
Italian Words Used in Fashion and Design
Italian Words Used in Fashion and Design Picture it: You walk into a boutique shoe shop on the main corso in Viterbo, Italy, looking to buy some shoes to match an outfit later that evening. La commessa (the saleswoman) greets you with a salve! and points to the merchandise arranged around her store. Pairs of shoes sit on illuminated shelves, shoes with heels so tall, you couldn’t imagine wearing them without twisting an ankle on the cobblestone streets that line the center of the city. Each visit to a un negozio (a store) to find a sweater, a pair of jeans, or a new top becomes an opportunity to acquire new, specific vocabulary for the items themselves and all the various colors, sizes, and materials they come in. Below, find a list of common vocabulary and phrases that can be used when shopping in Italy or just talking about clothes. Accessories (Gli Accessori) Belt - la cinturaBowtie - il papillonCap - il berretto/il cappellinoGloves - i guantiHat - il cappelloPurse - la borsaSocks - i calziniSunglasses - gli occhiali da soleTie - la cravattaWatch - l’orologio Clothing (L’Abbigliamento / Il Vestiario) Blouse - la camicetta/la blusaBra - il reggisenoCoat - il cappottoDress - il vestitoJeans - i jeansLingerie - la biancheria intimaPants - i pantaloniRaincoat - limpermeabileScarf - la sciarpaShirt - la camiciaSkirt - la gonnaSweater - il pullover/il golfSweatshirt - la felpaSweatsuit - la tutaSuit - il completoTuxedo - lo smokingUnderwear - le mutandeVest - il panciottoWindbreaker - la giacca a vento Shoes (Le Scarpe) Flip-flops - le infraditoHigh heels - le scarpe col taccoHiking boots - le scarpe da trekkingRainboots - i stivali di gomma/stivali da pioggia Vocabulary Descriptions Cotton - il cotoneLeather - il cuoioLinen - il linoPolyester - il poliestereSilk - la setaWool - la lanaLoose - largoTight - strettoStriped - a righe/strisce Phrases Cerco una felpa a righe.I’m looking for a striped sweatshirt. Tip: Notice that in Italian there is no preposition used after the verb cercare (to look for). The â€Å"for†is implied within the verb. Sono/Porto/Indosso una taglia†¦(media).I’m a medium.Vuole provarlo?Do you want to try it on?Vorrei provare questi, dove sono i camerini?I’d like to try these on, where are the fitting rooms? Tip: In the phrase above, â€Å"lo†would be used if the item were singular and masculine, like il vestito (the dress). However, if it were singular and feminine, like la sciarpa (the scarf), it would be â€Å"Vuole provarla†? While it’s important to make everything agree, don’t stress if you can’t remember the gender of the object you have. You’ll be safe with using the pronoun â€Å"lo†. È comodo.It’s comfortable.Il vestito à ¨ troppo stretto, avete una taglia pià ¹ grande?The dress is too tight, do you have a larger size?Questi (stivali) sono scomodi.These (boots) are uncomfortable.Preferisco il rosa.I prefer pink. (As a color) Notice the differences in meanings below. Preferisco la rosa.I prefer the rose (flower).La preferisco rosa.I prefer it (something feminine like: la gonna, la sciarpa, la maglietta...etc) in pink.Lo preferisco rosa.I prefer it (something masculine like: il golf, il pantalone, il papillon...etc) in pink.
Sunday, November 3, 2019
Critical Analysis of Technology & Ethics in Pop Culture Essay
Critical Analysis of Technology & Ethics in Pop Culture - Essay Example However, people fail to focus on the actual themes of future ethics at play in the movie, since it primarily focuses on social choices and the outcomes of an economic profit that is ethics based. District 9 is a movie that tends to go against what a viewer expects. It is the kind that plays on a viewer’s a presumption with the purpose of creating far much deeper and disturbing issues. Actually, first and most noticeable subtext in the movie is a depiction of racism, or rather in this situation speciesism. The fact that the setting of the movie was done in South Africa is an instant creation of an association with apartheid, a factor that results to some interesting thoughts concerning the capacity of humans to despise and distrust others (Dir. Blomkamp; District 9). The well-known story of the extensive humanitarian (or, this situation, non-humanitarian) aid programs to offer assistance rapidly turns into suspicions and fear once the original disaster has been turned away and the non-humans must somehow integrate into the city’s life and identity. The rigid nature of most of the cultural norms of humans quickly conflicts with the diverse behavior and values tha t the non-humans hold, with a lot of distrust and hostility being the outcome. The allegory is obvious, and has been effectively applied, but in the final section there seems to be no deeper concerns at hand. Racism is not only the primary factor that actually lies at the center of the ethical questions brought about by the movie (Dir. Blomkamp; District 9): in reality, real contact with human beings being technologically advanced will lead to the impossibility of them being oppressed. This context of segregation is attached to questions that surround the economics and development of new technology, and the efforts that most people will make so as to ensure that they secure either military or financial dominance over others. During the movie’s progression, the
Friday, November 1, 2019
The Role of External Auditors in Accounting Assignment
The Role of External Auditors in Accounting - Assignment Example In most cases, a fraudulent act exists when one or more auditors approve inaccurate accounting on behalf of a company for the reason of tax evasion or to strategically register for an Initial Public Offering (IPO). To prevent moral hazards associated with the auditors’ liability, the British Serious Fraud Office has imposed heavy penalties for swindlers and white-collar criminals to shut down or suspend a suspicious business (Country Updates, 1997). On the other hand, auditors who are found guilty of professional negligence may end up facing a monetary loss or penalty through punitive fines and/or the confiscation of their license to practice auditing in the United Kingdom. As stated by Michael Power of London School of Economics, â€Å"it may not be reasonable to expect that auditors would be challenging business models directly and raising strategic issues with finance directors, that is not their job and if we want it to be their job then things would have to change quite substantially †¦ The direction of my comment is that we might be expecting too much from this black box [External Audit] in terms of what it actually delivers†(Priddy, 2011, p. 59). In response to the statement made by Power, this report will first discuss the role and responsibilities of external auditors followed by providing a brief overview with regards to the corporate governance. In line with this, there is a strong need to go through business theories and concepts that will enable the readers to have a better understanding of how businesses in a corporate world function. Based on the individual roles and responsibilities of shareholders, internal and external auditors, the board of directors, and the CEO, this report will explain the limits in the role and responsibilities of external auditors when it comes to detecting and controlling fraud activities in business.
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