Analyzing White America Essay

After viewing â€Å"Analyzing White America† by Paul Mooney, I was initially taken aback by the content. I never expected the rawness that Mooney brought to the stage and he hit the ground running with such a tone without looking back. A lot of the material made me laugh or at the very least smile because i found it to be identifiable with my own life and some of the surroundings that I was brought up in. The part that I found most amusing was Mooney’s suggestion that white people were happier before slavery was abolished. I believe racism is very much present in today’s world. When I was growing up, I can recall plenty of neighborhoods in my hometown that were considered â€Å"white† or even â€Å"black† for that matter. In these neighborhoods, if you were not from that part of town, you were not considered welcomed there. Any parts of the film that I did not laugh at, there was no particular reason other than I simply was not amused by the material because there were not any parts that I found personally offensive. I feel as though the word â€Å"nigger† is so controversial solely because of it’s history and the origin of it’s meaning. This word was meant to degrade and disparage African Americans when it was originated. Today, people use the term in a different context. The new meaning is one of affection but with it’s use comes this unwritten rule that white people are prohibited from saying it. I never could wrap my mind fully around the idea that I can say the word â€Å"nigga† in reference to a friend of mine but a white kid was not allowed to use it, in the same context, all because we are of different races. In my opinion, it’s not right for either myself or a white person to use the word in any context. In today’s society, everything is just as much about race as it was in the days of slavery. The only difference between now and then is that openly addressing the issues that we, as a culture, all have with race is socially unacceptable. Mooney’s antics on stage were not without warrant. He recognizes that racism is still a major issue and he chooses to address it differently than the average person. Paul’s words are not meant to slander or belittle any one race, religion, or ethnice group, but instead he wants to make his audience to expand their minds and think about what it is he is really saying. Granted, his demeanor is controversial, I believe he achieves just that.

A Spill at Parsenn Bowl Essay

Part I – The Slopes While enjoying a day on the ski slopes at Winter park the patient fell exiting the ski lift. Patient was able to get up unassisted however, as she adjusted her stance the knee â€Å"twisted† and she fell again resulting in an external rotation of the right knee. Patient reported no pain at this time, but due to instability she was transferred by Ski Patrol down the slope on a sled. For the patient’s body to maintain homeostasis throughout the duration of exposure to the extreme cold, thermo receptors within the skin activated sending signals to the hypothalamus. In turn the cutaneous blood vessels constricted and shivering commenced in an attempt to accumulate and produce additional body heat. (Minerva Union, 2011, 2). During the time of exposure to the extreme cold all distal extremities and any exposed tissues would be vulnerable to the occurrence of frostbite.  (Minerva Union, 2011) Part II – The Emergency Room Upon arrival at the emergency room the patient was shivering which can be seen as an early indication of hypothermia. At this time the patient was instructed to remove her parka in an effort to avoid further heat loss, resulting from an accumulation of moisture from the conditions outdoors. To assist in regulation of homeostasis the patient was wrapped in blankets and given hot chocolate. Pulse was taken at the Dorsalis Pedis to check the patient’s circulatory response. (The EMT Spot, 2014, 7). Pain reported by the patient was localized to the medial surface of the right knee,  noticeable inflammation present due to the leaking of fluids from compromised internal tissues. The patient’s presentation of symptoms are indicative to that of a potential medial collateral ligament and medial meniscus tear. (Healthline, 2014, 5). The medial meniscus articulates with the medial condyles of the tibia and femur. Part III – The Mile High Clinic An X-ray, of which the primary diagnostic focus is bone structure and density (SWOG, 2013, 1), was ordered for the patient. X-ray results although negative for fracture were positive for swelling further indicating the possibility of tendon or ligament damage. A Lachman Test was performed on the patient to test the integrity of the anterior cruciate ligament within the patient’s right knee. To determine integrity: â€Å"the knee is flexed at a 20-30 ° angle, the tibia is displaced anteriorly relative to the femur; a soft endpoint or greater than 4 mm of displacement is positive.† (Free Dictionary-Medical Dictionary, 2014, 1).  (The Clinical Advisor, 2014) Upon the positive results of the Lachman test, further examination confirmed injury to the medial collateral ligament as well. Patient was instructed to see an orthopedist, given crutches, a brace, and instructed to keep the leg elevated and use ice to further aid in the reduction of swelling and pain. Furthermore patient was instructed not to use heat, such as a heat pad or hot tub, as heat can result in vasodilatation leading to increased pain and swelling. Part IV – Seeing the Orthopedic Surgeon #1 Upon arriving home the patient was seen by a local orthopedic surgeon. Although the patient previously had an x-ray, an MRI was ordered to obtain a clear and concise understanding of the impact of the ski accident on the internal soft tissue structures of the patient’s right knee. An MRI or magnetic resonance imaging, â€Å"combines a powerful magnet with radio waves and a computer to manipulate these magnetic elements and create highly detailed images of structures in the body.† (SWOG, 2013, 4) In comparison to an MRI, an X-ray is typically used to diagnose and assess bone degeneration or disease, fractures and dislocation. (SWOG, 2013, 1) Age often plays a role  in the healing process, as does the patient’s physical health. Typically younger patients have an increased regenerative capacity for healing as opposed to older patients who may present with osteoarthritis. Osteoarthritis is â€Å"the degeneration of cartilage and its underlying bone within a joint as well as bony overgrowth.† (CDC, 2011, 1) Patients with poor physical health and other complications may not always be a good candidate for reconstructive surgery. Although the patient in this case is 55, she presents as a good candidate for reconstructive surgery as a result of leading a fairly active life style and was referred to an orthopedic surgeon who performs such surgical procedures on a routine basis. Part V – Seeing the Orthopedic Surgeon #2 Patient presents in good health and as an ideal candidate for surgery. Referred to â€Å"pre-hab† to have the knee and leg in the best possible shape prior to surgery. The knee is a synovial joint and can be further classified as a hinge joint as it allows movement in only one direction. Synovial joints are lined by a synovial membrane filled with fluid to support the joint and reduce friction. (Buzzle, 2014), 3). Tendons and ligaments composed of dense regular connective tissues hold the structures of the knee together.(eHealth Ideas, 2013) The hamstring, sartorious, gracilis, and popliteus assist in producing flexion, whereas the â€Å"Quads† rectus femoris, vastus medialis, vastus lateralis, and vastus intermedius contribute to producing extension. (Healthline, 2013, 4-5). With regard for the surgical repair of the patient’s ACL the synovial membrane would need to cut in order to operate on both the meniscus and ACL. In addition, the use of a tendon to replace the ligament is possible, as both are composed of collagenous connective tissues. (University of Michigan, (n.d.), 2). Prior to surgical intervention it is especially important that the patient’s knee is in the best physical shape as post-operatively the patient can expect to experience some degree of atrophy and loss of bone mass as a result of restricted and limited use of the surgically repaired joint and limb. (Healthline, 2014, 1). During post-operative healing the patella is likely to heal faster  than the ACL, MCI and menisci, as it has access to the arterial blood supply. (KneeHipPain, n.d., 14). The cartilage and the ligaments will take longer to heal as they are avascular and contain little to no blood supply. Scar tissue is a normal occurrence of the healing process, and is composed of fibrous connective tissue. â€Å"This tissue contains a fibrous protein called collagen, as well as long carbohydrate molecules called polysaccharides, water and cells called fibroblasts.† Scar tissue also known as adhesion, plays an important role in the healing process as its collagenous fibers bind to damaged tissues in an effort to reconnect the damaged fibers. Part VI – Resolution The body is an incredible mechanism, through homeostasis and feedback loops the body is often able to regulate and return itself to a state of equilibrium. This can be evidenced in the case of the patient, as when subjected to the extreme cold thermo-receptors in the skin activated signaling the hypothalamus, resulting in vasoconstriction and shivering as a method to create and conserve body heat. However, in some cases such as that of a torn ACL, the body is not always able to repair itself and surgical intervention may be deemed necessary. Still, throughout the post-operative healing process the body employs various methods of negative feedback to once again return to a state of equilibrium. References Buzzle. (2014). Synovial membrane. Retrieved from: http://www.buzzle.com/articles/synovial-membrane.html The Centers for Disease Control and Prevention. (2011). Osteoarthritis. Retrieved from: http://www.cdc.gov/arthritis/basics/osteoarthritis.htm The Clinical Advisor. (2014). [Photo of Lachman Test]. Retrieved from: http://www.clinicaladvisor.com/tests-to-assess-acl-rupture/slideshow/394/#0 eHealth Ideas. (2013). [Photo of Knee Anatomy Design]. Retrieved from: http://www.ehealthideas.com/2013/12/knee-anatomy-diagram.html The EMT Spot. (2014). The ultimate emt guide to vital signs. Retrieved from: http://theemtspot.com/2010/05/22/the-ultimate-emt-guide-to-vital-signs/ The Free Dictionary. (2014). Medical dictionary. Retrieved from: http://medical-dictionary.thefreedictionary.com/Lachman+test Healthline. (2013). Knee muscle anatomy. Retrieved from: http://www.healthline.com/human-body-maps/knee-muscles#4/4294967045 Healthline. (2014). Muscle atrophy. Retrieved from: http://www.healthline.com/symptom/muscle-wasting Knee Hip Pain. (n.d.). The anatomy of the patella. Retrieved from: http://www.kneehippain.com/patient_pain_anatomy.php Minerva Union. (2011). Homeostasis basics. Retrieved from: http://minerva.union.edu/linthicw/homeo.htm Minerva Union. (2011). [Photo of Homeostasis Temperature Control]. Retrieved from: http://minerva.union.edu/linthicw/homeo.htm References Southwest Orthopedic Group. (2013). What is the difference between x-rays, mri, and ct scans. Retrieved from: http://www.sworthogroup.com/general-orthopedic-faq/25-what-is-the-difference-between-x-rays-mri-and-ct-scan University of Michigan. (n.d.). Section 9: Ligament tendon structure. Retrieved from: http://www.umich.edu/~bme332/ch10ligten/bme332ligamenttendon.htm

Practicum Journal 1 Term Paper Example | Topics and Well Written Essays - 250 words

Practicum Journal 1 - Term Paper Example Be sure to delete any blank pages that appear between the weekly entries. Note: This document will serve as a cumulative journal. For each submission, you will add to the document so it contains all of your journal entries. Using no fewer than three peer-reviewed sources, analyze what you have observed within the context of your specialty using appropriate concepts, principles, and theories, giving special attention to observed events that vary from scholarly literature. (30 points) Explain how the problem, situation, or issue was handled in a manner that is consistent and a manner that is inconsistent with the theory, concepts, and principles detailed in the evidence. (30 points) There was a situation during my practicum experience where a day shift nurse was running over at 7.30 pm consequent to a patient experiencing a seizure 30 minutes prior. The day shift nurse could therefore not hand off all her patients as she was behind schedule. When the nurse supervisor was called, the night nurse stated that the situation would cause her to start her shift late and that it was unfair to her. According to Berkenstadt et al. (2008, p.159), the outgoing nurse must inform incoming nurse in regards to "Patient status and care, treatment and service, and any recent or anticipated changes in the condition of the patient". Conversely, bedside shift reports have become the conventional technique of handing off as it increases levels of patient satisfaction (Wakefield, Ragan, Brandt, and Tregnago, 2012). The fact that the night shift complained of unfairness is proof that she was not inclined towards bedside report hand off as an option as dictated by scholarly literature. A research aimed at establishing effective ways for hand offs cited by Philibert (2009, p.261) showed that "Frequent and time-constrained hand offs may frustrate the aims of the duty hour limits". This finding validates the night shift nurses concern that her shift would be affected. In terms of

The Disciplinary Literacies Project Essay Example | Topics and Well Written Essays - 1250 words

The Disciplinary Literacies Project - Essay Example For instance, within the wholesome body of being a doctor, some doctors choose and study to become dentists, surgeons, or simply perform regular operations, and many other branches. As such, the responsibilities of many doctors are beyond that of the patient (Viklund 96). This trade publication has sought to explore on the general study of doctorate professionalism. Being a doctor is often considered tremendous and tedious. However, many people have managed to devote part of their life and time to engage in studying to become doctors of varied categories in the world. As such, it is upon the nature and innate calling for one to engage in the tedious and time-consuming profession of being a doctor. This profession is mired by its professional ethos, something that has often made it to be a profession with credibility, ethos, legitimacy, and of high value in the human society. According to this publication, ethos form part of the doctorate profession. Training and intense preparation equip doctors with the right approaches and disciplines to be exemplified in the field. The article reiterates that there is need for all doctors to keep their focus on meeting the needs and requirements of the profession since this is one of the statements which rules among the doctorate ethics and cannons of behavior among professional doctors. Doctors are called upon to have good memory so that they can be swift in collecting information. Regularity of study is a necessary entity, which makes professional doctors. This is because research is an ongoing process, which elicits more methodologies and approaches to be used by doctors. Doctors are required to be of high understating power. Within the work of a doctor are measures and approaches, which should be made with little and swift thoughts. For instance, the trading article exemplifies that doctors in India are pressed upon to deliver even at situations with no utmost breakthroughs. Moreover, doctors earn their

Learner Training and Learner Autonomy Essay Example | Topics and Well Written Essays - 2250 words

Learner Training and Learner Autonomy - Essay Example English for Academic Purposes (EAP) is a growing branch of ESP atypical to Higher Education. This can have courses be fundamentally diverse from country to country, especially while English is the medium of instruction for a scientific subject, as it is in large parts of Africa and the Indian subcontinent (Mokhtari, K., & Sheorey, R. 1994). Basically, the goal of pragmatic EAP is to fit students into existing academic and social structures, not to encourage them to question or revise those structures. Feminist pedagogy, on the other hand, assumes a need for greater dialogue across races, classes, and genders to equalize power in society and promote social change (Maher & Tetreault, 1994). When the students' needs consist of "the quick and economical use of the English language to pursue a course of academic study" (Coffey, 1984, p. 3), English for academic purposes (EAP) is offered. The incorporation of writing into the EAP curriculum, however, necessitates collaboration with the instructor in the other discipline, following what Shih (1986) calls the "adjunct model" of many university composition programs for native students. But the development of such programs for ESL students has been slow, and Shih recommends that we learn from existing programs: The potential contributi... What is needed, minimally, is cooperation from subject-area instructors and ESL faculty willingness to step into subject-area classrooms and keep up with class events. For ESL instructors seeking to set up adjunct courses, the experiences of composition adjunct programs already in place for native students are a rich source of information. (p. 640) In the field of EAP (English for Academic Purposes), what might be called the 'traditional' method for instance, in published materials such as the Oxford University Press English Studies Series is to select a number of reading texts, typically simplified, within a particular subject-area, and to affix word-lists, 'comprehension questions' and 'language practice exercises' to them. There are two major criticisms that can be leveled at this approach. First, in looking for passages which are short and autonomous and which will not cause too much alarm or discomfiture to the language-teacher without specialist training in the subject-area. The inclination is to select 'semi-popular' texts (the writer communicating with a wider audience, for instance in scientific journalism) rather than 'academic' texts (the writer communicating with students of the subject, for instance in a textbook; or with his/her peers, for example in a research paper) though it is the latter the student will have to read and not the former. Subsequently, there is the danger that the materials might by stressing small points of linguistic and realistic detail, and by persuading reference to the glossary, be training students in precisely those strategies which has shown to be linked with ineffective language learning. A newer generation of materials for instance, those prepared by the University of Malaya English

Analysis of Biology Questions Assignment Example | Topics and Well Written Essays - 750 words - 16

Analysis of Biology Questions - Assignment Example    Living organisms live together and share different resources including food, shelter, air, water and many more. In a given environment, some organisms may survive while others may not be able to survive at all depending on how well the organism is adapted to the environment. In general, life is all about competition, and only the fit survive. Natural selection occurs under the following four conditions. First, there has to be a variation among individuals in a species such that some traits give a given species an advantage over the other to survive in an environment. Secondly, some of the variations should be genetic, such that the offspring inherit them from their parents. Thirdly, for natural selection to come in play, it is assumed that not every organism survives or reproduces, some will die and others are not fertile and thus can`t reproduce. Finally, reproduction should be guaranteed so that the organisms do not become extinct. 1. Carl Woese, an American biologist, grouped life on earth into three domains, Bacteria, Eukaryote, and Archaea. Archaea-like crenarchaeota are prokaryotes with specialized membrane and can survive in very salty and extremely hot environments. Bacteria are prokaryotic cells like proteobacteria and cyanobacteria. Eukaryotes are eukaryotic cells into which kingdom Plantae, Animalia, Fungi, and Protista are grouped. 2. The scientific theory is a statement that explains the observed natural phenomenon, basing on scientific evidence, for example, the atomic theory of matter. On the other hand, scientific law, are mathematical in nature and are in most cases derived from a principle, they may not be generalized, and they apply under specific conditions, for example, Ohms law.   

Alternative energy Research Paper Example | Topics and Well Written Essays - 1250 words

Alternative energy - Research Paper Example solution to the most critical problems that the world has today, especially in reducing the concentration of carbon dioxide in the atmosphere, which deteriorates global warming (International Energy Agency, "Solar Energy Perspectives"). Solar energy is, by far, the most experienced form of energy due to its accessibility, and the ease of converting solar energy to electricity. Many solar energy conversion technologies present sustainable and promising potentials in providing renewable energy that does not only reduces the cost of electricity but could also deliver effective mitigating solutions to the environmental problems we have today. The International Energy Agency expresses its confidence over the positive impacts that solar energies could bring to the world. The agency states that the creation of low-cost, unlimited and untainted solar energy technologies will have "huge longer-term benefits" (International Energy Agency, "Solar Energy Perspectives"). The energy agency adds that the stable generation of solar power through the use of solar energy conversion technologies will ensure energy security in many countries; and will cut dependence on power plants that use radioactive materials, which are potentially pernicious to human health. It will also lower down the energy cost, improve sustainability, will help reduce pollution, and will lessen the effects of climate change. Therefore, the agency stresses that since this innovative approach requires substantial amount of financial investments, a careful planning must be employed for an efficient expenditure of financial resources (International Energy Agency, "S olar Energy Perspectives"). Normally, the Earth obtains a sizeable load of radiation from the sun. On average, our planet takes at least 174 pent watts of solar energy (Smil 240). Of this, 70 percent is absorbed by the Earth by the clouds, oceans, and ground forms including the mountains and the plains among others. The sun’s rays could either be

Organic chemistry Essay Example | Topics and Well Written Essays - 1000 words

Organic chemistry - Essay Example A careful look at the peaks results displayed by the NMR of the substance is also required. A singlet peak at a chemical shift value of 11.1ppm confirms the presence of the COOH group. Peak at 2.4ppm is due to the presence of the group R-C=O attached to CH. Applying the n+1 rule we know that the methylene or the CH2 group will be able to interact with the three hydrogen of the methyl or the CH3 group, hence (3+1)=4 peaks or a quadruplet is obtained. Similarly the three hydrogen atoms of methyl are ale to interact with the 2 hydrogen of methylene, hence (2+1) =3 or a triplet peak is displayed. The ratio obtained is determined by the relative heights of the respective peaks. Peak at 3330 per cm at the infra red spectrum is due to the high absorption range of the O-H group in the compound, whereas peaks centered at 2900 per cm is due to the presence of C-H bonds in the compound. M-1 peak of 60 is the RMM of the compound (12*3) + (1*8) + 16= 60 atomic mass unit, peak at 31 confirms the presence of CH2OH: 12+2+16+1=31, C2H3 gives peak at 27: (12*2) + (1*3), C3H7O :( 12*3) + (1*7) + 16=59. 3.6ppm value at the NMR suggests the presence of R-OH functional group. The single hydrogen is able to interact with the neighboring hydrogen of the CH2 group hence a triplet is obtained. A singlet peak at a chemical shift of 2.2ppm shows the presence of the R-C-O fragment. 6 peaks at 1.6ppm are obtained due to the presence of R3CH where single hydrogen is able to interact with 5 neighboring hydrogen giving 6 peaks. Triplet of 0.9ppm is present due to R-CH3 as three hydrogen interact with the neighboring 2 of the CH2 giving a triplet peak (2+1). The ratio of 2:1:2:3 provides us the different environments of the protons. Percentages of carbon, hydrogen and an unknown element are 45.9%, 8.9% and 45.2% respectively. Dividing them by their respective relative molecular masses 45.9/12, 8.9/1 and 45.2/35.5, it is found out that the other element is chlorine as the percentage

American Government Essay Example | Topics and Well Written Essays - 3000 words

American Government - Essay Example The three arms of government include the Executive which is headed by the president, the Legislature which is divided into the two Congress chambers of the Senate and the House of Representatives and finally the Judiciary which is made up of the Supreme Court and other courts at a much lower level. The Executive wing of the government is made up of the President, Vice-President and the Cabinet. The president of the is responsible for conducting the federal laws, coming up with new strategies, offering direction on foreign policies and directing the operations of the national defense since he is the chief of staff. He has such powers as offering direction to the government, issuing command to the armed forces and playing the role of enforcing the laws as well as vetoing them. The Vice-presidents main duty is to offer any form of assistance to the president as stipulated by the law and he/she is chosen by the president. The 15 member cabinet which is appointed by the president upon app roval of the senate plays the role of formulating and ensuring the implementation of policies that affects their various dockets. The Judiciary is concerned with the interpretation, application and the determination of any contravention to the laws of the land. The federal government has some exclusive powers that cannot be shared by other levels of the government. The declaration of war is strictly the role of the federal government. It decides on the process of money printing and the number of denominations to be made by the central bank. The decision on the formation and establishment of the various army branches such as the navy lies squarely with the federal government. Signing of international treaties and decision to join any international body is conducted by the federal government. It also plays the role of regulating business activities between the states and other countries as well as formation of laws that assist

Memo - Investment Recommendation for Centagenetix Essay Example for Free

Memo Investment Recommendation for Centagenetix Essay After looking over the material regarding Centagenetix, I have a recommendation as to whether or not MPM should invest in Centagenetix. I realize that we have spent a great deal of time and resources on this project already, and that Harvard Medical School is anticipating that this deal will go forward. I also realize that backing out of the deal now could reflect badly upon MPM and upon you, but my recommendation is that MPM invest in Centagenetix at this point. The main reason is that if Centagenetix is actually able to create a product to increase human longevity, there are some major questions and concerns about first getting this product to market, as well as what conditions this product might carry for measurable efficacy and if the market will be willing to accept them. I will discuss other considerations shortly but I think that is itself a potential deal-breaker. Let us first consider the New England Centenarian Study (NECS). While it is a worthwhile and interesting study, with good correlations between family members and a sample pool large enough to provide preliminary findings, it still has some weaknesses. The two major ones being how geographically centric it is and the size of it. Scientists who study aging have long argued that environment and lifestyle play the largest role in longevity, but Centagenetix is setting out to see if that is incorrect: if there is in fact a heritable gene (or genes) for longevity. It would seem t hat in order to provide a strong argument that the study reaches beyond environment, there should be more samples from areas beyond the eight towns around Boston that the NECS used. It could also be a problem that the majority of the centenarians used had no history of smoking or obesity and were generally small in stature. Granted that using these samples, they found a linkage on chromosome 4, but this does not seem to match the homologous zones for longevity in the previously studied model organisms. There are possible correlations on other chromosomes that track with those model organisms, but the patent that they filed is for the 10 million base pair region on chromosome 4. I am also concerned that the first attempt to scale the study to a larger population resulted in a noteworthy decrease of the linkage’s strength. Scaling it up further restored the statistical strength of the linkage, but the overall strength and valuation of the IP remains in question. We also need to consider the possibility that this 10M bp region will contain genes that other groups are already studying and that the patent is not strong enough to survive a challenge. It is possible that these longevity genes will be related to insulin receptors or free radical management: two areas that several groups or companies are already studying. How strong will the IP remain when there is competition for these hypothetical genes? If that is the case, the company’s major resource will be its SNP datab ase of centenarians, which will cost at least another $10 million to get to a functional state, plus more money to expand and maintain it. I have not seen any market analysis as to how much companies will pay for access to such a database. While Millennium has a somewhat similar model, they are much more pro-active in what they offer their clients, and that is what arguably drives their profits. The database will be valuable, but just how valuable is an important question. We need to know what the likelihood is that building such a SNP database will turn a profit, who specifically would be interested in paying for its use, and how much they would pay. In addition, would Centagenetix receive any royalties or payments for products based off findings from that SNP database? These are important considerations, especially if the possibility exists that the SNP database will have to support the company for any protracted amount of time. There remains a conflict-of-interest issue with Tom Perls and Harvard. If he can be enticed away from Harvard, the study that the company is based on will potentially no longer be available. Perls will be a key founding member of Centagenetix, and is expected be motivated and incentivized to work hard. Without a stake in the company, it remains unclear if that will happen. We also need to consider that if Perls does leave Harvard, will BIDMC still allow Centagenetix the use of the NECS, or should we re-consider the proposal from Whitehead to buy them out? The value of the IP revolves strongly around the NECS and Dr. Perls’ work. There needs to be a much clearer sense as to if or how these issues will be resolved, or else MPM might own a major stake in a company that will require a much larger investment to restore the IP we have assumed they already have. Finally, I want to return to my main point: Aside from a SNP database, what is at the end of the Centagenetix pipeline? Let us assume that they do find a gene or several genes that directly relate to longevity and are not in conflict with another group or company, that they can find the function of these genes, and eventually develop a product built on that discovery. Presumably, the function of this product would be to increase longevity in humans. How would they run clinical trials for this, and how long would they take? If the measure of success is how long someone lives, might not the trials take far longer than is feasible for us to provide funding? Assume that they get past pre-clinical trials; will the FDA even allow such a product to be tested? I th ink that we need to know more about how the FDA would approach such a product, as it seems like the regulatory hurdles for this will not be what most pharmaceutical companies are accustomed to. They are not trying to treat or effect a disease state, but rather to increase longevity. Granted that Ponce de Leà ³n spent much of his life searching Florida for the Fountain of Youth, and that a product like this will appeal to the general public, there is likely to be some serious regulatory and clinical trial hurdles to get it there. We also need to consider how the medical community and public will react to such a product. It seems likely that, given how many of the subjects from the NECS lived relatively healthy lives, the product will have some stipulations about health for maximum efficacy. If the public is required to not smoke, or be obese before this product will work for them then that will significantly affect adoption. In addition, how would the medical community respond to so mething with claims of increasing longevity? I think it would be highly skeptical and cynical. There will be difficulty in both convincing doctors to prescribe it, as well as getting payers to compensate for it. This will presumably be a product that patients will take for the rest of their lives, meaning there will likely be a struggle for both adoption and compliance. The only real gauge of such a product will be how long someone lives, and it will be challenging to demonstrate proof that any increase in longevity is a direct result of Centagenetix’s product. Significant market research needs to be done that considers the varying scenarios for adoption and lifestyle changes, to see if the market size is as big as one would expect it to be. In closing, I acknowledge that other products may come out of Centagenetix that are related to actual disease states or physiological processes. It is possible that they will develop an impressive and profitable drug that is related to the longevity of the patients of the NECS and be yond. Heck, they may even discover the cure for cancer. Even so, there are far too many unknowns and uncertainties in this proposal. The strength of the IP is in question. The availability of the NECS and even Dr. Perl is uncertain. What an end product looks like and what sort of market exists for it. How much more money it will take if they need to build a SNP database to remain in business, or if they have to do another NECS-like study of their own. The risks and uncertainties are sizeable, and the question about actual market size is significant. I do not think that MPM should invest in Centagenetix at this point.

Gate Gourmet Swot Analysis

Gate Gourmet Swot Analysis I choose Gate Gourmet as an organisation for use as case study. It is headquartered at Zurich-Airport, Switzerland and is the worlds second largest airline catering company, providing catering services to many of the worlds major airlines, such as British Airways, Swissair, United Airlines, Delta Airlines, Virgin Atlantic and Cathay Pacific to name just a few. The scale and complexity of the Gate Gourmet operations is high and it operates in global environment in an industry that is highly competitive and cost sensitive. This gives an opportunity to evaluate the macro and micro environment in line with the strategic options that Gate Gourmet has. Task1 (B) There are several practices that are used for strategic planning in the industry today and the choice of these are driven by factors such as type of industry, market realities, competitive pressures, size of the business and of course the culture and ethical practices of the organisation. Planning horizons have now considerably shortened considering the dynamic nature of business of the 21st century. The horizons have now become 2-3 years. There are however several best practices that have emerged from what is observed across industries: Stretch goals are an imperative to make strategic thinking more out of the box Planning processes are now regarded as evolving and flexible and it is to the organisations credit how quickly it can course correct. With the understanding of importance of stakeholder buy in and support there is an emphasis on communication in the strategic plan. This is an integral part of the quality planning in the strategic planning. Detailed plans are now created to tie the objectives to activities and outcomes. An organisations competitiveness is now determined by a set interconnected core competencies and not by a single core competency. This has emerged from the understanding that there are various organisational aspects that go into building a competitive advantage. In addition to the best practices mentioned above, there are some theories and frameworks that support the strategic planning: SWOT analysis for environmental analysis Porters 5 forces theory for environmental analysis Strategy as an ecology to understand the competition Balanced Scorecard approach McKinseys 7-S model to understand how the organisational factors help drive its operation strategy Ansoffs matrix to define the service or product strategy BCG and McKinsey matrix to review the product portfolio Value chain analysis as to how the organisation is adding value and interacting with its ecosystem Core Competency approach for deciding differentiation approach Top down or bottom up approach for participation and communication Strategic narratives that help in framing and analysis of strategic options Task 1(C) For Gate Gourmet to formulate its strategy, we must look the following: Environmental analysis and the position of Gate Gourmet relative to its environment. I would recommend using Porters 5 forces and SWOT as it will help us understand both the macro and micro environment and link it with the Gate Gourmets position in the competitive landscape. Since the industry of inflight catering is defined largely by operational excellence, we can use the 4-V analysis to understand the areas of operational excellence that can be used to differentiate, not merely to drive operational efficiency, but also to achieve competitive advantage. The SWOT will also then help us understand the core competency of Gate Gourmet and if that fits with the differentiation strategy that will help it achieve competitive advantage. From the core competencies, the balanced scored card can be used to outline the business objectives that will help leverage the core competencies and achieve competitive advantage. These objectives will be defined across financial, customer, human resources and knowledge management aspects of the organisation. Task 1(D) Relevant theories for the marketing plan for Gate Gourmet are product Life cycle management using Ansoffs matrix and BCG matrix, service marketing strategy and innovation based marketing strategy. Looking at the product life cycle of the inflight catering business, we understand that the business is a mature business and therefore will require innovation and service differentiation focus to compete. Also, BCG matrix will help Gate Gourmet evaluate the services and geographies that can be dropped from its portfolios and the ones that need to be consolidated and invested in. Ansoffs matrix will help Gate Gourmet to decide the innovation strategy through new product launch. This will help improve its utilization of the supply chain resources and the investments and thus help reduce its per unit costs. Task 2(A) There are 2 general strategic options that are available to Gate Gourmet: Cost Leadership and Differentiation. Let us look at the relative advantages and disadvantages: Cost Leadership: Gate Gourmets business drives the need for it to be increasingly efficient as its airline customers face heightened cost pressures due to the changing business and economic scenario. It operates in a business which is low margin and increasingly coming under further squeeze. Hence Cost leadership is a requirement for business in this industry in the in flight catering business. It cannot be a source of competitive advantage. Differentiation: Given that efficiency focus is a requirement or a qualifying criterion in the industry of Gate Gourmet, what can lead to a competitive advantage is through a differentiation strategy. Quality and flexibility are areas that can help Gate Gourmet differentiate itself to its competition. However, focus on quality and flexibility will lead to overheads that can act against the cost leadership requirement. Therefore Gate Gourmet will also need to have a robust operational strategy to drive the quality and flexibility differentiation with cost leadership. Task 2(B) The following are Gate Gourmets key stakeholders: Employees and contractors: The strategy of flexibility and consolidation will impact the employees as Gate Gourmet will have to resort to lay offs for its permanent employees and look at flexible hiring model to suit its operations. Raw Material Suppliers: Gate Gourmet will have to look at creating a deeper alliance and information sharing to implement its strategy of flexibility and quality focus. This will happen though further integration of their systems and through real time information sharing. For cost leadership, Gate Gourmet will need to get into longer term contracts and choose strategic suppliers that can offer it better unit prices. Supply Chain/Logistics partners: Gate Gourmet will need to have more integration and alignment with its supply chain partners to put in place a quality and flexibility strategy. It will need to agree with them on standard quality practices to ensure consistent quality experience creating the competitive advantage that Gate Gourmet is looking at. Airlines: Flexibility and cost leadership will require Gate Gourmet to receive information from its airline customers in real time. Gate Gourmet will also need to have Task 2(C) The following are the key areas that need to be paid special attention to by the management team implementing the strategy: Communication The communication of the strategy, its objectives and the rationale behind that needs to be clearly articulated and communicated to the employees. This is required to create the appropriate buy in from them. The communication also needs to be planned to the customers of the organisation to share with them how the organisation is changing for the better and aligning to the market and competitive requirements The partners of the organisation also need to be informed and aligned with the changes so that they too can change their work practices to align with the organisational strategy. Organisation design The organisations structure needs to support the new strategy and ensure that the execution is supported by the new organisation This will also ensure resources are allocated efficiently and minimise the waste Training and development Training programs need to be implemented for the new and existing employees to close the information and skill gap required to execute the new strategy Investments into Systems and Integration For close integration with the partners and customers of the organisation systems need to be put in place to support this. The organisation will need to invest in infrastructure and work practices to put these systems in place Contractual Strategy Serviced Based and Strategic partners The contractual relationships with the partners may need to be revisited and consolidated in view with the new strategy Also existing partners may have to revisit the service levels and scope of the contractual relationships. Task 2(D ) Communication Organisation design Training and development Task 3 Develop vision, mission, objectives and measures of these Task 3(A) Vision statement articulates how the organisation sees itself in the future, in fact it is the long term goal for the organisation which it strives to achieve. Ideally this goal should be such that it can never be achieved by the organisation and it should serve as the drive for the organisation. A mission statement is more of a goal statement for a fixed tenure of time and is usually derived from the Vision statement. From the mission statement the organisational objectives year on year can be derived. Value of the organisation defines the principles and ethics that the organisation abides by and holds dear. These could be targeted at doing business in a specific way, or giving high consideration to employees and customers. These are principles that are considered to be above the business objectives and are the fundamentals on which the company envisions its future. There are many ways in which these can be measured. A representative way of doing this is evaluating how customers and employees believe the organisation is doing business keeping in mind the vision, mission and values. Also, employees can be interviewed to determine how their individual values are aligned to organisational values and if they hold the latter close and let it reflect in their working. The prevailing organisational culture also reflects how the vision, mission and values are absorbed by the different stakeholders of the organisation. Another way of measuring the effectiveness is to determine how the organisations performance management system is aligned to the mission and goals that have been set and how these are supported by the training, development, mentoring and coaching in the organisation. Task 3(B) Gate Gourmet abides a set of brand values and that drives its vision of its business. The Gate group was established as a master brand to reflect the growing diversity of the business. The shapes making up the outline of a star in the logo symbolize Gate groups individual companies and their vast range of capabilities. The points on the star represent the brand values with which we make every effort to serve our customers: QUALITY We deliver best-in-class products and services. INTEGRITY We pledge an ethical and trustworthy relationship. RELIABILITY On-time and with a clear focus on safety. VALUE Optimizing value for you throughout the supply chain. FLEXIBILITY One size does not fit all. We are attuned to your needs. PASSION We lead through innovation and inspiration. RESPECT We celebrate the diversity of cultures among our employees and customers. RESPONSIBILITY We strive to protect the environment and to be a good corporate citizen in our communities. The companys website gives the following information on its mission statement: Customers prefer us because passion shines through everything we do. We measure our success by the success our customers enjoy. (Refer: Source 2) Task 3(C) The organisations cultural and ethical environment provides a mean for realising its vision and mission. These are execution ingredients that it requires to attain the vision and mission that it has set for itself. The culture and ethical conditions are determined by how the employees and partners of the organisation have adopted and aligned with the vision, mission and strategy. It is important to note that without these supporting factors, even the most well crafted vision, mission and strategy cannot be implemented. The stakeholders need to align with these and the McKinseys 7-S model reflects how these factors interact with each other and determine how vision, mission and strategy get implemented. Task 3(D) Gate Gourmet operations can be described as extremely complex requiring optimized efficiencies and responsiveness at the same time, where it must be able to achieve very stringent operational objectives in an extremely competitive, dynamic business environment. Some of its operations objectives are listed and evaluated below along with relative importance of criteria selected for evaluation, conflicts with other objectives and how Gate Gourmet accommodates these changes Driving lower costs through economies and processes Due to the nature of the competition in the industry, and where customers are always looking drive costs lower to increase their profitability, the cost per meal that Gate Gourmet charges to its customers would directly impact the amount of business that it is able to generate from its existing and new customers. Flexibility, responsiveness to changing customer needs and ability to operate in an dynamic environment Though the company has to offer very competitive pricing, it is also very important that the company that it is very flexible to the constantly changing customer requirements and is able to deliver the product and service that are closely aligned with customer expectations. As can be seen from the case, the final requirement for a particular flight is not known till hours before the flight and even that could change due to last minute cancellations or new booking, due to which they have to operate in a just in time fashion, of being able to come up with delivery at the moment the customer requires it. Maintenance of highest quality standards As Gate Gourmets customers are airlines that are extremely conscious of offering the best to their passengers and also ensuring that they have good branding as a company offering the highest quality experience, they would want to ensure that the food that is served on their flights is of the highest standards and that various processes are followed for maintaining quality and consistency. [Critical success factors for Inflight Catering services: Singapore Airport Terminal Services practices as management benchmarks , Type: Article, Case study, Author(s): Zeph Yun Chang, Wee Yong Yeong, Lawrence Loh, Source: The TQM Magazine; Volume: 9 Issue: 4; 1997] Reliability and service guarantee In addition to the above discussed factors, a very important operational objective for the company to achieve would be the ensure very high reliability in the services that it provides and also providing very high service levels that would ensure its customers business work as smoothly as possible. [Critical success factors for Inflight Catering services: Singapore Airport Terminal Services practices as management benchmarks , Type: Article, Case study, Author(s): Zeph Yun Chang, Wee Yong Yeong, Lawrence Loh, Source: The TQM Magazine; Volume: 9 Issue: 4; 1997] Seamless communication and working with a vast array of partners in a global supply chain As discussed above, the operation of the company, due to the scale at which it operates is very complex where it has to coordinate multiple aspects and work with multiple partners and customers to deliver the required level of service, it is a very important operational objective that there is a very high amount of information sharing and close working together across the entire value chain that would allow for planned service delivery. This is again an important objective and is aligned with the other objectives that ensure that the company is able to deliver. Task 4 Explore the implications of changes in the general and marketing environment for organisations Task 4(A) Let us start by analysing the typology of Gate Gourmet which will then set the context for relevant objectives for Gate Gourmet. This is the key to understanding operations and any gaps in their performance: Volume: Clearly Gate Gourmet completes a high volume of daily transactions across its supply chain with 534 thousand meals a day worldwide, on average 195 million every year. It has 115 flight kitchens in 30 different countries, in locations as diverse as Hawaii, Los Angeles, Buenos Aires, New York, Madrid, London, Bangkok, Sydney and Tokyo. Also, it emphasises working in unison with cleaning staff, baggage handlers and maintenance crews to ensure that the aircraft are prepared quickly for departure. Variety: Gourmet Gate faces variety across its airline customers and also within its customers due to the geographical spread of the airline operations, the customer needs differ. Creating a high variety situation for Gate Gourmet. To summarise we the following drivers for variety: Geo disperses airline organisation Geo dispersed end customers Customizations of the end product required based on airline/geo Variation in demand: Gate Gourmet faces mediocre variation in demand that typically emerges from the change in booking status of passengers which is the nature of the airline industry. While demand variation can be high during emergency situations as had been the case during the aftermath of September 2001. Visibility: The Gate Gourmet operations are not customer facing while they supply a product and service that impacts the end customer experience for their airline customers. Task 4(B) Give the 4 V analysis, we need to look at the implications for Gate Gourmet: High transaction volume would mean capital intensive operations for Gate Gourmet which will help it drive high repeatability and lower its unit costs as the volumes increases and economies of scope kick in. Gate Gourmet will also pay attention to introduce specialisation in its operations and allocated its resources as per the areas of specialisation these will be in terms of the geographic operation of the airlines and the airline itself. High variety in its business would mean Gate Gourmet operations to be flexible and aimed to meet the customer needs. The complexity that this introduces in the operations increases the unit costs. Variation in demand is though mediocre, but the Gate Gourmet needs to be in touch with demand and have the ability to anticipate the demand fluctuations and flexibility to cater to these demand variation. Capacity redundancy may not be crucial as there is no regular high variation in the demand. This factor also drives the unit costs upwards. Visibility of operations for Gate Gourmet is low for the end customer, therefore is a delay between the production and consumption of the product of Gate Gourmet. This allows for higher standardisation and staffing with resources with low contact skills. This allows high staff utilisation and centralisation of production therefore driving the unit costs down. The analysis and implications leads us to the objectives that will be key for meeting Gate Gourmets customers and end customer expectations: Dependency of delivery Order Qualifying criterion Speed of response Order Qualifying criterion Cost Order Qualifying criterion Quality Focus Order Winning criterion Flexibility- Order Winning criterion While the high volume and low visibility of the operations help Gate Gourmet standardise the operations and resourcing driving down the unit costs through economies of scope. They have also reduced the number flight kitchens by 10% from 115, when the case was published, to 97 currently and also their daily volumes have gone up by 10% hinting at strong economies of scope driving their unit costs lower. While the need for high variety and medium variation require its operations be flexible and integrate with the customer demand scenario. This drives the unit costs upwards and creates a challenge for gate Gourmet in this low margin and low cost business. Task 4(C),(D) Organisation Design: Gate Gourmet advocates the concept that the organisational structure should reflect the core processes undertaken by the business, with a manager given responsibility for each process. Under the traditional structure, if there is a problem with servicing a flight, no one manager would be responsible-the fault might lie with the purchasing manager for not ordering supplies, the equipment manager for not having the right equipment, the production manager, or the transportation manager. So, some caterers have now organised their production units based on core processes. Gate Gourmet in Geneva (Emad, 1997) identified these as Equipment Handling, Customer Management, and Goods Supply and Preparation Speed of Response: Gate Gourmet integrates tightly with its upstream and downstream supply chain partners through transparent and real time information sharing through the SCALA and e-gatematrix ensuring that the same information is available to all the partners at the same time; demonstrating backward and forward integration for creating competitive advantage. They have integrated the SC partners giving the last mile reliability to their end-customers, though they function as different organisations the information sharing couples then tightly and helping them reach rapidly to changes in their environment. It has created standardised menus in SCALA to ensure consistency and repeatability in its menus. Quality Focus: For quality Gate Gourmets global team of talented and accredited chefs is ready to serve your catering needs and deliver on your vision. (Source: http://gategourmet.gategroupmember.com/index.php/culinary) Gate Gourmet has instituted a total quality management initiative that is aimed at inculcating process quality than relying on inspection quality. This initiative is called Airline Catering On The Move Global Service Excellence and has been implemented internationally across its network of operations. This program was developed through the expert support of Dr. Donald Fisher, a globally-acknowledged expert in the quality management field. Dr. Fisher, of the Mid-South Quality Productivity Center (MSQPC). Dr. Fisher has been acting as an external consultant and has been instrumental in this initiative by bringing in his global experience and expertise. This alliance has been particularly valuable as Gate Gourmet operates in an international context as well. (Source: http://www.msqpc.com/Newsletters/Spring2003.pdf) (Source: Title: High flyer Author(s): Bettye Wells Miller Journal: Managing Service Quality) Flexibility Customer requirements of Gate Gourmet are such that it needs to assemble meals as per the specific guideline provided. Also, the packing and loading onto the service trolleys are as per specification. These service trolleys are loaded onto huge coolers and into loader trucks to send to the aircraft galleys just before the take off. Gate gourmet operates nearly 1700 of these vehicles and many of these are already equipped with cooling systems, cameras and state of the art engines to meet with the strict FDA regulations and also comply with the environmental guidelines. Cost Focus: Gate Gourmet also follows aggressive HR policies to manage its human resources and ramping down based on changes in its customer demand. It also got into union issues due to these practices in the UK in 2005. (Source: http://www.itfglobal.org/solidarity/gategourmet.cfm) Gate Gourmet is also looking at moving from permanent employee base to flexible staffing practices again in an attempt to be flexible and responsive. (Source: http://news.bbc.co.uk/2/hi/business/4153366.stm) It is reported to making losses globally and trying to revamp its operations to stay profitable. (Source: http://www.nytimes.com/2005/08/15/business/worldbusiness/15iht-gate.html?_r=1) Gate Gourmet is consolidating its partnerships and acquiring logistics companies to allow it to backward integrate focussing on driving its unit operational costs lower. It is also looking at longer term contracts with it customers to assure a business volume over time. It is also innovating and getting into new lines of business to improve utilisation of its supply chain reduce its cost of operations and also drive top line growth. Gate Gourmet has entered into an alliance with ARINC Inc. (leader in onboard retail management). They are working together to promote on board sales programs for the worlds airlines and rail systems as well. This is helping Gate Gourmet improve utilization of its resources and reduce idle time. (Refer: http://www.arinc.com/news/2008/04-30-08.html) Gate Gourmet has also diversified into non-airline catering where it can use its existing supply chain to service on-land and train passengers as well e.g it has teamed up with Starbucks and railways in Portugal. (Source: http://gategourmet.gategroupmember.com/index.php/culinary/non-airline-catering) (Source: Title: Developing new products and services in flight catering Author(s): Peter Jones Journal: International Journal of Contemporary Hospitality Management) Task 5 Plan for the implementation of a general or marketing strategy. Task 5(A) The mission and goals will help determine the business objectives that the organisation needs to achieve. Also, timelines for achieving these objectives can be set based on the mission and macro environmental factors of the organisation. The objectives and the timeliness can then be broken down into lower level objectives and activities with shorter timelines. Each of these activities will be assigned to individuals with responsibilities and also resources required to complete these activities. Each of these activities will have outcomes outlined and linked to the key performance indicators. These can then be established as milestones and linked to the key performance indicators that can be used to review the milestones and activity status. Therefore the timetable will consist of the following key elements: High Level objectives Low Level Objectives Low Level Activities Estimated duration of completion Milestones Responsible individuals and departments Resources required to complete the activities Desired outcomes KPIs to be used to evaluate milestone status Task 5(B) Task 5(C) While crafting a strategy, key performance indicators can be determined at the time of planning. A balanced scorecard typically helps determine the required KPIs along the different areas of strategic importance. Also, targeted values for these KPIs can be established during the planning process and how these need to be re-visited with time. The data required for these KPIs can be collected regularly and published as per a pre-determined schedule. These KPIs can then be compared to the target and a root cause analysis be done for those KPIs that are off the targets. Corrective action can then planned based on the root causes determined. Task 5(D) Post the difficulties that the customer airlines of Gate Gourmet were facing, Gate Gourmet decided to go with an approach of flexibility and to be able to match its cost structure with the changing financial situation of its customers. It decided to model its workforce requirement to this strategy as well and laid off workers in UK and US. However, there was an immediate backlash of these lay off specially in the UK leading to major business disruptions in Heathrow airport leading to grounding and delay of several flights prominent airlines. This had not been factored in by gate Gourmet management and they had to go for significant damage control measures post this fiasco. This indicates why Gate Gourmet should have monitored proactively the effects of its flexible strategy. The decision of the Coca Cola company to expand its operations in India as ap art of its Asian strategy was faced with issues when its expansion in Southern India was faced with stiff resistance from the local population and community on the detrimental effects of the factories on the ground water table. This again demonstrated the need to the company to monitor and factor in the community aspects of a strategy.

Richard Wrights Black Boy as a Catalyst to End Racism Essay -- Wright

Black Boy as a Catalyst to End Racism Around 2000 B.C., Egyptians enslaved Jews in bondage like caged animals because they were targeted as a lesser race and thus chosen for labor. Just 1500 years later, the Jews themselves were the culprits of racism labeling the very association with Samaritans as a deep sin. In 1861_1865, the United States divided brother against brother in one of its bloodiest battles of all time over black slavery.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Racism survives not simply as an intangible historic fable but as a real modern problem, also. In current civilization Arab Palestinians war with Israelis to find a homeland; the Ku Klux Klan draws its biggest membership influx in over 20 years; and in the U.S. where freedom reigns, Americans have never to date voted a person into the president's office who was not a white male. Denny's restaurants, Texaco gas stations, and Avis car rental are a few of the number of national companies accused of extolling racism in this "apartheid America." Although less subtle in the lives of Americans then, racism also thrived in the souls of people living during the 1920's. Even though the war on slavery was over in the battle fields, white racists were blood thirsty lions at heart, as was demonstrated in the book Black Boy.     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The setting of Black Boy is in the deep south of Jackson, Mississippi where whites attempted to tame into submission blacks by hard discipline. Such was the case for Richard in Black Boy, his autobiography. It seemed that the more Richard gained success, the more he was hurt. In Black Boy, Richard is abused by whites because he reminds the whites of their lack of identity and failure to meet society's expectations.   Their lives became bland... ...elf_imposed humility, the person gets a sense of gratification in his life. He now knows that he has a good reason to keep going. Eventually the person will also receive that same love from others. Therefore, a new source for positive gratification and love is created, making racism obsolete.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   These principles have not been fully successful as people are naturally more willing to be lethargic than active, more likely to be followers than leaders, usually submit rather than stand up for themselves. They need courage. The courage must come from the love within, it must be true courage. For some, it doesn't come naturally, but with one strong foot forward, and a heart for others, racism can be defeated and the world can live in peace and equality. Works Cited: Wright, Richard. Black Boy (American Hunger): A Record of Childhood and Youth. 1998 ed.

A New Genus of Hominins Found in Kenya :: Anthropology Essays Paleontology Papers

A New Genus of Hominins Found in Kenya Whenever finding new fossils, most people get excited in learning more about the mysterious history of life on earth. No one fossil finding may be more important than another, but when discovering a fossil that adds a new genus name to a species, it gets exciting. This is especially true when the fossil gives more insight to the evolution of humans. In Kenya, a new genus of hominins was found. The new genus was assigned because this hominin had a combination of derived facial and primitive neurocranial features. This hominin is guessed to be about 3.5 million years old. The findings lead the scientists to an early diet-driven adaptive radiation, which gives insight on the craniodental features, or the structure of the skull and mouth. The name of the species is Kentanthropus platyops (the Flat-Faced Man of Kenya). This fossil was found in a rugged desert-like site on the western shore of a lake in northern Kenya. This is by the Topernawi river drainages in Turkana district in northern Kenya. This fossil is known to be twice as old as Lucy, a famous Australopithecus afarensis, which is only about 1.8 million years old itself. The age of this fossil has been established because it was found in between layers of different aged soil. Eight meters below the Tulu Bor Tuff and 12 meters about the Lokochot Tuff is about 3.5 million years old, this is an area called Kataboi Member where the type of specimen is found. The paratype is from lower Lomekwi Member, seventenn meters above the Tulu Bor Tuff, estimating at 3.3 million years old. Kentanthropus platyops is estimated to be about 3.5 million years old itself. The age can also be estimated aroun 3.5 million years because hominin findings from Lomekwi, two mandibles and isolated molars have previously been found, which indicate the time period. The skull was found amongst a temporal bone that was well-preserved, two partial maxillae, some isolated teeth, and an extremely complete, yet distorted, cranium. The most astonishing thing about the skull is that it looks remarkably similar to that of a human skull. Note the platyops, platus coming from the Greek word that means flat, and opsis, meaning face. Thus making the name "Flat-Faced Man." Of course there are many differences than a human skull, but it is extremely similar to that of one.

Calculate the revised product costs for the four pens Essay

1.Calculate the revised product costs for the four pens, based on the activity information collected by Assignment: This case may be completed in groups of two or individually. You are responsible for finding a partner if you choose to complete the case with another student. Purchase and read the Harvard Business School Case: Classic Pen Company: Developing an ABC Model located at the following link: https://cb.hbsp.harvard.edu/cbmp/access/27312446. (Note: The last case for the course, Foxy Originals is also contained in this course pack and should also be purchased for your final case). After reading the case, perform the following: 1.Calculate the revised product costs for the four pens, based on the activity information collected by Dempsey. Prepare this analysis using an excel spreadsheet (please print out the spreadsheet on one page – it should fit). 2.Prepare a new Income Statement, using excel or word, for Classic Pen (by product and in total) using the ABC cost information (please print this out on one page). 3.Compare the ABC Income Statement to the Traditional Income Statement presented in the case. 4.Based on this comparison, write a memo, to me, addressing the actions this new ABC cost information could stimulate Classic Pen to pursue. Be thorough while still maintaining strong business writing skills: conciseness; clarity; critical  thinking; readability; proper use of grammar, punctuation and spelling. The memo should be prepared in Microsoft Word or a comparable word processing application, use 1 inch margins, times new roman 12 point font, single spacing and not exceed 2 pages (this does not include your supporting spreadsheet data 1 and 2 above). 5.Turn in your memo and supporting data in class on Thursday, June 12, 2014. Please note: It is a violation of the academic code of ethics to refer to case notes or solutions obtained through the internet or from people who previously performed the work or studied the class materials, cases or projects. Use of any of these materials will be considered plagiarism. Not only will this not help you on the course exams and CPA exam; it will cheat you of the academic experience. It is the responsibility of every student to report anyone who violates this principle. I reserve the right to request submission in electronic format and have access to plagiarism detection software. You are free to discuss this case with other students; however you (and your partner if applicable) must produce your own set of work to be turned in as your deliverable. Use of someone else’s work in any form will be considered plagiarism and dealt with accordingly. I am available as a resource but I should be viewed as a â€Å"last resort†. I will answer specific questions but I will not frame the deliverable or pre-screen your work prior to submission of your final deliverable. The calculations in this case are quite straight-forward, the more challenging part of the case is framing your response to question 4 and it is good practice for you as current/future business professionals. There is not â€Å"one right answer†; your response should, however, be logical, critically thought out and well communicated. Good luck!! A Note on Business Writing: Effective business writing is critical to your future professional success. In addition, the AICPA evaluates candidates’ writing skills in the computerized Certified Public Accountant (CPA) Exam. Please use this case as a chance to practice your business writing. A great resource to use if you feel you need help in this area is the following: Effective Writing: A Handbook for Accountants; Claire B. May and Gordon S. May; Pearson Prentice Hall. The Uniform CPA Examination consists of multiple-choice questions and condensed case studies called simulations. Each case study simulation will include a writing skills exercise. In this portion of the exam, candidates must read a situation description and then write an appropriate document (â€Å"constructed response†) relating to the situation. The instructions will state what form the document should take (such as a memo or letter) and its focus. The candidate’s response should provide the correct information in writing that is clear, complete, and professional. Only those writing samples that are generally responsive to the topic will be graded. If your response is off-topic, or offers advice that is clearly illegal, you will not receive any credit for the response. Constructed responses will be scored holistically. Scores will be based on three general writing criteria: Organization, Development, and Expression. Organization: the document’s structure, order ing of ideas, and linking of one idea to another: †¢Overview/thesis statement †¢Unified paragraphs (topic and supporting sentences) †¢Transitions and connectives Development: the document’s supporting evidence/information to clarify thoughts: †¢Details †¢Definitions †¢Examples †¢Rephrasing Expression: the document’s use of conventional standards of business English: †¢Grammar (sentence construction, subject/verb agreement, pronouns, modifiers) †¢Punctuation (final, comma) †¢Word usage (incorrect, imprecise language) †¢Capitalization †¢Spelling

Financial analysis Essay

The analytical audit of the company’s capital structures of the two companies shows that shows Arizon is highly geared as compared to AT & T. Gearing AT& T is 43. 3% for long term debt and 51. 76% for total equity which is not very high. In case of Arizon, the ratio is very high at 59% for long-term debt to equity while total debt to equity is 74. 91%. The Verizon case indicates that the firm does not have sufficient and steady internal financial resources to finance its assets. These get depleted compelling management to use external financial instruments. This usage of external sources to finance its assets increase chances of the company suffering financial risk that may lead to bankruptcy after technical default. The audit of inventory ratio of the two companies supplied reveals a AT $ T does not have stock while verizon has. This may be that AT & T is a service sector or in the business of manufacture at order or operate Just In Time method of stock refurbishing. While Arizona has inventory which is increasing gradually except in year 2004 when it down from 1. 50% in year 2003. we are not supplied with income statement to be able to determine the firms’ efficiency in utilizing its resources (inventory) to generate sales is. The close analysis of the two companies ratios provided indicates that AT $ T payable account that fluctuates from time to time. While Arizona have payables with down ward trend. This indicates that Arizona is managing her trade creditors well as compared to AT & T. if payables are not well managed may cause financial stress to the company. The working capital of the Verizona contains a significant proportion of cash fluctuating from time to time. In case of AT & T it is insignificant and it is in the down ward trend. The firms cannot therefore, meet its obligating with the most liquid resources. Additionally, there are no marketable securities that can be easily converted into cash when a financial need arises. What this implies is that the firm may find it difficult to meet its short term maturing financial obligations as and when they fall due for payment. The same conclusion about financial position can be made using both the acid test and cash ratios. From the ratios, the firm’s ability to meet its financial obligations from the liquid assets is also questionable. REFERENCES Luecke R (2002) Finance for Managers; Harvard Business School Lindsay R. (1967) Financial Management, An Analytical Approach; R. D Irwin, 1967

Leadership in Health and Social Care Essay

Use and Develop systems that promote communication. Evidence: †¢ TC Refresher Training 25/06/13 †¢ Picture Hygiene Chart †¢ Aspergers Training Certificates †¢ Minuets from TC updates †¢ Various support plans (Stated Below) †¢ Pictures of TC boards †¢ Feelings chart for RL In the services that I manage there is a range of individuals with different communication barriers. In Rivendell one of the services, I have a gentleman SG with very poor hearing and no verbal communication. Myself and the team at the service use Signs, pictures, Symbols and Widgets to communicate with him. We also have a lady LW at the service who has very little verbal communication and what she does say is often in her own way of communicating which at first not everyone understands. She can hear but cannot always understand or take in everything that people say to her. She responds to the welsh language much better. We again use signs, pictures and widgets to communicate to LW. There is another gentleman there DB who can communicate and hear but can get easily distracted so Pictures also work well with DB. In Gwel Afon another service, I have 3 gentlemen who can read and communicate however they like to have pictures and symbols to help them with things. For example they have an accessible chore chart and I did make one gentleman a picture hygiene chart to prompt him to shower / shave etc on certain days as he would tend to forget. I also manage a service called Glanadl where two gentlemen live, they are both very independent and can speek for themselves. However one of these gentlemen cannot read so we do support him with this. I have two gentlemen in my services who have Aspergers, even though they can communicate they can sometimes struggle to understand what you are saying to them or take it the wrong way. As manager of these service I ensure that all of my employees have the correct training to support these individuals. All employees from Rivendell that use widget and TC have been on the Total Communications Training, they also receive a TC refresher every few months. I have assigned SW a support worker at the service to be a TC co-ordinator and he does a TC induction with all new starters before they go on their training. For employees that work with the two gentlemen with Aspergers I requested Aspergers training which was tailored around the two individuals and their communication in particular. I will have meetings with the Speech and Language department at C.T.L.D every few months to discuss the current Communication systems in place at Rivendell and review them. We are currently looking into getting IPAD’s at the service to improve communication as it was proven very beneficial in the trial the individuals had. When I took over as manager in the Rivendell service I felt that the communication systems could be improved. I worked with the team to improve the communication systems by getting more wigets around the service, we set up a TC board in individual bedrooms. We also set up a TC board in the hall way with activities on. When we received the timetable from the SAC for each individual it was all written out so none of the individuals would understand it. I asked my Team Developer at the service to re-do these timetables with the relevant symbols and pictures and these are working really well. The individual files of each persons support I manage are tailored to them, If they have communication barriers and respond well to pictures then we use pictures aswel as writing in their files so they can be involved in there support plans. See DB & SG support plans. Each individual has there own support plans and if they require support around communication there will be detailed support plans stating what support they need. See ML & LW Communication Support Plans.

Ict an Important System in the Processing of Accounting Information Essay

INTRODUCTION: We are in an era referred to as the JET AGE; an era where people are no longer interested in cars; they will prefer to fly, why? Basically because it is more comfortable and faster. An era that people will not want to try by guess work, everyone wants to be sure of the outcome of their actions. It is a generation that pays attention to speed and accuracy. It is pertinent to account for our resources as humans either as individuals or as a group hence the need for the preparation of accounting information and such information can become so voluminous over time but humans as a matter of nature, have limited speed and retaining capacity especially when it has to do with figures and are prone to mistakes every now and then. This brings to the mind of every concerned individual the question; how can accounting information irrespective of their volume be processed with the fastest possible speed with little or no error? As a result of technological advancement, the first thing that comes to mind when such a question is raised is Electronic Data Processing Method. (EDP which gave birth to ICT) MOTIVATION: Accounting and Information technology have been around for a long, long time. Basically as long as people have been around, there has always been the need for accountability of personal or joint resources and also, rendering of stewardship to superiors, top family heads and co-owners as the case may be. Also, there has always been ways of communicating through technology available at each point in time. There are 4 main ages that divide up the history of information and communication technology. Only the latest age (electronic) and some of the electromechanical age really affects us today. The subject of Accounting Information and ICT is interesting because it cuts across every length and breadth of human activities since ACCOUNTIBLITY is one foremost issue to be considered both in governmental and non-governmental organisation, profit and not-for-profit outfits alike. In recent times, several individuals and corporate bodies have woken up to the reality of the importance of ICT in the processing of accounting information. On a regularly basis, new hardware are created, new software and programmes are written to facilitate the effective and efficient processing of accounting information electronically. Even as you read, the available software and hardware are being improved upon to match up with the demand of recent times. PROJECT SUMMARY The aim of this project is to stress on the benefits achievable from the adoption of the use of ICT for processing accounting information, it will at certain points compare and contrast the use of ICT and the manual method of processing accounting information PROJECT DETAILS In course of this work; Living Faith Church World Wide Inc. (LFC) which is a non-governmental establishment and at the same time a not-for-profit organisation, shall be our case study. Software and Hardware of different kinds shall be analysed and some of such include; computer set, spread sheets, printer, internet connection, to mention but a few. At the end of this project a comprehensive report will be produced revealing how far technology (ICT) have contributed to the compilation, processing and interpretation of accounting information in recent time. The produced report will also analyse how business owners, accountants and other users of accounting information in this part of the world (Nigeria; Africa) have welcomed and taken advantage of ICT as regard accounting information processing. CONCLUSION The world have left the realm of data to the realm of processed data (Information), that is to buttress the fact that information has encountered revolution just like the human race. Accounting on the other hand has come a long way in human existence also and in recent time though they are both in different paths they have crossed path and have brought about answers to a lingering question in the heart of some concerned individuals; the question of; how can accounting information irrespective of their volume be processed with the fastest possible speed with little or no error? The report that will be provided at the end of this project will bring to the notice of all business owners and accountants that are ignorant of the usefulness of ICT in the processing of Accounting Information, the importance and role of ICT in the processing Accounting Information. It also, will broaden the scope of those individuals concerned in the subject of accounting information and ICT.

Kimmel Financial Accounting Solutions Ch12

CHAPTER 12 Statement of Cash Flows Study Objectives 1. Indicate the usefulness of the statement of cash flows. 2. Distinguish among operating, investing, and financing activities. 3. Explain the impact of the product life cycle on a company’s cash flows. 4. Prepare a statement of cash flows using the indirect method. 5. Use the statement of cash flows to evaluate a company. *6. Prepare a statement of cash flows using the direct method. Summary of Questions by Study Objectives and Bloom’s Taxonomy |Item | |? 1. | |? 1. | |? 1. | |? 1. |? 1. | |? 1. |2 |C |? 4|6* |AP|? 7. | | | | |. | | | | | | | | | | | | |1A | |Distinguish among operating, investing, and financing | |Simple | |10–15 | | | |activities. | | | | | | | | | | | | |2A | |Determine cash flow effects of changes in equity accounts. | |Simple | |10–15 | | | | | | | | | |3A | |Prepare the operating activities section—indirect method. |Simple | |20–30 | | | | | | | | | |*4A | |Prepare t he operating activities section—direct method. | |Simple | |20–30 | | | | | | | | | |5A | |Prepare the operating activities section—indirect method. |Simple | |20–30 | | | | | | | | | |*6A | |Prepare the operating activities section—direct method. | |Simple | |20–30 | | | | | | | | | |7A | |Prepare a statement of cash flows—indirect method, and compute cash-based ratios. |Moderate | |40–50 | | | | | | | | | |*8A | |Prepare a statement of cash flows—direct method, and compute cash-based ratios. | |Moderate | |40–50 | | | | | | | | | |9A | |Prepare a statement of cash flows—indirect method. |Moderate | |40–50 | | | | | | | | | |*10A | |Prepare a statement of cash flows—direct method. | |Moderate | |40–50 | | | | | | | | | |11A | |Prepare a statement of cash flows—indirect method. | |Moderate | 40–50 | | | | | | | | | |12A | |Identify the impact of transactions on ratios. | | Moderate | |25–35 | | | | | | | | | |1B | |Distinguish among operating, investing, and financing | |Simple | |10–15 | | | |activities. | | | | | | | | | | | | |2B | |Determine cash flow effects of changes in plant asset | |Simple | |10–15 | | | |accounts. | | | | | | | | | | | | | |3B | |Prepare the operating activities section—indirect method. |Simple | |20–30 | | | | | | | | | |*4B | |Prepare the operating activities section—direct method. | |Simple | |20–30 | | | | | | | | | |5B | |Prepare the operating activities section—indirect method. |Simple | |20–30 | | | | | | | | | |*6B | |Prepare the operating activities section—direct method. | |Simple | |20–30 | | | | | | | | | |7B | |Prepare a statement of cash flows—indirect method, and compute cash-based ratios. |Moderate | |40–50 | | | | | | | | | ASSIGNMENT CHARACTERISTICS TABLE (Continued) |Problem | | | |Difficulty | |Time | |Number | |Des cription | |Level | |Allotted (min. | | | | | | | | | |*8B | |Prepare a statement of cash flows—direct method, and compute cash-based ratios. | |Moderate | |40–50 | | | | | | | | | |9B | |Prepare a statement of cash flows—indirect method. |Moderate | |40–50 | | | | | | | | | |*10B | |Prepare a statement of cash flows—direct method. | |Moderate | |40–50 | | | | | | | | | |11B | |Prepare a statement of cash flows—indirect method. | |Moderate | |40–50 | | | | | | | | |ANSWERS TO QUESTIONS ?1. (a)The statement of cash flows reports the cash receipts, cash payments, and net change in cash resulting from the operating, investing, and financing activities of a company during a period in a format that reconciles the beginning and ending cash balances. (b)Disagree. The statement of cash flows is required. It is the fourth basic financial statement. ?2. The statement of cash flows answers the following questions about cash: (a) Where di d the cash come from during the period? (b) What was the cash used for during the period? nd (c) What was the change in the cash balance during the period? ?3. The three activities are: Operating activities include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income. Investing activities include: (a) purchasing and disposing of investments and productive long-lived assets and (b) lending money and collecting loans. Financing activities include: (a) obtaining cash from issuing debt and repaying amounts borrowed and (b) obtaining cash from stockholders, repurchasing shares, and paying them dividends. ?4. a)Major sources of cash in a statement of cash flows include cash from operations; issuance of debt; collection of loans; issuance of capital stock; sale of investments; and the sale of property, plant, and equipment. (b)Major uses of cash include purchase of inventory, payment of cash dividends; redemption of debt; pu rchase of investments; making loans; redemption of capital stock; and the purchase of property, plant, and equipment. ?5. The statement of cash flows presents investing and financing activities so that even noncash transactions of an investing and financing nature are disclosed in the financial statements.If they affect financial conditions significantly, the FASB requires that they be disclosed in either a separate schedule at the bottom of the statement of cash flows or in a separate note or supplementary schedule to the financial statements. ?6. Examples of significant noncash activities are: (1) issuance of stock for assets, (2) conversion of bonds into common stock, (3) issuance of bonds or notes for assets, and (4) noncash exchanges of property, plant, and equipment. ?7. Comparative balance sheets, a current income statement, and certain transaction data all provide information necessary for preparation of the statement of cash flows.Comparative balance sheets indicate how ass ets, liabilities, and equities have changed during the period. A current income statement provides information about the amount of cash provided or used by operations. Certain transactions provide additional detailed information needed to determine how cash was provided or used during the period. ?8. (a)The phases of the corporate life cycle are the introductory phase, growth phase, maturity phase, and decline phase. (b)During the introductory phase, cash from operations and investing would be expected to be negative, and cash from financing would be positive.Questions Chapter 12 (Continued) During the growth phase, a company would be expected to show some small amounts of cash from operations while continuing to show negative cash from investing and positive cash from financing. During the maturity phase, cash from operations, investing, and financing would all be expected to be positive while in the decline phase, cash from operations and investing would continue to be positive wh ile cash from financing would be negative. ?9. Tootsie Roll has positive cash from operations that exceeds its net income.Cash from operations exceeded its investing needs and it retired shares of stock and paid dividends. Tootsie Roll appears to be in the middle to late maturity phase. 10. The advantage of the direct method is that it presents the major categories of cash receipts and cash payments in a format that is similar to the income statement and familiar to statement users. Its principal disadvantage is that the necessary data can be expensive and time-consuming to accumulate. The advantage of the indirect method is it is often considered easier o prepare, and it provides a reconciliation of net income to net cash provided by operating activities. It also tends to reveal less company information to competitors. Its primary disadvantage is the difficulty in understanding the adjustments that comprise the reconciliation. Both methods are acceptable but the FASB expressed a pr eference for the direct method. Yet, the indirect method is the overwhelming favorite of companies. 11. When total cash inflows exceed total cash outflows, the excess is identified as a â€Å"net increase in cash† near the bottom of the statement of cash flows. 12.The indirect method involves converting accrual net income to net cash provided by operating activities. This is done by starting with accrual net income and adjusting for items that do not affect cash. Examples of adjustments include depreciation and other noncash expenses, gains and losses on the sale of noncurrent assets, and changes in the balances of current asset and current liability accounts from one period to the next. 13. It is necessary to convert accrual-based net income to cash-basis income because the unadjusted net income includes items that do not provide or use cash.An example would be an increase in accounts receivable. If accounts receivable increased during the period, revenues reported on the ac crual basis would be higher than the actual cash revenues received. Thus, accrual-basis net income must be adjusted to reflect the net cash provided by operating activities. 14. A number of factors could have caused an increase in cash despite the net loss. These are (1) high cash revenues relative to low cash expenses; (2) sales of property, plant, and equipment; (3) sales of investments; (4) issuance of debt or capital stock, and (5) differences between cash and accrual accounting, e. . depreciation. 15. Depreciation expense. Gain or loss on sale of a noncurrent asset. Increase/decrease in accounts receivable. Increase/decrease in inventory. Increase/decrease in accounts payable. Questions Chapter 12 (Continued) 16. Under the indirect method, depreciation is added back to net income to reconcile net income to net cash provided by operating activities because depreciation is an expense but not a cash payment. 17.The statement of cash flows is useful because it provides information to the investors, creditors, and other users about: (1) the company’s ability to generate future cash flows, (2) the company’s ability to pay dividends and meet obligations, (3) the reasons for the difference between net income and net cash provided by operating activities, and (4) the cash and noncash financing and investing transactions during the period. 18. This transaction is reported in the note or schedule entitled â€Å"Noncash investing and financing activities† as follows: â€Å"Retirement of bonds payable through issuance of common stock, $1,700,000. 19. (a)The current ratio is an accrual-based ratio that measures liquidity while the current cash debt coverage ratio is a cash-based ratio that measures liquidity. (b)Solvency can be measured by the debt to total assets ratio (accrual-based) or the cash debt coverage ratio (cash-based). *20. Net cash provided by operating activities under the direct approach is the difference between cash revenues and c ash expenses. The direct approach adjusts the revenues and expenses directly to reflect the cash basis. This results in cash net income, which is equal to â€Å"net cash provided by operating activities. | | | | | |  + Decrease in accounts receivable | |*21. |(a) |Cash receipts from customers = Revenues from sales | | | | | | | | | |  Ã¢â‚¬â€œ Increase in accounts receivable | | | | | | | | | | | | |  + Increase in inventory | | |(b) |Purchases = Cost of goods sold | | | | | | | | | |  Ã¢â‚¬â€œ Decrease in inventory | | | | | | | | | | | | |  + Decrease in accounts payable | | | |Cash payments to suppliers = Purchases | | | | | | | | | |  Ã¢â‚¬â€œ Increase in accounts payable | | | | | | | | 22. Sales$2,000,000 Add: Decrease in accounts receivables 100,000 Cash receipts from customers$2,100,000 *23. Depreciation expense is not listed in the direct method operating activities section because it is not a cash flow item—it does not affect cash. SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 12-1 (a)Cash inflow from financing activity, $200,000. (b)Cash outflow from investing activity, $150,000. (c)Cash inflow from investing activity, $20,000. (d)Cash outflow from financing activity, $50,000.BRIEF EXERCISE 12-2 (a)Investing activity. (d)Operating activity. (b)Investing activity. (e)Financing activity. (c)Financing activity. (f)Financing activity. BRIEF EXERCISE 12-3 Cash flows from financing activities Proceeds from issuance of bonds payable$300,000) Payment of dividends(70,000) Net cash provided by financing activities$230,000) BRIEF EXERCISE 12-4 (a)Cash from operations would be lower than net income during the growth phase because inventory must be purchased for future projected sales.Since sales during the growth phase are projected to be increasing, inventory purchases must increase and inventory expensed on an accrual basis would be less than inventory purchased on a cash basis. Also, collections on accounts receivable would lag beh ind sales; thus, accrual sales would exceed cash collections during the period. (b)Cash from investing is often positive during the late maturity phase and the decline phase because the firm may sell off excess long-term assets that are no longer needed for productive purposes. BRIEF EXERCISE 12-5Net cash provided by operating activities is $2,680,000. Using the indirect approach, the solution is: Net income$2,500,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$110,000) Accounts receivable decrease? 350,000) Accounts payable decrease(280,000) 180,000 Net cash provided by operating activities$2,680,000 BRIEF EXERCISE 12-6 Cash flows from operating activities Net income$280,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$70,000Loss on sale of plant assets? 22,000 92,000 Net cash provided by operating activities$372,000 BRIEF EXERCISE 12-7 Net income$200,000 Adjustm ents to reconcile net income to net cash provided by operating activities Decrease in accounts receivable$80,000) Increase in prepaid expenses(28,000) Increase in inventories(40,000) 12,000 Net cash provided by operating activities$212,000 BRIEF EXERCISE 12-8 Original cost of equipment sold$22,000 Less: Accumulated depreciation 5,500 Book value of equipment sold? 16,500 Less: Loss on sale of equipment 3,500Cash flow from sale of equipment$13,000 BRIEF EXERCISE 12-9 (a)Free cash flow = $127,260,000 – $221,160,000 – $0 = ($93,900,000) (b)Current cash debt coverage ratio = $127,260,000 ? $243,668,000 = .52 times (c)Cash debt coverage ratio = $127,260,000 ? $928,464,500 = . 14 times BRIEF EXERCISE 12-10 (a)Free cash flow = $405,000 – $200,000 – $0 = $205,000 (b)Current cash debt coverage ratio = $405,000 ? $150,000 = 2. 7 times (c)Cash debt coverage ratio = $405,000 ? $225,000 = 1. 8 times BRIEF EXERCISE 12-11 Free cash flow = $123,100,000 – $20,800, 000 = $102,300,000 BRIEF EXERCISE 12-12Free cash flow is cash provided by operations less capital expenditures and cash dividends paid. For Payne Inc. this would be $364,000 ($734,000 – $280,000 – $90,000). Since it has positive free cash flow that far exceeds its dividend, an increase in the dividend might be possible. However, other factors should be considered. For example, it must have adequate retained earnings, and it should be convinced that a larger dividend can be sustained over future years. It should also use the free cash flow to expand its operations or pay down its debt. *BRIEF EXERCISE 12-13 | | | | | | + Decrease in accounts receivable | |Receipts from |= |Sales | | | | | |customers | |revenues | | | | | | | | | | | | – Increase in accounts receivable | | | | | | | | | $1,285,759,000 = $1,287,672,000 – $1,913,000 (Increase in accounts receivable) *BRIEF EXERCISE 12-14 | | | | | | + Decrease in income taxes payable | |Cash payment |= |Incom e Tax | | | | | |for income taxes | |Expense | | | | | | | | | | | | – Increase in income taxes payable | | | | | | | | | $125,000,000 = $370,000,000 – $245,000,000* *$522,000,000 – $277,000,000 = $245,000,000 (Increase in income taxes payable) *BRIEF EXERCISE 12-15 | | | | | | + Increase in prepaid expenses | | | | | | | | | |Cash |= |Operating | | | | – Decrease in prepaid expenses | |payments for | |expenses, | | | | | |operating | |excluding | | | | | |expenses | |depreciation | | | | | | | | | | | | | | | | | | | |and  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | + Decrease in accrued expenses payable | | | | | | | | | | | | | | | | – Increase in accrued expenses payable | | | | | | | | | $79,000 = $90,000 – $6,600 – $4,400 SOLUTIONS TO DO IT! REVIEW EXERCISES DO IT! 12-1 (1)Financing activity (2)Operating activity (3)Financing activity (4)Investing activity (5)Investing acti vity DO IT! 12-2 Cash flows from operating activities Net income$100,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense$6,000 Patent amortization expense2,000 Gain on sale of equipment(3,600) Decrease in accounts receivable6,000 Increase in accounts payable   3,200  Ã‚  Ã‚  Ã‚  13,600 Net cash provided by operating activities$113,600 DO IT! 12-3 (a) Free cash flow = $73,700 – $27,000 –$15,000 = $31,700 b) Cash provided by operating activities fails to take into account that a company a must invest in new plant assets just to maintain the current level of operations. Companies must also maintain dividends at current levels to satisfy investors. The measurement of free cash flow provides additional insight regarding a company’s cash-generating ability. SOLUTIONS TO EXERCISES EXERCISE 12-1 (a)Noncash investing and financing activities. (b)Financing activities. (c)Noncash investing and financing activities. (d)Financing activities. (e)Investing activities. (f)Operating activities. (g)Operating activities. EXERCISE 12-2 |(a) |Operating activity. | |(h) |Financing activity. |(b) |Noncash investing and | |(i) |Operating activity. | | |financing activity. | |(j) |Noncash investing and financing | |(c) |Investing activity. | | |activity. | |(d) |Financing activity. | |(k) |Investing activity. | |(e) |Operating activity. | |(l) |Operating activity. | |(f) |Noncash investing and financing activity. | |(m) |Operating activity (loss); investing | | |Operating activity. | | |activity (cash proceeds from sale). |(g) | | |(n) |Financing activity. | EXERCISE 12-3 |Point in Time | |Phase | | | | | |A | |Introductory phase | |B | |Decline phase | |C | |Maturity phase | |D | |Growth phase | During the introductory phase (point A), cash from operations and investing are expected to be negative while cash from financing would be positive.In the growth phase (point D), a company would continue to show negative cash from operations and investing and positive cash from financing. EXERCISE 12-3 (Continued) During the maturity phase (point C), cash from operations and net income would be approximately the same. Cash from operations would exceed investing needs. In the decline phase (point B), cash from operations would diminish while cash from financing would be negative. EXERCISE 12-4 JEREZ COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$190,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$35,000Loss on sale of equipment 5,000 Increase in accounts payable? 17,000 Decrease in accounts receivable? 15,000 Decrease in prepaid expenses 4,000 76,000 Net cash provided by operating activities$266,000 EXERCISE 12-5 KITSELTON INC. Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$153,000 Adjus tments to reconcile net income to net cash provided by operating activities Depreciation expense$34,000) Increase in accrued expenses payable? 10,000) Decrease in inventory? 4,000 Increase in prepaid expenses (5,000) Decrease in accounts payable(7,000) Increase in accounts receivable  (11,000) 25,000Net cash provided by operating activities$178,000 EXERCISE 12-6 FELIX CORPORATION Statement of Cash Flows—Indirect Method For the Year Ended December 31, 2010 Cash flows operating activities Net income$284,100 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$187,000 Increase in income tax payable4,700 Decrease in accounts payable     Ã‚  (3,700) Increase in accounts receivable(8,200) Increase in inventory   (11,000)   168,800 Net cash provided by operating activities452,900 Cash flows from investing activities Sale of land     Ã‚  35,000 Purchase of building  (129,000) Net cash used by investing activities(94,0 00)Cash flows from financing activities Issuance of bonds200,000 Payment of dividend   (12,000) Purchase of treasury stock     (32,000) Net cash provided by financing activities   156,000 Net increase in cash514,900 Cash at beginning of period  Ã‚  Ã‚  Ã‚  45,000 Cash at end of period$559,900 EXERCISE 12-7 TOVAR CORP Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$? 72,000) Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$28,000) Loss on sale of equipment 8,000) 36,000) Net cash provided by operating activities? 108,000) Cash flows from investing activitiesSale of equipment? 11,000* Purchase of equipment(70,000) Construction of equipment(53,000) Net cash used by investing activities(112,000) Cash flows from financing activities Payment of cash dividends? (19,000) *Cost of equipment sold$49,000) *Accumulated depreciation (30,000)) *Book value? 19,000) *Loss on sale of equipment? (8,000)) *Cash proceeds$11,000) EXERCISE 12-8 (a)MATSUI COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$ 93,000) Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$34,000) Decrease in inventory? 19,000)Increase in accounts receivable? (9,000) Decrease in accounts payable(8,000) 36,000) Net cash provided by operating activities? 129,000) Cash flows from investing activities Sale of land? 20,000) Purchase of equipment(60,000) Net cash used by investing activities? (40,000) Cash flows from financing activities Issuance of common stock? 42,000) Payment of cash dividends (35,000) Redemption of bonds (50,000) Net cash used by financing activities? (43,000) Net increase in cash 46,000) Cash at beginning of period 22,000) Cash at end of period$? 68,000) EXERCISE 12-8 (Continued) (b)1. Current cash debt coverage ratio: |Net cash provided |? Average current | |by operating activities | |liabilities | |$129,000 |? |[pic] |= |3. 0 times | |[Per Part (a)] | | | | | 2. Cash debt coverage ratio: |Net cash provided |? |Average total | |by operating activities | |liabilities | $129,000 ? [pic] = . 59 times *$47,000 + $200,000 **$39,000 + $150,000 EXERCISE 12-9 | | | |PepsiCo |Coca-Cola | |(a) |Liquidity | | | | | | |Current cash debt | |[pic] = . 75 times | |[pic] = . 64 times | | |coverage ratio | | | | | |(b) |Solvency | | | | | | |Cash debt coverage ratio | |[pic] = . 38 times | |[pic] = . 6 times | | | | | | | | | |Free cash flow | |$6,084 – $2,068 – $1,854 | |$5,957 – $1,407 – $2,911 | | | | |= $2,162 | |= $1,639 | PepsiCo’s liquidity is higher (better) than Coca-Cola’s. PepsiCo’s current cash debt coverage ratio is 17% higher than Coca-Cola’s. Coca-Cola’s solvency is slightly higher than PepsiCo’s since its cash debt coverage ratio is higher but its f ree cash flow smaller. EXERCISE 12-10 | | |Hoyt | |Rex | | | | |Corporation | |Corporation | |(a) |Liquidity | | | | | | |Current cash debt | |[pic] = 2. 0 times | |[pic] = 1. 0 times | | |coverage ratio | | | | | |(b) |Solvency | | | | | | |Cash debt | |[pic] = . 50 times | |[pic] = 0. 0 times | | |coverage ratio | | | | | | | | | | | | | |Free cash flow | |$100,000 – $40,000 – $5,000 | |$100,000 – $70,000 – $10,000 | | | | |= $55,000 | |= $20,000 | Hoyt’s liquidity and solvency ratios are higher (better) than Rex’s comparable ratios. In particular, Hoyt’s current cash debt coverage ratio is twice as high as Rex’s.This ratio indicates that Hoyt is substantially more liquid than Rex. Hoyt’s solvency, as measured by the cash debt coverage ratio and free cash flow, is also better than Rex’s. *EXERCISE 12-11 Revenues$192,000) Deduct: Increase in accounts receivable(70,000) Cash receipts from customers*$122,000 O perating expenses 83,000) Deduct: Increase in accounts payable(23,000) Cash payments for operating expenses** 60,000 Net cash provided by operating activities$? 62,000 |** |Accounts Receivable | | |Balance, Beginning of year    | | | |Revenues for the year 192,000   |  Cash receipts for year 122,000 | | |Balance, End of year ? 70,000   | | |** |Accounts Payable | | | |  Balance, Beginning of year 0 | | |Payments for the year ? 0,000   |  Operating expenses for year ? 83,000 | | | |  Balance, End of year ? 23,000 | *EXERCISE 12-12 (a)Cash payments to suppliers Cost of goods sold$5,349. 7million Add: Increase in inventory 4. 7 Cost of purchases$5,354. 4million Deduct: Increase in accounts payable(156. 1) Cash payments to suppliers$5,198. 3million (b)Cash payments for operating expenses Operating expenses exclusive of depreciation ($11,791. 6 – $1,249. 9)$10,541. 7millionDeduct: Decrease in prepaid expenses$(204. 5) Increase in accrued expenses payabl e  (37. 0) (241. 5) Cash payments for operating expenses$10,300. 2million *EXERCISE 12-13 Cash flows from operating activities Cash receipts from Customers$240,000* Dividend revenue 18,000* ?258,000* Less cash payments: To suppliers for merchandise$105,000 For salaries and wages? 53,000 For operating expenses? 28,000 For income taxes? 12,000 For interest     Ã‚  10,000? 208,000* Net cash provided by operating activities$? 50,000* *$48,000 + $192,000 *EXERCISE 12-14 MOSQUITO HOLLOW CORP. Statement of Cash Flows—Direct Method For the Year Ended December 31, 2010Cash flows form operating activities Cash receipts from customers$566,100 Less: Cash payments: For goods and services$279,100 For income taxes93,000 For operating expenses77,000 For interest  Ã‚  Ã‚  Ã‚  22,400   471,500 Net cash provided by operating activities94,600 Cash flows form investing activities Sale of building202,400 Purchase of equipment  (113,200) Net cash provided by investing activities89,200 Cash flows from financing activities Issuance of common stock355,000 Payment of cash dividend (21,800) Purchase treasury stock(57,300) Cash paid to redeem bonds at maturity  (200,000) Net cash provided by financing activities  Ã‚  Ã‚   75,900 Net increase in cash259,700Cash at beginning of period  Ã‚  Ã‚  Ã‚  Ã‚  11,000 Cash at end of period$270,700 *EXERCISE 12-15 Cash payments for rentals Rent expense$ 30,000* Add: Increase in prepaid rent? ?3,100* Cash payments for rent$ 33,100* Cash payments for salaries Salaries expense$ 54,000* Add: Decrease in salaries payable? ?2,000* Cash payments for salaries$ 56,000* Cash receipts from customers Revenue from sales$160,000* Add: Decrease in accounts receivable 9,000* Cash receipts from customers$169,000* SOLUTIONS TO PROBLEMS |PROBLEM 12-1A | | | | |Cash Inflow, Outflow, or No Effect? | | | | | | |Transaction |Where Reported | | |(a) |Recorded depreciation |O |No cash flow effect | | |expense on the plant assets. | | | |(b) |Re corded and paid interest expense. |O |Cash outflow | |(c) |Recorded cash proceeds from a sale of plant assets. |I |Cash inflow | |(d) |Acquired land by issuing |NC |No cash flow effect | | |common stock. | | |(e) |Paid a cash dividend |F |Cash outflow | | |to preferred stockholders. | | | |(f) |Distributed a stock dividend |NC |No cash flow effect | | |to common stockholders. | | | |(g) |Recorded cash sales. |O |Cash inflow | |(h) |Recorded sales on account. O |No cash flow effect | |(i) |Purchased inventory for cash. |O |Cash outflow | |(j) |Purchased inventory on |O |No cash flow effect | | |account. | | | |PROBLEM 12-2A | (a)Net income can be determined by analyzing the retained earnings account. Retained earnings beginning of year$270,000 Add: Net income (plug) 60,500* 330,500 Less: Cash dividends20,000 Stock dividends 10,500 Retained earnings, end of year$300,000 ($300,000 + $10,500 + $20,000 – $270,000) (b)Cash inflow from the issue of stock was $14,500 ($165,000 à ¢â‚¬â€œ $140,000 – $10,500). Common Stock | |140,000 | | | |10,500 |Stock Dividend | | |14,500 |Shares Issued for Cash | | |165,000 | | Cash outflow for dividends was $20,000. The stock dividend does not use cash. c)Both of the above activities (issue of common stock and payment of dividends) would be classified as financing activities on the statement of cash flows. |PROBLEM 12-3A | GRIDER COMPANY Partial Statement of Cash Flows For the Year Ended November 30, 2010 Cash flows from operating activities Net income$1,650,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$ 80,000 Decrease in inventory500,000 Decrease in accrued expenses payable  (100,000) Increase in prepaid expenses(150,000) Increase in accounts receivable(300,000) Decrease in accounts payable  (350,000)  Ã‚   (320,000) Net cash provided by operating activities$1,330,000 |*PROBLEM 12-4A | GRIDER COMPANYPartial Statement of Cash Flows For the Year End ed November 30, 2010 Cash flows from operating activities Cash receipts from customers$7,400,000(1) Less cash payments: To suppliers$4,750,000(2) For operating expenses? 1,320,000(3)? 6,070,000 Net cash provided by operating activities$1,330,000 Computations: (1)Cash receipts from customers Sales$7,700,000 Deduct: Increase in accounts receivable (300,000) Cash receipts from customers$7,400,000 (2)Cash payments to suppliers Cost of goods sold$4,900,000 Deduct: Decrease in inventories (500,000) Cost of purchases? 4,400,000 Add: Decrease in accounts payable 350,000 Cash payments to suppliers$4,750,000 3)Cash payments for operating expenses Operating expenses, exclusive of depreciation$1,070,000* Add: Increase in prepaid expenses$150,000 Decrease in accrued expenses payable100,000 250,000 Cash payments for operating expenses$1,320,000 *$450,000 + ($700,000 – $80,000) |PROBLEM 12-5A | JANTZEN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash fl ows from operating activities Net income$230,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$70,000 Loss on sale of equipment16,000 Increase in accounts payable13,000Increase in income taxes payable 6,000 Increase in accounts receivable  (10,000) 95,000 Net cash provided by operating activities$325,000 |*PROBLEM 12-6A | JANTZEN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Cash receipts from customers$960,000(1) Less cash payments: For operating expenses$601,000(2) For income taxes 34,000(3)? 635,000 Net cash provided by operating activities$325,000 (1)Computation of cash receipts from customers Revenues$970,000 Deduct: Increase in accounts receivable ($70,000 – $60,000)? (10,000) Cash receipts from customers$960,000 2)Computation of cash payments for operating expenses Operating expenses per income statement$614,000 Deduct: Increase in accounts payable ($41,000 – $28,000)  Ã‚  Ã‚  (13,000) Cash payments for operating expenses$601,000 (3)Computation of cash payments for income taxes Income tax expense per income statement$ 40,000 Deduct: Increase in income taxes payable ($13,000 – $7,000)  Ã‚  Ã‚  Ã‚  Ã‚  (6,000) Cash payments for income taxes$ 34,000 |PROBLEM 12-7A | (a)TRAHAN COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$32,000 Adjustments to reconcile net income o net cash provided by operating activities Depreciation expense$17,500* Increase in accounts payable? 9,000 Decrease in income taxes payable? (1,000) Increase in merchandise inventory(7,000) Increase in accounts receivable  (19,000)? (500) Net cash provided by operating activities31,500 Cash flows from investing activities Sale of equipment8,500 Cash flows from financing activities Issuance of common stock4,000 Redemption of bonds (6,000) Payment of dividends  (20,000 ) Net cash used by financing activities  (22,000) Net increase in cash18,000 Cash at beginning of period  Ã‚  20,000 Cash at end of period$38,000 *$32,000 – ($24,000 – $9,500(A)) = $17,500 A)$18,000 (cost of equipment) – $8,500 (book value) = $9,500 (accumulated depreciation for equipment sold) PROBLEM 12-7A (Continued) |(b) 1. |$31,500 |? |[pic] = 1. 17 times | | |[Per Part (a)] | | | *$15,000 + $8,000 **$24,000 + $7,000 2. $31,500 ? [pic] = . 55 times *$15,000 + $8,000 + $33,000 **$24,000 + $7,000 + $27,000 3. $31,500 – $0 – $20,000 = $11,500 |*PROBLEM 12-8A | (a)TRAHAN COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activitiesCash receipts from customers$223,000(1) Less cash payments: To suppliers$173,000(2) For operating expenses 6,500(3) For interest 3,000 For income taxes 9,000(4)? 191,500 Net cash provided by operating activities 31,500 Cash flows from investing activities Sale of equipmen t8,500 Cash flows from financing activities Issuance of common stock 4,000 Redemption of bonds (6,000) Payment of dividends? (20,000) Net cash used by financing activities? (22,000) Net decrease in cash 18,000 Cash at beginning of period 20,000 Cash at end of period$? 38,000 Computations: (1)Cash receipts from customers Sales$242,000 Deduct: Increase in accounts receivable  Ã‚  Ã‚  (19,000)Cash receipts from customers$223,000 *PROBLEM 12-8A (Continued) (2)Cash payments to suppliers Cost of goods sold$175,000 Add: Increase in inventory 7,000 Cost of purchases? 182,000 Deduct: Increase in accounts payable? ?9,000 Cash payments to suppliers$173,000 (3)Cash payments for operating expenses Operating expenses$24,000 Deduct: Depreciation $32,000 – ($24,000 – $9,500*)  Ã‚  17,500 Cash payments for operating expenses$ 6,500 *$18,000 – $8,500 = $9,500 (4)Cash payments for income taxes Income tax expense$8,000 Add: Decrease in income taxes payable 1,000 Cash payments for income taxes$9,000 |(b) 1. |$31,500 |? |[pic] = 1. 7 times | | |[Per Part (a)] | | | **$15,000 + $8,000 ***$24,000 + $7,000 2. $31,500 ? [pic] = . 55 times *$15,000 + $8,000 + $33,000 **$24,000 + $7,000 + $27,000 3. $31,500 – $0 – $20,000 = $11,500 |PROBLEM 12-9A | CIPRA INC. Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$158,900 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$46,500Increase in accounts payable 34,700 Loss on sale of plant assets7,500 Decrease in accrued expenses payable (500) Increase in prepaid expenses? (2,400) Increase in inventory? (9,650) Increase in accounts receivable  (54,800)? 21,350 Net cash provided by operating activities? 180,250 Cash flows from investing activities Sale of plant assets1,500 Purchase of investments (24,000) Purchase of plant assets (100,000) Net cash used by investing activities(122,500) Cash flo ws from financing activities Sale of common stock45,000 Payment of cash dividends (30,350) Redemption of bonds (40,000) Net cash used by financing activities (25,350)Net increase in cash 32,400 Cash at beginning of period 48,400 Cash at end of period$? 80,800 |*PROBLEM 12-10A | CIPRA INC. Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Cash receipts from customers$337,980(1) Less cash payments: To suppliers$110,410(2) For income taxes 27,280 For operating expenses 15,310(3) For interest 4,730? 157,730 Net cash provided by operating activities? 180,250 Cash flows from investing activities Sale of plant assets 1,500 Purchase of investments? (24,000) Purchase of plant assets (100,000) Net cash used by investing ? activities(122,500) Cash flows from financing activities Sale of common stock 45,000 Payment of cash dividends? (30,350) Redemption of bonds? (40,000) Net cash used by financing activities (25,350) Net increase in cash 32,40 0 Cash at beginning of period 48,400 Cash at end of period$? 80,800 Computations: (1)Cash receipts from customers Sales$392,780 Deduct: Increase in accounts receivable  Ã‚  Ã‚  (54,800) Cash receipts from customers$337,980 *PROBLEM 12-10A (Continued) (2)Cash payments to suppliers Cost of goods sold$135,460 Add: Increase in inventory 9,650 Cost of purchases? 145,110 Deduct: Increase in accounts payable? (34,700)Cash payments to suppliers$110,410 (3)Cash payments for operating expenses Operating expenses exclusive of depreciation$12,410 Add: Increase in prepaid expenses$2,400 Decrease in accrued expenses payable 500 2,900 Cash payment for operating expenses$15,310 |PROBLEM 12-11A | MERCADO COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$ 37,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$42,000 Decrease in accounts receivable? 12,000 Decrease in prepaid ex penses 5,720 Increase in accounts payable? ,730 Loss on sale of equipment2,000 Increase in inventory  Ã‚   (9,450)? 57,000 Net cash provided by operating activities? 94,000 Cash flows from investing activities Sale of land? 25,000 Sale of equipment? 8,000 Purchase of equipment(95,000) Net cash used by investing activities? (62,000) Cash flows from financing activities Payment of cash dividends  (12,000) Net cash used by financing activities  (12,000) Net increase in cash20,000 Cash at beginning of period? 45,000 Cash at end of period$65,000 Noncash investing and financing activities Conversion of bonds by issuance of common stock$40,000 |PROBLEM 12-12A | | | |Current Cash Debt Coverage | | | | | |Ratio |Cash Debt Coverage Ratio | | | |Free Cash Flow ($125,000) |(0. 5 times) |(0. 3 times) | | | | | | | | |Transaction | | | | |(a) |Recorded credit sales $2,500. |NE |NE |NE | |(b) |Collected $1,500 owing from customers. I |I |I | |(c) |Paid amount owing |D |D |D | | |to supp liers, $2,750. | | | | |(d) |Recorded sales returns of $500 and credited the |NE |NE |NE | | |customer’s account. | | | | |(e) |Purchased new equipment $5,000; signed a long-term |D* |NE |D | | |note payable for the cost of the equipment. | | | |(f) |Purchased a patent and paid $15,000 cash for the |D |NE |NE | | |asset. | | | | *Note to Instructor: If only cash capital expenditures are deducted, this answer would be NE. |BYP 12-1 FINANCIAL REPORTING PROBLEM | (a)Net cash provided by operating activities: 2007 $90,064 2006 $55,656Some causes of the significant changes in net cash provided by operating activities during 2007 were the decrease in the accounts receivable, a decrease in inventories, and a decrease in income taxes payable and deferred. (b)The increase in cash and cash equivalents for the year ended December 31, 2007 was $1,877,000. (c)Tootsie Roll uses the indirect method of computing and presenting the net cash provided by operating activities. (d)According to t he statement of cash flows, accounts receivable decreased $2,591,000 in 2007. Inventories decreased $6,506,000 in 2007. Accounts payable (and accrued liabilities) decreased $3,234,000 in 2007. (e)The net cash used by investing activities in 2007 was $43,345,000. (f)The supplemental disclosure of cash flow information disclosed interest paid of $537,000 and income taxes paid of $11,343,000 in 2007. BYP 12-2 COMPARATIVE ANALYSIS PROBLEM | |(a) | | | |Hershey | |Tootsie Roll | | | | | | | | | | |1. |Current cash | |[pic] | |[pic] | | | |debt coverage | |= . 51 times | |= 1. 0 times | | | |ratio | | | | | | | | | | | | | | |2. |Cash debt | |[pic] | |[pic]= . 54 times | | | |coverage ratio | |= . 22 times | | | **$57,972 + $116,523 **$62,211 + $98,747 (b)Tootsie Roll’s current cash debt coverage ratio provides a ratio of $1. 50 of cash from operations for every dollar of current debt.It is a better representation of liquidity on an average day than the current ratio. Tootsie Ro ll’s higher ratio (1. 50 vs. .51) indicates Tootsie Roll was significantly more liquid in 2007 than Hershey but both measures are acceptable. The cash debt coverage ratio shows a company’s ability to repay its liabilities from cash generated from operating activities without having to liquidate the assets employed in its operations. Since Tootsie Roll’s cash debt coverage ratio was more than twice as large (. 54 vs. .22) as Hershey’s, Tootsie Roll’s ability to repay liabilities with cash from operations was significantly greater than Hershey’s in 2007. BYP 12-3 RESEARCH CASE | (a)The article suggests that most people aren’t concerned about Sears’s liquidity. Instead, the concern is that the company won’t have adequate cash to implement the changes it needs to make a return to profitability. Also, some investors were concerned that a cash shortage will reduce Sears’s ability to carry out the treasury stock buyback program that it had previously announced. (b) At the time of the article, Sears had not reported its cash flow numbers. It had, however, reported an estimate that by the end of the quarter the company would have $1 billion in cash on hand. This was lower that analysts had expected.Based upon estimates of amounts that the company had spent on treasury stock, debt repayment, and capital expenditures, analysts determined that it was likely that, to arrive at $1 billion in cash on hand, the company’s cash flow must have declined. (c)Individuals who tried to defend Sears said that they thought it was inappropriate to make such negative statements about the company based on estimates. They suggested it would be better to wait until the company reports its actual cash flow numbers before evaluating the company. (d)The article suggests that, if, in fact, Sears’s cash flow is declining, it is a bad time of year for that to be happening. Normally the fourth quarter would be a p eriod when cash flows would be strong, because of the holiday shopping season.In contrast, Sears frequently experiences negative cash from operations during the first three quarters of the year. |BYP 12-4 INTERPRETING FINANCIAL STATEMENTS | (a)Current ratio—2001:$1,207. 9? $ 921. 4= 1. 31 —2004:$2,539. 4? $1,620. 4= 1. 57 Current cash debt ?coverage ratio—2001:($119. 8)? $ 948. 2= (. 13) times —2004: $566. 6? $1,436. 6= . 39 times Both Amazon’s current ratio and its current cash debt coverage ratio improved dramatically from 2001 to 2004. Amazon’s current ratio increased by 20% (from 1. 31 to 1. 57) during the 3-year period.In addition Amazon’s current cash debt coverage ratio improved by $. 52 per dollar of current liabilities (from a negative $. 13 per dollar in 2001 to a positive $. 39 per dollar in 2004). Amazon’s liquidity improved greatly from 2001 to 2004. (b)Cash debt ?coverage ratio—2001:($119. 8)? $3,090. 0= ( . 04) times —2004: $566. 6? $4,773. 4= . 12 times Debt to total ?assets ratio—2001:$3,077. 5? $1,637. 5= 1. 88 —2004:$5,096. 1? $3,248. 5= 1. 57 Amazon’s solvency also improved significantly from 2001 to 2004. Its cash debt coverage ratio increased by $. 16 per dollar of total liabilities during the 3-year period. Amazon’s debt to total assets ratio also improved (decreased) by 16% from 2001 to 2004. c)Free cash flow—2001:($119. 8)–$50. 3 – $0= ($170. 1) —2004: $566. 6–$89. 1 – $0= $477. 5 Amazon’s free cash flow increased by almost $650 million from 2001 to 2004. The increase was caused by Amazon finally generating a profit in 2004. If Amazon is able to continue operating at a profit and producing a large free cash flow, it should be able to finance an expansion of its operations. BYP 12-4 (Continued) (d)While these measures tell us a lot about Amazon. com, they don’t tell us whether the stoc k price is reasonable. Amazon. com’s high stock price is a reflection of a belief by investors that Amazon. com will continue to grow incredibly fast.If this growth falters, its stock price will fall rather quickly. Also, Amazon. com’s heavy reliance on debt financing compounds the risk of investing in its stock because it may have a difficult time paying its debts if its growth does not continue. |BYP 12-5 FINANCIAL ANALYSIS ON THE WEB | Answers will vary depending on the company chosen by the student. |BYP 12-6 DECISION MAKING ACROSS THE ORGANIZATION | (a)DEVITO COMPANY Statement of Cash Flows For the Year Ended January 31, 2010Cash flows from operating activities Net loss$(35,000)* Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$? 55,000 Gain from sale of investment? ?(5,000)50,000 Net cash provided by operating activities15,000 Cash flows from investing activities Sale of investment 80,000 Purchase of inves tment ? (75,000) Purchase of fixtures and equipment  (320,000) Net cash used by investing activities(315,000)* Cash flows from financing activities Sale of capital stock? 405,000 Purchase of treasury stock? (10,000) Net cash provided by financing activities395,000 Net increase in cash 95,000 Cash at beginning of period? 40,000 Cash at end of period$235,000 Noncash investing and financing activities Issuance of note for truck$20,000 BYP 12-6 (Continued) *Computation of net income (loss) Sales of merchandise$385,000 Interest revenue 6,000 Gain on sale of investm