Newtons Influences Of Isaac Newton And John Locke And The...

The Enlightenment was a period of time during the second half of the 18th century of new concepts and ideas aimed to advance European society by using rational thinking and logic. The ideas presented during this period focused on changing the way we view our world and the people who live in it. The two scholars who formed the foundations of the Enlightenment, Isaac Newton and John Locke, concentrated on two different subjects, but they both greatly influenced our way of thinking. Another leader in the enlightenment who introduced another facet into our way of thinking is Pierre Bayle. Bayle mainly focused on religion and whether religious intolerance is justified. Adam Smith applied another way of thinking to the science of economics. All†¦show more content†¦He questioned whether or not humans have a set personality and discusses how experience plays a role in who a person becomes. Locke sticks to one main method of viewing questions and ideas throughout his published work. He always presents a rationale behind his beliefs. This method is different from the way concepts were presented before the enlightenment. People relied more on tradition than on logic and reasoning. Many of the philosophes of the Enlightenment used this way of thinking in their work. Pierre Bayle used reasoning to discuss his views on religious tolerance. Pierre Bayle was an important philosophe who was considered one of the greatest non scientific minds of his time. He compiled his thoughts on religious tolerance in his work A Philosophical Commentary. Bayle believes that it is not right to pressure someone into changing their religion. He presents both real and imaginary examples to prove his point. This work showcases how entwined rationale was with the concepts presented throughout the Enlightenment. Like Bayle, many philosophes chose to thinking logically and rationally instead of following the customs of the time. One of these philosophes, Adam Smith, applied this way of thinking to economics. Philosophe Adam Smith is known by many as the father of economics. His philosophy revolved around whether a closed or open market would be the most successful in society. He discusses thisShow MoreRelatedRenaissance and Revolution Did Copernicus1485 Words   |  6 Pagesâ€Å"rebirth† and describes Europe, esp. Western Europe, from 1300 into the 17th and 18th centuries. Why did Western Europe need to be reborn? (HINT: The Roman Empire fell in 476 CE) 5. What lost some importance during the Renaissance? 6. What common influence did Machiavelli share with artists like da Vinci and Michelangelo? 7. Given your answer above, why does it make sense that the Renaissance began in Italy? (Keep in mind that it also began there because Italy was a major trading center with theRead MoreEssay on HUMAN BEINGS AND NATURE DURING THE REVOLUTION OF THE MIND3395 Words   |  14 PagesHUMAN BEINGS AND NATURE DURING THE REVOLUTION OF THE MIND Enlightenment is mans release from his self-incurred tutelage. Tutelage is mans inability to make use of his understanding without direction from another. Self-incurred is this tutelage when its cause lies not in lack of reason but in lack of resolution and courage to use it without direction from another. Dare to Know! Have courage to use your own reason!- that is the motto of enlightenment. -Immanuel Kant, 1784 (1) From theRead MoreModernization Of The Modern Western World2525 Words   |  11 PagesWest can be traced to the scientific revolution. A period of scientific advances in the areas of math, astronomy, and physics, the scientific revolution sought to bridge the gap between the physical and metaphysical. During this era, the Catholic Church held authority over the masses of illiterate and uneducated commoners. The Church, because of its central role in everyday life, controlled the development science and secular knowledge. However, the scientific revolution began to undermine the authorityRead MoreThe Eighteenth Century : Age Of Enlightenment2647 Words   |  11 PagesPopularization of Science: - Bernard de Fontenelle New Skepticism: -Pierre Bayle Impact of Travel Literature: -Did other cultures effect society back in Europe and the way they thought about their government? Legacy of John Locke and Isaac Newton: The Philosophes and Their Ideas: -Why were social reformers most important if their work was not accepted by the censors? -Did censors arrest them because they did not want uprisings from the ideas people might get? Montesquieu

Analysis Of Customarily Fashions A Novel Innovation

â€Å"All entrepreneurs may be small business owners, but not all small business owners may be entrepreneurs.† Though numerous individuals might contest such a notion, if one was to closely peer at the passage, they would concur of how wholly precise the creator is. Quite often individuals do not wholly comprehend the fundamental disparities between entrepreneur’s and small business owners. Moreover, an entrepreneur is an idiosyncratic entity who dawns and administers an industry with restricted affluence and projection, while taking into consideration of the ample aggregate of incessant wagers and elevated remunerations of their tactical undertaking. Nonetheless, the entrepreneur, in contrast towards a small business owner, customarily fashions a novel innovation, rather than merely adhering to a corporate archetype constructed by another. Thus, one can palpably come to the supposition that while an entrepreneur is habitually the individual who is alacritous to the dogmata of risking his/her monetary haven on a meagre concept, the small business owner is the stable individual who would much rather utilize an established standard than imperiling their capital to perchance be bequeathed abundant remunerations. Likewise, one ought to grasp the datum that the path that divulges these two titanic professions is simply: consistency vs. innovation. Would an individual rather have controlled development and sustained viability, or target a nearly unmanageable partition, for theShow MoreRelatedAnswer Key - Fund. of Management Chpt 1-7 Essay10238 Words   |  41 Pagespurpose and is made up of people who are grouped in some fashion. 2) No purpose or goal can be achieved by itself, therefore organizations have members. 3) All organizations develop a systematic structure that defines and limits the behavior of its members. Organization—an entity that has a distinct purpose, has people or members, and has a systematic structure. Managers direct the activities of other people in the organization. Customarily classified as top, middle, or first line, they superviseRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 Pagesbeneficial impacts for many other companies in dealing with these fundamental wide-ranging issues. These beneficial impacts had an enormous effect in galvanizing fundamental business innovation in companies at a far faster rate than would have been the case if there had been no boom; that is, without those effects, innovation might not have taken place at all. All this business growth has caused increasing complexity in business action and decision making. It has presented chief executive officers (CEOs)Read MoreOrganisational Theory230255 Words   |  922 Pagestheory focuses attention on the human issues in organization ‘There is nothing so practical as a good theory’ How Roethlisberger developed a ‘practical’ organization theory Col umn 1: The core contributing social sciences Column 2: The techniques for analysis Column 3: The neo-modernist perspective Column 4: Contributions to business and management Four combinations of science, scientific technique and the neo-modernist approach reach different parts of the organization Level 1: Developing the organizationRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pageslamentable. Taken together, the key themes and processes that have been selected as the focus for each of the eight essays provide a way to conceptualize the twentieth century as a coherent unit for teaching, as well as for written narrative and analysis. Though they do not exhaust the crucial strands of historical development that tie the century together—one could add, for example, nationalism and decolonization—they cover in depth the defining phenomena of that epoch, which, as the essays demonstrate

Innovative Business Idea in Ikea- Free-Samples Myassignmenthelp

Question: Discuss about the Innovative Business Idea in Ikea. Answer: This paper succinctly elucidates the innovative business practice of Ikea- specifically its business association with its suppliers. This essay tries to associate a video presentation that encompasses the business process innovation in supply chain management. It has been detected that the supply chain managed by the company has been quite effective and innovative. The video demonstrates two different managers distribution centre manager and warehouse manager. These two managerial figures have been effectively working with the company for more than ten and fifteen years. The innovation that the video demonstrates is the mobility of the workers- specifically the managers who have decided not to invigilate the entire work process from a single chair, sitting with a laptop. They have rather innovated their way of work with the help of a bicycle where they have attached their computer so as to find out the details of the work process while moving. Technological innovation has been quite impactful in the supply chain process of the company. Computation of the goods in the warehouses and quantification of the entire data pertaining to the documentation process is highly impacted by usage of modern computing system. With automated computing system, the supply performances have been excelled to the newer level. Since there is a less involvement of the manual process the efficiency of work such as carrying the goods from the warehouse to the distribution centers is driven with easeful activities. Reference: https://www.youtube.com/watch?v=NOyBX0_GtN

The Evolutionary Arms free essay sample

What unusual adaptation does the rough-skinned newt have? 2. The common garter snake is able to prey on the rough-skinned newt. Does it suffer any ill effects? 3. Is there any disadvantage of the snakes having resistance to the toxins? Antibiotic-Resistant Tuberculosis 4. Are micro-organisms predators? Explain. 5. What discovery gave humans an advantage over bacteria? 6. What does tuberculosis do in the body when active? How does tuberculosis spread from person-to-person? 8. Explain the events that led to the evolution of antibiotic-resistant TB in the prisoner. . How are prisons ideal incubators for multi-drug resistant TB? 10. Why aren’t second-line antibiotics available for use in the prisons? 11. One of the scientists describes multi-drug resistance as a â€Å"man-made problem†. How are they over-used? AIDS and FIDS 12. What normally-fatal disease is found in nearly every wild cat in the world? 13. This disease is considered to be non-lethal in wild cats. What is the proposed explanation for this? 14. About 10% of Caucasians are immune or resistant to HIV. We will write a custom essay sample on The Evolutionary Arms or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page What event occurred in Europe that may have created selective pressure for this trait? Give one example of mutualistic symbiosis. 17. Describe the relationship between the Atta leaf-cutter ants and the fungus they cultivate. 18. What pest invades the fungus gardens that the ants maintain? 19. Why don’t the fungus gardens develop resistance to the bacterial antibiotic? Allergies and Asthma 20. In the study of asthma rates of children living in the Bavarian countryside, what factor seemed to lower the rates the most? 21. Do you think it is unnatural or unhealthy to expect to live in a germ-free world?

How to Get a Perfect 12 on the ACT Writing Essay

How to Get a Perfect 12 on the ACT Writing Essay SAT / ACT Prep Online Guides and Tips There is no part of the ACT more mysterious to students than the essay, and very few people seem to know what exactly the ACT is looking for in a "perfect" essay (particularly since September 2015 was the new ACT Writing test's debut). Luckily, we've got the expertise to give you some insight into how the essay works and what you can do to push your score those extra few points up the scale. Whether you're trying to impress your dream school or just want to boost your ACT score, the essay is a great thing to work on. Some of the tips below stand alone, while others are part of larger categories that have been assembled based our ACT expertise. Important: If you haven't read these two other ACT Writing guides before, take a minute and read them now: The ACT Writing Rubric: Analysis, Explanation, and Strategies How to Write an ACT Essay, Step by Step This will make the rest of the article make more sense. Part I: What a 12 on the ACT Essay Means If you're already scoring an 8 or above in every domain on practice (or real) ACT essays, you have a shot at completely nailing what the graders want, represented by a score of 12, with a little practice. But there's something important to remember in your quest for perfection: on the ACT essay, a 12 is not always achievable. We've got good news and bad news for those of you who are determined to know how to get a 12 on the ACT essay. The Big Secret You'll have to practice this specific essay. The perfect ACT essay is like a puzzle that happens to be in writing form- it can be mastered, but to do it well and completely every time requires a few month's practice. Knowing how to write other kinds of essays will only help you a limited amount. The Bad News Because the whole essay must be written in 40 minutes, getting a 12 requires some luck. You have to pick a thesis and think of relevant and convincing evidence to support it before you can even start writing, so a lot depends on how quickly you can decided on a point of view and relevant support for whatever the prompt happens to be. And because perfect-scoring essays are almost always at least two pages long, you won't have any time to spare. The Good News Because the essay is so formulaic, it's always possible to get at least a 10 in each domain. And, on top of this, no college worth its salt is going to base your college admission on getting those last two points on an essay you had to write in 40 minutes. The goal, really, is to show that you can write a decent essay in that time, and a 10 in each domain shows that just as well as a 12 does. Part II: The Difference Between a 10 and a 12 If we asked the ACT what the difference is between a 10 and a 12 ACT essay, they would direct us to their scoring criteria (replicated in the table below) that describes the difference between the 5 and 6 essay scores in each domain. As you may already know, a total domain score of 12 comes from two readers separately giving your essay a 6; the four domain scores are then averaged to calculate your total essay score of 12. We've marked the differences between the 5 and 6 criteria in bold. Later, we'll look at these differences in the context of a sample essay. Score of 5 (10) Score of 6 (12) Major Differences Responses at this scorepoint demonstrate well-developed skill in writing an argumentative essay. Responses at this scorepoint demonstrate effective skill in writing an argumentative essay. Ideas and Analysis The writer generates an argument that productively engages with multiple perspectives on the given issue. The argument’s thesis reflects precision in thought and purpose. The argument establishes and employs a thoughtful context for analysis of the issue and its perspectives. The analysis addresses implications, complexities and tensions, and/or underlying values and assumptions. The writer generates an argument that critically engages with multiple perspectives on the given issue. The argument’s thesis reflects nuance and precision in thought and purpose. The argument establishes and employs an insightful context for analysis of the issue and its perspectives. The analysis examines implications, complexities and tensions, and/or underlying values and assumptions. The 6 essay gives a more specific and logically precise context. The thesis and argument show a deep understanding of the issue, while the analysis not only mentions, but also inspects the complexities and implications of the issue. Development and Support Development of ideas and support for claims deepen understanding. A mostly integrated line of purposeful reasoning and illustration capably conveys the significance of the argument. Qualifications and complications enrich ideas and analysis. Development of ideas and support for claims deepen insight and broaden context. An integrated line of skillful reasoning and illustration effectively conveys the significance of the argument. Qualifications and complications enrich and bolster ideas and analysis. The 6 essays develops its ideas and support for those ideas more thoroughly and examines the implications of the ideas and support in a larger context. In addition, the complexity of the discussion for each examples strengthens the essay's argument and the analysis of the issue at hand. Organization The response exhibits a productive organizational strategy. The response is mostly unified by a controlling idea or purpose, and a logical sequencing of ideas contributes to the effectiveness of the argument. Transitions between and within paragraphs consistently clarify the relationships among ideas. The response exhibits a skillful organizational strategy. The response is unified by a controlling idea or purpose, and a logical progression of ideas increases the effectiveness of the writer’s argument. Transitions between and within paragraphs strengthen the relationships among ideas. The 6 essay is organized to enhance the logic and strength of the writer's argument, whereas the 5 essay is only organized clearly. Language Use The use of language works in service of the argument. Word choice is precise. Sentence structures are clear and varied often. Stylistic and register choices, including voice and tone, are purposeful and productive. While minor errors in grammar, usage, and mechanics may be present, they do not impede understanding. The use of language enhances the argument. Word choice is skillful and precise. Sentence structures are consistently varied and clear. Stylistic and register choices, including voice and tone, are strategic and effective. While a few minor errors in grammar, usage, and mechanics may be present, they do not impede understanding. The 6 essay is written extremely well, whereas the 5 essay is written pretty well. This means getting creative and using advanced vocabulary appropriately if you want a 6. Part III: Applying the Criteria in a Real ACT Essay Example Now we'll look at a sample essay and how it demonstrates the characteristics of the 6 essay above. First, let's look at the prompt: Intelligent Machines Many of the goods and services we depend on daily are now supplied by intelligent, automated machines rather than human beings. Robots build cars and other goods on assembly lines, where once there were human workers. Many of our phone conversations are now conducted not with people but with sophisticated technologies. We can now buy goods at a variety of stores without the help of a human cashier. Automation is generally seen as a sign of progress, but what is lost when we replace humans with machines? Given the accelerating variety and prevalence of intelligent machines, it is worth examining the implications and meaning of their presence in our lives. Perspective One: What we lose with the replacement of people by machines is some part of our own humanity. Even our mundane daily encounters no longer require from us basic courtesy, respect, and tolerance for other people. Perspective Two: Machines are good at low-skill, repetitive jobs, and at high-speed, extremely precise jobs. In both cases they work better than humans. This efficiency leads to a more prosperous and progressive world for everyone. Perspective Three: Intelligent machines challenge our long-standing ideas about what humans are or can be. This is good because it pushes both humans and machines toward new, unimagined possibilities. Write a unified, coherent essay about the increasing presence of intelligent machines. Now, read the ACT essay example below, and try to notice how it meets the criteria in the table above. From the simplest system of pulleys and ropes to the most complex supercomputer in the world today, machines have had (and continue to have) a profound influence on the development of humanity. Whether it is taking over monotonous, low-skill tasks or removing that messy â€Å"human† element from our day-to-day interactions, machines have answered the call to duty. The increasing prevalence of intelligent machines challenges us to change long held beliefs about our limitations and to continue forward to new and even more advanced possibilities. One common argument against the increased presence of machines in our day to day lives is that machines leach from us our basic humanity. Indeed, certain people whose only social interactions are anonymous text-based conversations with other anonymous Internet forum dwellers over computers may begin to lose basic human courtesy and empathy. This is crystal clear with a glance at the comments section of any popular news article. Yet mach ines are also capable of enhancing people’s abilities to communicate. An example of this can be found in Tod Machover’s lab at MIT, where breakthroughs in neurotechnology have made it possible for quadripalegics to manipulate text on computers with their minds. Such interactions would be impossible without the existence of intelligent machines. Therefore, I must disagree with Perspective one. Rather than losing part of our own humanity to machines, we instead make that most-essential-to-humanity of acts, communication, possible. Another school of thought (Perspective Two) argues that machines are good at how and high skill repetitive jobs, which leads to a more prosperous and progressive world for everyone. This can be seen in the human work hours that are saved daily with automated phone menus. Before intelligent machines made automatic telephone menus possible, every customer service call ate up valuable employee time. Now, menus allow callers to choose the number th at best suits their needs, routing calls to appropriate destinations without the need for human employees to waste time explaining for the hundredth time that â€Å"our business hours are 10am-6pm.† On the other hand, no mechanized system of this kind is perfect, because it can’t predict all future outcomes. In terms of automated telephone menus, this means that sometimes, no menu options are correct. While automated systems may take the burden off of human workers, it is a mistake to think that they can replace humans entirely. Why else would the last line of resort for most automated phone menus be â€Å"Dial â€Å"0† to speak to an operator/customer service representative?† Perspective Two is true, but it only goes so far. A final example will demonstrate how intelligent machines challenge longstanding ideas and push us towards new, unimagined possibilities (perspective three). At my high school, all students had to take diagnostic tests in every main subject to figure out our strengths and weaknesses, and we were then sorted into class by skill level. A truly remarkable pattern emerged as a result of this sorting: it turned out that every kid in my medium-level physics class was also a talented musician. The system that sorted us allowed us to find this underlying pattern, which changed the way our teachers taught us; we learned about mechanics through examples that were more relevant to our lives (answering questions like â€Å"how many pulleys are needed to lift a piano?†), which in turn made our classes both more enjoyable and also more effective. When before I had struggled with physics and simply assumed it was a subject I â€Å"wasn’t good at,† the intelligent, automated sorting system allowed me to discover that I could in fact understand mechanics if taught in the right way. This discovery pushed me toward previously unimagined academic possibilities. In conclusion, intelligent machines help us to mo ve forward as a species to greater heights. While machines can cause problems and may in some cases need human input to function optimally, it is how we react and adapt to the machines that is the real takeaway. This was a real essay written by me within the time limit.What do you think? Now let's look at an annotated version of this ACT essay example that points out the essay's features. What Makes This ACT Essay a 12, Rather Than an 8 or 10? Major Differences between a 5 and a 6 Essay (from table above) Sample Essay Ideas and Analysis The 6 essay gives a more specific and logically precise context. The thesis and argument show a deep understanding of the issue, while the analysis not only mentions, but also inspects the complexities and implications of the issue. The author clearly states her perspective and compares it to two other given perspectives, presenting both positive and negative aspects of the two perspectives she does not entirely agree with: "One common argument against the increased presence of machines in our day to day lives is that machines leach from us our basic humanity...Yet machines are also capable of enhancing people’s abilities to communicate." Development and Support The 6 essays develops its ideas and support for those ideas more thoroughly and examines the implications of the ideas and support in a larger context. In addition, the complexity of the discussion for each examples strengthens the essay's argument and the analysis of the issue at hand. The author gives both general statements... "Rather than losing part of our own humanity to machines, we instead make that most-essential-to-humanity of acts, communication, possible." ...and specific examples that discuss both sides of the perspectives: "...certain people whose only social interactions are anonymous text-based conversations with other anonymous Internet forum dwellers over computers may begin to lose basic human courtesy and empathy...[on the other hand,] breakthroughs in neurotechnology have made it possible for quadripalegics to manipulate text on computers with their minds." Organization The 6 essay is organized to enhance the logic and strength of the writer's argument, whereas the 5 essay is only organized clearly. The essay begins (after the introduction paragraph) by addressing opposing views and discussing their strengths and their limits. Then it goes on in paragraphs 4 to explain a final reason why intelligent machines challenge ideas about humanity and push us towards new possibilities. Language Use The 6 essay is written extremely well, whereas the 5 essay is written pretty well. This means getting creative and using advanced vocabulary appropriately if you want a 6. The "advanced" vocabulary is highlighted in blue. Sentence structure is varied, like here: "On the other hand, no mechanized system of this kind is perfect, because it can’t predict all future outcomes. In terms of automated telephone menus, this means that sometimes, no menu options are correct. While automated systems may take the burden off of human workers, it is a mistake to think that they can replace humans entirely. Why else would the last line of resort for most automated phone menus be â€Å"Dial â€Å"0† to speak to an operator/customer service representative?†" Considerations That Aren't Included in the ACT's Published Guidelines Length The essay is long enough to analyze and compare the author's perspective to other perspectives in a nuanced way (one positive example for each perspective with an addition negative example comparing the two perspectives the author disagreed to her own perspective) and include an introductory paragraph and a conclusion. While ACT, Inc. doesn't acknowledge that length is a factor in scoring ACT essays, most experts agree that it is. But length means nothing if there isn't valuable information filling the space, so long ACT essays also need to be detailed- this author uses the space to give lots of analysis of and context for her examples. Paragraph Breaks You may have noticed that the essay is broken up into multiple paragraphs (into the standard five-paragraph format, in fact). This makes the essay easier to read, especially for the ACT readers who have about two to three minutes to read (and score!) each essay. If your points can easily be split up into small parts, then it makes sense to split it up into even more paragraphs, as long as your essay's organization and logical progression remains clear. Content and Examples This essay uses a personal example, which may or may not be made up (spoiler alert: it is). But the point is that it could be made up, as can anything you use in your essay. Being able to think of examples (that are not too obviously made up) can give you a huge advantage on the ACT essay. Do's and Don'ts for a 12 ACT Essay The key to a perfect score on the ACT essay is to use every second of your time wisely. To this end, here are a few tips to avoid common time-wasters and put your energy where it will get you the most points. Do spend time: #1: Writing as much as you can without including repetitive or irrelevant information. #2: Revising the first and last paragraphs (they stand out in readers' minds). #3: Making sure you have transitions. Don't spend time: #1: Thinking of 'smart' sounding evidence- examples from your own life (or made up about your own life) are just as viable as current events, as long as you keep your example focused and concise. #2: Trying to correct every error- the grammar and spelling do not have to be perfect to score a 12 in the Language Use domain. #3: Adding as many vocabulary words as you can- you only need enough to avoid repeating the same basic words or phrases multiple times; you'll max out fancy vocab's potential at two words per paragraph. How To Practice Your Writing To Get A Perfect 12 In Each Domain Start with our list of ACT essay prompts. Create a list of evidence examples- from literature, history, or personal experience- that you can use for many or most prompt arguments. Practice first with extended time- 50 minutes- so you can get an idea of what it takes to get a top-scoring essay. Find a way to grade your essay, using the ACT Writing Rubric. If you can be objective about your writing, you can notice weak spots, especially if you ran out of time but know what to do. Otherwise, try to get help from an English teacher or a friend who's a better writer than you are. Start narrowing the time down to 40 minutes to mirror the actual test. Stay confident! The ACT essay is just like a puzzle- every time you do one, you get better at doing it. What's Next? Find out more about how to write an ACT essay with this step-by-step example. Use our analysis of the ACT Writing Rubric to learn about how your essay will be scored- and discover strategies you can use to get the score you want. Want to aim for perfection on the ACT with a 36? Read our guide on how to score a perfect ACT score, written by our resident 36 scorer. Make sure your ACT score is high enough for the schools you want to apply to. Find out how to find your ACT target score. Want to improve your ACT score by 4 points? Check out our best-in-class online ACT prep classes. We guarantee your money back if you don't improve your ACT score by 4 points or more. Our classes are entirely online, and they're taught by ACT experts. If you liked this article, you'll love our classes. Along with expert-led classes, you'll get personalized homework with thousands of practice problems organized by individual skills so you learn most effectively. We'll also give you a step-by-step, custom program to follow so you'll never be confused about what to study next. Try it risk-free today:

Art in culture essays

Art in culture essays Art is an expression of a particular person, or group of people. Art can have a large effect on culture, as it can be symbolic of traits, morals, and religious characteristics. An artist is defined as a person whose creative work shows sensitivity and imagination.1 That sensitivity and imagination is what can make a culture. Artists have the ability to manipulate the form of their art therefore manipulating the experience of that art.2 Art is everywhere ; it is in the car we drive, the magazine we read, and in the food that we eat. Art is something that influences many parts of our lives. Art is what drives us to be creative. To make a car better, we need to have an impeccable design. To build a better house, we have to have an imagination to construct. Art is in everything around us whether it is the car we drive or the house we go home to, it is someones artwork. It took someones creativity and thought to fabricate the masterpiece. The arts provide a way for people to explore new possibilities to notice the world.2 Art defines a culture because culture is a pattern of behaviors, ideas, and values shared by a group.3 Without art, what is a culture? A way of life? Culture is sometimes defined as the tastes in art and manners that are favored by a social group.1 Some would come to the conclusion that there isnt culture without art. If you take away all man made things, do you have culture left? Culture is an expression, and without art, there is nothing left but survival. Art offers a type of release, whether through song, paint, clay, or simply writing in a diary. Everyone has a passion for a type of work, whether it be crunching numbers on a calculator or spraying paint all over a canvas. Everyone likes to think that their work shows sensitivity and imagination. People also like to strive to ...

Factors Affecting the Performance of Employees Research Paper

Factors Affecting the Performance of Employees - Research Paper Example The human resource policies and strategies of an organization are the key determinants of employees’ performance (Armstrong, 2006). For example, in my previous employment, there were various incentives such as Christmas bonuses to employees, which aimed at motivating employees. Despite the human resource policies and strategies, the interrelationships of various departments of the organization, inter-organizational relations, and demographic factors have an impact on employees’ performance. According to Armstrong (2006), human resources are valuable assets for an organization. Understanding the issues, which influence worker performance, may be key to enhancing employee’s productivity and morale. Organizations formulate strategies for providing an excellent work environment in order to attract and retain the best employees. These strategies should address those factors that affect the performance of workers. These factors may be within or outside the company, inc luding those factors emanating from the employee’s personal lives. The paper will discuss the following factors as determinants of employees’ performance. These factors include ability, knowledge and skills, feedback, environment, standards, and motivation.  Ã‚  Motivation is the key to an effective organization to sustain the stability of the work in a strong way and help the survival of the organization. Motivation is discovering a requirement inside the workers and assisting to attain it. Motivation enables employees to widen their skills to meet the organizational objectives. Motivation drives human beings to achieve their objectives and company objectives through each challenge and limitation they experience in their workplace. The need of accomplishment leads in a desire to put extra effort to have something done better and the desire for success. There are three internal forces that influence an individual’s behavior; direction, intensity, and persisten ce. In terms of direction, motivation is directed by objectives while in terms of intensity, it is the amount of effort allotted. In terms of persistence, it is the time and effort applied. The following are the five main approaches of motivation; Maslow’s need hierarchy theory, Adams’ equity theory, Vroom’s expectancy theory, Herzberg’s two-factor theory, and Skinner’s reinforcement theory (Herzberg, 1987). Maslow points out that there are five levels of employee needs; safety, physiological, ego, social, and self-actualizing. Maslow observed that employees are motivated when their low-level needs are satisfied first before the next high-level needs. Herzberg’s study classified motivation into two factors; hygiene and motivators. Intrinsic or motivator factors, such as recognition and achievement lead to job satisfaction. Extrinsic or hygiene factors, such as level of remuneration and degree of job security generate job dissatisfaction. Vro om’s approach is based on the idea that worker effort will result in performance, which will result in rewards. The rewards can be either negative or positive. The more positive the prize the more probable the worker will be extremely motivated (Armstrong, 2006). On the contrary, the more negative the prize, the less probable the worker will be motivated.  Ã‚  

Operational Management Business Plan Term Paper

Operational Management Business Plan - Term Paper Example (National Center for Education Statistics) Operations management is essentially overseeing processes that turn inputs into outputs. The goal is to achieve organisational objectives at the lowest cost in order to maximise profits. I work for General Trading which is a grocery and dairy supplier. The portfolio includes distribution, wholesale as well as export operations. The company trades in approximately 10,000 grocery items and 2,000 products and sports its own brands Parade and Better Valu. The export markets range from Europe, South America, Africa, Caribbean and the Middle East. (General Trading) The largest branch of operations exists for food items delivery to supermarkets within the metropolitan area. General Trading acts as the middle man between the wholesalers and the larger grocery stores. Myriad physical resources including warehouses, offices, transport equipment, support services are required to support operations. On the human side, hundreds of workers are required ea ch day by General Trading to ensure prompt delivery of food items. The business philosophy is rather archaic and well set in and the management is not highly committed to change (in terms of modernisation). Business operations demand investment in physical and human resources in order to maximise efficiency and production. At General Trading the, top management has been relentlessly unwilling to invest money in company operations in the short-term to prosper in the long-run. The company’s operations suffer due to lack of training, archaic physical resources, inefficient warehouse operations (stacking and retrieval), lack of employee metrics as well as the lack of a coherent quality management scheme. Operation Analysis and Evaluation General Trading being a logistics operator has to deal with warehousing and transportation. These two operations form the bulk of the company’s operations management. Goods flow both into and out of the warehouse. The material needs to be stacked in order of certain preferences so that it can be readily deployed as required. These preferences include delivery dates, nature of food materials (preserved or fresh), room for fire fighting and escape etc. Food orders are created to record all transactions of incoming and outgoing food materials. Experienced personnel are required to create food orders so that the right amount of detail is entered flawlessly intro records. Similarly, experienced store handlers are required to locate the food materials both when they arrive and when they are about to leave. Investments in the physical equipment have also been lacking which have promoted inefficient operations. A description of the operations is provided below for areas where improvements are desired. Relevant weaknesses are listed alongside the process evaluation so that continuity and relevance can be maintained. Warehousing Warehousing refers to the storage of materials for further processing. In terms of business value a ddition, warehousing

Women’s rights in America in the 1920s Essay Example for Free

Women’s rights in America in the 1920s Essay Throughout the ages women have been stricken with often male-made oppression in many forms on the long, difficult road to their eventual initiation into equal rights. Some aspects of women’s rights today were obtained by questionable means in the past. One such act of liberation by questionable means was the introduction of a class of women in the 1920s known as flappers. These flappers were the beginning of a new wave of sexually and intellectually liberated women. Women of this age wore short skirts and revealing clothing in addition to cutting their hair into bobs and smoking and drinking publicly. These women were also outspoken in many areas, including matters of art, society, and politics. (â€Å"The changing values of a new generation†) Many argued that these women were the source of much moral corruption and social confusion during the age. A large number of people believed that flappers were rowdy, trouble-making, time-wasting, destructive women and that their damaged morals were in need of correcting. In the eyes of many critics, flappers were a prime example of the growing immorality, irresponsibility, inconsideration, impatience, stupidity and selfish personal absorption of today’s female youth. Still others felt that the flappers were simply lazy and their lifestyles were not only evil and blasphemous but also unhealthy for the soul, body, and mind. Secretary of Labor, James Davis said in September of 1922, that the flappers lifestyle revolved mainly around sex and substance abuse. It was argued that the heightened displays of sexual freedom of these flappers promoted lower social morals, larger rates of promiscuity and greater irresponsibility in many young women. Many people saw flappers as being unintelligent, self absorbed, and were only concerned with their own personal gain, without taking others into consideration. They were often viewed as shameful recluses, and troublemakers. Those who felt that flappers were immoral and corrupt argued that they were bad influences on the younger, more impressionable girls and that they gave their community a bad image. It was said to be inappropriate for any woman to show a substantial about of flesh  at any given time, especially in public, therefor, the flappers were seen in an even more negative light due to the fact that their dresses only required 3 yards of fabric instead of the traditional 6. Many said that flappers were inconsiderate of others with their rambunctious behavior and provocative appearances. Their public drinking and smoking was seen by many as vulgar and unladylike. Flappers were also said to be impatient and unintelligent in areas such as schooling, work and typical domestic o bligations. Despite many negative arguments against flappers there were also those who supported them and argued for them, including, of course, the flappers themselves. Flappers and their supporters looked at their actions as a means of promoting their sexual and intellectual liberation from the former, male-based structure of society. These supporters of such female liberation believed that flappers had earned the right to their free and passionate lifestyles and that they should be respected just as much as the men of the community. Such flapper collaborators felt that they were self-sufficient and reliant as well as intelligent and feminine. Flappers often wore makeup with their short hair and flowingly skimpy clothing. They kept themselves slim and fit and exercised often. These women spent a great deal of money to uphold their flapper fashion and image. They felt that they were independent as well as responsible in their free-spirited fight for equality and freewill. They argued that they were not immoral in their lifestyle and that their behavior was in fact far from destructive but, instead, was helping to work towards creating social equality. (â€Å"The New feminism of the 1920s†) Flappers were not in fact only concerned with standing out and being noticed. They were not simply fashion and image-driven, selfish women, but were strong, self-willed, independent young feminist citizens who were fighting passionately for their right to stable equality amidst a prominently male-driven world. These women pushed aggressively for their social, professional, and sexual freedom which they felt were hard-earned and well overdue. Many flappers wished to pursue positions in careers which would otherwise be deemed unacceptable for the average women of the time. They hoped that by breaking away from social normalitys that they could eventually obtain equality in all important aspects of life while hopefully  also allowing them entry into many professional fields which would normally be unaccessible to women. It is beyond confrontation that many of the questions of the flapper age were presented with a certain amount of dubiety by many brave independent women seeking fairness and equality. These women took their lives and futures into their own hands and with all the courage and determination they could muster they threw their hopes and expectations for equality upon the world. The flappers were passionate, lively young women with aspirations of possessing the same basic human rights that were possessed by the men of the age. Though their aggressively displayed fashion and ideas came as quite a shock to most people at first, after the differences became more accepted by the general public objections were able to be put aside, to make way for some real changes. Despite the many controversies surrounding the flappers and their ideals the fact remains that due to their existence and involvement in history a great deal of significance changes were brought about whether for the good or bad that of today’s society which have greatly expanded upon women’s rights and equality.

Cultural and gender comparison of Russia and the US Essay -- essays re

Cultural Comparison of Russia   Ã‚  Ã‚  Ã‚  Ã‚  Gender roles in Russia have dramatically changed since the fall of the former Soviet Union and the fall of communism. It is hard to look directly at the constitution of Russia seeing as though the drafting and redrafting of their constitution is still underway. However, looking at the constitution of the former Soviet Union, you can see it is clearly stated that: â€Å"Women and men have equal rights.† It is very clear that in the Soviet Union they were trying to make it so that women and men were equal. It is still clear today that those same basic ideals are present in Russia. Women are clearly more equal in their country than in ours. In the workforce as well as in the home, women play a more equal role than in the present day United States. However, for the sake of this paper, let us just look at the infrastructure of Russia, formerly known as the Soviet Union or USSR.   Ã‚  Ã‚  Ã‚  Ã‚  In terms of employment, the former Soviet Union had the largest percentage of women in the labor force than any other comparative society. This still remains the case in the present day Russia. Unemployed women in Russia will be quickly employed. They have a very high success rate of reemploying women if they were to lose their jobs. â€Å"Compared to Western women, although Russian women have a much higher representation in law, medicine and engineering as well as in the skilled trades, such as metalworking and construction,...

Home Is Where the Heart Is Essay

Some say â€Å"home is where the heart is. † Home can be everything to some. Home is their safe comfort place they have in life. Home determines a sense of one’s identity. One poem called â€Å"The Youngest Daughter† by Cathy Song involves characters experiencing conflicting situations between the demands of their home and identity. One might think that this poem is simply about mothers versus daughters; however, this poem evokes a broader sense meaning that daughters are torn between either pulling away or pulling closer to home. In one sense, the daughter in this poem is frustrated with her current situation and aspires to do more with her life, rather than devote her time doing what her mother thinks she should be doing. Despite this feeling, she knows she should be caring for her sick mother. The role she has in her home has conflicting messages. Using the elements of tone, narrative poem, and word choice, the poem can be explicated to show how it creates and resolves the meaning of conflict between mothers and daughters. â€Å"The Youngest Daughter† utilizes the narrative type poem, which helps create and resolve the conflict in the poem. The main conflict in this poem is that the daughter has to choose between obligations and desires, while finding her own role in her home. A narrative poem tells a story, and this poem tells a story about a daughter taking care of her elderly mother. The poem is about what the daughter’s daily life is like. This shows the â€Å"obligations† part of her life. The first sentence of the poem is â€Å"the sky has been dark for many years. † This implies that everything that has been going on with her taking care of her mother has been going on for many years. Since her mother became ill, it has been the daughter’s obligation to take care of her. This obligation is based on cultural expectations. In many cultures, children are expected to take care of their parents once they age. The poem is organized into stanzas that are associated with a certain part of the story. One stanza describes what has been going on lately. Another is about â€Å"this morning. † The last stanza is about what goes on â€Å"in the afternoons. † Through the narrative type poem, the daughter is able to express the feeling that her identity is basically taking care of her mother. This identity is also her role in the family. This role limits her own self-identity. Because she is busy caring for her mother, she is unable to develop a sense of self. She is torn between two things: growing away from her mother, and pulling closer to her mother. She knows she has to take care of her, so that aspect makes her seem to pull closer to her mother. Contrary to that, this daughter is a grown woman, and she has a very limited and conflicted life. Her life is devoted to the mother. This is seen by the story of the poem. She wants to grow apart from her mother and do things in her life that interest her. The reader can see that the daughter wants to escape this whole situation because towards the end of the poem it says â€Å"She knows I am not to be trusted / even now planning my escape. † The readers learn here that the mother doesn’t trust the daughter, for reasons unknown. The second line of the above quote shows the readers that this is what the daughter is currently doing to make her mother not trust her. The daughter also desires that her mother’s health improve, because in the poem is says â€Å"As I toast to her health. Love and pity toward her aging mother clash with the feelings of resentment and entrapment of herself. â€Å"The Youngest Daughter† uses word choice to show the conflict of mothers versus daughters, and the daughter’s internal conflict of obligations and desires. The daughter uses middle diction to show her emotions. Like noted in a previous paragraph, the first sentence of the poem is â€Å"the sky has been dark for many years. † This shows that the daughter has been dealing with her mother’s illness for quite some time, and she hasn’t been able to see the sun. She hasn’t been able to do what she wants to do because she has been so overwhelmed with taking care of the mother and fulfilling her obligations. When describing the mother, the daughter says â€Å"her breathing was graveled / her voice gruff with affection. † The word choice of graveled and gruff is interesting. This demonstrates the effort required to breathe and be affectionate. It’s almost as if the writer of the poem wanted the readers to hear what her breathing and voice sounded like by including those two words in there. This implies in a way that the mother has an opinion with the situation too. These two words make these two lines more effective. The daughter says â€Å"I was almost tender / when I came to the blue bruises. † This shows that the daughter feels sorry for what the mother has to go through. Tender is another interesting word choice. The poem also says â€Å"I soaped her slowly,† meaning that the daughter takes her time when washing her mother, because her life has been accustomed to nothing. Another aspect of obligations is that the daughter says â€Å"I scrubbed them with a sour taste in my mouth. The daughter obviously doesn’t want to scrub the mother, but it is obligation, her duty, so she must. Using the sentence â€Å"We eat in the familiar silence† shows that there is tension between them, because if there was no tension, they would be talking when they are eating. Despite this tension, this still occurs each day, and they continue to follow the same routine. If this line just had said â€Å"We eat in silence,† it would have a much lesser effect on the poem as a whole. By adding the word â€Å"familiar,† it allows the reader to understand that eating that way is a commonality and part of a consistent routine. The words â€Å"familiar silence† contrast each other. Familiar is something that has occurred so often that it becomes accustomed. And what is familiar in this poem? Silence. Silence, though it means quiet, is essentially nothing. Quietness, or nothing, has occurred so much that it is accustomed. The word choice is contrasting obligations with desires. The daughter is obligated to care for her mother. This is evident throughout the entire poem when the daughter describes everything she does for her mother. Despite this, she desires to do something different than just solely care for her mother. This desire is evident when the poem says â€Å"She know I am not to be trusted / even now planning my escape. † The daughter wants to escape, and the mother is aware of it. This contrast between obligations and desires makes the reader of the poem feel that this is an either/or situation. The daughter can either take care of the mother, or she can go off on her own. The last two lines of the poem are very meaningful: â€Å"A thousand cranes curtain the window / fly up in a sudden breeze. These word choices are effective because the words allow the readers to see an ending image. It seems like the cranes flying away is associated with the daughter being set free and escaping her life. It’s ironic how the first line of the poem uses words that talk about the sky, and in the last few lines of the poem the cranes fly into the sky. This line is used as a way for the author of the poem to show that the resolution has occurred. By the end of the poem, the conflict of obligations versus desires is resolved. One of the last lines of the poem says â€Å"As I toast to her health. This shows that the daughter finally realizes that caring for her mother is what’s best for her at this moment. By toasting for her health, she reveals that even though she is sick of caring for her mother, she would rather care for her mother than have her mother be dead. The daughter realizes that there will eventually be a time when the mother dies, and at that time the daughter will be able to do whatever she desires, but right now, her focus needs to be on her mother. The cranes flying into the sky reiterates this fact. When this time comes, even though the daughter will be able to do what she wants, she will be without a mother. She will have no obligations, which in a sense is good for her, because she will be able to do what she wants, yet a part of her life will be missing. Death is always hard to deal with, and even though in the poem she talks about how she wants to escape, in reality she really would miss her mother. The tone is this poem is bittersweet and affectionate; children should care for their aging parents, yet children need to live their own lives. In a way, the tone is also both happy and sad. The way the tone changes correlated with both of the conflicting sides of the poem. It’s happy in the way that the poet shows that there is affection and love between mothers and daughters, yet it is sad in the way that it shows that sometimes conflicts arise between mothers and daughters. This also explains how it is bittersweet. The tone shows that there are moral ties between children and their parents. These moral ties tie in with the obligational part of the conflict. Morally, the daughter feels obliged to care for her mother. The speaker is the youngest daughter of a family, and her duty is to take care of her aging parent. As one can see, looking at a poem through elements can help a reader understand the meaning of it. In â€Å"The Youngest Daughter,† the poem creates the meaning of conflict between mothers and daughters related to the daughter either pulling closer or pulling away from family and having to choose between obligations and desires. The elements of tone, word choice, and narrative poem together effectively create this meaning. In this poem, the home determines one’s identity. The daughter is conflicted between either pulling closer to her home life and her mother, or pulling away from it all and going after her own aspirations. Readers can relate to this poem because many people go through the same predicament in life: taking care of an aging parent. People do it because they love their family. Even though this daughter is having conflicting feelings about taking care of her mother, she does it anyways because family always comes first.

Belonging Related Text Essay

George Orwell’s essays – related text ‘Marrakech’ explores the notion of ethnocentricity through a Eurocentric perspective, in which one is isolated at the consequence of differing morels. Orwell succeeds in doing so through various anecdotes â€Å"What does Morocco mean to a Frenchman? An orange-grove or a job in government service. † In essence this displays the failure of a migrant to withhold a deeper connection to the land. Orwell emotively describes the crippled elderly women who â€Å"answered with a shrill wail, almost a scream, which was partly gratitude but mainly surprise†, as a response to the charity he provided her with. The dramatic reaction displays her sense of alienation from her own homeland, at fault of those who are foreign, yet awfully powerful. This is furthered through the description of â€Å"the shy, wide-eyed Negro† where through his ignorance, he â€Å"has been taught that the white race are his masters, and still believes it. † A sense of melancholy pervades this essay through the harsh truth â€Å"How much longer can we go on kidding these people? † displaying the indigenous peoples disconnection to a place that was originally theirs. While ‘Marrakech’ explores the notion that one does not belong to their homeland. This is juxtaposed through ‘Shooting an Elephant’ with Orwell’s alternative experience of belonging. Through Orwell’s ambivalence we see the highly controversial understanding of â€Å"the hollowness.. of the white man’s dominion in the East. † It is ironic that a â€Å"sub-divisional police officer† should feel self-conscious with such authority. Controversially he â€Å"was all for the Burmese† juxtaposed to the grotesque imagery of his deepest desire to â€Å"drive a bayonet into a Buddhist priest’s guts.

The United States and Manifest Destiny essays

The United States and Manifest Destiny essays During the late eighteenth and early nineteenth centuries, the United States saw many problems come and go. Some problems were more important than others. However, all led to the further division of American politics. The most divisive issue in American politics during this time frame was the idea of Manifest Destiny or territorial expansion. Manifest Destiny was the idea that it was the United States' destiny to take over all of North America from the Atlantic to the Pacific. Most of the public was in favor of territorial expansion, though some politicians felt it contradicted the constitution. Strict constructionists were against territorial expansion, while loose constructionists felt expansion was the United States' destiny. Strict constructionists centered their platform around the fact that the constitution never directly states that the federal government has the right to acquire land. Those that view the constitution liberally, or loose constructionists, counter that stand by claiming the right of expansion falls under the government's implied powers. Loose constructionists and strict constructionists are the main divisive factor for the United States political parties: the Democrats and the Whigs. One of the supporters of Manifest Destiny was Democrat, James Polk who served as president from 1844 to 1848. Polk was strongly in favor of expanding the United States to the Pacific. This opinion won him the election of 1844. That year Henry Clay, a well known and loved figure in American politics, ran and was expected to blow, little known, Polk of the charts. The only problem was Clay was nervous about territorial expansion. He did not want with Mexico and was unsure of the constitutionality of expanding. Polk won because the majority of the public believed in Manifest Destiny. Along with influencing presidential elections, Manifest Destiny played a role in the slavery issue. Entering the mid eighteen hundred slavery was a ...

Parle Essays

Parle Essays Parle Essay Parle Essay the company has definitely come a very long way since its inception. Many of the Parle products biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India , Parle has grown to become a multi-million dollar company. While to consumers its a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance. Parle-G Every nation dreams of a better tomorrow. And every nation’s tomorrow lies in the hands of its children; children who make the nation proud in every aspect; the young geniuses who shape the future of the nation. So it’s important to nourish these young minds, for after all it’s a question of the nation’s future. Filled with the goodness of milk and wheat, Parle G is a source of strength for both body and mind. Treat yourself to a packet of Parle-G to experience what has nurtured and strengthened the minds of millions of genius Indians for over 65 years. It’s more than just a biscuit. A meal substitute for some, a tasty and healthy snack for many others. Consumed by some for the value it offers, and many others for it’s taste. Little wonder that it’s the Largest selling Biscuit Brand in the world. Ingredients : Wheat Flour, Sugar, Partially Hydrogenated Edible Vegetable Oils, Invert Syrup*, Leavening Agents [ 503 ( ii ), 500 ( ii ) ], Salt, Milk Solids, Emulsifiers [ 322 or 471 481 ( i ) ] and Dough Conditioners [ 223 ]. Contains Added Flavours (Artificial). * (d Glucose, Levulose) Pack Sizes available: 16. 5G, 38. 5G, 60. 5G, 82. 5G, 99G, 209G, 313. 5G, 418G, 825G Parle G largest selling biscuit brand in world If you thought that a typical family run Indian company cannot top the worldwide charts, think again. The homegrown biscuit brand, Parle G, has proved the belief wrong by becoming the largest selling biscuit brand in the world. Ajay Chauhan, executive director of Parle Products, told Business Standard: The more than 50-year-old brand, Parle G, has been rated as the largest selling glucose biscuit brand in the whole world in terms of volumes. This came as a surprise to us when we were made to understand that we have topped the worldwide charts of the global biscuits industry. This was recently revealed by the US based Bakery Manufacturers Association. The other global biscuit brands include Oreo from Nabisco and McVities from UK-based United Biscuits among others. According to ORG-MARG reports, Parle G commands a good 65 per cent market share in the domestic biscuit market. The glucose biscuits category in India is estimated at Rs 15 billion. The Parle G brand faces competition from Britannias Tiger brand of biscuits. The companys flagship brand, Parle G, contributes more than 50 per cent to the companys total turnover. The other biscuits in the Parle Products basket includes Monaco, Krack Jack, Marie, Hide n Seek, Cheeslings, Jeffs, Sixer and Fun Centre. Said Chauhan: The core brands of the company in the biscuit category will include only Parle G, Monaco and Krack Jack. The other brands will not be aggressively supported by us in the market. This is because these three brands contribute substantially to our topline, Chauhan added. The confectionery business, which is the other division of Parle Products, currently contributes only 15 per cent to the companys total turnover. Interestingly, the company started operations with the confectionery business in 1929. Chauhan elucidated: The confectionery business has now taken a backseat and has become a smaller part of our business because in India biscuits have a larger market. The company commands a 40 per cent marketshare in the Rs 35 billion biscuit market in India. In the confectionery segment, the company enjoys a mere 15 per cent marketshare. The companys confectionery portfolio comprises brands like Melody 2 in 1, MangoBite, Poppins, Rol-a-cola, Kismi, Rosemint, Peppermint, Orange candy, Fruit Drops, Pick n Pack and Tangy. Chauhan has picked up three core brands from this category as well, they being Melody 2 in 1, Poppins and MangoBite. Its a brand that has held its price line at Rs 4 for 25 years now the price was last raised in 1994 by 25 paise. So, its not for nothing that Parle-G is the worlds largest-selling biscuit by volumes. Not that the company didnt try to raise prices to offset the overall hike in costs. Three years ago it did so, but quickly rolled it back after volumes fell sharply and consumers wrote to lodge their protest. We want to cater to the masses and have consciously tried not to increase the price. Parle-G is available for Rs 50 a kg. There are very few food items that are available for Rs 50-60 a kg, says Pravin Kulkarni, general manager (marketing), Parle Products. Parle is, of course, not doing it for charity. Soaring input prices meant it opted for reducing the weight of the biscuit than increasing the price first from 100 gm to 92. gm in January 2008, and then to 88 gm in January this year in line with other biscuit-makers and FMCG players. Regular customers would have noticed the number of biscuits in a pack come down from 16 to 15 even as each biscuit became lighter, but they seemed to understand the cost pressures on the firm. The gamble paid off: Parle was able to sustain its volumes. Strict cost control at every point in its supply chain also helped Parle ent ered into forward contracts with suppliers, outsourced production, increased the number of manufacturing locations to 60 and consolidated buying. Raw material costs account for 60 per cent of the total costs in this segment and packaging costs (plastic films) account for 20-25 per cent of this. Nirmalaya Kumar, professor of marketing at London [ Images ] Business School, feels its a very smart strategy. At this price point, price becomes more important than the weight of the biscuit. Its very interesting and similar to the dollar stores in the US, he says. But price is not its only USP. What makes the Parle G brand tick is also that it has been positioned on the health platform (a single pack of biscuit offers 450 calories). Its earlier punchline was Parle-G: swadh bhare, shakti bhare (full of taste and energy). Currently, the brand uses two punchlines. Parle-G: G for Genius and Hindustan ki Taakat (the countrys strength). The brand, says Kulkarni, meets different needs of customers: calories (energy), nutrition and value-for-money enough reasons why Parle-G enjoys close to 70 per cent market share in the glucose biscuit category and probably has the deepest reach. It reaches 2. 5 million outlets, including villages with a population of 500 people, on a par with Unilevers Lifebuoy, ITCs cigarettes or mobile pre-paid cards. Its also one of the few FMCG brands in the country, whose customers straddle across income segments. The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more than 50 per cent of the companys turnover (Parle Products is an unlisted company and its executives are not comfortable disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion). Competition has, of course, been trying to wean away customers from Parle. Britannia [ Get Quote ] relaunched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18 per cent share, while ITCs Sunfeast glucose has captured 8-9 per cent, according to industry sources. Even Levers had forayed into this segment in 2003 and launched a glucose biscuit branded as Modern, after it acquired the bakery business of Modern. There are strong regional brands, including Priya Gold (west), Cremica (north) and Anmol (east). But they still have their work cut out. Nirmalaya Kumar feels the Parle-G story is so fascinating that it deserves to be a case study. What would be interesting to see is whether it will be able to retain its leadership in the coming years as income grows in the hinterlands and consumers upgrade and develop new tastes. The popular Parle-G, glucose biscuits from Parle Products, have witnessed a price hike after a gap of nine years. The company’s marketing manager Pravin Kulkarni said that over these years Parle-G’s price has not increased even as inflation has resulted in a increase in the cost of other products. The price hike, which was decided just before the Budget and was implemented about 10 days ago, has taken up the price of a 100 gm Parle-G pack from Rs four to Rs 4. 0, while that of the 50 gm pack from Rs two to Rs 2. 50. An analyst with a leading brokerage firm in Mumbai said that the move, not exactly related to the Budget, is good for the company and is expected to go down well with the consumers. Arch rival, Britannia Industries, is likely to adopt a wait-and-watch policy for some time, be fore increasing the prices of its glucose biscuit brand, Tiger. Mr Kulkarni said that till now there has been no impact on sales, even as it is too early to observe any further effect. He added that the consumers also understand the need for a price hike after so many years. The company does not have plans at the moment for price increases in any other brands. The organised biscuit market in India is estimated to be over Rs 3000 crore. Britannia, the market leader, is said to have about 45 per cent market share, with Parle close behind at about 30-35 per cent. Another major brand is Priya Gold from Surya Foods, while the smaller brands include Sunfeast from ITC and Champion. The unorganised market comprising very small regional brands and unbranded biscuits and naankhataai, is showing a declining trend over the years, according to analysts.

Building Innovation into Outsourcing Relationship Case Study

Building Innovation into Outsourcing Relationship - Case Study Example Therefore, after identifying the innovation process to be implemented, AlphaCorp must understand how the innovation will be incorporated into the intended operation and or processes (Babin & Schuster, 2012). In other words, it is only through understanding the scope of the innovation that costs and services required to initiate and implement such innovations can be determined and analyzed. Â  AlphaCorp and B&B must distinguish between innovation and continuous improvement in the projects they are running or intend to run towards improving their productivity (Babin & Schuster, 2012). They must ever consider or regard all projects or programs that they have never been working on and are intended to be initiated into their systems as a mean of improving their service deliveries and operations as innovative programs or projective. However, there are some programs and projects that have been operating within the system, but they need to be adjusted on for better results (In Hirschheim et al., 2014). The systematic progress on processes that are already existing programs and projects is known as continuous improvement. Notably, well-intended and drafted projects and programs must give room or ways through which continuous improvement will be conducted on them. Â  Finally, AlphaCorp and B&B must know that innovation must always be carried on already existing productions but not new productions or areas (Babin & Schuster, 2012). In some cases, innovations often fail and if such failures are experienced in new production or areas, it will be highly challenging restore the destroyed image of the product or of the company in the new areas it failed due to failed innovation.

Perspectives on International Trade and Finance Assignment

Perspectives on International Trade and Finance - Assignment Example Joining WTO posed a vital influence on the political as well as economic reforms of China which were learnt to be influencing the telecom sector as well. Xiaolingtong is a mobile network which was developed in the year 1999, before China joined WTO and was controlled by the Ministry of Information Industry (MII) which was considered to be the backbone of the fixed line service providers. Later on, significant developments were made with regard to Xiaolingtong which assisted in capturing a significant share in the foreign market. The government provided full support towards the development of Xiaolingtong but those developments were not regarded as vital in comparison to the mobile or cellular service providers. There were also few issues which existed in relation to the adoption or implementation of the 3G service in China’s telecommunication services which required the involvement of different services and technologies. Discussion Key Issues or Options or Alternatives There a re few issues which are known to prevail or subsist in the telecommunication system of China and these issues are believed to be preventing the overall development of the system. The telecom market in China was characterized with arbitrary pricing as well as promotion policies. The main focus was to gain a significant market share instead of increasing its market size by providing new and valued services. The telecom market or the sector was observed to provide increased focus on deploying various services without being much concerned regarding the underlying quality with respect to the value added services for creating differentiation or competitive advantage for their products in the international market. There was an existence of high regulatory framework which created uncertainty as well as risk for the 3G mobile services. China’s telecom policies lacked a proper implementation of the relevant laws as well as regulations. It was found in this respect that MII played a maj or role in regulating the policies for the telecom system in China as the policies were not considered to be transparent which led to uncertainties. It was identified that to develop an efficient as well as effective competition in the telecom market, the existence of an ‘Independent Telecom Regulatory Authority’ was highly required. When China joined WTO, it should have then established an ‘Independent Telecom Regulatory Authority’ for the purpose of developing its telecom industry, but failed to do as MII used to formulate plans and policies as along with managing the telecom service providers (International Trade Administration, 2010). The telecom industry of China needed to conduct its business in partnership with some other international telecom services to compete in the international market. The firms formed out of Chinese partnerships with the foreign associates usually remained stated owned and lacked adequate experience in terms of competing in th e international market. The telecom equipment requires qualifying through various certifications as well as testing prior to their implementation and installation. A certain degree of limitation is imposed in China with regard to the aspect of foreign investment which restricts foreign companies to exercise control over the management of the Chinese telecom industry. A WTO obligation

Macroeconomic Performance and Strategic Decisions Essay - 1

Macroeconomic Performance and Strategic Decisions - Essay Example Kazakhstan is an emerging economy in Central Asia and is one of the former Soviet republics. Each of these countries would be analysed on four main areas. The analysis would outline the four parts of this paper. Part one is a summary of the macroeconomic performance of each country over the last three years (2004-2006). Part two is a critical evaluation of the economy as a target market for exports. Part three is a critical examination of advantages and disadvantages of the economy as a potential source of inputs into a manufacturing company. Part four is an analysis of the strengths and weaknesses of the economy as a location for foreign direct investment or FDI. Table 1 summarises key economic indicators for these countries. The researcher acknowledges the sources in the Bibliography. The UK, with a total GDP of $1.8 trillion growing 3.1% annually is the world's fourth largest economy and has a population of 59 million with high disposable incomes, making it one of the best gateways to penetrate European markets with a per capita income of $30,447 at purchasing power parity. This former world superpower is the world's 6th freest (of 155) economy (Heritage, 2007, p. 381), the 10th (of 125 countries) most competitive nation on earth (World Economic Forum, 2006, p. xvii), and the world's 21st most competitive economy, which includes sub-economies that are not states or countries like Catalonia in Spain (IMD, 2006, p. 7). The Monetary Policy Committee (MPC) of the Bank of England (BOE) keeps a close look at the inflation rate that is only slightly rising between 2 and 3% annually by monitoring interest rates (BOE, 2007). The U.K. uses two inflation measures: the Retail Price Index (RPI) and the Consumer Price Index (CPI). Both are similar but with minor differences in composition, coverage, and weighting of prices in the index. Since December 2003, the CPI has been used for monetary policy with a target of 2.0% on average over time (BOE, 2007). The sterling exchange rate remains strong against the U.S. dollar and stayed within the range of 0.58 to 0.53 by end-2006. The sterling weakened against the Euro as expected from 0.69 to 0.72 by end-2006, a trend expected to last until end-2007 depending on Eurozone interest rates changes. These currency movements were affected by the weakening of the U.S. economy and a strengthening Eurozone with respect to the UK, signifying low currency volatility due to sterling's lack of attractiveness as a medium for short-term capital flows in currency markets caused by the UK's flat interest rate curve (BOE, 2007, p. 2). The UK stock market continued to rise, returning 22.0% up to December 2006, continuing a two-year trend, with the FTSE 100 index closing higher by end-2006. The UK equities market is expected to follow its upward trajectory in 2007 on the back of stable prices and renewed business and consumer confidence. Hong Kong Special Administrative Region (HK SAR) The HKSAR celebrated last July 1, 2007 its tenth anniversary since its handover by the UK to the People's Republic of China. HKSAR retains its unique status as a Special Administrative Region until 2047 and hopes to remain as the world's most liberal capitalist economy whilst at the same time being a part of the largest and most progressive Communist nation with

Islam Definition Essay Example for Free

Islam Definition Essay For the past few months I have been overseas working in the wonderful country of India. I’ve observed many different things; many unusual things about this country. India has a wide variety of cultures and religions. The holiday I have learned about is called Hajj. Hajj means ‘to set out for a place’. Hajj is the pilgrimage that Muslims make to Makkah or also called Mecca , Saudi Arabia, and is one of the five basic requirements of Islam. It is a religious high point of a Muslim’s life and is an event that every Muslim dreams of being part of. Hajj is a religious obligation to be fulfilled at least once in the course of the life of each Muslim law grants, and is a series of detailed rituals. It is a Muslims obligation to be mindful of their friends and family and to all humans whatsoever. Islamic followers believe that every nation should have a unity so they can all worship God. They believe that through culture people will come together as a whole to praise God, and learn each other’s difficulties. All official duties are suppose to be completed between the ninth and thirteenth day of Hajj. There are three main pillars that are to be performed during Hajj. The first pillar is to get into a state of â€Å"Ihram† and intend to perform the pilgrimage. The second pillar is to stay at the field of â€Å"Arafat† on the ninth day of Hajj. If the person cannot complete the pilgrimage then he/she will have to try to complete it the following year. The third pillar is additional circling of the â€Å"Ka’ba† which is done after the first pillar and is performed from the tenth day of Hajj till the end of the month. These past couple months in India have been a great experience. I’ve learned a lot of new things, which has been something different for me. I would love to come back and visit all of the people that I have met, because everyone was so nice. Learning about the Hajj was very interesting to me, and I will go back and share all of my experiences with everyone back home.

Effects of Divorce on Children :: Papers

Effects of Divorce on Children Divorce has become an unquestionable remedy for the miserably married. Currently, the United States has the highest divorce rate in the world. Every year in the US approximately one million children experience divorce which, is about one in every three children (Amato 21). The effects of divorce can be tremendously painful for both children and adults. Children of divorce are more likely to suffer from behavioral, social, academic, and psychological problems than children raised in two-parent families. The actual separation of the family will be the initial crisis that a child must deal with but many issues such as economic hardship, moving, and other major issues may follow. Sarah McLanahan, a leading divorce researcher at Princeton University, has identified moving as one of the most damaging effects of divorce for children. That is because the children lose invaluable ties to friends that may be able to help them cope with the new stress they are faced with. McLanahan and Gary Sandefur conclude that up to 40% of the increased risk of being a high school drop out is attributed to moving as a result of divorce (Chira 01E). The short term effects or divorce vary depending on the age and sex of most children. Boys and girls handle the break-ups with different emotions for example, some get angry, some feel sad, and some may experience feelings of rejection. Preschool age children, ages three to five, many times react with feelings of anger and sadness. Many of the preschool age children will regress after the initial shock of the separation. Signs of regression could be once again asking for a security blanket, bedwetting, returning to thumb sucking, needing help feeding themselves, or hitting their siblings. The children in this age group are more anxious and insecure than a child growing up in a two-parent home (Teyber 11). The majority of the children in the preschool age-group have abandonment issues and fear that since one parent has left the home that the other may move out as well. As the children get older the effects the divorce has on them is different but no less traumatizing. School aged children between the ages of six to eight seem to have an especially difficult time dealing with their parents splitting up. Generally, the boys in this age group tend to be more bothered than the girls.

Managing Working Capital

MANAGING WORKING CAPITAL Cash Budgets and Current Assets Learning Objectives Upon reading this chapter, students should: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Be able to compare and contrast working and fixed capital †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Understand the impact of the operating cycle on the size of investment in accounts receivable and inventories †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Know the differences between the three motives †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Be able to differentiate between float, collection float, and disbursement float †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Know how to appraise a firm’s credit worthiness †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Be able to appraise the effectiveness of a firm’s inventory management policiesChapter Summary A firm can invest in both working capital and fixed capital. Working capital is a firm’s current assets and includes cash, marketable securities, inventory, and accounts receivable. Fixed capital is a firm’s fixed assets and includes plant, equipment and property. Firms that cannot obtain short-term financing become candidates for bankruptcy. Management of working capital is particularly important to the entrepreneurial or venture firm because there is such a pull on resources.Two important concepts in managing working capital are the operating cycle and the cash conversion cycle: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The operating cycle measures the time between receiving raw materials and collecting the cash from credit sales posted to accounts receivable †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The cash conversion cycle measures the time it takes to collect money from the company’s customers and use those funds to pay its suppliers Calculating three ratios will reveal the average length of these cycles: 1. Inventory days     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   =   365 / (Cost of goods sold / Inventories) 2.Accounts receivable period (average collection period ) =   Accounts receivable / (Net sales / 365) 3. Average payment period   =   Accounts payable / (Cost of goods sold / 365) The operating cycle is the inventory conversion period plus the average collection period. The cash conversion cycle is the operating cycle minus the average payment period. In order to determine average investment in accounts receivable, multiply net sales per day by the average collection period. With this number, a manager can now estimate what the investment in accounts receivable will be fore ht following year given sales increases and average collection period.In order to determine investment required in inventories, multiply average cost of goods sold per day by inventory conversion period. The required amount of accounts payable can be found by multiplying the cost of goods sold per day by average payment period. Armed with these numbers, a manager can tweak the business practices and use these numbers as metrics for improvement. If savings can be wrung out of the operating cycle and conversion cycle, this means less money will have to be raised in financing. A cash budget details the cash inflows and outflows of a firm over a specific time frame.Small firms may prepare annual or monthly cash budgets while larger firms will forecast cash flows weekly or daily. Most firms have a minimum desired cash balance that depends on the firm’s ability to acquire financing on short notice, management preferences, and the predictability of cash inflows and outflows. Estimates of cash inflows are driven by two main factors: 1. Sales forecast (may exhibit seasonality) 2. Customer payment patterns Cash outflows will go to suppliers, payroll, taxes, operating expenses, and purchases of plant and equipment.In order to construct the cash budget, list all expected cash inflows and then all expected cash outflows for the particular period, generating a net cash flow amount. As a general rule of thumb, the average firm has 1/3 or more of i ts assets in the form of current assets (cash, accounts receivable and inventory). Seasonal production and forecasting can lead to idle plant capacity and laid-off workers during the off-season. Under a level production plan, the same amount of raw material is purchased and the same amount of finished product is manufactured every month.There are three types of motives for holding cash: 1. The transactions motives are demands for holding cash – cash is needed to conduct day-to-day operations 2. Precautionary motives are demands that may be caused by unpredictable events, such as delays in production or in the collection of receivables; marketable securities are held in such a contingency 3. Speculative motives are demands for funds to take advantage of unusual cash discounts for needed materials Cash and marketable securities include: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cash itself †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   U. S. Treasury bills   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Commercia l paper – short-term, unsecured notes of well-known business firms †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Negotiable certificates of deposit – a receipt issued by a bank in exchange for a deposit of funds †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Bankers’ acceptances – primarily used to finance exports and imports †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Eurodollars – deposits placed in foreign banks that remain denominated in U. S. dollars There are several reasons why U. S. banks have entered the Eurodollar market through overseas branches: 1. To finance business activity abroad 2. To switch Eurodollars into other currencies 3. To lend to other Eurodollar banksIn general, managers try to speed up cash collections while slowing down the payment process. The float is the time between sending out payments and having them actually be charged to the bank account. The collection float is the time between when a payer sends payment and funds are credited to the payee ’s bank account. The disbursement float is the time between when a payer sends payment and when the funds are deducted from the payer’s bank account. Float has three components: 1. Delivery or transmission float – the delay in transferring the means of payment from the payer (customer) to the payee (provider of goods/services) 2.Processing float – once payment reaches the destination, it needs to be entered and processed 3. Clearing float – delay in transferring funds because of the banking system itself In order to speed up the process: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Preauthorized checks are regular (typically monthly) deductions by a vendor from a customer’s checking account. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Under the Check 21 law, enacted in 2004, payee banks can present electronic or digital images of checks to payer banks rather than having to physically deliver the paper checks for payment.In order to facilitate sales, firms of ten offer the customers credit for purchases; this process calls in credit analysis. The five Cs of credit analysis are: 1. Character – ethical quality of the applicant and the history of paying bills on time (credit checks) 2. Capacity – the ability to pay bills (liquidity ratios) 3. Capital – adequacy of owners’ equity relative to existing liabilities 4. Collateral – whether assets are available to provide security 5. Conditions – current economic climate and state of the business cycleCredit bureaus obtain credit information about business firms and individuals; two such organizations are Experian and Equifax. Dun & Bradstreet reports contain information assembled through many channels and is one of the best sources of information on privately-held companies; reports are typically divided into five sections:   (1) rating and summary; (2) trade payments; (3) financial information; (4) operation and location; and (5) history. Trade credit is extended on purchases to a firm’s customers. Sometimes, customers are given a discount if they pay early.The financial manager must be careful not to impose onerous credit terms that will alienate customers and lower sales. With respect to global credit, the concern is forex. There are two ways to handle the issue: 1. Invoice customers in the firm’s home currency 2. Hedge the forex risk Inventory management: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The just-in-time (JIT) inventory control system is a system where there are enough materials in inventory to cover needs for a short time, but not more inventory than is needed for short-term needs.Vendor and manufacturer work together to reduce lead time, setup time, and production time so that inventory shows up â€Å"just in time†Ã‚   †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   JIT II further integrates the activity of vendor and purchaser, wherein the position of buyer’s purchasers or materials planners is eliminate d and replaced by a representative of the supplier †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Tracking inventory also allows firms to reduce the inventory conversion period and the cash conversion cycle. RFID (radio frequency identification) tags send out a radio signal to electronic readers that allow companies to know the location of inventory at any timeInventory management can result in reduced cost of warehousing and handling inventory. Cost savings and smaller asset bases should lead to higher return on assets and increasing shareholder wealth. Technology is improving asset management by making information available with which managers make business decisions in a real-time setting. Technology may be the key to reducing procurement and supply chain costs. Portals are specialized and secure Web sites through which clients can access order and account information. Key TermsCapacity  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The ability to pay bills and often involves an examination of liquidity ratios. Capital  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The adequacy of owners’ equity relative to existing liabilities as the underlying support for creditworthiness. Cash budget  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The cash inflows and cash outflows of a firm over a specific time frame. Cash conversion cycle  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time it takes to collect money from the company’s customers and use those funds to pay its suppliers.Character  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The ethical quality of the applicant and his/her willingness to pay bills on time and is best judged by reviewing the past credit hist ory for the company or person. Collateral  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Assets that secure credit. Collection float  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time between when a payer sends payment and the   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   funds are credited to the payee’s bank account. Conditions  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The current economic climate and state of the business cycle.They are an important consideration in assessing whether the applicant can meet credit obligations. Credit bureaus  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Firms that obtain credit information about   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   business firms and individuals. Disbursement float  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time between when a payer sends payment and when the funds are deducted from the payer’s bank account. Fixed capital  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A firm’s fixed assets, which include plant, equipment, and property. Float  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time between sending out payments and having them actually be charged to the bank account.Level production plan  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Schedule where the same amount of raw material is purchased and the same amount of finished product is manufactured every month. Operating cycle  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time between receiving raw materials and collecting the cash from credit sales posted to accounts recei vables. Portals  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Specialized and secure web sites through which clients can access order and account information. Pre-authorized checks  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Regular (typically monthly) deductions by a vendor from a customer’s checking account.Precautionary motives  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Demands for funds that may be caused by   unpredictable events, such as delays in production   or in the collection of receivables. Speculative motives  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Demands for funds to take advantage of unusual cash discounts for needed materials. Trade credit  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Credit that is extended on purchases to a firm’s customers. Transactions motives  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Demands for holding cash is that cash is needed to conduct day-to-day operations.Working capital  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A firm’s current assets as shown on the balance sheet and includes cash in the bank accounts, marketable securities, inventory, and accounts receivable. Suggestions for Additional Resources 1. http://en. wikipedia. org/wiki/Just_In_Time_%28business%29 2. http://www. lean. org/ 3. http://www. equifax. com/ 4. http://www. experian. com/ 5. http://www. investopedia. com/terms/c/creditbureau. asp 6. http://en. wikipedia. org/wiki/Credit_bureau 7. http://www. investopedia. com/terms/w/workingcapital. asp 8. http://en. wikipedia. org/wiki/Working_capitalAnswers to Summary Questions 2. Fixed capital would be defined as the firm’s fixed assets, which include plant, equipment and property. True or false? True. .   3. The operating cycle measures the time it takes between o rdering materials and collecting cash from receivables. True or false? True. .   4. If a firm has $50,000 in profit and pays out about one half to the owners of the company, the amount of profit retained in the firm would show up as: (a) an increase in owners’ equity (b) a decrease in owners’ equity (c) a decrease in retained earnings (d) a decrease in long-term debt .   5.The accounts payable period is the time between a firm’s paying its suppliers for inventory and collecting cash from inventories. True or false? False. .   6. Increases in the cash conversion cycle will lower the firm’s short-term financing needs. True or false? False. .   7. The inventory conversion period is calculated by inventory divided by costs of goods sold. True or false? False. .   8. Activities that decrease the cash conversion cycle will increase the firm’s need to obtain financing. True or false? False. .   9. More efficient management of working capital a ssets will lessen the firm’s needs for financing.True or false? True. . 10. A cash budget is a tool the treasurer uses to forecast future cash flows and estimate future short-term borrowing needs. True or false? True. . 11. To construct a cash budget, two sets of information are needed: estimated cash inflows and estimated cash outflows. True or false? True. . 12. The estimated cash inflows are affected by the sales forecast and customer payment patterns. True or false? True. . 13. Assume a firm’s production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold.If the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the short-term operating cycle be? (a) 110 days (b) 130 days (c) 190 days (d) 270 days . 14. If a firm has net sales of $400,000, annual cost of goods sold of $315,000, an inventory turnover of 4. 5 times a year, and an accounts re ceivable turnover of five times a year, the combined investment in inventories and accounts receivable would be: (a) $64,500 (b) $92,000 (c) $122,500 (d) $150,000 . 15. Calculation of a firm’s average collection period is the same as calculating the: (a) accounts receivable cycle (b) inventory cycle c) accounts payable cycle (d) short-term operating cycle . 17. A level production plan has problems, such as idle plant and laid-off workers during slow sales months and production bottlenecks during busy times. True or false? False. . 18. The account receivable period may be calculated as accounts receivable divided by sales. True or false? False. . 19. The account receivable period may be calculated as accounts receivable divided by daily sales. True or false? True. . 20. The transactions motive is the demand for holding cash. True or false? True. . 22. The federal funds rate is normally several points lower than the Treasury Bill rate.True or false? False. . 23. The five C†™s of credit analysis is a popular concept used by inventory managers. True or false? False. . 24. A mercantile credit bureau serves primarily as a (n): (a) collection agency for delinquent accounts (b) common meeting place where credit managers may exchange information (c) organization through which accounts receivable may be sold to other businesses (d) central record-keeping organization for credit information on business firms . 25. The objective of just-in-time (JIT) inventory control is to carry a minimum level of inventories.True or false? True. . 26. The delivery or transmission float is the delay in transferring the means of payment from the payer (customer) to the payee (the provider of goods or services). True or false? True. . 27. The disbursement float is the delay in transferring the means of payment from the payer (customer) to the payee (the provider of goods or services). True or false? False. Answers to â€Å"Review Questions† .   1. What is meant by wor king capital? Net working capital is defined as current assets minus current liabilities. .   2. Briefly describe a manufacturing firm’s operating cycle.The operating cycle measures the time between receiving materials and collecting cash from receivables. Raw materials are purchased and products are manufactured from them to become finished goods. Effort then is made to sell the finished goods. If the goods are sold on credit, then the receivables must be collected. .   3. Explain how the cash conversion cycle differs from the operating cycle. The cash conversion cycle typically is shorter than the operating cycle. The cash conversion cycle measures the time between when a firm pays for its supplies or raw materials and when it collects cash from receivables.    4. Describe how the length of the cash conversion cycle is determined. It is equal to the operating cycle (inventory period minus the accounts receivable period) minus the payables period. .   5. Explain how the length of the operating cycle affects the amount of funds invested in accounts receivable and inventories. All else being equal, a longer (shorter) inventory period and receivables period will increase (decrease) the amount of inventory and accounts receivable carried by the firm. .   6. What affects the amount of financing provided by accounts payable as viewed in terms of the cash conversion cycle?The level of the firm’s cost of goods sold and the average payment period affect the amount of financing provided by accounts payable. .   7. What is a cash budget? How does the treasurer use forecasts of cash surpluses and cash deficits? A cash budget lists, period by period, expected cash inflows and outflows. The treasurer can plan ahead to find suitable marketable securities in which to invest excess cash. If cash deficits are forecast, the treasurer can arrange for short-term financing sources. .   8. Three sets of information are needed to construct a cash budget.E xplain what they are. The firm’s minimum desired cash balance, forecasted cash inflows, and forecasted cash outflows are needed to construct a cash budget. .   9. Why might firms want to maintain minimum desired cash balances? Firms want to maintain minimum desired cash balance to ensure they can pay bills on time (transactions motive) and to have a cushion, as forecasts of cash flows may differ from actual future cash flows. . 10. What are the sources of cash inflows to a firm over any time frame? The main sources of cash inflows are cash sales and customer payments on credit sales. . 11.What are the sources of cash outflows from a firm over any time frame? The main sources of cash outflows are payments for raw materials, labor and overhead expenses, rent/lease payments, plant and equipment purchases, interest and principal payments, dividend payments, and taxes. . 12. How does the choice of level or seasonal production affect a firm’s cash over the course of a year ? Under level production, inventory becomes large before the peak selling season; whatever cash the firm has will probably be borrowed funds as cash is used to pay workers and suppliers over the course of the year as inventories are building.Under seasonal production, there is still a build-up of inventories prior to the selling season but probably less than under level production, as inventory can be sold shortly after it is made. Cash is conserved for much of the year; materials and labor expenses are less during the off-peak times when production is low. . 13. Describe what happens to a firm’s current asset accounts if the firm has seasonal sales and they use (a) level production; (b) seasonal production. a. Under a level production plan, the same amount of raw materials are purchased and the same amount of finished product is manufactured every month.Inventory builds up in anticipation of higher seasonal sales while cash and accounts receivable are quite low. When the sel ling season begins, inventories fall and receivables rise. After a time, inventories are nearly exhausted, and the firm is collecting cash from its customers. The changing composition of current assets for a firm with a seasonal sales pattern is illustrated in Figure 15. 4. b. Under seasonal production, raw material purchases will rise or fall in anticipation of higher or lower sales.Such a strategy can help minimize the effect of seasonal sales on inventory; goods are manufactured shortly before sale. Receivables will rise during the peak selling season but will fall thereafter as cash is collected. . 14. Describe the three motives or reasons for holding cash. a. need for day-to-day bill-paying? Transactions motive: b. hold funds to meet unexpected needs—a safety level of? Precautionary motive: cash hold funds? c. Speculative motive: to take advantage of attractive input prices or discounts 15. What characteristics should an investment have to qualify as an acceptable market able security?Marketable securities must be highly liquid (easily converted into cash at a price close to fair market value) with little chance of price risk or default risk. . 16. Identify and briefly describe several financial instruments used as marketable securities. Marketable securities that can be used as a means to â€Å"park† the firm’s excess cash include a. short-term securities issued and backed by the U. S.? U. S. Treasury Bills: government b. a bank’s temporary excess reserves that are lent to other banks? Federal Funds: on a day-to-day basis c. short-term unsecured notes of large financially stable? Commercial Paper: firms . large dollar CDs ($100,000 or more) for? Negotiable Certificates of Deposit: which a secondary market has evolved e. business paper used to finance international trade, backed? Bankers’ Acceptances: (accepted) by a bank with a high quality rating f. deposits placed in foreign banks that remain denominated in U. S.? Euro dollars: dollars (so there is no currency risk) . 17. What is float? Why is it important to cash management? Float is the delay between when funds are sent by a payer to a payee. Collection float is the time between when a payer sends payment and the funds are credited to the payee’s bank account.Disbursement float is the time lag between when a payer sends payment and when the funds are deducted from the payer’s bank account. It is important to cash management as the firm will have larger cash balances to invest and to reduce its own financing needs, all else being equal, the shorter the collection float and the larger the disbursement float. . 18. What are the three components of float? Which are under the control of the firm seeking to reduce collection float? The three components of float are delivery (or transmission) float, processing float, and clearing float.Delivery float and processing float are most directly under the control of the firm. Clearing float is c ontrolled mainly by the banking system’s check-clearing process but the firm can try to reduce it (and delivery float) by using lockboxes that are geographically closer to customers then the firm’s main office. . 19. What are some strategies a firm can use to speed up its collections by reducing float? Using a lockbox, incoming receipts are placed in a Post Office box which can be emptied several times a day by bank personnel, who process the payments and deposit the incoming funds into the firm’s accounts.This reduces mail delivery delay and processing delay, as the bank processes the payments rather than the firm. A second popular method, best used for regular payments such as utility, cable bills, or insurance premiums, is the use of preauthorized checks that allow the firm to deduct funds from the payer’s bank account. . 20 How can processing float be reduced? Vendors reduce processing float by improving the process of receiving payments and depositin g them. Large incoming payments (say, over $1 million) are automatically flagged and deposited expeditiously.Electronic check images and electronic payments (rather than the use of paper checks) remove the human component and thus can reduce processing delays. Lockboxes and preauthorized checks reduce processing delays, as processing is handled by banks, speeding deposit of incoming receipts. .. 21. How can a firm use float to slow down its disbursements? A firm can increase mail float by mailing payments from out-of-the-way locations, but that may hurt its reputation with suppliers who can direct the firm to send payments to another, closer, lockbox location.Another means are to use disbursement banks that are located around the country to increase disbursement float via the check-clearing process. So excess (and noninterest bearing) funds are not kept in a disbursement account, a firm can arrange to use a zero balance account for its disbursements. A bank will transfer sufficient funds every day into the ZBA to cover the day’s presented checks; other funds can remain invested in marketable securities. . 22. Why can’t a firm that wants to increase disbursement float simply make payments after the stated due date?There is an ethical issue with paying invoices late. If a vendor has provided needed goods and services the customer should pay for them in a timely and appropriate manner. Paying late can lead to negative notations on credit reports. Credit availability to late payers can be discontinued if the vendor’s credit standards are tightened. . 23. What is credit analysis? Identify the five C’s of credit analysis. Credit analysis involves appraising the creditworthiness or quality of a potential credit customer. Credit analysis includes examining the 5 C’s of credit. a. illingness to repay debts? Character: b. ability to repay debts (liquidity)? Capacity: c. equity cushion? Capital: d. what assets can provide security for t he credit? Collateral: e. the state of the business cycle and its expected movement during the? Conditions: credit period . 24. Describe various credit-reporting agencies that provide information on business credit applicants. Credit bureaus provide firms with information about a firm’s financial condition and its record on paying its past debts. Local credit bureaus service community credit information needs.The National Credit Interchange System facilitates exchange of information between bureaus. The National Association of Credit Management established the Foreign Credit Interchange Bureau to service firms with overseas customers. Dun & Bradstreet is perhaps the best-known private firm supplying credit information. . 25. How can a firm control the risk of changing exchange rates when billing an overseas customer? First, a firm can invoice the overseas customer in the firm’s home currency; this transfers the risk of changing exchange rates to the customer.Second, if the customer may pay in their own currency, the supplier can use currency futures or options contracts to hedge or reduce the risk of changing exchange rates. . 26. What risks arise when a firm lowers its credit standards to try to increase sales volume? Marginal and poor-risk customers may purchase the firm’s goods/services on credit. If they are unable to make payment, the firm must revise its sales figures and faces the added expense of trying to recover the goods and whatever funds it can from the delinquent customer. . 27. How do credit terms and collection efforts affect the investment in accounts receivable?All else being equal, lax credit terms increase the investment in accounts receivable and increase the chance for larger bad debts. Stricter credit terms will likely reduce receivables balances, but at the cost of possibly losing sales to competitors with easier standards. Collection efforts are aimed at having customers with overdue accounts pay their bills. Thus, successful collection efforts can reduce receivable balances and bad debt expense. On the other hand, collection efforts that offend customers can lead to lost future business. 28. How is the financial manager involved in the management of inventories? Inventory management concerns the financial manager because inventory, like all other assets, must be financed. Overly large inventories use warehouse space and have larger financing costs and insurance costs. Smaller inventories run the risk of selling out and causing customer dissatisfaction. Answers to â€Å"Applying this Chapter† Questions 2. The Robinson Company has the following current assets and current liabilities for these two years: 2004   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2005 Cash and marketable securities |$50,000 |$50,000 | |Accounts receivable |300,000 |350,000 | |Inventories |350,000 |500,000 | |Total current assets |$700,000 |$900,000 | |Accounts payable |$200,000 |$250,000 | |Bank loan |0 |150,000 | |Accruals |150,000 |200,000 | |Total current liabilities |$350,000 |$600,000 | |   |   |   | If sales in 2004 were $1. 2 million and sales in 2005 were $1. 3 million, and cost of goods sold was 70 percent of sales, how long were Robinson’s operating cycles and cash conversion cycles in each of these years? What caused them to change during this time?AR period = $350,000/($1,300,000/365) = 98. 27 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $300,000/($1,200,000/365) = 91. 25 days (2004) Inventory period  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $500,000/($910,000/365) = 200. 55 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $350,000/($840,000/365) = 152. 08 days (2004) AP period   = $250,000/($910,000/365 ) = 100. 27 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $200,000/($840,000/365) = 86. 90 days (2004) Operating cycle = AR period + Inventory period = 98. 27 + 200. 55 = 298. 82 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 91. 25 + 152. 08 = 243. 33 days (2004) Cash conversion cycle = Operating cycle – AP period = 298. 82 – 100. 27 = 198. 5 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 243. 33 –   86. 90 = 156. 43 days (2004) Both the OC and CCC rose in 2005, primarily because of a large rise (almost 48 days) in the inventory period. 5. The Robinson Company from Problem 2 had net sales of $1,200,000 in 2004 and $1,300,000 in 2005. (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Determine the receivables turnover in each year. AR turnover  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = Sales/AR = $1,300,000/$350,000 = 3. 71 (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $1,200,000/$300,000 = 4. 00 (2004) (b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Calculate the average collection period for each year. Average collection period  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = AR/(Sales/365)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $350,000/($1,300,000/365) = 98. 7 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $300,000/($1,200,000/365) = 91. 25 days (2004) (c)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Based on the receivables turnover for 2004, estimate the investment in receivables if net sales were $1,300,000 in 2005. How much of a change in the 2005 receivables occurred? Receivables investment  Ã‚  Ã‚  Ã‚  Ã‚   = Sales per day ? Average collection period   Ã‚  Ã ‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = ($1,300,000/365) ? 91. 25 days = $325,000 6. Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2004 and $1,200,000 in 2005. (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Calculate the inventory turnover for each year. Comment on your findings.Inventory turnover  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = COGS/Inventory = $1,200,000/$500,000 = 2. 40 (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $1,000,000/$350,000 = 2. 86 (2004) Inventory turnover fell in 2005; inventory rose more quickly than cost of goods sold. (b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What would have been the amount of inventories in 2005 if the 2004 turnover ratio had been maintained? Inventories investment  Ã‚  Ã‚  Ã‚  Ã‚   = COGS per day ? Inventory period   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $1,200,000/365 ? (365/2. 86) = $419,580. 42 7. Given Robinson’s 2004 and 2005 financial information presented in problems 2 and 4,   Ã‚  Ã‚  Ã‚   (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Compute its operating and cash conversion cycle in each year. Robinson Company |   |   |   |   | |   |2004 |   |2005 |   | |Sales |$1,200,000 |   |$1,300,000 |   | |Cost of Goods sold |$1,000,000 |   |$1,200,000 |   | |profit margin |5. 0% |   |5. 0% |   | |   |   |   |   |   | |Accounts Receivable |$300,000 |   |$350,000 |   | |Inventory |$350,000 | $500,000 |   | |Accounts Payable |$200,000 |   |$250,000 |   | |   |   |   |   |   | |Sales/ day = |$3,287. 67 |   |$3,561. 64 |= $1,300,000/365 | |COGS/day= |$2,739. 73 |   |$3,287. 67 |= $1,200,000/366 | |   |   |   |à ‚   |   | |Inventory conversion period = Inventory/COGS per day | |   |127. 75 |days |152. 8 |days | |   |   |   |   |   | |Average collection period = AR/sales per day |   | |   |91. 25 |days |98. 27 |days | |   |   |   |   |   | |Average payment period = AP/COGS per day |   | |   |73. 0 |days |76. 4 |days | |   |   |   |   |   | |Operating cycle = Inventory conversion + collection periods | |   |219. 00 |days |250. 35 |days | |   |   |   |   |   | |Cash cycle = Inventory conversion + collection period – payment period | |   |146. 00 |days |174. 31 |days | (b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What was Robinson’s net investment in working capital each year? |Net investment in working capital = AR + Inventory – AP (as used in his chapter) | |   |2004 |   |2005 |   | |   |=$300,000+$350,000-$200,000 |=$350,000+$500,000-$250,000 | |   |=$450,000 |   |=$600,000 |   | 8. Robinson expects its 2006 sales and cost of goods sold to grow by 5 percent over their 2005 levels. (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2005 levels? What will be its net investment in working capital? If the ratios remain the same, a |   |   | |5 |percent increase in sales and COGS will increase AR, | |inventory, and AP proportionately in 2006 |   |   | |AR: $350,000 + 5%= |$367,500 |   |   | |Inv: $500,000 + 5%= |$525,000 |   |   | |AP: $250,000 + 5%= |$262,500 |   |   | |Net investment in working capital = AR + Inventory – AP |   | |=$367,500 + $525,000 – $262,500 = |$630,000 |   | |   |   |   |   | |The new sales will be |$1,300,000 + 5% = |$1,365,000 |   | |Sales/day = |   |$3,739. 3 |   | |The new COGS will be |$1,200,000 + 5% = |$1,260,000 |   | |COGS/day = |   |$3,452. 05 |   | (b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What will b e the impact on its net investment in working capital in 2006 if Robinson is able to reduce its collection period by five days, its inventory period by six days, and increase its payment period by two days? |The new sales will be |$1,300,000 + 5% = |$1,365,000 | |Sales/day = |   |$3,739. 3 | |The new COGS will be |$1,200,000 + 5% = |$1,260,000 | |COGS/day = |   |$3,452. 05 | |Estimated AR if collection period reduced by |5 |days: | |New AR = sales/day x collection period |   |   | |Sales/ day = |$3,739. 73 |   |   | |Old collection period |98. 27 |   |   | |New collection period |93. 27 |   |   | |New AR estimate= |$348,801. 7 |   |   | |   |   |   |   | |Estimated inventory if conversion period reduced by |6 |days: | |New Inv = COGS/day x conversion period |   |   | |COGS/day |$3,452. 05 |   |   | |Old conversion period |152. 08 |   |   | |New conversion period |146. 08 |   |   | |New Inv estimate= |$504,287. 7 |   |   | |   |   |   |   | |Estimated AP if payment period increased by |2 |days: | |New AP = sales/day x payment period |   |   | |COGS/day |$3,452. 05 |   |   | |Old payment period |76. 04 |   |   | |New payment period |78. 04 |   |   | |New AP estimate= |$269,404. 1 |   |   | |   |   |   |   | |2006 working capital = AR + Inventory – AP |   |   | |=$360,020. 55 + $514,643. 84 – $259,047. 95 |   |   | |=$583,684. 93 |   |   |   | |which is a reduction of |$46,315. 07 |from part a) | 9. Robinson expects its 2006 sales and cost of goods sold to grow by 20 percent over their 2005 levels. (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2005 levels? What will be its net investment in working capital? If the ratios remain the same, a |   |   | |20 percent increase in sales and COGS will increase AR, | |inventory, and AP proportionately in 2006 |   |   | |AR: $350,000 + 5%= |$420,000 |   |   | |Inv: $500,000 + 5%= |$600,000 |   |   | |AP: $250,000 + 5%= |$300,000 |   |   | |Net investment in working capital = AR + Inventory – AP |   | |=$367,500 + $525,000 – $262,500 = |$720,000 |   | |   |   |   |   | |The new sales will be |$1,300,000 + 20% = |$1,560,000 |   | |Sales/day = |   |$4,273. 97 |   | |The new COGS will be |$1,200,000 + 20% = |$1,440,000 |   | |COGS/day = |   |$3,945. 21 |   | b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What will be the impact on its net investment in working capital in 2006 if Robinson is able to reduce its inventory period by ten days? |Estimated AR if collection period reduced by 0 days: | |New AR = sales/day x collection period |   |   | |Sales/ day = |$4,273. 97 |   |   | |Old collection period |98. 27 |   |   | |New collection period |98. 27 |   |   | |New AR estimate= |$420,000. 0 |   |   | |   |   |   |   | |Estimated inventory if conversion period reduced by 10 days: | |New Inv = COGS/day x conversion period |   |   | |COGS/day |$3,945. 21 |   |   | |Old conversion period |152. 08 |   |   | |New conversion period |142. 08 |   |   | |New Inv estimate= |$560,547. 5 |   |   | |   |   |   |   | |Estimated AP if payment period increased by 0 days: | |New AP = sales/day x payment period |   |   | |COGS/day |$3,945. 21 |   |   | |Old payment period |76. 04 |   |   | |New payment period |76. 04 |   |   | |New AP estimate= |$300,000. 0 |   |   | |   |   |   |   | |2006 working capital = AR + Inventory – AP |   |   | |=$360,020. 55 + $514,643. 84 – $259,047. 95 |   |   | |$680,547. 95 |   |   |   | |which is a reduction of |$39,452. 05 |from part a) |   | 10. Following are financial statements for the Genatron Manufacturing Corporation for the years 2004 and 2005: Selected Balance Sheet Information 2004   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2005 Cash |  $ 50,000 |$ 40,000 | |Accounts receivable |200,000 |260,000 | |Inventory |450,000 |500,000 | |Total current assets |$700,000 |$800,000 | |Bank loan, 10% |$ 90,000 |$ 90,000 | |Accounts payable |130,000 |170,000 | |Accruals |50,000 |70,000 | |Total current liabilities |$270,000 |$330,000 | |Long-term debt, 12% |300,000 |400,000 | Selected Income Statement Information 2004   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2005 |Net sales |$1,300,000 |$1,500,000 | |Cost of goods sold |780,000 |900,000 | |Gross profit |$ 520,000 |$ 600,000 | |Net income |$93,000 |$ 114,000 |Calculate Genatron’s operating cycle and cash conversion cycle for 2004 and 2005. Why did they change between these years? Inventory period  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = Inventory/(COGS/365)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $500,000/($900,000/ 365) = 202. 78 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $450,000/($780,000/365) = 210. 58 days (2004) AR period = AR/(Sales/365) = $260,000/($1,500,000/365) = 63. 27 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $200,000/($1,300,000/365) = 56. 15 days (2004) AP period   = AP/(COGS/365) = $170,000/($900,000/365) = 68. 94 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $130,000/($780,000/365) = 60. 83 days (2004) Operating cycle   = Inventory period + AR period 202. 78 days + 63. 27 days = 266. 05 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 210. 58 days + 56. 15 days = 266. 73 days (2004) Cash conversion cycle = Operating cycle – Average payment period   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 266. 05 days – 68. 94 days = 197. 11 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 266. 73 days – 60. 83 days = 205. 90 days (2004) The operating cycle remained constant in 2004 and 2005 as a reduction in the inventory period was balanced by an increase in the average collection period. The cash conversion cycle sell for 2005 was longer. Genatron took, on average, longer to pay its suppliers. 11.Genatron Manufacturing expects its sales to increase by 10 percent in 2006. Estimate the firm’s investment in accounts receivable, inventory, and accounts payable in 2006. If the inventory, collection, and payment periods remain constant, each account should rise by 10 percent. $260,000 (1. 10) =? Accounts receivable: $286,000 $500,000 (1. 10) = $550,000? Inventory: $170,000 (1. 10) = $187,000? Accou nts payable: 12   . With concerns of increased competition, Genatron is planning in case its 2006 sales fall by 5 percent from their 2005 levels. If cost of goods sold and the current asset and liability accounts decrease proportionately, (a) Calculate the 2006 cash conversion cycle.    |   |   |   |   |5% decline | |   |2004 |   |2005 |   |2006 | |Sales |$1,300,000 |   |$1,500,000 |   |$1,425,000 | |Cost of Goods sold |$780,000 |   |$900,000 |   |$855,000 | |profit margin |7. 2% |   |7. 6% |   |   | |Net income |$93,000 |   |$114,000 |   |   | |Accounts Receivable |$200,000 |   |$260,000 |   |$247,000 | Inventory |$450,000 |   |$500,000 |   |$475,000 | |Accounts Payable |$130,000 |   |$170,000 |   |$161,500 | |   |   |   |   |   |   | |Sales/ day = |$3,561. 64 |   |$4,109. 59 |= $1,500,000/365 |$3,904. 11 | |COGS/day= |$2,136. 99 |   |$2,465. 75 |= $900,000/366 |$2,342. 47 | |   |   |   |   |   |   | |Inv entory conversion period = Inventory/COGS per day |   | |   |210. 58 |days |202. 78 |   |202. 8 | |   |   |   |   |   |   | |Average collection period = AR/sales per day |   | |   |56. 15 |days |63. 27 |   |63. 27 | |   |   |   |   |   |   | |Average payment period = AP/COGS per day |   | |   |60. 8 |days |68. 94 |   |68. 4 | |   |   |   |   |   |   | |Operating cycle = Inventory conversion + collection periods |   | |   |266. 73 |days |266. 04 |   |266. 04 | |   |   |   |   |   |   | |Cash cycle = Inventory conversion + collection period – payment period |   | | |205. 90 |days |197. 10 |   |197. 10 | (b) Calculate the 2006 net investment in working capital. Net investment in working capital = AR + Inventory – AP (as used in this chapter) | |2004 |2005 |2006 |   |   | |   |   |=$247,000+$475,000-$161,500 | |$520,000 |$590,000 |=$560,500 |   |   | 13. .In problem 10 we assumed t he current asset and liability accounts decrease proportionately with Genatron’s sales. This is probably unrealistic following a decline in sales.What will be the impact on the working capital accounts if its collection period lengthens by five days, its inventory period lengthens by seven days, and its payment period lengthens by three days if Genatron’s sales and COGS fall 5 percent from their 2005 levels? |The new sales will be |$1,500,000 – 5% = |$1,425,000 |   | |   |Sales/day = |$3,904. 11 |   | |The new COGS will be |$900,000 – 5% = |$855,000 |   | |   |COGS/day = |$2,342. 7 |   | |   |   |   |   | |Estimated AR if collection period lengthens by |5 |days: | |New AR = sales/day x collection period |   |   | |Sales/ day = |$3,904. 11 |   |   | |Old collection period |63. 27 |(from problem 10) |   | |New collection period |68. 27 |   |   | |New AR estimate= |$266,520. 5 |   |   | |   |   |   |   | |Estim ated inventory if conversion period lengthens by |7 |days: | |New Inv = COGS/day x conversion period |   |   | |COGS/day |$2,342. 47 |   |   | |Old conversion period |202. 78 |   |   | |New conversion period |209. 8 |   |   | |New Inv estimate= |$491,397. 26 |   |   | |   |   |   |   | |Estimated AP if payment period increased by |3 |day: | |New AP = sales/day x payment period |   |   | |COGS/day |$2,342. 47 |   |   | |Old payment period |68. 4 |   |   | |New payment period |71. 94 |   |   | |New AP estimate= |$168,527. 40 |   |   | |   |   |   |   | |2006 working capital = AR + Inventory – AP |   |   | |=$266,520. 55 + $491,397. 26 – $168,527. 40 |   |   | |=$589,390. 1 |   |   |   | |which is an increase of |$28,890. 41 |from problem 10. |   | 14. .Suppose Global Manufacturing is planning to change its credit policies next year. It anticipates that 10 percent of each month’s sales wil l be for cash; two thirds of each month’s receivables will be collected in the following month, and one-third will be collected two months following their sale. Assuming the Global’s sales forecast in Table 10. 5 remains the same and the expected cash outflows in Table 10. 6 remain the same, determine Global’s revised cash budget. Nov. Dec. Jan. Feb. Mar. Apr.Sales  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   $80,000  Ã‚   $100,000  Ã‚  Ã‚  Ã‚   $ 30,000  Ã‚   $   40,000  Ã‚  Ã‚  Ã‚   $ 50,000  Ã‚  Ã‚  Ã‚   $ 60,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cash (10%)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   3,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   4,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   5,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   6,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   1 Month Later (2/3)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   60,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   18,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   24,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   30,000 [pic][pic][pic][pic]  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2 Months Later (1/3)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   24,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   30,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   9,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   12,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Total Cash Receipts  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   $ 87,000  Ã‚   $   52,000  Ã‚  Ã‚  Ã‚   $ 38,000  Ã‚  Ã‚  Ã‚   $ 48,000 [pic][pic][pic][pic]  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Less: Total Cash Payments  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   60,000  Ã‚  Ã‚  Ã‚   127,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   44,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   40,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Net Cash Flow  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   $ 27,000  Ã‚   $ –75,000  Ã‚  Ã‚  Ã‚   $ –6,000  Ã‚  Ã‚  Ã‚   $   8,000 [pic][pic][pic][pic]  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Beginning Cash Balance  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   25,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   52,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   25,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   25,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cumulative Cash Balance  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã ‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   $ 52,000  Ã‚   $ –23,000  Ã‚  Ã‚  Ã‚   $ 19,000  Ã‚  Ã‚  Ã‚   $ 33,000Monthly Loan  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      (or repayment) 0  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   48,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   6,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   –8,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cumulative Loan Balance  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   0  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   48,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   54,000  Ã‚  Ã‚  Ã‚      46,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Ending Cash Balance  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚