Managing Financial Decisions And Resources Finance Essay - Free Essay Example

Sample details Pages: 18 Words: 5362 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Any cash raised from any accepted and legal method to fund a business organisation is a financial source. There are many categories and classifications of these exact finances available to a business(Carlos Correia, 2007, pp. 7-7). Don’t waste time! Our writers will create an original "Managing Financial Decisions And Resources Finance Essay" essay for you Create order They are classified in terms of time, management options and repayment schemes. Asset sales: occur due to the companys effort to raise money through sale of assets which are currently dormant. These can take the form of unused machinery or unnecessary services. Selling off dormant assets can be a good source of necessary capital to fund worthier projects in a company(Roman Tomasic, 2002, p. 488). Retained earnings: is the re-investing of the profits made by the company, for the company. This is an n effective source for funding due to the fact that it is not a borrowing/liability and so does not come with added costs such as interest(Kate Mooney, 2008, p. 99). Personal savings: is an equity which gets the funding done and comes with no strings attached in the avenue of interests and contingencies(Anthony J. Laramie, 2000, p. 138). This finance is the property of the company in question and none has a right to dispute against it. Working capital: is a ready and quick sourc e of cash but may only be used as a short term exploit. It can be defined as the difference between the current assets or the property owned by a company and current liabilities which is the debts, borrowings or payments a company is in a position to make(Fitzgerald, 2002, p. 169). This capital may be invested in short term money back schemes or banked for interest. Ownership/equity capital: is cash invested in to a company by the owners of the company or more correctly the shareholders of the company(Chandra, Financial Management, 2008, p. 436). They have the right of say over company affairs and their reward is in the form of dividends which is actually the distribution of shares among a companys shareholders when the company makes profits from its business. If a company is not doing so well, it need not pay the share holders any dividends. Ordinary shareholders: are equity investors who do not get share capital unless and until the company makes profits. But when a company does make huge sums as profits, then the cash belongs to the share holders to distribute among themselves according to the values of the shares originally invested(V Rajib Raghunathan, 2007, p. 16). They have no annual fixed amounts payable to them by the company nor is there a compulsion for the company to pay any arrears to its ordinary share holders. Preference shareholders: ere equity investors who are paid a sum of cash dividends annually; it is a set amount and does not fluctuate with the rise and fall of profits(V Rajib Raghunathan, Stock Exchanges, Investments and Derivatives, 2007, p. 17). However, there is flexibility, in case a company is unable to pay its preferential capitalists their dues, it can add the current annual share capital to the proceeding years share capital and hence pay two years worth of dividend together. Non-ownership cash/capital Trade credit: merely employs goods or services on credit for a certain period of time before payment. A company may obtain supplies for the manufacture of its products on a credit of a few months which enables the company to actually make and sell the goods for profit before any payment is made(Chandra, 2008, p. 740). It is a good source for companies at the initiation of their businesses or in a position to save initial investment expenses. Debentures: are basically loans on interest and most often backed by collateral security(V Rajib Raghunathan, 2007, p. 49). The company is required to make timely monthly interest payments, failure of which could lead to confiscation of the collateral pledges. The collateral could be anything from fixed to movable assets. Bonds: are also loans where the borrowing company pays a monthly interest on the borrowings till it can pay back the principle amount borrowed, at later date. This interest is known as coupons. Unlike debentures where the interest is calculated on the receding original loan, bond interests are calculated on the whole borrowings(V Rajib Raghunathan, 2007, p. 49). Leasing: is basically renting of goods or services for a long period of time. A company may make use of a lease to obtain a rented premise or service(Watt, 2007, p. 25). Operational leases: on services and goods which after the period of contract of the lease, may be re-leased to a new company and hence use repeatedly. E.g.:- a warehouse for storage of goods. Financial lease: use up the whole life of the leased goods or service in question and are of no further use after the initial lease agreement period. It is again a rent and will never be the property of the leasing company. Overdrafts: is a bank related source of finance; it basically means that the bank associated with the company aids the company by paying more cash than available in the account and thereafter redeeming this excess from the company along with any interest due for its services(Univercity of Virginia, 2008). It is a short term financial source. Hire-purchase: is the acquiring of required tools or inventory without huge upfront investments. A company making a hire purchase for a vehicle need only to pay the one instalment of the whole agreement in order to start using the item(Gurusamy, 2009, p. 80). Factoring: is the employing of a third party individual or firm to collect a companys outstanding invoices from its consumers. The factor upon accepting the client pays the company 80% to 90% of the total invoice within 24 hours(Marie-Renà ©e Bakker, 2004, p. 4). It then tracks down the customer and obtains the full amount of the outstanding the consumer owes to the company. The 10% or 20% of the unpaid balance is the factors commission. Grants: are issued by the government in order to fund significant projects which it deems essential and constructive. These are huge monetary funds and are repayable according to specific terms and conditions(Greuning, 2009, p. 248). Invoice discounting: (Carlos Correia, Financial Management, Sixth Edi tion , 2007, pp. 12-23) are financial resources similar to the method of factoring but it involves the customer invoice purchase by the financer in anonymity and the customer is unaware of the process. Apart from this the company retains the management of its financial ledgers which is not so in factoring. Franchising: is a method or system by which a company promotes its growth and distribution of its products. The company sells the right of the company to another business man who will now have the right to function under the brand name of the original company. This method ensures growth of parent company and also benefits the new business owner. A charge is of course involved in the sale.(Good, 2003, p. 104) Venture capital: is also known as angel investors are in reality wealthy businessmen or firms who fund new and upcoming small businesses or ventures. They are a great supply of funds and are also a source of advice and assistance. These angels work with the company for a period of time and after the business improves, leave with large equity which equals the sum of their investments and assistance.(Good, 2003, p. 260) =============================================================== QUESTION 1B Implications of financial sources Any supply of finance will have repercussion attached to it and should be considered when deciding on an appropriate resource to fund businesses Legal implication: include the legality of a liability, which are interest and taxation issues. For funding sources like shares issue, the implications would be that the company in question has the right to sell shares legally and the amount of shares are determined by vote from the existing share holders at the AGMs or Annual General Meetings. Taxes on profits need to be paid to the government in an efficient and timely manner to ensure the smooth functioning of the company. Borrowing or liabilities involved needs timed interest instalment payments, especially if it involves collateral. Negligence may lead to tangles with the law, should your creditors file a suit against you. Financial implications Sale of assets Pro: Ready source of funds and easily available in many companies Cons: the company may need the sold assets to restart production and in which case it may need to reinvest on the goods sold Retained earnings Pro: this funding option does not require the payment of interests, compulsory annual dividends or legal obligations of payments. And they are large monetary assets. Cons: it can result in cost of shareholder finance and also too many share distribution can lead to dilution of control. Tax disadvantage, unlike a liability, dividends are considered to be and are profits and hence subjected to corporate tax within the company and to income tax when it reaches the share holders. So it is taxed twice. Personal savings Pros: again does not involve any interest, timely payments due, threats or risks involved with liabilities since it is the companys own asset. Cons: finances are very limited and cannot be funded for long term projects due to the fact that large investments require an extensive period of time to accumu late appropriate funds. Working capital Pros: speedily obtainable and stand by source of funds and can be invested in money back such as lending on interest, banking for interests and 99 day capital investment return schemes. Cons: company may getting to dilemma if it faces instant cash emergencies and requires free capital for exploitation. Trade credit Pros: upfront, investment less supplies for production and can be very useful when cash flows in a company is stretched. Allows financial breathing space for a company in difficulty. Cons: in the event the credits are not paid in time, the goodwill of the company diminishes and the companys credit rating and history takes a downhill plunge which may thwart other suppliers from lending trade credit to the company. Debentures Pros: usually long or mid term finances and can be used to fund colossal projects. Tax advantage. A company is required to pay taxes to the government and it is calculated roughly on the d ifference between the income and the expense of the company. The monthly interest repaid on a loan is considered an expense and hence not taxable. This is unlike dividends which are considered profits and are taxable with both corporate and income tax. Cons: compulsory monthly repayments often need to be pledged against expensive collateral, negligence can cause lawsuits filed buy creditors, loss of collateral security pledges and in the case of too many loans, bankruptcy and ultimately liquidation. Bonds Pros: same as those of debentures in being tax advantageous and long term fund source Cons: dangerous to invest when the rates of currency rises because at such times the value of the bond falls. These are very volatile and dependent on the rate. (Kiplinger Washington Editors, FEB 2006, p. 55) Leasing Pros: does not involve large capital investments to acquire basic inventory or property, monthly payments are easier on the cash flows of the company, the requiremen ts for collateral is less, tax advantage on monthly disbursement as it is considered an expense. Cons: weather its an operational lease or a financial one, the company will never be entitled to be the owner of the entity on lease no matter how elongated a phase of time, all maintenance costs will be the responsibility of the company during the time of the lease, the repayments will be an incessant and very long-standing expenditure. Overdrafts Pros: spontaneous supply of funds can be arranged when essential from the banks, interest calculated are only on the figure of currency used, assists the maintenance and smooth management of company cash flows. Cons: higher interest rates than loans, subject to immediate cancellation if borrower evades disbursement or does not meet criteria se out or due to policy changes within the bank. Usually requires the presence of collateral in the form of an asset. Hire purchase Pros: possession of essential assets with insignificant initial investments and prevent the need for massive long term loans, interest free, easily obtainable against availability of a security or a collateral. Cons: exclusion of some clients due to extensive credit checks, burden of monthly debit payments, ownership privilege is not reassigned till total summation of money owed has been paid. Factoring Pros: ensures time management as factor will be responsible in locating and collecting customer outstanding, enables the company to receive 80% to 90% of the invoice whereas even overdrafts will only give company 50% and hence assist in company cash flow maintenance, enables the company to formulate extensive credit checks on the factors credit systems to decide on the viability of issuing more credit grants to fresh and existing consumers, facilitates international businesses if the factor in question is in the consumers native country. Cons: customer handling methods of the customer may not be appropriate, factor may refuse to accept certain customers due to their bad credit history, company is required to sign a non-recourse agreement with the factor stating that in the event the factor was not able to recover funds from the customer, the company cannot be prosecuted on the customers behalf, factor interferences with the business and sales ledgers, ending factor contracts would result in ledger repurchase or factor replacement two equally objectionable options to a company. Grants Pros: a privilege to the company awarded, their celebrity increases the chances of raising more financial resources from other sources, increase in image and recognition of the company, gigantic monetary funds. Cons: requires payback as with any loan, very difficult to prepare paperwork initially, grants are streamlined with a cacophony of terms and conditions and initiation of related projects which can be costly and requires professional and expensive services incurring more costs, competitions are very high amon g similar industries to attain the grant, exclusion of certain companies which do not conform to the eligibility criteria for the grant, lot of red tape involved which is the wearisome and time consuming process of filling out forms, legal documentation, hindrances, reclaims and other unnecessary delays in the initial stages of the application. Invoice discounting Pros: the anonymity of the discounter with relation to the company aids in avoiding difficulties when collecting outstanding funds from the customer, company is in control of its ledgers. Con: stricter requirements than that for factors, initial fund deposits are to an account that is controlled by the factor and the reimbursement is 80% to 90%. Franchising Pros: decreased capital required than if the business was to expand normally, increases growth and promotion of the parent company, new business will be motivated since it is functioning under a benchmarked name and will conform to the maximum possible pe rformance. Cons: the franchisors is all controlling with regards to aspects like logos, name, uniforms and services, franchisee has minimal control over anything associated with the parent company name and cannot take independent decisions in these aspects (William M. Pride, 2008, p. 156). Venture capital Pros: available initial investment of sizeable sums, mentoring on the correct management of the business in question by the venture capitalist, extensive contact network of suppliers, customer and other professional whose services are of utmost importance to the business. Assistance in instigating IPO or initial public offerings which is the initial sale of stock or even shares if it is the companys first time. Cons: capitalists will leave company after a predetermined period of time with a large part of the equity as payments for their effort and investments, may also take over the management and hence the business if the owner does not seem to be performing efficientl y. Services of venture capitalists are often very expensive. Bankruptcy implications A company which is in difficulties due to increased loans, debentures, bonds, credit line, overdrafts and other liabilities will find that it is approaching bankruptcy. It may file a bankruptcy claim to protect itself against its creditors but this will require the company to enlist expensive professional services like solicitors. In case the company is declared bankrupt and the claim was not successful, all remaining wealth of the company which includes all fixed and movable assets will be distributed among the creditors. However the shareholders personal wealth will not be affected due to the company being considered a separate entity or individual. In the case of sole trader and partnership business which faces bankruptcy, the owners or partners personal wealth is also affected and confiscated to settle creditor debts(Bennett, 1942, p. 2). Dilution of control Ownership capital If c ompany has two individual shareholders investing 50% of the shares each then they alone has the rights to make informed decisions regarding management. But if the company encounters difficulty and has to raise more capital by selling more shares, the control of the initial investors gets diluted and the new shareholders will also interfere with management affairs(Carlos Correia, 2007, pp. 13-31). All resolutions which may be either ordinary or specific will require the participation of all shareholders and decisions must be made through voting. Ordinary resolutions such as change in the board of directors will require a shareholder to possess 50% of the shares to be eligible for voting. A special resolution such as fundamental change of the company requires a shareholder to own at least 75% of the company shares. Any company wishing to sell more share must first offer them to existing shareholders, only in the event of their refusal, may it offer the shares to the public. =============================================================== QUESTION 1C The sudanian railway project of seven years Any project that is long term and uncertain revenue is needs to carefully planned before initiation. The choice of funding sources are of utmost importance to prevent mid way disruption of the project. An analysis of the most suitable funds is detailed below. Equity capital or shareholder capital: is one of the most appropriate sources in the fact that it does not have any compulsory repayable schemes attached to it. The shares accepted has to be ordinary shares due to the added leniency of not paying any shareholders in case the companys revenue is not up to the mark. Share holders will only need to be paid if there are actual profits and here too only if these profits cannot be re-invested in to worthy projects within the company. During the seven year process of the railway construction of the railway, the company is very likely to retain profit and plough back its earnings to better the project undertaken. Avoidin g preferential shareholders would assist in the compulsion off paying the annual fixed rate of dividends to them and also in case of an inability prevent annual fixed dividends from adding up to form massive sums. Venture capitalists: By incorporating a few venture capitalist knowledgeable and experienced in the field of railway building would not go amiss because they will have much knowledge and expertise to share. Apart from the initial fund that will be invested in to the project, the capitalists will also be able to obtain useful contacts through their network and negotiate better with known suppliers and creditors. Government grants: A railway project falls under public transport which would be classified as a worthwhile in any government. The company may take a shot at obtaining a grant from the government. There will be expenses for services and preparation of other legal documents abut these will be well surpassed if the grant is issued. The probability is high for a project of this nature and success would guarantee the ability to obtain other finances from other sources easily and effectively. The company will also gain prosperity and future projects may also be available to it Hire purchase: Machinery, tools and vehicles required may be obtained through hire purchase which decreases the need for colossal initial investments; flexibility of an interest scheme is an added advantage. Trade credit: Supplies of raw materials or inventory should be wisely purchased through trade credit. This will give the company some time before it actually start paying back and with luck, by that time, the company might be making some nominal profits. Lease: Property for industrial purposes and warehousing may be obtained through lease. It will be a long term lease so there will be less investment involved than buying land and building factories. Operational leases are better because then the company may release the same asset after original lease period runs out. Debentures, bonds: and other forms of loans should be a last resort since they have high and fluctuating interest rates which would have adverse reaction on the company cash flows. It is necessary to invest minimally in this project as the income rate is not high and revenue cannot be expected for years to come. It will be of assistance If the loans are obtained from a world bank instead of any bank since the interest rate applicable will be that of the federal reserve which is definitely lower than the prime interest rate that the bank charges. =============================================================== QUESTION 2A Costs associated with financial funds Cost of lost opportunities: are the costs which could have been gained if the money invested had been used for an alternative purpose such as when banked or lent on interest or invested in alternative project which could have brought in more revenue to the company(B. J. Reed, 1997, p. 58). Retained earnings cost: is mainly to the share holders who, in the event of ploughing back of a companys profits loose the share of their dividends for that year Cost of dividends: is mainly to the company as it affects its cash flows. There are many forms of dividends that a company may pay its shareholders with but only cash dividends affects its cash flows. Cash dividends: are paid in annual shares by cash. Property dividends: is paying dividends by distributing company assets. Stock dividends: is paying shareholders with bonus shares Other dividends: is the distribution of warrants and other financial assets. Cost of debentures, bonds and loans: interest The cost of any loan is the interest payable to a creditor on that loan and the security pledged against that loan. Defaulting on payments can lead to risk of loosing collateral, bankruptcy and liquidation. Specific and administrative interest rates and factors effecting them. Specific interest rates: are mainly charged on bank certificates and mortgages while administrative rate are charged on loans, debentures, bonds etc. there are two types of interest rates. Prime rates: are imposed on by loans on their best customers who commit to loans(Reilly, The language of real estate, Fifth Edition, 2000, p. 313) Federal Reserve rates: are imposed on normal banks by the World Bank for short term loans. This rate has an undeviating effect on how normal banks charge their prime customers(Reilly, 2000, p. 337). Factors which directly effect interest rates Discount rate or Federal Reserve rate of central bank: The higher the rate the higher the prime rate. Pressure of monetary inflation: the higher the value of money during period of payback, the lower the interest rate Governmental monetary discharge policy: The more money government produces the lesser the rate of interest. Demands of lean seekers: The higher the demand of the customer, the lower the interest rate Consumer credit history: Customers with bad credit histories can expect higher rates of interest. =============================================================== QUESTION 2B Introduction on planning finances An important aspect of any efficient management in a company is financial planning. This can be achieved by the efficient organisation and knowledge of cash inflows and the outflows of a company. This is known as cash budgeting(Lasher, 2008, p. 147). It is a handy tool in predicting financial peaks and troughs in store for the company in future and also allows to make allowances for the paying of liabilities in an organised and punctual manner. Certain organisational techniques allow the company to raise cash inflows when it detects financial issues in the future. Supplier management: is obtaining raw materials and inventory items at an extended credit period from the suppliers than normal. Investing in just in time inventory which is purchasing goods just and when it ids immediately required instead of purchasing bulk goods and storing them. Customer management: is enlisting the assistance of factors and invoice discounters for tracking down aged debtors and bad debts, decreasing the period of credit grants to customers, outlining legible and company convenient policies for new customers, offering discounts for spontaneous bill settlements and easy payment schemes. Overtrading: occurs when a company accepts too many orders than it can execute or do not have the funding to execute. Business requires funds to leave a company in pursuit of funds to return to the company and for this purpose, a company needs to have sufficient funds initially. Cash budgeting can assist in avoiding overtrading since it gives the company the ability to understand if the finance available is enough to complete a given transaction(Macleod, 1866, p. 272). =============================================================== QUESTION 2C Decision makers and the purpose of their need to for finance related information of companies. All below categories of people will require the balance sheet of the company for knowledge of its proceeding in order to make decisions towards their gain. The financial statement of company tells them about the companys current position. Consumers: would require extensive advice and assistance even after sales have closed and would naturally purchase from a company that is long standing and will be operational in the long run. General public: would require information on the various financial schemes in place for the betterment of social and ethical welfare and that it does go against it. Employees: would need to know if the company is viable to run long term in the interest of their job security and profitability. It may also aid them in their decisions to ask for pay raises, commissions, bonuses and incentives. Managers: within the company are in their rig ht to knowledge of financial information to ensure the smooth flow of company procedures, the long term standing of the company and the effectiveness of its organisation. Creditors: need to make decisions about pending amounts to the company, the value of its assets, its repayment priorities and its long term standing capabilities. They also require the information to draw out plans and conditions for the liabilities, the company borrows. Investors: need to make certain that the company is in a position to pay back investments and interests in time and hat it is a profitable investment. Shareholders: will be able to retain or sell their shares based on the companys, profitability and the data will also affect their decision regarding future investments. Industrial competitors: for benchmarking processors and to ascertain their own level and standing among other competitors in the same industry. They take active part in being knowledgeable about the companys every step. National government: the primary reason for their interest is taxation but at rare occasions it could be to impose financial limits or offer projects. =============================================================== QUESTION 2D The major types of financial statements Three primary financial documents in a company are regarded as the major statements of a company. Cash flow statements: are records of the monetary inflows and outflows of a company for a particular period of time(Pinson, 2008, p. 84). E.g.: a few months. The following table depicts the slandered format for companies with an opening balance of  £2000 in September. Cash budget for Grewal Ltd from September 2008 December 2008 Particulars SEP OCT NOV     Cash inflows    Cash sales  £500  £600  £800         Cash outflows    Supplies  £700  £600  £500 Interest  £100  £100  £100         Opening balance  £2,000  £1,700  £1,600     Cash inflow  £500  £600  £800 Cash outflow  £800  £700  £600     Closing balance  £1,700  £1,600  £1,800 Profit and loss statements: depicts the total income and the total expenses of a company in a given financial year and also the difference in above values or the profits in that year. The following document is a format employed by companies today(Maggie Shilcock, 2008, p. 128). Profit and Loss account of Beatles Ltd for year ending 31st Dec 2009 Particulars Amount  £   Sales  £30,000 Cost of goods sold  £10,000 Gross profit  £20,000   Other income  Interest received  £500 Rent received  £500   Other expenses  Wages given  £1,000 Machinery repairs  £2,000     Dividends  £5,000 Retained earnings  £5,000 Net profit  £8,000 Balance sheets: depicts the value of assets and the value of liabilities in a company and this data is usually for a specific moment in time. Usually drawn up at the end of a year. The table below illustrates a standardised format of this document(Carlos Correia, 2007, pp. 5-4). Balance Sheet of Aragorn Umbrellas (Pvt) Ltd as on 18th July 2008 Particulars  Fixed assets Current assets  £22,000 Current liabilities Overdrafts  £10,000 Creditors  £5,000   Long term liabilities Loans  £50000 Lease  £25000 Bonds  £15000  Owners equity Shares  £50000 Retained earnings  £45000  ======================================================================= QUESTION 3A Income statement for Angus Ltd from September to February PARTICULARS SEP OCT NOV DEC JAN CASH INFLOW      Credit Sales  £0.0  £0.0  £0.0  £3,250.0  £3,000.0 Total cash inflow  £0.0  £0.0  £0.0  £3,250.0  £3,000.0       CASH OUTFLOW      Vehicle cost  £0.0  £0.0  £0.0  £3,500.0  £0.0 Inventory cost  £0.0  £0.0  £2,500.0  £2,307.7  £3,076.9 Administrative overheads  £2,200.0  £2,200.0  £2,200.0  £2,200.0  £2,200.0 Total cash outflow  £2,200.0  £2,200.0  £4,700.0  £8,007.7  £5,276.9       Opening balance  £25,000.0  £22,800.0  £20,600.0  £15,900.0  £11,142.3 CASH INFLOW  £0.0  £0.0  £0.0  £3,250.0  £3,000.0 CASH OUTFLOW  £2,200.0  £2,200.0  £4,700.0  £8,007.7  £5,276.9       Closing balance  £22,800.0  £20,600.0  £15,900.0  £11,142.3  £8,666.2 Two months credit for consumers/sales One month credit from suppliers/inventory costs Selling price =cost +30%cost SP = (100C + 30C)/100 SP = (130/100) C Making use of above formula, selling price for October is SP OCT = (130/100)*2500 =  £3250.00 SP = (130/100) C SP * (100/130) = C SP * (100/130) = C Making use of above formula, cost of inventory may be calculated for November, December, January and February. Nov cost = (100 * 3000)/130 =  £2307.70 Dec cost = (100*4000)/130 =  £3076.90 Jan cost = (100*4500)/130 =  £3461.50 Feb cost = (100*4500)/130 =  £3461.50 ======================================================================================= QUESTION 3B COSTS CALCULATIONS RESULT Material cost/per ring 8 * 15  £120.00    Labour cost/per ring 2.5 * 20  £50.00 Polishing cost/per ring 40 / 60 * 8  £5.33 Total cost/per ring   £175.33    Indirect cost 500 / 10000  £20.00 Total cost/per ring   £195.33    Cost for 60 rings 60 * 195.33  £11,719.80 ======================================================================================= QUESTION 3C YRS NO. OF UNITS  SP/UNIT T. SALES   1 100000 * 30.0 3,000,000.0   2 80000 * 25.0 2,000,000.0   3 70000 * 20.0 1,400,000.0   4 55000 * 15.0 82,500.0 6,482,500.0         YRS CLAIM DEP.      1 125,000.0      2 125,000.0      3 125,000.0      4 125,000.0           500,000.0   T. INCOME    6,982,500.0  YRS NO. OF UNITS  MC/UNIT TOTAL COST   1 100000 *  £5.75  £575,000.00  2 80000 *  £5.75  £460,000.00  3 70000 *  £5.75  £402,500.00  4 55000 *  £5.75  £316,250.00  £1,753,750.00    YRS NO. OF UNITS  VC TOTAL VC   1 100000 *  £5.00  £500,000.00  2 80000 *  £5.00  £400,000.00  3 70000 *  £5.00  £350,000.00  4 55000 *  £5.00  £275,000.00  £1,525,000.00    YRS NO. OF UNITS  FC TOTAL FC   1 100000 *  £4.00  £400,000.00  2 80000 *  £4.00  £320,000.00  3 70000 *  £4.00  £280,000.00  4 55000 *  £4.00  £220,000.00  £1,220,000.00    YRS    AD COST   1  £550,000.00  2  £230,000.00  3  £0.00  4     £0.00  £780,000.00    T.EXPENSES      £5,278,150.00 Gross profit =  £6,982,500.00  £5,278,150.00 =  £1,704,350.00 30% tax =  £511,305.00 Net Profit =  £1,193,045.00 hence this project is viable. ======================================================================================= QUESTION 4A Each financial statement or document has a set purpose and each is different from the next Profit and loss accounts: shows exactly how much profit is made or how much financial loss has been seen in any given financial year. It gives accurate figures to explain how the profit was achieved and what caused the loss. Balance sheets: are used to indicate in monetary value of the assets a company currently owns and the loans/ liabilities or how much it owes its creditors. These are specific to a moment in time and do not cover the financial aspects of a year like the income statements. Cash flow statements: displays data on the supply of financial funds to a company and what costs were associated with this funding. It also enlightens the appraiser as to the expenditure and income of the company. ====================================================================================== QUESTION 4B The two major types of organisations and a comparison of their statements of finance. COMPANIES PARTNERSHIPS/SOLE PROPRIETORS Profit and loss accounts contain the sections for dividends and retained earnings Sections not available Entitled only to the shares or dividends from profits may withdraw and use cash as necessary and are referred to as drawings Share values are input in figures in the balance sheets Individual investor names and the value of their investments are input in to the balance sheets. Cash flow statements are compulsory and must be prepared Not compulsory to prepare if taxes are paid in time and in accurate measures. ======================================================================= QUESTION 4C Project financial ratio analysis Final Statement Analysis Calculations 2007 2008 G.P% Higher in 2008 by 23% ratio is good but this is due to fall in inventory costs so company not doing so well. G.P/SALES * 100 0.38% 0.50% Mark up ratio the increase suggests that the company has utilizable profits. G.P/C * 100 85% 118% Net profit ratio % shows an increase which is good but again a minute examination shows that sales have fallen and costs have fallen deeper N.P/SALES * 100 0.24 0.21 Return on capital employed % an increase of 1.39%. His indicates a good position for shareholders and a higher return. N.P/CAPITA 70.91 72 Current ratio increased dividend rates seem health but the company is on overdraft since the account balance had fallen by a significant figure C.A /C.L 2 1.25 Quick ratio 1: 1 shows a decrease by 8.8% and indicates that the company is facing liquidity problems. The liqui dity value for 2007 was healthy. (C.A STOCK) / C.L 1.36 1.25 Assets turnover shows an increase so indicates efficient management of the company SALES/N.B.V 2.95 3.43 =================================================================== END =========================

The Death Penalty Is A Form Of Execution - 1269 Words

I. Introduction The death penalty is a form of execution used in the United States. The federal death penalty can be used in any state or territory of the U.S. even in states that do not have it. There are currently 32 states including North Carolina that have the death penalty. Its purpose was to deter crime from happening. Therefore, creating a safer environment. Unfortunately this has not been the case. The death penalty has claimed innocent lives, ruined lives, is issued at random unfairly, and does not decrease the crime rate. It should be abolished by all states because it does not work. II. History Britain influenced America’s use of the death penalty more than any other country. When European settlers came to the new world (now the United States). They brought capital punishment. The first recorded execution in the new colonies was that of Captain George Kendall in the Jamestown colony of Virginia in 1608. He was killed for being a spy for Spain. Death penalty laws were different from colony to colony. It was Cesare Beccaria’s 1767 essay On Crimes and Punishment that had a strong impact throughout the world on the justification for the state’s taking of a life1. The first attempt to reform the death penalty in the U.S. occurred when Thomas Jefferson introduced a bill to revise Virginia’s death penalty laws. The bill proposed that capital punishment be used only for crimes of murder and treason. It was defeated by only one vote1. In 1946, Michigan wasShow MoreRelatedThe Death Penalty Throughout History1074 Words   |  5 PagesThis pa per explores how society has influenced the development of the death penalty throughout history. It begins with a brief explanation of the origins of capital punishment, referencing the first known documentation of actions punishable by death. The paper goes on to explore different methods of execution and how they have progressed and changed over the years. Documented cases at different points of history are referenced to show the relationship of time periods and beliefs to the implementationRead MoreThe Death Penalty : A Fact Finding Report Essay1514 Words   |  7 PagesThe Death Penalty: A Fact-Finding Report The Death Penalty, also, known as, Capital Punishment, is the sentence of execution, for serious crimes punishable by death, through means prescribed by congress, through laws agreed upon by state legislatures (uslegal.com). Since, the first laws were established in the eighteenth-century, the topic of capital punishment has been met with vast amounts of controversy. Many Americans, have fought correspondingly, to repeal, change, and reinstate, capital punishmentsRead MoreEssay The 8th Amendment1201 Words   |  5 Pagesuse of capital punishment (to be sentenced to death as a penalty in the eyes of the law [a capital crime]. An execution [capital punishment]) is a direct violation of the 8th Amendment to the Constitution of the United States (Capital Punishment). They say there should be another way to deal with these criminals other than having them executed. The purpose of this paper is to give a brief history of the death penalty and state some alternative forms of punishment along with opposing viewpointsRead MoreTypes of Death Penalty1564 Words   |  7 Pagesâ€Å"The death penalty for heinous crime is as justifiable, if society deem it necessary for its well-being, as is the demand upon the citizen-warrior to meet death upon the battle-field, or upon the doctor to remain steadfast at his duty in the plague-stricken city. The good of society is the prime reason for the punishment of criminals and their reformation is justifiable only when it conduces to this end† (Hall, 1902, p. 390). In recent years, death penalty has become a much talked about and controversialRead MoreThe Death Penalty Is One Of The Most Ethical And Controversial Issues1581 Words   |  7 PagesSome may say the death penalty is one of the most ethical and controversial issues of all time. The issue brings forth anger among many individuals among todays society. This anger has developed over time throughout the history of the death penalty. Over time, the policy has been developed, started and evolved over time. Different states and countries choose to address the penalty differently resulting in more of a controversy. I personally believe that this policy is severely wrong and needsRead MoreThe Death Penalty Should Be Abolished1534 Words   |  7 PagesIntro The death penalty gives humans in our legal system rights to decide who deserves to live, a power only God should possess. Capital Punishment takes away our rights as equals. From its origins, the death penalty has been an inhumane, costly, ineffective, and biased form of punishment that needs to be abolished granting everyone their right to live. History of the Death Penalty Down through history, the death penalty has been adapted to be justifiable in the eyes of the people. By alteringRead MoreThe Controversy Behind the Death Penalty Essay995 Words   |  4 PagesThe Controversy Behind the Death Penalty Some people think that the death penalty is a bad thing and others think that it serves the people right but I don’t really know which side to believe because there are good facts protecting both sides. The Death Penalty is a controversial issue. What is Capital punishment? Capital punishment is the death penalty. It is used today and was used in ancient times to punish a variety of crimes, Even the bible supports death for murder and other crimes likeRead MoreCapital Punishment : A Form Of Discipline Essay1729 Words   |  7 Pagescommitted as a form of discipline. Death penalty laws were established back in the 18th Century B.C. In the Code of King Hammaurabi of Babylon it ordered the death penalty for about 25 different crimes and in the Seventh Century B.C.’s Draconian Code of Athens made the death penalty the punishment for all crimes. The death sentences were executed in many forms such as lethal injection, gas chamber, electrocution, hanging gas, firing squad and many more to name. The most common type of execution is hangingRead MoreCapital Punishment Of The United States961 Words   |  4 Pagescrimes are subject to facing the death penalty. Pickens shares, â€Å"Capital crimes are considered to be treason or terrorist attacks against the government, crimes against property when life is threatened, and crimes against a person that may include murder, assault, and robbery.† Dating back to 1608, the execution of George Kendall is believed to be one of the first recorded cases of capital punishment in the United States (Pickens). Kendall was sentenced to death for aiding the Spanish, which wasRead MoreCapital Punishment And Its Social Implications1463 Words   |  6 PagesKeywords: Capital punishment, death penalty, criminal justice The Use of Capital Punishment to Serve Justice, and its Social Implications What is Capital Punishment? Capital punishment is a practice in which prisoners are executed in accordance with judicial practice when they are convicted of committing what is known as a â€Å"capital crime.† Capital crimes are crimes deemed so heinous that they should be punishable by death. People may also use the term â€Å"death penalty† to refer to capital punishment

How to Become a Better Student - 1505 Words

To become successful in life, we all need to learn to become a good student in every aspect of life. Becoming a good student is not an easy task. Most would agree that in order to be a good student it takes a great deal of hard work, time and self-discipline. A student who possess these strong characteristics will often times stand out from the rest of their classmates. In order to become a strong student, one must have motivation, positive self-esteem, positive self-talk, commitment and good study habits. It has been said that to get the required performance out of an individual, you must first find what motivates them. There are many ways for a student to become motivated. These include settings goals, creating a dream career, and†¦show more content†¦People’s heart speak to them about for instances the individuals in their life who they long to spend more time with. If a student’s mind is telling them to clean their room, they should act upon these thou ghts, and clean their room. Acting on these bodily instincts are good ways for students to recognize their needs and to retain back positive self-esteem. Students should also heavily focus on their diets. Individuals who make healthy choices with their fitness and diet will find that they feel better about themselves. To keep a strong mind people need to consume the right foods and always make time in their busy schedules for exercise. Completing these simple tasks can boost a student’s self-esteem and make sure they are performing at optimal level. In our society today, more students are daily telling themselves that they are not worthy or not smart enough. These negative thoughts people tell themselves are the number one force that can destroy one’s self-esteem. Students should really attempt to use positive self-talk as much as possible. Positive self-talk is defined as any time in which individuals think or talk to themselves in a beneficial manner. Studen ts should start off everyday on a positive note. Simply waking up and starting mornings on a high note can make the day run much more smoothly. Students should notShow MoreRelatedWhy Students Should Be A Foreign Language1714 Words   |  7 Pagesuse different languages to communicate. Students in different countries have many opportunities to learn any language they desire; however, in America, there are not as many opportunities as other countries. No matter the country, students should be given the chance to learn whatever language their heart desires, and students should be able to travel to different countries to become appreciative of the country they are visiting. It is important for students to learn different languages to help theirRead MoreFrom Degrading To De-Grading By Alfie Kohns Against School1074 Words   |  5 Pagesover the years and the system is still trying to improve how they could better educate their students in the future. Now, after going through many lev els of school, people question themselves: why did I learn all of this? They question why they couldn’t learn more about taxes, buying a house or the important aspects when you get a car. School has become a mandatory part of most a student’s life that they never question it. It has just become a social norm that everybody goes by. From the essays, â€Å"FromRead MorePressure to Get Good Grades842 Words   |  4 Pagesbe very challenging for students. As the world gets more competitive, students are pressured more and more to achieve success. The pressure that students receive by parents, school, and society to succeed, has caused students to take some drastic actions. Many students are pressured by their parents to excel in school. Although many parents think that pressuring their kids to get good grades may be helpful, in reality, it can become overbearing. In the case of many students they are already balancingRead More Philosophy of Education Essay997 Words   |  4 Pagesbecoming a teacher, I am beginning to make decisions on things such as how I would like my teaching style to be, ways to deal with discipline problems, and how I would like my classroom to be set up. However, I cannot put my ideas into one philosophy. I feel that using many styles of teaching is better than just using one. Some students may learn better with one style of teaching while others may learn better with another. The teaching philosophies I can best relate to are realismRead MoreWhy Is Phonics Instruction An Integral Part Of The Balanced Literacy Program?1273 Words   |  6 Pagesteach children to read. Explicit Phonic Instruction is build from part to whole; children first receive instruction of the letters with associated sounds, and after they learn how to blend sounds into the syllables and into the words. Implicit Phonics Instructions moves from the whole to the smallest parts: first, students are analyzing words and looking for common phonemes in a group of words. After comparison they assume which grapheme to write and which phoneme to read. Children are identifyingRead MorePersonal Statement : Elementary School Teachers1558 Words   |  7 Pag esfor a way to do things better. How can I engage my students in my instruction? How can I make their learning purposeful to their lives? How can I be more efficient in my planning and effective in my teaching? The Daily 5, a reading instruction program created by Gail Boushey and Joan Moser, claims to be the answers to these questions. Boushey and Moser (2012) created the program after teaching and observing others’ literacy blocks. The program is said to â€Å"engage students, [and] also teach andRead MoreHow Can Make Their Own Reflections Every Time They Implement A Mathematical Task As A Framework?985 Words   |  4 Pagesarticle is to teach teachers how make their own reflections every time they implement a mathematical task as a framework. According to the article, it is very important to reflect teaching individually and with colleagues. Stein and Smith explain that making reflections might be a difficult task to do since teachers do not know where to focus on. They also mention how their experiences with middle school teachers in the QUASAR (Quantitative Understanding: Amplifying Student Achievement and Reasoning)Read MoreStudent Is The Best Thing That A Student Can Have865 Words   |  4 Pagesthing that a student can have. Support leads to motivation and determination. The two combined leads to a successful path especially in education. â€Å"Learner support is another critical component of an effective learning environment. It focuses on what the teacher or instructor can or should do to help learners beyond the formal delivery of content, or skills development† (Bates, 2014). If students had more learning support, the school would be a better environment for both student and teacher.Read MoreHidden Curriculum For Public Schools810 Words   |  4 Pagesunintended lessons, values, and perspectives that students learn in school. While the â€Å"formal† curriculum consists of the courses, lessons, and learning activit ies students participate in, as well as the knowledge and skills educators intentionally teach to students, the hidden curriculum consists of the unspoken academic, social, and cultural messages that are communicated to students while they are in school. The hidden-curriculum concept is that students absorb lessons in school that may or may notRead MoreWhat Is Developmentally Appropriate Practice?881 Words   |  4 Pagesprovide a new view of understanding children learning stages, and recognize the importance of leading students with right direction as a teacher. And, it also encouraging teachers try to use varied types of concept to improve students learning ability without sticker with Piaget learning stages. Willingham support his suggestion with explanation, â€Å"Children’s performance as they learn seems better characterized by variability than by consistence†. Willingham provide supported his theory by showing

The Truth Is Out There Do We free essay sample

The Truth Is Out There, Do We Wish To Know? Essay, Research Paper The Heart of Darkness The hunt for truth and cognition consumes us all at some point in our lives, but we don # 8217 ; t ever happen what we are looking for in Truth. We wish it to be unequivocal, but more than that, we search for it with the strong belief that we will happen it and be pleased, cheerily enlightened, and will populate better lives for it. In Heart of Darkness, it is shown that this is rarely true. Kurtz was destroyed by the truth he discovered about himself and the universe he lived in. He had known and believed a # 8220 ; white # 8221 ; truth about the universe he knew. His white truth was one of civilized, genteel thoughts and actions. Populating amongst the privileged few, the creative persons, instrumentalists, speechmakers, and other civilized people, he knew nil of the dark deepnesss of the human bosom. When confronted with those atrocious worlds, he was forced to larn the # 8220 ; black # 8221 ; truth about life and people. His head couldn # 8217 ; t grok the truths he had to accept ; it was wholly beliing to what he knew, and so he crumbled, selling his psyche to sit among devils and Satans. He was hollow indoors, had no sense of moral or societal duty, and the black truth he discovered ate off and destroyed him. He regressed to savage behaviours he had antecedently repressed and allow the darkness fill the cold nothingness within him. Because he knew so much inkiness, he was unable to populate in society once more. He crossed over and release all ties to the civilised universe, for he had lived the white truths to an extreme, so did he populate the black truths. Kurtz showed what happens when the white truths and prevarications of society are taken off. Kurtz lived and found nutriment in that world, when it vanished and was replaced by another, darker universe, he folded. In our society, we live by restraint. For Kurtz in Africa, all the restraints were removed and he was allowed to hold every bit much confect as he wished, even before dinner. This proved to be excessively much for him, he went to an extreme and was destroyed by the surpluss he craved, the really excesses that drove him to the top of the folks and peoples he conquered. When the shallowness of society was erased, made nothing and nothingness, it had to be replaced with the ferociousness of the wild. Kurtz was unable to cover with this, his head had been devoted to society for excessively long. After rapidly lifting to the top by utilizing fright and worship, he was destroyed by the surpluss he attained. Marlow sought truth, he was disgusted by the pieces of inkiness he glimpsed through the director # 8217 ; s waste and senseless inhuman treatment. He didn # 8217 ; t cognize white truth to the extent Kurtz did, neither did h e live the black truth. He simply observed, and what he saw profoundly disturbed him. He merely saw the inkiness to the full in Kurtz, nevertheless, and merely somewhat within himself. He seemed to be simply an perceiver, but in watching the diminution of Kurtz, he saw the power of the black truth. The ground he was able to defy it, though, was that he had basic unity. Kurtz lacked that, and so fell into the deep abysm of corruptness in his bosom. Marlow went to the border, looked down, but was able to withdraw. Kurtz realized his black truth, Marlow merely saw his wild and barbarous potency. They were light and dark sides of the same coin ; Kurtz was what Marlow might hold become, and Marlow what Kurtz might hold been. Kurtz # 8217 ; s Intended knew merely the white truth about him, while his black Mistress knew merely his inkiness. Each loved him for what they knew, and each would hold been destroyed by the other # 8217 ; s cognition. When Marlow lied to Kurtz # 8217 ; s Intended, he allowed her to maintain her psychotic beliefs about him, he let her go on to believe her white truths about him. This Lashkar-e-Taiba her get down mending, and it showed Marlow a new deepness within himself, a deepness that might hold gone unfulfilled without sing the inkiness of Africa. Kurtz # 8217 ; s Intended and his Mistress had no desire to cognize the truth, they were satisfied with what they knew. Kurtz # 8217 ; s Intended urgently felt she needed to cognize his last words, but the truth would hold wholly devastated her. Marlow told her a prevarication, but one she had to cognize. Kurtz # 8217 ; s picture of the blindfolded lightbearer told volumes about the nature of the universe and of Kurtz. He knew what he was acquiring into, knew all that was traveling on around him in the tusk concern and in the African universe. Possibly it showed that, until his journey into Africa, he didn # 8217 ; t entirely grok the darkness within the tusk concern, and within life itself. Largely, it seemed to demo that we end up destructing what we profess to edify ; because we go about our lives with blindfolds on, we are unable to carry through the baronial dreams we aspire to. We all see merely what we want to see, and by declining to accept the worlds of our lives, we destroy what we wish most to continue. Throughout the narrative, we catch glances of the savagery both in nature and in adult male. It seems, though, that the darkness in adult male, while ever present, must hold outside abandon to spur its waking up. It can be likened to a hibernating vent, harmless while kiping, but, one time awakened, barbarous, ardent, and powerful. The hunt for truth oftentimes outputs non the pleasant enlightenment expected and desired, but the abandon necessary to convey out the ferociousness and inhumaneness in us all.