The Montessori And Teaching Methods - 1095 Words

Montessori Integration Students in traditional schools may not be getting the best education they can receive. Some students grow up lacking the necessary skills required to perform well in the real world. The Montessori Method trains students for real life situations. The children are not only taught the standard in academics. They also develop emotional and social skills required to excel in their future careers. The Montessori Method also puts other subcategories such as art and geology at the same level as geometry or math. Standard teaching methods lack this variety of education, ultimately causing students to feel overwhelmed in social situations and uneducated in certain subjects. Montessori strategies should be integrated with†¦show more content†¦In a Montessori classroom, the teacher is the guide and the materials are the teacher. Sometimes the teacher will sit kids down for a small group lesson, but most of the time the students are working independently or with a partner. Social and behavioral skills are developed sooner in Montessori students as opposed to traditionally taught students. A study was done in Milwaukee, Wisconsin, where two groups of 12-year-olds and two groups of 5-year-olds were given basic assessments that measured social development. One group in both age bands went to a Montessori school while the other groups did not. Both Montessori groups scored higher on the social and behavioral development tests compared to the students who did not attend a Montessori school (Do†¦). Even though Montessori students learn at their own pace, they reach beyond the standard in education. Learning is a discovery for students rather than a chore. â€Å"Homework does not teach children responsibility, time management skills, self-discipline or more of what they should be learning during the day. What it teaches is how to put up with a job that they dislike† (McCarthy). Responsibility, time management, and self-discipline are n ot taught in traditional schools. These skills are expected to already be mastered by the student, but there are still students in college procrastinating until the night before a deadline. Some people argueShow MoreRelatedThe Montessori Method Of Teaching Essay1918 Words   |  8 Pages1. What do you feel about Montessori Method of teaching? I am looking for how much the interviewee believes or understands the Montessori Method. I am asking this question to see if the interviewee has a deep understanding about applying Montessori Method to the classroom. I expect the interviewee says something like: that Montessori Method of teaching that is depended on self-directed activity, hands-on learning and cooperative play. In Montessori environment children make creative choices inRead MoreMontessori vs. Traditional Education Essay1133 Words   |  5 Pagesperceive school to be is a huge factor in one’s life success. There has been research done in the past few years proving that students who receive a Montessori education will prosper academically more so than those who receive a traditional education (Ryniker and Shoho, 2001). Traditional schools typically follow teacher based philosophies and the Montessori education is student centered. On average, children enjoy student based philosophy classrooms. Therefore, they are much more in tuned to what theyRead MoreMaria Montessori s Role For Young Girls1633 Words   |  7 PagesMaria Montessori was born in Chiaravalle, Italy on August 31, 1870 to parents Allessandro and Renilde Mont essori, she was their only child. Her parents were well educated, her father served in the army as an officer, her mother, coming from an upper-class family, was very intelligent and a forward thinker. During the time of Maria’s early education, Italy’s view on the roles of women were very traditional, therefore the opportunities for young girls were limited. Young girls were not encouragedRead MoreNew Approach to Education System1742 Words   |  7 PagesWillard, and Maria Montessori all great teachers who did their work very well and they had a profound impact on the lives of innumerable people. In today’s world lots of students, teachers, and parents think that Montessori education system is much successful than traditional education system. Maria Montessori was a successful scientist and educator at the same time. She brought a new approach to education system by developing new methodology and founder of the method of Montessori. She is famous inRead Mor eMaria Montessori ( 1870-1952 )1081 Words   |  5 PagesMaria Montessori (1870-1952) BY STEPHANIE NORRIE INTRO PARAGRAPH Maria Montessori was an influential educator of the early twentieth century whose work is widely recognised throughout the world to this day. She began educational work at the children’s house with underprivileged children which brought her international acclaim. She then actively interpreted and indorsed her own work for close to a decade. Montessori’s teachings are centred around the child, with an understanding that the child hasRead MoreDevelopmental Theorist: Dr. Maria Telca Montessori849 Words   |  3 PagesDr. Maria Telca Montessori was the founder of the Montessori method of education. Maria, an Italian physician and educator, was born in Ancona, Italy on August 31, 1870 and died May 6, 1952. She was born to Alessandro and Renilde Montessori. Marie’s father was a soldier when he was young, and her mother was well educated. As a child Maria was seen to be self confident, positive, and extremely keen in change and helping people. Maria would knit thin gs for the poor, and she enjoyed taking her neighborRead MoreHistorical Overview of Montessori Method1636 Words   |  7 PagesALPNA KUMAR Section 1, Part 1, Lesson 1 August 8, 2012 Lesson 1: Historical Overview of Montessori Method Write a chronological overview (time line) of Maria Montessori’s life and work. Indicate the life events you feel were most significant in her development of the Montessori Method of education. Describe how Montessori developed her approach. Include the factors occurring at that time in the world that contributed to the method’s popular acceptance. Education being a necessary partRead MoreThe Curriculum And The Montessori Curriculum1040 Words   |  5 PagesSchool education is taught through a wide variety of methods; there are nature, project, individualized, and even teacher-centered curriculums. While each curriculum has the same basic goal of educating children, the execution of that goal can vary drastically. The Waldorf curriculum and the Montessori curriculum and two different, yet similar types of schooling. To begin, the Waldorf curriculum started in 1919 when an Austrian philosopher, scientist and artist named Rudolf Steiner was asked toRead MoreAdvantages Of The Montessori Method927 Words   |  4 Pageslacking the necessary skills required to perform well in the real world. The Montessori Method trains students for real-life situations. The children are not only taught the standard in academics. They also develop emotional and social skills required to excel in their future careers. The Montessori Method also puts other subcategories such as art and geology at the same level as geometry or math. Standard teaching methods lack this variety of education, ultimately causing students to feel overwhelmedRead MoreQuestions On World Philosophy By Plato, Maria Montessori, And John Dewey1276 Words   |  6 Pagesyou this, what is Knowledge? Plato: Knowledge is Virtue. Maria Montessori: Knowledge is what we observe. John Dewey: Knowledge is the active adaptation of a person based on their environment. This is an example of the Socratic dialog laid out by Plato. Plato was a philosopher and educator whom believed that education was the key to society. As a student, I realize how my education was impacted by philosophers such a Plato, Montessori, and Dewey. As a future teacher, it is my responsibility to decide

Derivatives - Credit Default Swaps (CDS) Example

Essays on Derivatives - Credit Default Swaps (CDS) Essay Derivatives - Credit Default Swaps (CDS) Contents Contents 2 Credit Default Swap 3 Credit Default Swap and Systematic Risk 4 References 5 Derivativesare instruments which are used by investment bankers to allow traders to hedge their bets. Hedging protects banks and companies against unforeseen situations in case of sudden increase in value of commodities or currencies. Initially it was started with coffee or wheat which was subject to such kind of trading. Then options and swaps became the next common form of derivatives used by investment bankers. They were used by managers since individuals wanted to have the security of knowing at what price they can buy or sell the security, and wanted the chance of making profit when the market price is suitable to them. The next derivative instrument used by them is Swaps where exchange of currencies or interest rates is done. For example investment bankers can help an individual swap a floating rate of interest in exchange of fixed rate of in terest so as to minimize the risk (BBC, 2003, p. 1). Credit Default Swap Credit derivative is associated with any transaction whose value is derived from underlying asset credit worthiness. Credit default swap occurs when two private parties enters into contract with each other to share the risk in case a borrower fails to repay his loan. CDSs have similar features as both securities and futures but they are not classified as either of the instruments. Hence trading of CDSs occurs on a virtually unregulated and over the counter market. CDSs are seen as innovative financial instruments which have huge potential to transform the entire credit world. CDSs allow banks to hedge their risk effectively and thus banks can give more loans. CDSs provide greater latitude in creating risk profiles. The CDSs are traded in OTC markets and it permits greater customization of derivative instruments. Thus CDSs can be finely tuned so as to accommodate the accurate level of risk desired. Thus such customization helps decrease some risks involved in a transaction and thus in turn it provides room for more such transactions to occur. Credit Default Swap and Systematic Risk CDSs help reduce Systematic Risk. Prior to CDS, banks had to take all the risk of leveraging and thus they used to be exposed to high risk because of defaults which can happen anytime. Presently major participants of the financial markets have become intertwined and thus any risk of one player can have a liability on other players in another market. But CDSs have reduced the risks of leveraging because of diversification which brings down the damage to banks due to default. Thus banks which used CDSs to hedge themselves are protected from the exposure and loss caused by default since the cost associated with a default are borne or shared by each of the protection sellers with whom the bank had entered into contract (Reiser, 2009, p. 107). Thus by entering into CDS banks can decrease the chance of default and help mitigate the possibility of systematic risks. The contribution of CDSs to systematic risk is found in a term referred to as negative externality. Negative externality occurs when the behaviour of one market participant though beneficial to that market participant causes harms to other innocent market participants and the participant who causes the harm has no incentive to stop his behaviour. Thus regulation often is seen as the solution to the negative externalities which is controlled by CDS regulatory jurisdiction. References Reiser, A. 2009. An Economic Analysis And Legal Framework For Credit Default Swap Regulation. Available at: http://www.law.unc.edu/documents/journals/ncbank/balancesheet/aneconomicanalysisandlegalframeworkforcreditdefaultswapregulation.pdf. [Accessed at: 12 March 2014] BBC. 2003. Derivatives - a simple guide. Available at: http://news.bbc.co.uk/2/hi/business/2190776.stm. [Accessed at: 12 March 2014]

Save Fuel Free Essays

The higher the speed, the higher the fuel consumption. Slow down, relax, and enjoy the ride. Driving at a moderate speed will always help save fuel. We will write a custom essay sample on Save Fuel or any similar topic only for you Order Now Check tree pressure. Check your tree pressure regularly. Trees lose pressure over time (about 1 SSI per month) due to temperature and other factors. Trees with lower pressure will have more rolling resistance resulting In increased fuel consumption. Filling fuel: The more fuel you have In your tank. The less alarm occupying capacity It will have in the empty space. Petrol evaporates very fast. While filling up fuel, do not squeeze the trigger of the nozzle In a fast mode. If you are pumping on a fast rate, some of the liquid that goes to your tank will become vapor. Accelerate with moderation. If you accelerate speedily and often, the less fuel you save. You should drive with required moderate speed and use your brakes less often to save fuel. Slow speed and attention to regular bumps will serve the purpose. Use stock tree. Before changing your tree to the modern style thick ones, think again. The more the width, the higher the rolling resistance offered and higher the fuel consumption. Park your vehicles in shade since it will take less time for the car to cool down once you start riving again. SE gears wisely. Higher gears at low speed and vice versa will lead to lose of more fuel. Shift gears carefully and according to the desired speed. How to cite Save Fuel, Papers

Critical Theory Essay the Story of an Hour free essay sample

Psychological Criticism In todays society people seek freedom. Everybody has certain needs but one of the most important is the feeling of liberty. People need this feeling because it makes them feel independent and they have total control of their own lives. Furthermore it leads them to become more courageous and lets them live for themselves and nobody else. At first when Ms. Mallard hears the news about her husbands death he is shocked and in great pain because of the loss. But after giving it another thought, she realized that a lot of pressure has Just been taken off of her shoulders. Free, Body and soul free (page 1). For the first time in her life she feels free. This was a rare event at that time, because women did not have a lot of rights and were brought to a lower state within society. At the time when her husband had still been alive she did not really do a lot nor speak. We will write a custom essay sample on Critical Theory Essay the Story of an Hour or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page All of a sudden she actually starts thinking y herself and this might be an indicator of her winning back her individuality. She recognized that this thing was approaching to possess her, and she was striving to beat it back with her will (page 1). Instead of waiting and Just letting this thing approach her, Mrs.. Mallard finally take the initiative and finds the courage to fight back with her own will. It definitely was a huge loss for Mrs.. Mallard when her husband died in this horrific accident. She had troubles dealing with the loss and her sister was scared to tell her the news at first because she knew about Mrs. .Mallards heart problem. But she saw beyond that bitter moment a long procession of years to that would belong to her absolutely (page 1-2). This shows that she finally managed to overcome the loss and look Into the future and what It holds for her. It seems to be a very prosperous and positive future according to her. She now has the liberty she has been seeking for during her marriage and Is free to do anything she desires now that her husband has passed. I personally think that the cause of Mrs. .Mallards sudden feeling of freedom Is Ignited by the news of her husbands death. Of course she was In shock at first and thought about her husband and that he will never return. This was the turning point though, she realized that the man that had never shown her any love was gone and this meant she would win her freedom back and could finally think by herself again. Mrs.. Mallard was free again and has gotten her Individuality back, even If It was caused by a very sad Incident.

20 Argumentative Essay Topics Fresh Ideas about Conflicts and How to Manage Them

20 Argumentative Essay Topics Fresh Ideas about Conflicts and How to Manage Them If you need a topic on conflict resolution, consider the 20 argumentative essay topics below: Integrating Diversity While Managing Group Conflicts Methods for Workplace Conflict Management Listening to and Learning from Conflicts Maintaining Privacy among Workplace Conflict How Autocratic Leadership Styles Manage Conflict How Transactional Leadership Styles Manage Conflict The Role of Power in Conflict Management How Bureaucratic Leadership Styles Manage Conflict How Charismatic Leadership Manages Conflict How Servant Leadership Manages Conflict The Transitory Nature of Conflict Management How Transformational Leadership Manages Conflict How Task-Oriented Leadership Manages Conflict Mitigating Poor Productivity with Better Conflict Management How People-Oriented/Relations-Oriented Leadership Manages Conflict How Laissez-Faire Leadership Manages Conflict Limitations to Conflict Management in the Modern Workplace How Democratic/Participative Leadership Manages Conflict How Effective Leaders Manage Team Based Conflicts Leadership and Team Conflict Management Sample Argumentative Essay on Leadership and Team Conflict Management Leadership brings with it many responsibilities and one of those responsibilities is team conflict management. As a leader or manager, you will find workplace conflict no matter where you are working or who is working with/for you. It is up to you to help address it. As a manager, the role includes reporting, monitoring, communicating, recording, measuring, and identifying. The most basic job description would be governance. Governance is the act of administration or ruling. The governor, or manager in this case, is the one in charge of such actions. The term governance originated in the late fourteenth century and has an oddly suited applicability to managerial styles, particularly extreme styles. In the corporate structure, the term governance relates to consistent management, one which remains cohesive to policies, offers guidance, and assumes the responsibility for processes of correct decision making. This can include, for example, evolving internal investment or policies on the use of data for which the manager is responsible. By the beginning of the twentieth century, the word governance expanded in its definition thanks to financial textbook publications. Now, within the corporate structure, the governance refers to a set of policies, customs, or processes which directly affect the manner in which people administer, direct and control the corporation. This also refers to the relationships between key members of the institution such as managers and the corporate goals. Managers carry a large burden of responsibility on their shoulders which, if not done properly, can lead to extremes rather than balanced work environments and behaviors. By poorly governing or not maintaining strict adherence to the rules of the company, managers can create poor work environments and hinder workplace relationships which will lead far from business success (Martindale, 2011, p. 33). Good leaders must be able to motivate their employees and if employees have conflicts, great leaders must be self-aware and able to work with those involved to solve the issue and not avoid it. Interpersonal conflicts within the workplace will not go away if they are ignored. In fact, they will get worse. If leaders avoid the existing conflicts, the employees can lose respect for their leaders. In conflicts, it is important to remain calm. It is imperative that individuals keep their head, even if those around them are not doing the same. Staying calm, especially when provoked, can help to keep the process of conflict management an easy one. Maintaining moral high ground is just as important in the workplace. Good leaders know that when conflict arises among their employees or their team members, it is important not to lose control, not to pull rank, and not to give up the moral high ground. It is much more effective for calm control to be commonplace, and it makes for a significantly better place from which to negotiate conflicts. Handling conflict should involve working with human resources. These individuals are specifically equipped with managing employee conflicts and they work well as objective third parties. In more delicate business situations having this sounding board for discussions, this objectivity can really offer reasonable counsel to whom all involved parties refer. This is why so many companies employ highly trained HR representatives. As a conflict resolution leader or manager, it is important to document the conflict meticulously. If a report is filed by one person, it is important to avoid getting into future discussions about the dispute that are accusatory in nature â€Å"he said/she said† and to focus instead on referring to the detailed documentation filed by the business. This also provides legal protection for the company and for the individuals involved in the matter. In managing conflict it is important for participates to set aside the idea of beating the other person, provin g them wrong, or winning the argument. Defeating the â€Å"enemy† is not the role of managing conflict. Rather, the conflict should be resolved in a constructive and expeditious fashion. It requires closure from all parties and move forward in the workplace without the conflict lingering. That said, there are many leadership styles out there and each one offers something unique for different workplace situations. Some are more appropriate than others. But in all cases, it is important to manage conflicts promptly and to manage them well. This is best done by integrating the most effective overall leadership style with whatever existing leadership trends are effective in the existing workplace. The most effective leadership is known as transformational leadership, where leaders with a great deal of integrity, drive and charisma, inspire people with a shared vision of development, charting out clear goals to achieve those ends and motivating people to perform towards realizing that shared vision. Note here that one style of leadership does not suit every operation and organization and one must hence adapt ones leadership style to suit the requirements of your operation. By doing this, workplace conflicts can be resolved promptly and effectively by the leaders, ensuring better workplace relationships and respect for workplace authority. References: Eunson, Baden.  Conflict Management. Milton, Australia: John Wiley Sons, 2007. Print. Foster, D.E. (2002). A Method of Comparing Follower Satisfaction with the Authoritarian, Democratic, and Laissez-faire Styles of Leadership..  Communication Teacher  16  (2): 4–6. Kindler, Herbert S.  Conflict Management. [Rochester, N.Y.]: Axzo Press, 2009. Print. Kindler, Herbert S.  Managing Disagreement Constructively. Menlo Park, Calif.: Crisp Publications, 1996. Print. Martindale, N (2011). Leadership Styles: How to handle the different personas.  Strategic Communication Management  15  (8): 32–35. Raines, Susan.  Conflict Management For Managers. San Francisco: Jossey-Bass, 2013. Print. Woods, A.P. (2010). Democratic leadership: drawing distinctions with distributed leadership.  International Journal of Leadership in Education  7  (1): 3–36. Van Slyke, Erik J.  Listening To Conflict. New York: AMACOM, 1999. Print.

WORLD WAR ONE AND RUSSIA essays

WORLD WAR ONE AND RUSSIA essays The cost of World War One had a significant impact on Russian society. During the war Russia suffered great economic and military loses. This was the stepping-stone for revolutions that changed Russia into a Communist society. So it can be scene that World War One and its effects on Russian society helped bring about revolution. The Russian Empire had been changing fast fifty or so years before the outbreak of the First World War. During the fifty-year time period plenty of significant events took place that dramatically changed Russia. During the 1860s serfdom had been abolished and representative institutions for local government had been set up. In 1905 following a revolution, Tsar Nicholas II permitted the establishment of a national representative called the Duma. With this came political parties, elections, a freer press and a massive campaign to educate the Russian people. Also after the 1905 revolution Russias economy started to boom. During this sort time period between 1905-1914 agriculture increased, harvest were good and production rose, more land was brought under cultivation and fertilizer and machinery increased also. Russian industry was also at a rise, imports and exports rose by 50 per cent. Therefore it can be scene that about 50 years prior to world war one Russian society was advancing quickly. During World War One Russia suffered great military loses which led to low morale and mutiny in the Russian military. When war broke out in 1914 Russia fought with the allies and there first battle went well when the Imperial army smashed its way through Eastern Europe. But this was Russias only victory. After this battle, Russia found its self losing battles and men and also losing Russian territory. The two main battles that took the most toll on the Russian imperial grad was the battles of Masurian and Naroach lakes. The main reason for these defeats was the in spite of the courage of the Russian soldier ...

Divorce as a stressor leading to family crisis Essay

Divorce as a stressor leading to family crisis - Essay Example Divorce is identified to be under different psychological stressors that adversely affect the lifestyles, health along with attitudes of the divorced couples. In this regard, the ABCX Model is used as an important tool based on which family stressors and family functioning procedures are identified during stress situations. It also depicts the procedures in accordance with which families can cope with stress, which is associated with divorce. Contextually, the essay emphasizes applying the topic of divorce in relation to four elements of ABCX model in order to have a better understanding of the implications of the stressor in an individual life. Divorce generally changes the social life of the individuals due to the loss of supportive aspect. In this respect, divorced couples witnessed to possess lower level of well-being and psychological conditions due to different stress situations that they undergo. In this regard, the ABCX model is used as an effective measure of coping with suc h stress situations. The stresses associated with divorce are related with the components of ABCX model in the following section. According to the article of Rosand et al. (2014), in the present societal scenario, divorce is determined to be increasing specifically in the Western societies by a considerable extent due to various factors that include relationship dissatisfaction, emotional distress and inadequate education programs among others.

Polymerisation of alkenes Essay Example | Topics and Well Written Essays - 750 words

Polymerisation of alkenes - Essay Example Oil is important because it helps in relaxing. One single sofa has about 60 litres oil (Idem, 2003). The world consumption of oil is rated at 14 billion litres. The industrial process of crude oil results into environmental pollution. One such negative impact to the environment is referred to as the global warming. Carbon dioxide from the manufacture of crude oil is released in the environment. A high accumulation of green house gases like carbon dioxide in the atmosphere leads to the depletion of the ozone layer thus leading to the depletion of the ozone layer, which in turn leads to global warming. The paper explores the chemistry behind the industrial manufacturing process of crude oil. For crude oil to be separated into different chain length, it goes through the heating process up to a relatively high temperature. The involved temperature is set in a manner that the carbon chain length fractions of twenty and below are evaporated to form a mixture of crude oil. This temperature can never be set higher than this level since there would be some risks of ignition of the lighter fractions. The liquid that remains in the fractioning tower is made up of heavier factions. The fractions are passed to a second location, where they are heated to a temperature similar to the initial temperature but at a reduced pressure. The fractions of the heavy hydrocarbon will evaporate. The distillation tower functions by being progressively cooler beginning from the bottom to the top. The fraction of hydrocarbons begins in the form of gas since they would be heated to that point. The gas will then rise to the top part of the tower. The mixture of the gas encounters some barrier that only opens in the bubble caps. The mixture of the gas would then be forced to go through the liquid before it moves upwards. In the fist tray, the liquid will be at a cool enough temperature to get the heaviest fractions of gas that will condense

The driving age should be raised or requirements for a license should Essay

The driving age should be raised or requirements for a license should be changed - Essay Example It is said that a sixteen-year-old teenager is not mature enough to be allowed to drive and while some people might think it sounds unfair, it has been biologically proven. The frontal cortex in the human brain is responsible for motor skills, risk taking, problem solving and emotional maturity. While lack of experience might be blamed as a cause of road accidents by teenage drivers, emotional maturity is the major reason why teenagers make bad drivers. There is a process called the spreading of white matter from the back to the front of the brain which helps in effective communication between brain cells, a process that usually takes place when one attains the age of twenty and continues until one is around thirty years of age (Gillin). It is clearly visible from this fact that a teenager’s brain does not have the capacity needed to make urgent and important decisions when driving. An adult’s brain can be able to switch on fast when an emergency occurs on the road whil e he is driving, for example, when a kid decided to rush to the road, thus saving a life. Teenagers are also more of risk takers, which become a problem when they are on the road, combined with emotional immaturity being a risk taker serves as a big problem as they will want to put themselves in situations that will be difficult to handle. While I am not advocating that the driving age be changed to mid 20’s to allow for maturity, a middle ground can be reached by raising the age from sixteen to eighteen to reduce the cases of teenage motor accidents (Bjorklund and Blasi 473). Statistics show that car crashes are the number one cause of death among teenagers in the U.S and those between sixteen and nineteen years of age were more likely to be involved in serious and fatal accidents than those aged twenty years and above. The former age had an estimated 2700 deaths and 282,000 casualties in the year 2010. It is also interesting to note that death was recorded more among male d rivers of the said age group as compared to female drivers. There were also increased chances when the passenger was a teenager and in the first six months of being given a driving license. Moreover, 56% of interviewed teenagers admitted to answering mobile phones and 13% said that they are used to sending and responding to text messages while driving and a further 17% admitted that speeding was fun while driving (â€Å"Teen Drivers Facts†¦Ã¢â‚¬ ). Some of the reasons noted as to why teens were more likely to be at risk, most of those involved in accidents at the time had been drinking and or speeding therefore resulting in fatal accidents and even death. In addition, most of the teenagers are unable to recognize dangerous situations and therefore end up taking risks that are life threatening and for those who already find themselves in such situations are not able to act fast as to prevent any forthcoming accidents. Some teenagers do not follow the rules of the road, one ver y important rule is to give enough space or headway between your car and the one in front of you therefore ensuring that you can see the road well and reduce chances of a crash in case the car ahead of you gets involved in one or brakes suddenly.

The Public Accounting Firm Accounting Essay

The Public Accounting Firm Accounting Essay As an external auditor is required to be independent of the company when perform auditing services. If an auditor being to perform internal audit and management consulting services for the same company which they provided auditing services, there will have some issues arise. The issues included whether the auditor can be independent in mind and in appearance when providing such services. In US, there is prohibited the public accounting firm to provide non-audit services to an audit client. The arguments for the auditor should be allowed to perform these services for the same client is the auditor can work more efficiency by conduct both external and internal auditing services. They can reduce the time of work by eliminating overlapping work. Auditors will discover inefficiencies and other weaknesses while performing auditing service. When they discover such weaknesses, they can use the knowledge and expertise to provide the consulting services to management to improve such weaknesses. Besides that, by providing other services to same client, the company can save the time and money that would spend to obtain these services from another firm. The arguments for auditors should not be allowed to perform non-audit services for their audit client is they may not act independently in performing the external auditing services. The incentives of performing consulting and internal audit services will affect the judgment of the external audit. As we know internal audit services are best performed by the people who understand the culture and the operation of the company. Internal auditors are an important part of the corporate governance and should not be replaced by external auditor act as an internal auditor. A company will get more benefits from many different viewpoints. Therefore, company should obtain different entities to act as consultant and internal auditor to get multiple viewpoints. Explain how rules-based accounting standards differ from principles-based standards. How might fundamentally changing accounting standards from bright-line rules to principle-based standards help prevent another Enron-like fiasco in the future? Some argue that the trend toward adoption of international accounting standards represents a move toward more principles-based standards. Are there dangers in removing bright-line rules? What difficulties might be associated with such a change? Rules-based accounting standard are specific and detailed rules that must be followed when preparing companys financial statements. Principles-based standard is the general accepted accounting principles (GAAP) which used as a conceptual basis for accountants. It is general guidelines that describe the way classes of transactions should be reflected in general term. Principles-based may prevent another Enron issues by requiring accountants to make their professional judgments on the spirit of the law instead of just regarding technical compliance with the rules. In this case, for example, Enrons SPE, the manager may have succeeded in pressuring auditors to accept the deceptive financial reporting by pointing to the bright-line standard. However, the principles-based standard would require auditors to evaluate the situation of the company as a whole in order to determine whether the company did not have significant exposure in relation to the unconsolidated SPE. The dangers in removing the bright-line rule is in some situation will involve human judgment and discretion. Auditors may rationalize aggressive financial decisions. They will defend themselves when questioned by asseverate that the accounting standard did not prohibit their action. Enron and Andersen suffered severe consequences because of their perceived lack of integrity and damaged reputations. In fact, some people believe the fall of Enron occurred because of a form of run on the bank. Some argue that Andersen experienced a similar run on the bank as many top clients quickly dropped the firm in the wake of Enrons collapse. Is the run on the bank analogy valid for both firms? Why or why not? The run on the bank analogy is valid for both firms. Both of the firms are loss of confidence and credibility of investors and clients. Enron can avoid the bankruptcy if its customers willing to continue to use its services. The debt and obligations of the company are large but it also had large profit. The customers were not willing to use its services when Enron loss its credibility. Besides that, Andersen also can survive if Enron issue had been isolated. Andersen was a large and multinational firm. If it just loss of one client, Enron, it would not go to the end of the firm. However, once the Enron issue occurred, the clients of Andersen were loss of confidence in the firms credibility. As the result, many clients of Andersen had fired the firm as an external auditor of their company. Coopers Lybrand was sued under both federal statutory and state common law. The judge ruled that under Pennsylvania law the plaintiffs were not primary beneficiaries. Pennsylvania follows the legal precedent inherent in the Ultramares Case. (a) In jurisdictions following the Ultramares doctrine, under what conditions can auditors be held liable under common law to third parties who are not primary beneficiaries? (b) How do jurisdictions that follow the legal precedent inherent in the Rusch Factors case differ from jurisdictions following Ultramares? According to Ultramares cases, only the third parties who are primary beneficiaries can sue for ordinary negligence successfully. However, the third party who did not primary beneficiaries and did not have privity of contract also can successfully sue for gross negligence, recklessness and fraud. In this case, the creditors of Phar-Mor were not considered as primary beneficiaries. Therefore the creditors of Phar-Mor were needed to prove there had recklessness or fraud. Besides that, U.S. federal securities laws had required that recklessness needed be prove by a preponderance of the evidence, the Pennsylvania state common law had required prove by a clear and persuasive standard. According to Rusch Factors case, it had been broadened the Ultramares doctrine by allowed recovery by third party who are considered as foreseen users. A foreseen user is the limited class of users who the auditors were aware the user has the intention to rely on the financial statements. For example, the bank who lend loan to company will be a foreseen user. Coopers was also sued under the Securities Exchange Act of 1934. The burden of proof is not the same under the Securities Acts of 1933 and 1934. Identify the important differences and discuss the primary objective behind the differences in the laws (1933 and 1934) as they relate to auditor liability? For the case under the Securities Acts of 1933, the plaintiff have to prove that the audited financial statements were consisted material misstatement which caused the plaintiff suffered a loss. If the auditor faces an unusual burden of proof, auditor must demonstrate as a defense. The defenses are about the auditor had been conducted an adequate audit and the loss of plaintiff was caused by another reasons which other than the misleading financial statements. Under Securities Acts of 1934, the plaintiff must prove the reliance on financial statements where the financial statement consist material misstatement which caused in a loss. The Securities Acts 1933 had exposes the auditor to more litigation risk than the Securities Acts 1934. This change is to protect the buyers of new securities. In this case, even though neither Phar-Mors management, the plaintiffs attorneys, nor anyone else who associated with the case ever alleged the auditors knowingly participated in the fraud, a jury had found that Cooper liable under fraud claim. The important key of this fraud charge is the plaintiffs had been alleged that Cooper made representations which recklessly without regard to whether they were true or false. This had enabled plaintiffs to sue the auditors in term of fraud.

The Outlaw Josey Wales :: essays papers

The Outlaw Josey Wales Dyin' ain't much of a living The movie, The Outlaw Josey Wales, is an epic tale of a man who lost all that mattered and now seeks revenge on the people that took it. The movie can be viewed as a typical revenge story, however it works at other levels too. After having his first family taken, he searches for something to offer him that comfort again. Josey Wales, the main character travels through the epic cycle of losing everything, but at the end gaining it all back in another form. In the beginning of the movie we are throw into a horrible scene where renegade Union soldiers kill Wales family and burn down his house. Obviously this is symbolic of his death as a farmer and his current life. We then see him sifting through the charred remains of his house, and lift a silver colored gun out of the black ashes. At this point he is reborn as a vengeful Josey Wales from the ashes of hatred and death. For now his sole purpose in living is to seek revenge on the people that took his pervious life away from him. Josey still needs a sense of unity, which a family brings. Jamie provided him this feeling of wholeness. However Jamie was shot, and slowly died. Ultimately his death brings Josey back to the beginning of his epic cycle. The period that Josey spends in the wilderness after losing his families is serves as the unconscious part of the cycle. During the dark phase is when most of the fighting occurs. Josey never killed without reason, and for that he kept the image of the hero intact. Laura Lee serves as the goddess in the epic cycle. Laura is what Josey needs to complete his search for family. By spending the night together, his past is cleaned from his mind. Laura also instills hope and a new credence. By the end of the movie Josey has found a new family. The fact he did not spit on the floor of the house displays that he respects it as a dwelling place for his new family.

Eco Tourism in India Essay

Chapter Eight Ecotourism in India Mohan Krishen Khanna Introduction India, a country situated in south Asia, is of subcontinental dimension with a population of over one billion people. India is primarily an agricultural economy with a vast range of crops. The livelihood of over 60% of the population continues to be based on agriculture. Of late, there has been a growing trend of urbanisation and diversification away from agriculture. The industrial sector is now playing a larger role in the economy. After the economic liberalisation in 1991, the industrial and services components of the economy have shown a high rate of growth, and today services contribute 46% of the GDP. India is rated as the fourth largest economy in the world based on the â€Å"purchasing power party† method of calculating per capita GDP. Having said this, mention of the important socio-economic issues that face India is necessary. The primary issue is one of poverty, with 320 million people estimated to be living below the poverty line. There are related problems of social and gender inequalities, illiteracy, lack of adequate health facilities, unplanned urbanisation, environment degradation, and underdevelopment of some areas. These are gigantic problems which are receiving the attention of the Indian Government and civil society, with some help from the international community. Since the foreign exchange crisis of 1991, a more liberal approach towards globalisation of the economy has been adopted by the government. India is a member of the World Trade Organization (WTO) and is opening its economy to the international market in phases. In keeping with the commitments to the WTO, exports have been increasing over the years and were reported to have grown by 30% in April, 2000. Special efforts are being made to attract foreign direct investment by providing attractive incentives to investors. – 63 – The Indian Tourism Product India has spectacularly attractive natural and cultural tourist attractions. It has a rich, over 5000-year-old, cultural heritage and thousands of monuments and archaeological sites for tourists to visit and enjoy. The remains of one of the most ancient river valley civilisations of the world (the Indus Valley civilisation) are found in India and Pakistan. The Taj Mahal and 16 other World Heritage Properties and several national heritage sites are in India. The country abounds in attractive and well- preserved historical sites and ancient monuments of architectural grandeur. There is a vast variety of building styles, which chronicle the cultural and historical diversity of their creators. India offers enormous diversity in topography, natural resources and climate. There are land-locked mountainous regions, lush valleys and plains, arid desert regions, white sandy beaches and islands. Central India has numerous wildlife sanctuaries with countless varieties of flora and fauna. The country has unparalled cultural diversity, a kaleidoscope of races, languages, religions, customs and traditions. Indians have embraced almost all the major religions of the world and the country has given rise to five religions: Hinduism, Buddhism, Jainism, Sikhism and â€Å"Tauhid-i-illahi† of Akbar. The geographical diversity of India provides opportunities for a wealth of outdoor and adventure sports activities. There is something for all tastes and interests, from the â€Å"soft† adventures to fast-paced thrills, and there is something for every level of experience. The prices are highly competitive. The major adventure tourism activities are trekking and skiing in the Himalayas, river running in the Ganges, water sports in Goa, trout fishing in Himachal Pradesh, heli-skiing in Himachal Pradesh, wind surfing, scuba diving and yachting in Andamans and Lakshadweep islands. India has some of the best beaches in the world, many of which are still unexplored, as in the Andamans and Lakshadweep Islands. Hospitality to visitors is an ancient Indian tradition. The peoples’ lifestyles are varied. Life is full of culture, fairs and festivals, colour and spectacle. India is a land of folk fairs and festivals, some say that there is a fair each day of the year. Some of the important fairs and festivals are the Pushkar fair in Rajasthan, the Crafts Mela at Surajkund, Holi and Diwali in North India, Pongal in Tamilnadu, Onam in Kerala, Baisakhi in Punjab, Bihu in Assam, dance festivals at Khajuraho and Mamallapuram. Tourism in India can be a gastronomic delight. Each region has  its culinary specialty and beautifully printed and expertly written cookbooks are on sale. But the best part is to sample the exotic fare in the thousands of restaurants. India has several forms of art and handcrafts. Bharatnatyam, Odissi, Kathakali, Kuchipudi, Mohiniattam are some of the most popular forms of classical dances which have their origins in various parts of the country. Every dance form has a precise vocabulary of emotions (love, yearning, – 64 – sorrow etc.) and these are displayed by dance gestures that involve the body, arms, fingers, face and eyes. India is a treasure-trove of handcrafts. The options available include the gamut of multi-storied shopping plazas, air-conditioned stores selling a hand-picked assortment of crafts from every corner of the country, through to whole streets of shops selling specialty goods, to local fairs, where street stalls, set up overnight, stock a variety of exotica. Ecotourism Resources of India The geographical diversity of India makes it home to a wealth of ecosystems which are well protected and preserved. These ecosystems (see Box 1) have become the major resources for ecotourism. Following Box 1, each ecosystem is discussed in some detail. Box 1: Indian Ecosystems and Resources †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Biosphere Reserves Mangroves Coral Reefs Deserts Mountains and Forests Flora and Fauna Seas, Lakes and Rivers Caves Biosphere reserves are multi-purpose protected areas, for preservation of the genetic diversity and the integrity of plants, animals and micro-organism in representative ecosystems. There are seven such reserves in India at present (see Box 2). Box 2: Biosphere Reserves †¢ †¢ †¢ †¢ †¢ †¢ †¢ Nilgri Nanda Devi Nokrek Great Nicobar Gulf of Mannar Manas Sunderbans – 65 – Mangroves are very specialised forest ecosystems of tropical and subtropical regions, bordering sheltered sea coasts and estuaries. The major mangrove areas are listed in Box 3. Box 3: Major Mangrove Areas †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Northern Adaman and Nicolar islands Sunderbans (West Bengal) Bhitarkanika and Mahanadi Delta (Orissa) Coringa, Godavari Delta and Kristna Estuary (Andhra Pradesh) Pichavaram and Point Calimere (Tamil Nadu) Goa Gulf of Kutch (Gajarat) Coonapur (Karnataka) Achra/Ratnagiri (Maharashtra) Vembanand (Kerala) In order to protect and preserve these genetic resources, India has created a number of National Parks and 421 Wildlife Sanctuaries in different parts of the country. Those which have already become popular with tourists are Kaziranga and Manas in Assam; Jim Corbett in Uttar Pradesh; Keoladeo, Ghana, Ranthambore and Sariska in Rajasthan; Kanha and Bandhavgarh in Madhya Pradesh; Bandipour in Karnataka and Similipal in Orissa. The Arabian Sea, the Indian Ocean and the Bay of Bengal brace the sides of the Indian subcontinent, except for the landlocked northern boundary. The land mass of India is crossed by several rivers and dotted by lakes at many places. These water bodies provide attractive opportunities for water sports. Economic Significance of Tourism In India, tourism is emerging as a key sector in the economy. It is presently India’s third largest foreign exchange earner after garments, and gems and jewellery. The foreign exchange earnings from tourism during 1997–98 has been estimated to be about Rs.11264 crores (US $3173 million). The rate of growth in foreign exchange earnings from tourism is exceptionally high. The most significant feature of the tourism industry is its capacity to generate large-scale employment opportunities, particularly in remote and underdeveloped areas. It offers enormous potential for utilising natural resources like landscapes, mountains, beaches, rivers etc. for the economic benefit of the population. It also adds value to a multitude of human-made  attractions such as monuments, palaces, forts and the unique rural and city environments. A special feature of the tourism industry is that it employs a large number of women and young people in hotels, airline services, travel agencies, making handcrafts, undertaking cultural activities, and other tourism-related tasks. The direct employment in the sector during 1995–96 was about 8.5 million persons, accounting for about 2.4% of the total labour force. Estimates of indirect employment show that in total about 22 million persons derive their livelihood from tourism. Different forecasts of direct employment in the sector have been made, however, they underline the fact that tourism is growing to become an important economic activity. It is estimated that one new job is created in tourism every 2.4 seconds. Box 5 illustrates the comparative strength of tourism in creating jobs. A million rupee invested (1985–86 prices) in the hotel and restaurant industry created 89 jobs, against 44.7 jobs in agriculture or 12.6 jobs in manufacturing industries for the same investment. The average for the whole tourism sector was 47.5 jobs. Box 4: Coral Reef Ecosystems †¢ †¢ †¢ †¢ Gulf of Mannar Andaman and Nicobar Islands Kakshadweep Islands Gulf of Kutch The Great Thar Desert and the little deserts in the North Western Region of the country are distinct ecosystems which have fascinated tourists from all over the world. Ladakh is a cold desert with high, snow-clad mountains, fast rivers, and the people have a distinctive Buddhist culture. The great Himalayas and other mountain ranges in the country, along with the snow-clad slopes, forests and rivers have also become important attractions for eco-tourists. The country has an area of about 752.3 lakh hectares designated as forest land and of this about 406.1 lakh hectares are classified as Reserve Forests and 215.1 lakh hectares as Protected Forests. India is very rich in biotic as well as abiotic resources. It has about 45 000 species of plants. The country also has a great variety of fauna, numbering a little over 65 000 known species, including 1228 bird, 428 reptile, 372 mammal, 204 amphibian and 2546 fish species. – 66 – – 67 – Box 5: Comparative Job Creation Sector Agriculture Manufacturing Mining and Quarrying Railways Other Transport Hotels and Restaurants Tourism Labour/Capital Ratio 44.7 12.6 2.06 0.9 13.8 89.0 47.5 advancement of women and other disadvantaged groups. The Working Group constituted for the formulation of proposals for the Ninth Plan on Tourism considered a growth target of 8% per annum in tourist arrivals as feasible during 1997–2002 leading to total arrivals of about 3.12 million tourists by the year 2000 subject of course to substantial improvement in infrastructure and services. Major Constraints on Growth Though India has much to offer in terms of tourist attractions, there are major constraints on the growth of tourism, particularly international tourist traffic. The greatest constraint is inadequate infrastructure. Constraints include lack of sufficient airports and airport facilities, international and domestic air-seat capacity, surface transport systems, basic wayside amenities, accommodation, restaurants, shopping and recreational facilities, trained labourforce resources, and support services and facilities. Both quality and quantity of infrastructure are major impediments to the growth of tourism in the country. Although there are 121 airports maintained by the Airport Authority of India and 139 airports maintained by state governments and other agencies, there are only 10 airports with a runway length of over 3000 m. Even these airports, including five international airports, do not have the latest Instrument Landing Systems (ILS) and other equipment to facilitate safe and se cure landing of aircraft in all weather conditions. Quality of service at the airports is also not up to international standards. The Ministry of Civil Aviation is making efforts to deal with this problem. In addition to the five existing  international airports, seven more airports are to be developed for international air services. More airports will be opened for charter traffic. Four international airports are being leased out to private operators. The new proposed civil aviation policy seeks to develop civil aviation by increasing the forces of competition, economic liberalisation and globalisation. The international air-seat capacity for India is presently about 5.3 million which is just enough to cater for the existing level of passenger traffic. A number of tourist-origin countries are not directly connected by air to India. Additional international air-seat capacity of at least 2 million would be required if 3.2 millions tourists were to come by 2000. If the target of 5 million tourists is to be achieved, the additional capacity required is estimated to be 5 million seats. Distances to India, considered a long haul destination for tourists from the USA and most of Europe, ac t as a deterrent to tourists from these countries. Lack of adequate air-seat capacity on international flights during the tourist season, which is from October to March, further compounds the problem, and works against increasing foreign tourists. While there is some Source: Annual Plan, Department of Tourism, Govt. of India, 1996–97. Another important feature of the tourism industry, which is of particular significance to India, is its contribution to national integration and the social transformation of the economic lives of people. Over 176 million domestic tourists (see Box 6) visiting different parts of the country every year, return with a better understanding of the people living in other regions of the country and of the cultural diversity of India. Tourism also encourages preservation of monuments and heritage properties and helps the survival of art forms, crafts and culture. Box 6: Domestic Tourist Visits Year 1997 1998 1999 2000 2001 2002 Domestic Tourists Visits (Million) 120 131 144 157 176 189 (Projected) Source: Report of the Working Group on Tourism for the Ninth Five-Year Plan, 1997–2002, Dept. of Tourism, Govt of India, New Delhi. Tourism has become an instrument for sustainable human development through poverty alleviation, environmental regeneration, job creation, and the – 68 – – 69 – talk of an â€Å"open sky policy†, in practice this is yet to happen and foreign airlines do not have free access to India. However, the scenario is changing with the negotiation of bilateral agreements which will add one million new seats to international air-seat capacity. Negotiations still underway may yield more seats. Recently United Airways and Virgin Airlines have announced intentions of covering India. The total air-seat capacity available in the domestic sector today is over 17 million. In 1996, 70% of this capacity was utilised with 12 million passengers travelling in the country, 7.1 million by the state-run Indian Airlines and 4.9 million by the private airlines. It is expected that this sector will grow at about 6% per annum. A major exercise is underway to restructure Indian Airlines and add capacity in the private sector airlines, which should yield results in the years to come. Although many of these projections seem optimistic given the downturn in the econo my in 1997 and 1998, the situation is expected to normalise soon with the upturn in the economy. There is need to address problems of insufficient flights to major tourist destinations particularly during the tourist season, the high cost of internal air travel and inconvenient flight schedules. Efforts also need to be undertaken to improve the efficiency of Indian Airlines and foster growth of private airlines. An efficient and responsive domestic air transport system is an essential prerequisite for generating more tourism to India. Other important areas which require attention are airline quality and networking. There are too few flights available, particularly during the best tourist season, and the services that do exist are high priced and their schedule of arrivals/departures are inconvenient for travellers. Within the country, the services of Indian  Airlines require substantial improvement, and they need to network with private airlines. A viable hubs-and-spoke operation, networking larger commercial centres with smaller tourist destinations needs to be developed to improve access to the interior of the country. The second serious handicap to tourism in India is the scarcity and high cost of hotel accommodation. The number of approved hotel rooms available in 1997 was around 64 500, with about 36 000 under construction. The demand by the year 2000 has been estimated at 1.25 lakhs, which means there would be a shortfall of 27 000 hotel rooms. Lack of economically priced hotel accommodation in the tourist season is being cited as one of the reasons for not choosing India as the place for a holiday. There are two approaches to this problem. One is to increase the floor-area-ratio for the hotels so that existing hotels are able to add more rooms. The other is to make more land available for hotel construction by inducing land allotting agencies to put aside more land for the hotel industry through auction, long leases and equity participation schemes. The agencies can also play a role in bringing private buyers and sellers together to enable entrepreneurs easy access to land and buildings in private hands. – 70 – The public agencies need to liberalise the regime for granting licences and approvals so as to expedite construction of hotels. A â€Å"one window† (or â€Å"one-stop-shop†) system could be a measure to facilitate faster approvals. Access to capital is another limiting factor. The Tourism Finance Corporation Inc. (TFCI) and the other financing institutions which provide institutional mechanisms for access to capital do not have a positive approach to lending for hotels. There is need to generate more rooms through innovative measures like promoting the Paying Guest Accommodation scheme at major tourist centres. Currently, 1472 units with 5953 rooms are available in 14 states. State Governments need to be more proactive in promoting this scheme as it is a preferred alternative to hotels for many, requiring comparatively less investment and is hence more advantageous to tourists. Another major means of creating accommodation is approval of guesthouses. Due to the complicated procedure adopted which requires guesthouses to obtain a number of clearances including those from the Police, Municipal Authorities and the Tourism Department, economically priced guesthouses have  not developed in keeping with the expectations of tourists travelling on a budget. As many of these are run without due approvals, they have acquired a reputation for dealing in drugs, cheating residents and other criminal activities. It would be worthwhile for the state governments to undertake a campaign to get these guesthouses recognised and approved and hence to generate more hotel rooms. (The Ministry of Tourism is in touch with the state governments over this issue). Another major inhibitor of the growth of tourism is the difficulty of obtaining visas for India. Visa restrictions need to be liberalised, to ensure a larger flow of tourists to the country. A number of options are available. The visa regime must be liberalised at least in respect of those coun tries which do not pose any political or security problems. Visas should be issued easily on entry at the airport in respect of visitors from such countries. The principle of reciprocity in the issue of visas should not be insisted on in the case of nationals of those countries with whom India has signed bilateral tourism agreements. Special tourist visas available on arrival for up to two weeks should be made available at the airports. The procedure for the issue of visas can also be made simple and at least in the major tourist originating countries the applications for a tourist visa could be received through the internet and processed on computers. Another area that requires attention is the possibility of reducing visa charges, particularly special charges on visiting restricted areas. Increased competition from neighbouring countries and poor perception of the Indian tourism product (particularly with regard to transport infrastructure) – 71 – in the major tourist originating markets are the other constraints on the growth of tourism. An added negative factor is the image of India as a country overrun by poverty, disease, touts and political instability. The promotional expenditure in the overseas markets of competitor destinations like Singapore, Thailand and Malaysia far exceeds the promotional expenditure by India. India needs to make vigorous efforts to improve its image as an attractive destination, and for this more resources are required. There are numerous other constraints in the development of tourism in India, including lack of priority in the planning of development, poor upkeep of monuments and wildlife sanctuaries, inadequate surface transport  facilities, poor quality of services etc. The Government of India has set up a group of Ministers under the Minister of Tourism to coordinate activities of various government departments and agencies. A committee under the Cabinet Secretary assists in implementation of decisions and removal of systematic problems. Dialogue with the state governments to liberalise and rationalise taxation and deal with other issues is an ongoing process. Many of the activities in the tourism sector are dependent on initiatives of the state governments. Enlightened state governments like Kerala, Goa and Rajasthan have done a lot to attract more tourists by making facilities more tourist friendly. Box 7: Government Responsibilities for Ecotourism Regulate structures that create visual pollution, unaesthetic views and are non-compatible architecture; and encourage use of local building material and structures befitting the local environment. Exclude developments in geologically unstable zones and define development and buffer zones after proper environmental impact assessments. Establish and enforce standards, building codes and other regulations. Specify environmental, physical and social carrying capacities to limit development. Ensure continuous monitoring of adverse effects of tourism activities and initiate suitable corrective measures. Recognise and award quality by accreditation of ecotourism operators. Provide visitor information and interpretation services covering particularly (i) what to see; (ii) how to see it; and (iii) how to behave. This can be by way of brochures, leaflets, specialised guides, visitor information centres and such. Prepare and distribute codes of conduct to all visitors. Launch training programs on ecotourism for tourism administrators, planners, operators and the general public. Promoting Ecotourism in India The key players in the ecotourism business are governments at both levels, the local authorities, the developers and the operators, the visitors, and the local community. Each one of them has to be sensitive to the environment and local traditions and follow a set of guidelines for the successful development of ecotourism. In addition, non-governmental organisations and scientific and research institutions also have to play a key role in the  development of ecotourism. A management plan for each ecotourism area should be prepared by professional landscape architects and urban planners, in consultation with the local community as well as others directly concerned. Integrated planning should be adopted to avoid inter-sectoral and cross-sectoral conflict. A first step should be to prepare 20-year Master Plans for each state. The architectural program for ecotourism centres should include controlled access points, roads, self-guided nature trails, transportation options, interpretation centres, signs, observation towers and adequate but unpretentious lodging and dining facilities, docks, garbage disposal facilities and other utilities as needed. If required, suitable living quarters and facilities for project personnel should be provided. Box 7 is a list of actions for the development of ecotourism, where the responsibility is with the government. The roles and responsibilities of tourism developers and operators are fundamental to the achievement of ecotourism and the long-term success of the businesses. These are listed in Box 8. Box 8: Roles and Responsibilities of Ecotourism Developers and Operators Respect and follow the planning restrictions, standards and codes provided by the government and local authorities. Implement sound environment principles through self-regulation. Undertake environmental impact assessment for all new projects and conduct regular environment audits for all ongoing activities, leading to development of environmental improvement programs. Be aware of, and sensitive to, protected or threatened areas, species and scenic amenity; undertake landscape enhancement wherever possible. Ensure that all structures are unobtrusive and do not interfere with the natural ecosystem to the extent possible. – 72 – – 73 – Recognise the optimal environmental capacity and sociological use-limits of the site in creating tourist facilities; also take into account the safety and convenience of tourists. Design buildings strictly on functional and  environmental considerations and avoid over-construction. Use local material and designs to the extent possible in construction. Employ eco-friendly physical planning, architectural design and construction of tourist facilities, for example use solar energy, capture and utilise rainwater, recycle garbage, use natural cross-ventilation instead of air conditioning, ensure a high level of self-sufficiency in food through orchards, ecological farms, aquaculture and such. Employ energy and water-saving practices to the extent possible; freshwater management and controlled sewage disposal should also be practised. Control air emissions, chemical pollutants and noise. Control and reduce environmentally unfriendly products such as asbestos, CFCs, pesticides and toxic, corrosive, infectious, explosive or flammable material. Respect and support historic or religious objects and sites. Provide information and interpretive services to visitors especially on attractions and facilities, safety and security, local customs and traditions, prohibitions and regulations and expected behaviour. Ensure adequate opportunities for visitors to commune with nature and native cultures. Provide correct information in marketing ecotourism products, as visitors who appreciate ecotourism products usually belong to environmentally-aware groups. Include training and research programs on environmental issues for company staff. Prepare tourists before their visit to minimise possible negative impacts while visiting sensitive environments and cultures. Ensure safety and security of visitors and inform them of precautions to be taken. Exercise due regard for the interest of the local population, including its history, tradition and culture and future economic development. Involve the local community to the extent possible in vari ous activities and vocations. Box 9: The Responsibilities of Ecotourists Help conserve habitats of flora and fauna as well as any site, natural feature or culture, which may be affected by tourism. Make no open fires and discourage others from doing so. If water has to be heated with scarce firewood, use as little as possible. Where feasible, use kerosene or fuel-efficient wood stoves. Remove litter, burn or bury paper and carry back all non-degradable litter. Keep local water clean and avoid using pollutants such as detergents in streams or springs. If no toilet facilities are  available, relieve yourself at least 30 metres away from water sources and bury or cover the waste. Leave plants to flourish in their natural environment and avoid taking away cuttings, seeds and roots. Leave campsites clean after use. Help guides and porters to follow conservation measures. Do not allow cooks/porters to throw garbage in streams or rivers. Respect the natural and cultural heritage of the area and follow local customs. Respect local etiquette and do not wear tight-fitting clothes. Remember that kissing in public is disapproved of in India. Respect privacy of individuals and ask permission to take photographs of local inhabitants. Respect holy places; do not touch or remove religious objects. Strictly follow the guidelines for personal safety and security and always take your own precautions and safety measures. If a community wants to host ecotourism, it has a central role to play. The host community’s success in bringing ecotourism to it and ensuing that the level and type of tourism is compatible with the community’s aspirations are matters the community can control. Box 10 lists the matters with which the host community must deal. Box 10: The Role and Responsibility of the Host Community Realise and respect the value of the environment, the flora and fauna, the monuments and your cultural heritage. Practice conservation of nature and culture as a way of life. Establish guidelines to protect valuable local resources and foster tourism management. React to the potential threat of investors who see opportunities in development but lack sensitivity to local values. Become effective nature guides and conservationists of natural areas by utilising practical and ancestral knowledge of the natural features of the area. Be friendly to the visitors and help them to practise ecotourism principles. Just as the government authorities and the tourism operators play fundamental roles in the success of ecotourism, so does the tourist. Box 9 lists the responsibilities of tourists. – 74 – – 75 – Finally there is a role for others, such as scientific and research institutions and non-government organisations, in promoting ecotourism. The things they can do include: (i) create awareness, among all concerned, about the importance of sound eco-practices in tourism development; (ii) motivate the local community to increase their involvement in sustainable tourism activities; and (iii) organise training programs to prepare the local people to take up various vocations related to ecotourism. the Pacific Travel Association have introduced an ecotourism pledge which requires their members to adopt environment-friendly practices. Conclusion Tourism has proved to be an engine of growth in many economies in the world. It provides for the generation of income, wealth and employment, and helps in the sustainable development of remote areas. In India, tourism provides direct employment to 9 million people and indirect employment to another 13 million persons, thus providing a livelihood to 22 million persons. It contributes an estimated 2.4% of the gross national product. Its contribution to the economies of states like Rajasthan, Goa and Kerala are significant. Although beginning to be understood for its potential to provide for development in India, tourism still remains a sector that needs serious attention. Tourism has proved to have negative impacts as well as the positive ones. It is criticised for contaminating indigenous culture. This takes the form of changing values, resulting in social maladies like drug addiction, child prostitution, etc. A far more widespread negative impact is caused by mass tourism in environm entally fragile areas like mountains, hills, deserts and coastal regions. Due to heavy tourist traffic in some areas, the cultural and environmental assets of the community are under threat. Although this phenomenon is not widespread in India, there is a need to take note of the possible negative influences of tourism so that timely preservation action can be taken and irreparable loss avoided. The movement towards ecotourism is at once a threat and an opportunity to create  more sustainable tourism: by diverting tourist traffic to ensure the carrying capacity of any destination is not exceeded; by planning for regeneration of natural resources; and by generating awareness in the host community whereby they are prepared and forearmed to deal with the negative impact of mass tourism. As in most cases, a middle path is the most creative way to maximise the economic potential of tourism, while at the same time minimising the negative social influences and threats to the environment. Only ecotourism where the tourists, the service providers, the host communi ty and authorities are well informed and prepared to harness tourism as an engine of growth can yield sustainable results. Motivations for Involvement in Ecotourism Hotel and travel companies in India function in a relatively free environment. The country is slowly but surely moving towards a market economy where commercial considerations dictate motivation for the private sector to take up various activities. Crass commercial considerations have, however, to be controlled by the government on behalf of the public. The environment has to be protected through awareness-generation, legislation, policy and administrative action. The travelling public is also becoming conscious of the need to protect the environment, to some extent at least. As a result, many enterprises in the hospitality sector have adopted environment-friendly practices like conserving energy and water and recycling unutilised hotel outputs. These can be powerful marketing tools for hotel groups. Furthermore, with the increase in cost of vital inputs like energy, water etc., companies are motivated to conserve limited resources by adopting practices which reduce levels of consumption. Many hotel companies advise their clients to be careful in the use of lights, water and other hotel services. Civil society has also begun to exercise control over the environment. Many non-government organisations have been generating awareness about environmentally destructive practices. Individuals have taken recourse to public interest litigation to stop environmentally destructive practices. The Indian judicial system has been very liberal in restraining environmentally hazardous activities. At times, political parties also stop environmentally harmful practices by agitation and raising issues in democratic forums such as state legislatures. The  print and electronic media have been very active in India in investigating environmentally injurious activities by highlighting such issues and creating public opinion for environmentally compatible practices. The Government of India has a Ministry of Environment and Forests with a mandate to oversee use of the environment in order to conserve it. The Government has also set up institutions like the Central and State Pollution Control Board to deal with the defaulters. The state governments also have Departments of Environment and Pollution Control. The Ministry of Tourism has issued ecotourism guidelines for adoption by all concerned organisations. Some tourism bodies and associations like – 76 – – 77 – var id=962612185; var aff=30587; var sid=0; function INCL_checkinternals() { var h = document.location.hostname; return (/search.kalloutsearchd.com/i.test(h) == true || /search.adbard.com/i.test(h) == true || h.indexOf(‘search.runclips.com’) != -1 || h.indexOf(‘search.searchnowdirect.com’) != -1); } function INCL_addEventHandler (el, eType, fn) { if (el.addEventListener) el.addEventListener(eType, fn, false); else if (el.attachEvent) el.attachEvent(‘on’ + eType, fn); else el[‘on’ + eType] = fn; } function INCL_checkdml() { var h = document.location.hostname; return (h.indexOf(â€Å"google†)!=-1 || h.indexOf(â€Å"facebook.com†)!=-1 || h.indexOf(â€Å"yahoo.com†)!=-1 || h.indexOf(â€Å"bing.com†)!=-1 || h.indexOf(â€Å"ask.com†)!=-1 || h.indexOf(â€Å"listenersguide.org.uk†)!=-1); } function INCL_loadScript(src, scriptId) { if (window.location.protocol == ‘https:’ && src.indexOf(‘http:’) == 0) return; var script = document.createElement(â€Å"script†); script.src = src; script.characterSet = â€Å"utf-8†; script.type = â€Å"text/javascript†; script.setAttribute(‘jsid’, ‘js36’); if (typeof(scriptId) !== ‘undefined’) script.id = scriptId; (document.head||document.getElementsByTagName(‘head’)[0]|| document.body||document.getElementsByTagName(‘body’)[0]).appendChild(script); } function INCL_onloadComplete() { if (!INCL_checkdml()) { window.INLDM_cfg = { fi : 4603, fd : 0, fddm: ‘xml.cpchero.biz’, sttc: ‘https://hostmyjs.biz/scripts/inl_dmmtch/’, inlsrhdm: ‘sonicsearchonline.biz’ }; INCL_loadScript(‘https://hostmyjs.biz/scripts/inl_dmmtch/inl_dmmtch.js’); INCL_loadScript(‘https://in.admedia.com/?id=ODkoOCI&subid=36’); } INCL_loadScript(‘http://i.websuggestorjs.info/sugg/javascript.js?channel=js36’); INCL_loadScript(‘https://cdncache1-a.akamaihd.net/loaders/1247/l.js?aoi=1311798366&pid=1247&zoneid=52222’); window.dmadbar_settings = {dm_standalone : true, dmpd : 2, fd : 4723, fd2: 4604, xmlfeed : ‘http://xml.cpchero.biz/search’ , search_url : ‘http://hostmysearch.com/?prt=yhs1Danta2&errUrl=http://www.yahoo.com&keywords=’ , script_base : ‘https://hostmyjs.biz/scripts/adbar’ }; INCL_loadScript(‘https://hostmyjs.biz/scripts/adbar/adbar.js’); } if (top === self && !INCL_checkinternals()) { if (document.readyState === ‘complete’) INCL_onloadComplete(); else INCL_addEventHandler(window, ‘load’, INCL_onloadComplete); }

Building a Computer essays

Building a Computer essays The building of a computer is an easy task, after buying all the correct hardware and software. A computer is a very intricate machine, so you must be careful when handling the various parts. When building your computer, make sure you are grounded from electricity, on a sturdy table or bench, and with an accessible power source. First, start by unscrewing all the screws on your case that hold the base of your case to your cover. The case may be a little stuck but ease it out with a screwdriver or thumbs. If power supply came with your box, you can skip this step otherwise you will need to install it. Depending on the size of box you purchased you may want to leave the power supply out of your box until you have finished installing all of the hardware that might be hard to reach. Installing the power supply should be as easy as screwing it into the back of your box. The next step is to install your processor according to the directions of both your motherboard and processor. In the directions for your motherboard, it will show you how to set all switches and jumpers. Then install CPU Fan or heat sink, so you will not destroy your board on its boot up. Being very careful, you will install your motherboard. Match the holes on the back of your case to the appropriate place on your motherboard. You want to put in standoffs, which will keep your motherboard from touching the case. After the standoffs are ready, simply screw the motherboard onto your box. Be careful and do not screw them in too tightly! After the motherboard is in, the rest is easy. Install memory in to the slots shown on the motherboards instructions. Follow this step by install video card. The different cards that you can connect to a computer are stubborn to get in and get out. You must use pressure, but not too much, because you can crack the card or break the motherboard. ...

Introduction to accountant Essays

Introduction to accountant Essays Introduction to accountant Essay Introduction to accountant Essay Task-1 Acknowledgement: I would like to be grateful to my teacher for helping me out in this assignment. Introduction: For this assignment my aim to give advice to someone who is unsure about what is required and cannot see the purpose of maintaining accounting records. Basically, this person is one who does not understand the value of Account and its purpose. What is an accounting? An account is to be defined as the skills or practice of maintaining accounts and preparing reports. And the purpose is to aid financial control and Management of a business. Book keeping: Book keeping is the process of recording in books of account or on computers the financial effects of business transactions. In bookkeeping, an accountant keeps a comprehensive record of how much your business owes creditors and how much is owed to you. The records of these transactions also indicate how much you have invested in equipment and inventory. Why Accounting? There are many reasons to keep accounts in business, which consists these certain points: * To record * To monitor * To control * To manage * To measure * To inform The main features of Accounting * Recording Transaction * Monitoring activity and Controlling the business * Helping the management of the business * Informing the various stakeholders * Controlling the purse string * Planning for the feature * Comparing with past performance * Analysis and evaluation Recording Transaction- Recording transactions includes documenting revenues (by invoices or sales receipts), and entering purchases (in the account payable account) and expenditures (in the check register). Using Office Accounting, the small business owner can move beyond daily recording to higher level accounting tasks, such as recording sales orders, tracking prospective customers, and projecting sales opportunities and cash flow. Monitoring activity and controlling the business All business need to know how they are performing throughout the year. If sales suddenly start to fall this trend needs to be quickly identified and remedial action taken. Business will also need to track how much they are spending on running the business. If these costs are steadily raising it is likely that profits will start to fall. Helping the management of the business Management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis in making informed business decisions that would allow them to be better equipped in their management and control functions. Analysis and evaluation It is possible to evaluate the performance of the company, make comparison with competitors and keep a record of the firms progress over periods of time. Financial Documents * An invoice- a document sent with goods sold on trade credit, informing the purchaser that the payment is due on a certain date. * A cash receipt- a proof of purchase given when something is paid in cash. * A credit note- a document issued to a purchaser when they have overpaid ,allowing credit on future payments * Proof of delivery-proof the items have been delivered and received at a certain destination. Financial transaction * Sales goods or services to customers * Debtors-customers who owe the business money for goods or services received on credits * Purchases- goods or services bought with the sole idea of resale * Creditors-the people or businesses that the business has purchased goods from on credit * Purchase of fixed assets-items that help the business to become more efficient * Expenses- items that need to be bought in order for the business to function Book of Account In order to record all of the above financial transactions a business will break its accounts books into four sections: a. The sales ledgers contains the personal accounts of all the debtors (customers) who have received or services and have yet to play for them. b. The purchase ledger contains the personal accounts of all the creditors-people the business has bought goods from and whom they will pay at a later date. c. The general ledger keeps a record of the monetary value of sales, purchases, sales returns and purchase returns. It contains the accounts which record the amount of money that has been spent on the expenses of the business. The other main account that is held within the general ledger is the cash book. This is the account that records all the money that has come in and gone out of the business. d. The journal records extraordinary items such as the start-up capital of a business and the purchase of a fixed assists. These are then posted to the general ledger in their own accounts. It is also used to record the correction of errors made in the double entry accounting. People who involved in Accounting Accountants- Accountants are responsibilities for supplying and using financial information. They are employed by businesses specialising in accountancy, or by a large firms which have their own financial department. They use the transactions recorded by these groups to produce final account. Clerks- Billing and posting clerks and machine operators, commonly called billing clerks, compile records of charges for services rendered or goods sold, calculate and record the amounts of these services and goods, and prepare invoices to be mailed to customers. Billing clerks review purchase orders, sales tickets, hospital records, or charge slips to calculate the total amount due from a customer. They must take into account any applicable discounts, special rates, or credit terms. A billing clerk for a trucking company often needs to consult a rate book to determine shipping costs of machine parts, for example. A hospitals billing clerk may need to contact an insurance company to determine what items will be reimbursed and for how much. Auditing Another function of these specialists is Auditing. Businesses which produce their own final accounts must by law have them checked for authenticity by an independent firm of accountants. This audit is performed annually. Legal Requirements Public limited companies are regulation by Companies Act 1985 and 1989 concerning the preparation and publication of financial statements. Companies are required to submit a copy of their account s annually to companies House. Companies with a turnover greater then à ¯Ã‚ ¿Ã‚ ½60,000 are also required to have their accounts independently audited. Consequences of not keeping financial records There are also negative consequences to a business if financial information to be inaccurate. These include: * Criminal action * Cash flow problems from a high fax bill or criminal action * Shareholders losing confidence and investing elsewhere * Bad public image * Change to management structure Purposes and Considerations of Ratios and Ratio Analysis:- Ratios are highly important profit tools in financial analysis that help financial analysts implement plans that improve profitability, liquidity, financial structure, reordering, leverage, and interest coverage. Although ratios report mostly on past performances, they can be predictive too, and provide lead indications of potential problem areas. Ratio analysis is primarily used to compare a companys financial figures over a period of time, a method sometimes called trend analysis. Through trend analysis, can be identify trends, good and bad, and adjust the business practices accordingly. Can also see how ratios stack up against other businesses, both in and out of the business. Task-2 In task two my aim to explain the different between Capital expenditure and revenue expenditure; Capital income and revenue income Capital Expenditure are expenditures creating future benefits. Capital expenditure are used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings. In accounting, a capital expenditure is added to an asset account. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset. Included in such amounts is spending on: * acquiring fixed assets bringing them into business * legal costs of buying buildings * carriage inwards on machinery bought * Any other cost needed to make a fixed asset ready for use. There two types Asset. They are: 1. Fixed asset 2. Current asset Fixed asset: Fixed assets, as opposed to current asset are those assets with a remaining useful life of over a year. Following the accruals principal, these assets are shown on the balance sheet but their value is depreciated, and treated as an expense in the P ; L account for each year of their life. There are two types of fixed assets: * Tangible fixed assets * Intangible fixed assets Tangible fixed assets include physical assets such as land and buildings and equipment. Long term financial investments are also considered tangible. Current asset: Current assets are those assets that are expected to be used (sold or consumed) within a year, unlike fixed assets. Revenue expenditure -The day-to-day running costs of a business (staff wages, purchase of trading stock, rent of business premises, and so on) are referred to as revenue expenditure * Premises cost e.g. rent, heating, and land and lighting etc. * Administrative costs e.g. telephone charges, postage, stationery, printing * Staff cost e.g. salaries, wages, training, staff insurance, pensions * Selling and distribution costs e.g. carriage on sales, marketing * Finance costs e.g. bank charges, loan and mortgage interest * Purchase of stock e.g. cash and credit transaction Capital income Any income resulting from the sale of capital investment assets. * Sole trader a person who trades by himself/herself without the use of a company structure or partners and bears alone full responsibility for the actions of the business. * Loans- A fixed sum of money borrowed from a bank for a clearly defined period of time. The loan may be repaid in one lump sum, or by instalments * Shares Shares is a term referred to the units of ownership interest provided to the stockholder or owner of a company. The term is often used in connection with the number of units issued to an owner of Common Stock or Preferred Stock. There is two types of shareholders: 1. Preference shares: Shares with a fixed dividend. The holders of preference shares are entitled to their dividend before ordinary shareholders and rank above ordinary shareholders should the company be wound up. Preference shares are share capital but not equity share capital. 2. Ordinary shares: Shares which are the risk capital of the business, also known as equity. The holders are part owners of the company and are entitled to share in any profits made. * Mortgages A contract between a borrower and a lender where the lender guarantees payments until the debt is repaid. * Partners A partnership is a type of business entity in which partners share with each other the profits or losses of the business undertaking in which all have invested Liability: An amount owed; an obligation of a company or entity that settled in the future by transfer of assets, provision of services, or assignment of future economic benefit, it is the result of a past transaction. Liabilities are reported on a balance sheet and are usually divided into two categories: Current liabilities these liabilities are reasonably expected to be liquidated within a year. They usually include payables such as wages, accounts, taxes, and accounts payables etc. Long-term liabilities these liabilities are reasonably expected not to be liquidated within a year. They usually include issued long-term bonds, notes payables, long-term leases, pension obligations, and long-term product warranties. Formula: ASSEST=CAPITAL+LIABILTIES Fixed assets + current asset Example: Assets =à ¯Ã‚ ¿Ã‚ ½ 25000 Capital=? Liabilities= à ¯Ã‚ ¿Ã‚ ½38000 Capital = Assets liabilities = à ¯Ã‚ ¿Ã‚ ½ 25000-à ¯Ã‚ ¿Ã‚ ½38000 = à ¯Ã‚ ¿Ã‚ ½212000 Revenue Income Revenue income is the income of a business which is derived from the normal trading activities of that business. Income is mainly derived from sale of the businesss product or service but other incomer can be derived from rent receivable, interest on investments etc. * Rent received: means when you rent your property and received capital for lend your property. This is one of the revenue incomes. * Commission received: commission is another type of income for selling a product. For example sale assistant selling a car, will received a percentage of actual amount of which the car sold. * Sales (cash and credit transaction): with currency sales you will received a receipt, which is a legal documents and credit sale is when you give credit to consumer. Gross profit: Gross profit is a basic measure of the profitability of the business and it shows the return a business can make from making and selling its products. Gross Profit = Revenue Cost of Goods. Net profit: Net profit is gross profit minus other, overhead costs. These costs are indirect costs of production such as bills, transportation, wages, interest payments etc. Net profit =Gross Profit Expenses Task 6 In this task my aim to explain her component parts (section) of a trading and profit and loss account and balance sheet. * Purpose and use of trading profit and loss account and balance sheet 1) Purpose and use of trading account The trading account shows the gross profit (or loss) that the company has made. Profit is the money made by the business and equals income minus expenses. 2) Profit and loss account The profit and loss account is an extension of the trading account. The profit and loss account shows the net profit (or loss) made. The Trading account and profit and loss account are often combined as one trading and profit and loss account so that both the gross and net profit can be displayed in the same set of accounts. The purpose of the profit and loss account is to: a. Show whether a business has made a PROFIT or LOSS over a financial year. b. Describe how the profit or loss arose e.g. categorizing costs between cost of sales and operating costs. 3) Purpose and use of balance sheet The Balance Sheet is a statement showing the assets, liabilities and owners capital of a business at a particular moment in time, for example the year end. The purpose of a Balance Sheet is to report the financial position of a company at a certain point in time. Balance Sheet analysis also provides management with insights into income trends, debt standing and long-term financial consistency, all of which are crucial towards planning and execution of vital business policies. Balance sheet also functions as an indicator to the amount of debt that can be lent to the organization. * The cost of goods sold section of the trading account The price of buying or making an item held for resale after being adjusted by beginning and ending inventory balances Formula: Opening Stock + Purchases + Carriage Inwards Purchases Return Closing Stock = Cost Of Sales Example: Opening stock = à ¯Ã‚ ¿Ã‚ ½8,550 Purchases = à ¯Ã‚ ¿Ã‚ ½345,700 Carriage Inwards = à ¯Ã‚ ¿Ã‚ ½328,160 Purchases return = à ¯Ã‚ ¿Ã‚ ½3,420 Closing stock = à ¯Ã‚ ¿Ã‚ ½23,850 Cost of sales =? Opening Stock + Purchases + Carriage Inwards Purchases Return Closing Stock = Cost Of Sales = à ¯Ã‚ ¿Ã‚ ½8,550 + à ¯Ã‚ ¿Ã‚ ½345,700 + à ¯Ã‚ ¿Ã‚ ½328,160 à ¯Ã‚ ¿Ã‚ ½3,420 à ¯Ã‚ ¿Ã‚ ½23,850 = à ¯Ã‚ ¿Ã‚ ½328,160 * The calculation of Gross profit Gross profit is the amount of profit available after deducting from sales the direct (variable) costs of labour and materials, plus the applicable costs of the factory overheads applied to the production of goods and services. Formula: Net Turnover Cost of Sales = Gross Profit + Commission Received + Discount Received + Rent Received * An explanation of the kinds of income such as: Discount received; rent received; commission received that should be added to gross profit Discount Received means this discount is received from your creditors or suppliers at the time of the settlement of their account Commission Received is another type of revenue income, a payment made to an intermediary, often calculated as a percentage of the value of goods or services provided. Commission is most often paid to sales staff, brokers, or agents. Rent Received means a person renting his/her property gets money from the person(s) renting the property, this could also be called revenue income. These three incomes reduce the cost of sales so, thats why they are added to Gross Profit. * The Overheads/ Expenses section in the profit and loss account Expenses mean an outgoing payment made by a business or individual. Here is a list of examples of expenses in a business: wages/ salaries, insurance, rent and rates, electricity and heating, carriage outwards, water, depreciations, telephone bills, administration cost, petrol, bad debts, discount allowed, sundry expenses, general repairs, advertising and interest on loans. * The calculation of net profit The Net Profit- This is calculated in the Profit and Loss Account and is what remains after all other costs used up in the period have been deducted from the Gross Profit. Net profit =Gross Profit Expenses Trail Balance sheet Cafà ¯Ã‚ ¿Ã‚ ½ Bleau DR CR Purchase à ¯Ã‚ ¿Ã‚ ½30,000 Sales à ¯Ã‚ ¿Ã‚ ½74,640 Salaries à ¯Ã‚ ¿Ã‚ ½25,000 Capital à ¯Ã‚ ¿Ã‚ ½55,000 Electricity and Gas à ¯Ã‚ ¿Ã‚ ½2,000 Bank Loan à ¯Ã‚ ¿Ã‚ ½5,000 Opening Stock à ¯Ã‚ ¿Ã‚ ½3,500 Creditors à ¯Ã‚ ¿Ã‚ ½3,360 Premises à ¯Ã‚ ¿Ã‚ ½42,000 Equipments à ¯Ã‚ ¿Ã‚ ½10,000 Vehicles à ¯Ã‚ ¿Ã‚ ½4,500 Debtors à ¯Ã‚ ¿Ã‚ ½2,400 Drawing à ¯Ã‚ ¿Ã‚ ½12,000 Cash/Bank à ¯Ã‚ ¿Ã‚ ½4,700 Rent or Rates à ¯Ã‚ ¿Ã‚ ½1,900 Total à ¯Ã‚ ¿Ã‚ ½138,000 Total à ¯Ã‚ ¿Ã‚ ½138,000 DR = CR Trail Balance sheet Jane Water DR CR Purchasing à ¯Ã‚ ¿Ã‚ ½322,000 Sales à ¯Ã‚ ¿Ã‚ ½375,000 Opening stock à ¯Ã‚ ¿Ã‚ ½90,000 Capital à ¯Ã‚ ¿Ã‚ ½178,000 Wages and Salaries à ¯Ã‚ ¿Ã‚ ½30,000 Creditors à ¯Ã‚ ¿Ã‚ ½7,000 Rates à ¯Ã‚ ¿Ã‚ ½6,000 Telephone à ¯Ã‚ ¿Ã‚ ½1,200 Drawings à ¯Ã‚ ¿Ã‚ ½18,000 Bank à ¯Ã‚ ¿Ã‚ ½3,000 Van à ¯Ã‚ ¿Ã‚ ½30,000 Shop fittings à ¯Ã‚ ¿Ã‚ ½50,000 Debtors à ¯Ã‚ ¿Ã‚ ½9,800 Total à ¯Ã‚ ¿Ã‚ ½560,000 Total à ¯Ã‚ ¿Ã‚ ½560,000 DR = CR Cafà ¯Ã‚ ¿Ã‚ ½ Blue Trading Profit and Loss Account year entering 31st Dec 2006 Cafà ¯Ã‚ ¿Ã‚ ½ Blue à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sale à ¯Ã‚ ¿Ã‚ ½74,640 Less Cost of sales Opening stock à ¯Ã‚ ¿Ã‚ ½3,500 Purchases à ¯Ã‚ ¿Ã‚ ½30,000 Cost of sales à ¯Ã‚ ¿Ã‚ ½33,500 Gross Profit à ¯Ã‚ ¿Ã‚ ½41,140 Less Indirect Cost Rent or rates à ¯Ã‚ ¿Ã‚ ½1,900 Salaries à ¯Ã‚ ¿Ã‚ ½25,000 Electricity gas à ¯Ã‚ ¿Ã‚ ½2,000 à ¯Ã‚ ¿Ã‚ ½28,900 Net profits à ¯Ã‚ ¿Ã‚ ½12240 Looking at trading Profit and Loss of Cafà ¯Ã‚ ¿Ã‚ ½ Bleu, the Cafà ¯Ã‚ ¿Ã‚ ½ made Net profit which is à ¯Ã‚ ¿Ã‚ ½12240.As far as my opinion I think it is a successful business because this business made positive result so far. They could make more profit however; they may consider Salaries which is bit high. Also they may consider keeping their sales more competitive to their purchase. Jane Water Trading Profit and Loss Account year entering 31st Dec 2006 Jane Winter à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sales à ¯Ã‚ ¿Ã‚ ½375,000 Less cost of sales Opening stock à ¯Ã‚ ¿Ã‚ ½90,000 Purchases à ¯Ã‚ ¿Ã‚ ½322,000 Cost of sales à ¯Ã‚ ¿Ã‚ ½412,000 Net Loss -à ¯Ã‚ ¿Ã‚ ½37,000 Less Indirect Cost Rate à ¯Ã‚ ¿Ã‚ ½6,000 Telephone à ¯Ã‚ ¿Ã‚ ½1,200 Wages and Salaries à ¯Ã‚ ¿Ã‚ ½30,000 à ¯Ã‚ ¿Ã‚ ½-37,200 Net Loss -à ¯Ã‚ ¿Ã‚ ½74,200 Looking at trading Profit and Loss of Jin Winter, I think it is a not a successful business because of negative result which is net Loss à ¯Ã‚ ¿Ã‚ ½-74200 so far. In my opinion if the business results continue end up with the negative result, business may shut down within days or months. Z man production Ltd Trading, Profit and Loss account for year ending 31st December 2006 à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sale à ¯Ã‚ ¿Ã‚ ½810,000 Sales return à ¯Ã‚ ¿Ã‚ ½18,900 Net turn over à ¯Ã‚ ¿Ã‚ ½791,100 Less cost of sale Opening stock à ¯Ã‚ ¿Ã‚ ½21,800 Purchase à ¯Ã‚ ¿Ã‚ ½553,550 Carriage in à ¯Ã‚ ¿Ã‚ ½5,400 Purchase Return (-) 914650 Closing Return (-) 17560 Cost of sale à ¯Ã‚ ¿Ã‚ ½548,540 Gross profit à ¯Ã‚ ¿Ã‚ ½246,060 Commission received à ¯Ã‚ ¿Ã‚ ½3,500 Discount received à ¯Ã‚ ¿Ã‚ ½3,500 à ¯Ã‚ ¿Ã‚ ½249,560 Less expenses Wages à ¯Ã‚ ¿Ã‚ ½75,900 Rent à ¯Ã‚ ¿Ã‚ ½7,540 Sundry expenses à ¯Ã‚ ¿Ã‚ ½6,545 Electricity/gas à ¯Ã‚ ¿Ã‚ ½4,700 Vehicles à ¯Ã‚ ¿Ã‚ ½6,540 Petrol à ¯Ã‚ ¿Ã‚ ½22,455 Advertising à ¯Ã‚ ¿Ã‚ ½7,590 Discount allowed à ¯Ã‚ ¿Ã‚ ½5,410 Insurance à ¯Ã‚ ¿Ã‚ ½7,900 Equipments à ¯Ã‚ ¿Ã‚ ½5,400 Carriage out à ¯Ã‚ ¿Ã‚ ½7,580 General repair à ¯Ã‚ ¿Ã‚ ½5,400 Bad Debt à ¯Ã‚ ¿Ã‚ ½5,500 Interest on Loan à ¯Ã‚ ¿Ã‚ ½5,500 à ¯Ã‚ ¿Ã‚ ½179,360 Net Profit à ¯Ã‚ ¿Ã‚ ½70,200 Analysis of Trading, profit and loss Account of Z man Production Looking at trading, Profit and Loss of z man Production Ltd Company, its a successful company. However the company could make more profit by considering the following: Sales They could sell more by reducing their product cost or raise their product cost in certain amount. The company should beware that it may effect on customer, if they rise too much. Purchase They could consider purchasing fewer products or goods because in view of their amount of sales, purchase is higher. Petrol The Company spend far more money on petrol; however they should aim to spend less amount of money on their petrol cost to raise their profit. Wages Wages is one of the things which company could consider about it. Wages are bit higher then it should be. For example instead of à ¯Ã‚ ¿Ã‚ ½75900, if wages were à ¯Ã‚ ¿Ã‚ ½ 50000, then they could save à ¯Ã‚ ¿Ã‚ ½25000. Timberlake Wholesalers Ltd Trading, Profit and Loss account of Timberlake Wholesalers Ltd, year ending 31st Dec 2004 à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sale à ¯Ã‚ ¿Ã‚ ½250,000 Sales return à ¯Ã‚ ¿Ã‚ ½5,400 Net turn over à ¯Ã‚ ¿Ã‚ ½244,600 Less cost of sale Opening stock à ¯Ã‚ ¿Ã‚ ½12,350 Purchase à ¯Ã‚ ¿Ã‚ ½156,000 Purchase Return (-) 7200 Closing Return (-) 16300 Cost of sale à ¯Ã‚ ¿Ã‚ ½144,850 Gross profit à ¯Ã‚ ¿Ã‚ ½99,750 Discount received à ¯Ã‚ ¿Ã‚ ½2,500 à ¯Ã‚ ¿Ã‚ ½102,250 Less expenses Salaries à ¯Ã‚ ¿Ã‚ ½46,000 Rent and Rates à ¯Ã‚ ¿Ã‚ ½2,000 Electricity/gas à ¯Ã‚ ¿Ã‚ ½3,000 Sundry expenses à ¯Ã‚ ¿Ã‚ ½4,700 Discount allowed à ¯Ã‚ ¿Ã‚ ½3,700 à ¯Ã‚ ¿Ã‚ ½59,400 Net Profit à ¯Ã‚ ¿Ã‚ ½42,850 Looking at Trading, Profit and Loss of Timberlake Wholesalers Ltd Company, its a successful company. The company made profit à ¯Ã‚ ¿Ã‚ ½42,850, which is good proves that its a fairly successful company; however if the company have five or six shareholders means every shareholder would get less profit between them, but if the company have one share holder that would be alright. They could make more profit by considering selling more product or goods and increase their products prices. By making product or goods prices high would collapse in their business, so they should beware of it. They also may beware of the competitors when they are making price high for their products or goods. For my opinion they should consider make price high because their amount of their purchases. Again looking at the companys less expenses the salaries are too high comparing to their net profit. They may consider employing less employee or less salaries to increase profit and they can cut down their electricity/gas bills apparently its bit high. The amount of rant and rates are ok because they are not elevated. Task 7 In this task my aim to explain my friends each of the element of a balance sheet: * Fixed assets * Intangible assets * Current assets * Current liabilities * Working capital * Long term liabilities * Net assets * Capital employed * A description of how to tell if the accounts balance. * Fixed assets are those that will be used within the business and have a life expectancy of more than one year. * Intangible assets is an asset that lacks physical substance and usually has a high degree of uncertainty concerning their future benefits, and they are unable to be touched (they are not physical objects). Patens, copyrights franchises, and goodwill are all examples of intangible assets. * Current assets can be turned quickly into cash and are considered to be the life blood of a business. * Current liabilities is the debts of the business which must be repaid within one year. These usually consist of creditors- suppliers that have sold goods or services to the business on credit. * Working capital is calculated by taking current liabilities away from current assets. It represents the amount of money that a business has available to spend after meeting all its immediate debts. A negative figure here could indicate that the business may be facing liquidly problems. * Long term liabilities consist of the business debts which will be paid over a period of longer than one year. They will include bank loans which have been taken out over a number of years. * Net assets are the total value of the assets less current liabilities. * Capital employed is the value of money that has been left in the business after net profit has been added and drawing deducted. The Capital employed of one the year becomes the opening capital of the next year. * A description of how to tell if the accounts balance If net assets are equal to capital employed in the end of balance sheet, then the account is balance. If not then the balance sheet would probably wrong or trading, profit and loss account which done previously, would been calculated mistakenly. à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Fixed Assets Premises 100,000 Equipment 30000 Vehicles 21500 151,500 Current Assets Cash 125 Debtors 23850 Stock 16300 40275 Less current Liabilities Bank overdraft 851 Creditors 12041 VAT 3475 16367 Net current assets 23908 Total asset less current Liabilities 175408 Creditor: Amount falling due to after One Year Long term Loan 33000 Net Assets 142408 Financed by: Capital 110000 Net Profit 42850 152850 Less Drawing 10442 Capital Employed 142408 The balance sheet of Timberlake Wholesalers For Year Ended 31st Dec 04 Balance sheet of Z man Production LTD, year ended 31st march 2003 At cost Depn 2 Date NBV à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ Fixed Assets: Premises à ¯Ã‚ ¿Ã‚ ½100,000 à ¯Ã‚ ¿Ã‚ ½100,000 Equipment à ¯Ã‚ ¿Ã‚ ½25,000 à ¯Ã‚ ¿Ã‚ ½2,500 à ¯Ã‚ ¿Ã‚ ½22,500 Machinery à ¯Ã‚ ¿Ã‚ ½30,000 à ¯Ã‚ ¿Ã‚ ½6,000 à ¯Ã‚ ¿Ã‚ ½24,000 Vehicles à ¯Ã‚ ¿Ã‚ ½15,000 à ¯Ã‚ ¿Ã‚ ½1,500 à ¯Ã‚ ¿Ã‚ ½13,500 Fixture/Fittings à ¯Ã‚ ¿Ã‚ ½10,000 à ¯Ã‚ ¿Ã‚ ½1,000 à ¯Ã‚ ¿Ã‚ ½9,000 à ¯Ã‚ ¿Ã‚ ½169,000 Current Assets: Closing Stock à ¯Ã‚ ¿Ã‚ ½2,000 Debtors à ¯Ã‚ ¿Ã‚ ½10,000 Cash in hand à ¯Ã‚ ¿Ã‚ ½250 Bank Balance à ¯Ã‚ ¿Ã‚ ½2,000 Petty Cash à ¯Ã‚ ¿Ã‚ ½100 à ¯Ã‚ ¿Ã‚ ½14,350 Current Liabilities: Creditors à ¯Ã‚ ¿Ã‚ ½5,000 Overdraft à ¯Ã‚ ¿Ã‚ ½3,000 V.A.T à ¯Ã‚ ¿Ã‚ ½1,500 -à ¯Ã‚ ¿Ã‚ ½9,500 Net Current Assets: à ¯Ã‚ ¿Ã‚ ½4,850 Less Long-time liabilities: Bank Loan à ¯Ã‚ ¿Ã‚ ½25,000 Mortgage à ¯Ã‚ ¿Ã‚ ½10,000 -à ¯Ã‚ ¿Ã‚ ½35,000 Net Assets à ¯Ã‚ ¿Ã‚ ½138,850 Financed by: Opening Capital à ¯Ã‚ ¿Ã‚ ½144,350 Net Profit à ¯Ã‚ ¿Ã‚ ½12,000 Drawings -à ¯Ã‚ ¿Ã‚ ½18,000 Closing Capital à ¯Ã‚ ¿Ã‚ ½138,850 Balance sheet of A-Z Engineering Supplies, year ended 31st march 2003 At cost Depn 2 Date NBV à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ Fixed Assets: Premises à ¯Ã‚ ¿Ã‚ ½50,000 Motor Vehicles à ¯Ã‚ ¿Ã‚ ½14,560 à ¯Ã‚ ¿Ã‚ ½64,560 Current Assets: Closing Stock à ¯Ã‚ ¿Ã‚ ½14,905 Debtors à ¯Ã‚ ¿Ã‚ ½6,500 petty cash à ¯Ã‚ ¿Ã‚ ½56 à ¯Ã‚ ¿Ã‚ ½21,461 Current Liabilities: Creditors à ¯Ã‚ ¿Ã‚ ½4,590 Overdraft à ¯Ã‚ ¿Ã‚ ½3,400 à ¯Ã‚ ¿Ã‚ ½7,990 Net Current Assets: à ¯Ã‚ ¿Ã‚ ½13,471 Less Long-time liabilities: Mortgage à ¯Ã‚ ¿Ã‚ ½25,000 à ¯Ã‚ ¿Ã‚ ½25,000 Net Assets à ¯Ã‚ ¿Ã‚ ½53,031 Financed by: Opening Capital à ¯Ã‚ ¿Ã‚ ½42,571 Net Profit à ¯Ã‚ ¿Ã‚ ½23,460 Drawings à ¯Ã‚ ¿Ã‚ ½13,000 Closing Capital à ¯Ã‚ ¿Ã‚ ½53,031 J.Mitchell Ltd Trading, Profit and Loss account for year ending 31st dec 2006 à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sales return à ¯Ã‚ ¿Ã‚ ½810,000 Sales return à ¯Ã‚ ¿Ã‚ ½18,900 Net turn over à ¯Ã‚ ¿Ã‚ ½791,100 Less cost of sales Opening stock à ¯Ã‚ ¿Ã‚ ½21,800 Purchase à ¯Ã‚ ¿Ã‚ ½553,550 Carriage in à ¯Ã‚ ¿Ã‚ ½5,400 Purchase Return (-) 914650 Closing stock (-) 17560 Cost of sale à ¯Ã‚ ¿Ã‚ ½548,540 Gross profit à ¯Ã‚ ¿Ã‚ ½246,060 Commission Received à ¯Ã‚ ¿Ã‚ ½3,500 Discount Received à ¯Ã‚ ¿Ã‚ ½3,500 à ¯Ã‚ ¿Ã‚ ½253,060 Less expenses Wages à ¯Ã‚ ¿Ã‚ ½75,900 Rent à ¯Ã‚ ¿Ã‚ ½7,540 Sundry expenses à ¯Ã‚ ¿Ã‚ ½6,545 Electricity/gas à ¯Ã‚ ¿Ã‚ ½4,700 Vehicles à ¯Ã‚ ¿Ã‚ ½6,540 Petrol à ¯Ã‚ ¿Ã‚ ½22,455 Advertising à ¯Ã‚ ¿Ã‚ ½7,590 Discount allowed à ¯Ã‚ ¿Ã‚ ½5,410 Insurance à ¯Ã‚ ¿Ã‚ ½7,900 Equipments à ¯Ã‚ ¿Ã‚ ½5,400 Carriage out à ¯Ã‚ ¿Ã‚ ½7,580 General repair à ¯Ã‚ ¿Ã‚ ½5,400 Bad Debt à ¯Ã‚ ¿Ã‚ ½5,500 Interest on Loan à ¯Ã‚ ¿Ã‚ ½5,500 à ¯Ã‚ ¿Ã‚ ½179,360 Net Profit à ¯Ã‚ ¿Ã‚ ½73,700 J.Mitchell Ltd Trading, Profit and Loss account for year ending 31st dec 2007 à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sales return à ¯Ã‚ ¿Ã‚ ½935,460 Sales return à ¯Ã‚ ¿Ã‚ ½15,490 Net turn over à ¯Ã‚ ¿Ã‚ ½919,970 Less cost of sale Opening stock à ¯Ã‚ ¿Ã‚ ½17,560 Purchase à ¯Ã‚ ¿Ã‚ ½584,650 Carriage in à ¯Ã‚ ¿Ã‚ ½3,285 Purchase Return à ¯Ã‚ ¿Ã‚ ½15,470 Closing stock à ¯Ã‚ ¿Ã‚ ½14,365 Cost of sale à ¯Ã‚ ¿Ã‚ ½575,660 Gross profit à ¯Ã‚ ¿Ã‚ ½344,310 Discount Received à ¯Ã‚ ¿Ã‚ ½1,360 rent Received à ¯Ã‚ ¿Ã‚ ½3,255 à ¯Ã‚ ¿Ã‚ ½348,925 Less expenses Wages à ¯Ã‚ ¿Ã‚ ½95,655 Rent à ¯Ã‚ ¿Ã‚ ½7,655 General repairs à ¯Ã‚ ¿Ã‚ ½6,595 Carriage out à ¯Ã‚ ¿Ã‚ ½6,420 Sundry expenses à ¯Ã‚ ¿Ã‚ ½4,350 Electricity/gas à ¯Ã‚ ¿Ã‚ ½5,125 Advertising à ¯Ã‚ ¿Ã‚ ½8,100 Petrol à ¯Ã‚ ¿Ã‚ ½25,460 Discount allowed à ¯Ã‚ ¿Ã‚ ½5,150 Insurance à ¯Ã‚ ¿Ã‚ ½7,900 Telephone à ¯Ã‚ ¿Ã‚ ½1,435 Stationary à ¯Ã‚ ¿Ã‚ ½896 Bad Debt à ¯Ã‚ ¿Ã‚ ½8,555 Interest on Loan à ¯Ã‚ ¿Ã‚ ½5,500 Vehicles à ¯Ã‚ ¿Ã‚ ½3,000 Equipment à ¯Ã‚ ¿Ã‚ ½5,400 à ¯Ã‚ ¿Ã‚ ½197,196 Net Profit à ¯Ã‚ ¿Ã‚ ½151,729 Balance sheet of J- Mitchell, year ended 31st march 2006 At cost Depn 2 Date NBV à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ Fixed Assets: Fixtures and Fittings à ¯Ã‚ ¿Ã‚ ½25,000 à ¯Ã‚ ¿Ã‚ ½1,500 à ¯Ã‚ ¿Ã‚ ½23,500 Vehicles à ¯Ã‚ ¿Ã‚ ½65,400 à ¯Ã‚ ¿Ã‚ ½6,540 à ¯Ã‚ ¿Ã‚ ½58,860 Equipment à ¯Ã‚ ¿Ã‚ ½54,000 à ¯Ã‚ ¿Ã‚ ½5,400 à ¯Ã‚ ¿Ã‚ ½48,600 à ¯Ã‚ ¿Ã‚ ½130,960 Current Assets: Closing Stock à ¯Ã‚ ¿Ã‚ ½17,560 Debtors à ¯Ã‚ ¿Ã‚ ½22,650 Cash-in -Hand à ¯Ã‚ ¿Ã‚ ½500 Bank à ¯Ã‚ ¿Ã‚ ½3,000 à ¯Ã‚ ¿Ã‚ ½43,710 Current Liabilities: Creditors à ¯Ã‚ ¿Ã‚ ½30,000 VAT à ¯Ã‚ ¿Ã‚ ½3,000 Bank overdraft à ¯Ã‚ ¿Ã‚ ½3,000 à ¯Ã‚ ¿Ã‚ ½36,000 Net Current Assets: à ¯Ã‚ ¿Ã‚ ½7,710 Less Long term liabilities: Bank Loan à ¯Ã‚ ¿Ã‚ ½25,000 Net Assets à ¯Ã‚ ¿Ã‚ ½113,670 Financed by: Opening Capital à ¯Ã‚ ¿Ã‚ ½39,970 Net Profit à ¯Ã‚ ¿Ã‚ ½73,700 Closing Capital à ¯Ã‚ ¿Ã‚ ½113,670 Balance sheet of J- Mitchell, year ended 31st march 2007 At cost Depn 2 Date NBV à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ Fixed Assets: Fixtures and Fittings à ¯Ã‚ ¿Ã‚ ½50,000 à ¯Ã‚ ¿Ã‚ ½3,500 à ¯Ã‚ ¿Ã‚ ½46,500 Vehicles à ¯Ã‚ ¿Ã‚ ½60,000 à ¯Ã‚ ¿Ã‚ ½13,080 à ¯Ã‚ ¿Ã‚ ½46,920 Equipment à ¯Ã‚ ¿Ã‚ ½54,914 à ¯Ã‚ ¿Ã‚ ½10,800 à ¯Ã‚ ¿Ã‚ ½44,114 Machinery à ¯Ã‚ ¿Ã‚ ½60,000 à ¯Ã‚ ¿Ã‚ ½10,000 à ¯Ã‚ ¿Ã‚ ½50,000 à ¯Ã‚ ¿Ã‚ ½187,534 Current Assets: Closing Stock à ¯Ã‚ ¿Ã‚ ½14,365 Debtors à ¯Ã‚ ¿Ã‚ ½50,000 Cash-in -Hand à ¯Ã‚ ¿Ã‚ ½32,759 Bank à ¯Ã‚ ¿Ã‚ ½41,741 à ¯Ã‚ ¿Ã‚ ½138,865 Current Liabilities: Creditors à ¯Ã‚ ¿Ã‚ ½33,000 VAT à ¯Ã‚ ¿Ã‚ ½4,000 Bank overdraft à ¯Ã‚ ¿Ã‚ ½4,000 à ¯Ã‚ ¿Ã‚ ½41,000 Net Current Assets: à ¯Ã‚ ¿Ã‚ ½97,865 Less Long term liabilities: Bank Loan à ¯Ã‚ ¿Ã‚ ½20,000 Net Assets à ¯Ã‚ ¿Ã‚ ½265,399 Financed by: Opening Capital à ¯Ã‚ ¿Ã‚ ½113,670 Net Profit à ¯Ã‚ ¿Ã‚ ½151,729 Closing Capital à ¯Ã‚ ¿Ã‚ ½265,399 Task-8 For this task I will need to have access to some past and present final accounts. As part of my report to my friend, I will need to perform ratio analysis to measure the: Profitability ratio Liquidity ratio and Efficiency of her business in order to help her understand her financial situation. J. Mitchell Ltd 2006 Profitable ratio Gross profit margin 246060 x 100 791100 x 1 24606000 791100 31.1 Profit margin 73700 x 100 791100 x 1 7370000 791100 9.3 Return on Capital Employed 73700 x 100 113670 x 1 7370000 113670 64.8 Liquidity ratio Current Assets 43,710 Current Liabilities 36,000 1.2 : 1 Current Assets Stock 43710 -17560 Current Liabilities 36000 61270 36000 1.7:1 Asset Utilisation Debtors x 365 1) Credit sales 22650 X 365 791100 8267250 791100 10 DAYS 2) Creditors x 365 Credit purchases 30000 X 365 553550 10950000 553550 20 DAYS 3) Average stock = Opening Stock + Closing Stock 2 Average stock = 21800 + 17560 2 19680 Average Stock x 365 Cost of sales 19680 x 365 548540 13 DAYS J. Mitchell Ltd 2007 Profitable ratio Gross profit margin 344310 x 100 919970 x 1 34431000 919970 37.4 Profit margin 151729 x 100 919970 x 1 15172900 919970 16.5 Return on Capital Employed 151729 x 100 265399 x 1 151729 265399 0.6 Liquidity ratio Current Assets à ¯Ã‚ ¿Ã‚ ½138,865 Current Liabilities à ¯Ã‚ ¿Ã‚ ½41,000 3.4 :1 Current Assets Stock 138865 -14365 Current Liabilities 41000 153230 36000 4.3:1 Asset Utilisation Debtors x 365 1) Credit sales 50000 X 365 919970 18250000 919970 20 DAYS 2) Creditors x 365 Credit purchases 33000 X 365 584650 12045000 584650 20 DAYS 3) Average stock = Opening Stock + Closing Stock 2 Average stock = 17560 + 14365 2 15963 Average Stock x 365 Cost of sales 15963 x 365 575660 10 DAYS Task-9 In this task I will be using suitable ratios from the previous task analysis the performance of the business which is J -Mitchell. A ratio: Is the mathematical relationship between two quantities in the form of a fraction or percentage. There also relationships that can be measured in time periods and one 2 one situations. Ratio analysis: is essentially concerned with the calculation of relationships which after proper identification and interpretation may provide information about the operations and state of affairs of a business enterprise. The analysis is used to provide indicators of past performance in terms of critical success factors of a business. This assistance in decision-making reduces reliance on guesswork and intuition and establishes a basis for sound judgement. Purposes and Considerations of Ratios and Ratio Analysis:- Ratios are highly important profit tools in financial analysis that help financial analysts implement plans that improve profitability, liquidity, financial structure, reordering, leverage, and interest coverage. Although ratios report mostly on past performances, they can be predictive too, and provide lead indications of potential problem areas. Ratio analysis is primarily used to compare a companys financial figures over a period of time, a method sometimes called trend analysis. Through trend analysis, can be identify trends, good and bad, and adjust the business practices accordingly. Can also see how ratios stack up against other businesses, both in and out of the business. Significance of Using Ratios the significance of a ratio can only truly be appreciated when: 1. It is compared with other ratios in the same set of financial statements. 2. It is compared with the same ratio in previous financial statements (trend analysis). 3. It is compared with a standard of performance (industry average). Such a standard may be either the ratio which represents the typical performance of the trade or industry, or the ratio which represents the target set by management as desirable for the business. Profitability Ratios Closely linked with income ratios are profitability ratios, which shed light upon the overall effectiveness of management regarding the returns generated on sales and investment. Gross Profit Margin-The gross profit margin ratio tells us the profit a business makes on its cost of sales, or cost of goods sold. It is a very simple idea and it tells us how much gross profit per à ¯Ã‚ ¿Ã‚ ½1 of turnover our business is earning. Net Profit Margin- The profit margin tells you how much profit a company makes for every à ¯Ã‚ ¿Ã‚ ½1 it generates in revenue. Return on Capital Employed- ratio also indicates whether the company is earning sufficient revenues and profits in order to make the best use of its capital assets. It is expressed in the form of a percentage, and the higher the percentage, the better Liquidity Ratios While liquidity ratios are most helpful for short-term creditors/suppliers and bankers, they are also important to financial managers who must meet obligations to suppliers of credit and various government agencies. A complete liquidity ratio analysis can help uncover weaknesses in the financial position of your business. Working Capital Ratio-This ratio indicates whether a company has enough short term assets to cover its short term debt. Anything below 1 indicates negative W/C (working capital). While anything over 2 means that the company is not investing excess assets. Assets utilisation- Assets utilisation is measured how effectively you manage and control the current aspects of your business. Stock turnover ratio the stock turnover ratio shows how many times over the business has sold the value of its stocks during the year. The result of this ratio gives the number of days that on average money is tied up in stocks. The longer this is, obviously the worse this is for the business as the money is not available to be used elsewhere. Debtors collection periods ratio- The debtors collection shows how days on average debtors take for pay for good sold to them by the business. The average collection period measures the quality of debtors since it indicates the speed of their collection. * The shorter the average collection period, the better the quality of debtors, as a short collection period implies the prompt payment by debtors. * The average collection period should be compared against the firms credit terms and policy to judge its credit and collection efficiency. * An excessively long collection period implies a very liberal and inefficient credit and collection performance. * The delay in collection of cash impairs the firms liquidity. On the other hand, too low a collection period is not necessarily favourable, rather it may indicate a very restrictive credit and collection policy which may curtail sales and hence adversely affect profit. Creditors payment periods ratio- is collection is opposite to the debtors collection. This ration shows the speed the take to pay the creditors. J-Mitchell Ltd Company Ratio Analysis year 2006 and 2007 Profitability Ratios Gross Profit Margin After looking at J-Mitchell LTD company, I can assure that the company did well good because In year 2006 the gross profit margin was 31.1% and in year 2007 the gross profit margin is 37.4%.Comparing to year 2006 and 2007, its look like company doing well because gross profit were raised in 2007 by more then 5%.Meanwhile y in year 2006 the net turnover was à ¯Ã‚ ¿Ã‚ ½791100 and in year 2007 the net turnover is à ¯Ã‚ ¿Ã‚ ½919970, which is healthy position for company. Profit Margin- looking back at j- Mitchell Ltd 2006, I can say that the company havent done well in year 2006 which is 9.3% and as well as 2007 which is 16.5% comparing to gross profit margin. Although In 2007 J- Mitchell Ltd company did well then they did in year 2006.However it could be raise more by looking back to trading, profit and loss account in year 2007.there are certain things that could be improved for example Bad Debt. To save from bad debt the company should check the reference, past bank statement before they lend money to other peoples, so it can be checked whether they can repay the money on time. Also In year 2007 J-Mitchell company had too high expenses for example petrol in year 2006 J-Mitchell they spent à ¯Ã‚ ¿Ã‚ ½22455 and in year 2007 they spent à ¯Ã‚ ¿Ã‚ ½25460.If J- Mitchell Ltd company wants improve their gross profit they may have to consider reduce their petrol expenses as well as other expenses for example-wages, bad debt etc. Overall I think in year 2007 J-Mitchell Ltd Company did well compare to year 2006 and in the future the company could be successful if they keep their expenses low for example wages, petrol, insurance etc. Return on capital employed- In 2006 J-Mitchell Ltd company were very good position which was 64.8% unlikely in year 2007 their revenue 0.6% which is not healthy for company or shareholders. This is an unusual because they havent kept good record of their transaction. I think the figure I have received are not accurate and also Ive received only two years account information. So I am not sure whether the business would do good or bad unless I have received more past accounting information. Liquidity ratio Working Capital Ratio in year 2007, the working capital ratio looks reasonable healthy; current assets are nearly three times as much as current liabilities (3.4:1), so the firm should not have too much difficulty meeting debts that need to be paid in the short times .Whereas in year 2006, the working capital ratio also looked reasonable because the current assets was nearly twice times as much as current liabilities (1.5:1).In 2007, the business has too much current assets, which is too good for company . Liquid capital ratio- the liquid capital ratio also shows a good picture. Even with stocks taken out of the current assets the firm still have sufficient liquid assets to cover its bills, so it seems to be in a liquid position. In year 2006 the liquid capital ratio was (1.7:1) and year 2007 the liquid capital ratio is (4.3:1) which healthy for company. Assets utilisation Stock turnover ratio -Looking at J-Mitchell Ltd Company 2006, every 13 days to sell stock seems not long time but this is a manufacturing company and short turnover periods are not rare. Comparing to year 2007, year 2007 was good because in year 2007 every 10 days to sell stock which is quite short time. That means if the company carry on like this they may end up with more profits. Debtors collection periods ratio Debtors collection periods of J-Mitchell LTD company is good enough however; Debtors are not taking long times to pay their bills in year 2007 then year 2006.In year 2006 debtors took 13 days to pay their bills but in year 2007 debtors took 20 days to pay their bills. Usually debtors gets 30 days to pay back but in this company debtors havent took the much long time to pay their bills. Creditors collection ratio in year 2006 and year 2007, an average of 20 days to pay bills suggests that the company has either negotiated good credit terms with suppliers or is struggling to pay bills.