Business and Sustainability Essay Example | Topics and Well Written Essays - 3000 words

Business and Sustainability - Essay Example ASDA is known for its cheap prices and has kept this name for ten consecutive years. Since Wal-Mart's acquisition of Asda, the company has steadily increased its market share to become the second largest retail chain operating company in the UK with a 12% market share. The company runs more than 269 Asda stores (including superstores and super centers), 47 Asda small stores, seven Asda Living stores, two discount stores (Asda Essentials) and 12 apparel stores (George) in the UK. It has successfully implemented Wal-Mart's low pricing strategy which is yielding positive results. Furthermore, Wal-Mart's robust financial performance (revenues reaching $348,650 million during the fiscal year 2007, an increase of 11.7% over 2006) would provide financial stability to the company. Also, Wal-Mart's presence in 13 international markets including the UK, Canada, Japan, Mexico, Brazil and China, it also allows Asda to foray easily into new markets. The Wal-Mart umbrella not only provides Asda wi th a strong brand image but also fuels the company's top line growth. Asda's George apparel line started as a small unknown brand in 100 ASDA stores. It is now the second largest clothing retailer in the UK by volume selling in more than 250 stores in the UK. Furthermore, George now has a presence in five other countries including Canada, Mexico, Argentina, Japan and the US. George products are available for men, women, and children and include apparel, shoes, handbags and even eyeglass frames in select stores. (DesJardins 2006) The George brand, known for style and quality, continues to grow in popularity as a favorite fashion choice across the globe. Strong brand image of George allows the group to extend the brand into other product lines. Asda is the second largest chain of supermarkets in UK with a market share of 16.8% as of February 2007. Furthermore, the company outperformed the rest of the retail sector for the first time in three years in terms of growth rate. The overall growth rate of the company was recorded at 9% for the fiscal 2007. Asda's competitors on other hand recorded a low growth rate during the same period. For instance, Sainsbury recorded a growth rate of 7.8%, Tesco (7.2%), Morrisons (3.9%) and Somerfield (-3.8%). This was primarily due to attracting one million new customers through its checkouts and re-evaluation of its customer offer and pricing strategy. Asda can leverage this growth to further enhance its revenues and profitability. Evaluation of ASDA's non-financial reporting practices - Supply Chain Evaluation Model Old Supply Chain Model Identifying Overheads in the Supply Chain Eliminating the overheads Drafting a new Supply Chain model The bargaining power of suppliers can be crucial. The suppliers are whole sale dealers of grocery and the like. The suppliers have undergone a drastic change over the years and with it their

Sales Promotion Techniques Research Paper Example | Topics and Well Written Essays - 1000 words

Sales Promotion Techniques - Research Paper Example â€Å"Sales promotion refers to those marketing activities other than personal selling, advertisement and publicity, which stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstrations and various non-recurrent selling efforts not in the ordinary routine. Its purpose is to increase the desire of salesman, distributors and dealers to sell a certain brand and to make consumers more eager to buy that brand† (Sales Promotion Methods & Ideas, 2009) Even good quality products may fail in the market in the absence of good sales promotion activities. On the other hand even cheaper quality products may excel in the market with the help of quality sales promotion activities. The present market is filled with thousands of products manufactured by different business groups from different countries. It is difficult for the customers to decide which product is better or which one is worth for the money they spent. Only through effective prom otion activities an entrepreneur can convey the characteristics and worth of his product to the consumers. Various techniques must be developed and used in the market through sales promotion activities in order to convince the consumers. Sales promotion is important for introducing a new product into the market and also to sustain the movement of the existing products in the market. The major sales promotion techniques are Discounts and deals, Increasing Industry Visibility, Price-based consumer sales promotion, Attention-getting consumer sales promotion etc Discount deals are one of the prominent sales promotion strategies which are adopted by most of the manufacturers and service providers. It is not possible for a manufacturer to sustain the sales of a product in a constant manner because of the increased competition from the market. Thus same product may experience fluctuations in its sales during different seasons of an year. In order to sustain the

Introduction Movie Review Example | Topics and Well Written Essays - 250 words

Introduction - Movie Review Example In the early history of the United States, there was the Second Great Awakening, Frontier Protestantism that lasted about 50 years. When church goers â€Å"felt the spirit of God† within them, they expressed this feeling by running, barking, laughing, singing, and whatever other manner seemed to represent their emotions. This was called â€Å"falling out† or being â€Å"slain in spirit.† The film also mentioned that many smaller, radical religious groups had gained confidence from this new Protestant growth. It carried certain traits that they felt defined their own beliefs. Their energy and freedom to express hopes and frustrations freely was one. Another trait was that many different groups, some being opposites, could still find guidance and hope through the Bible’s message. Slaves and also landowners found representation of their own situation. This gives the impression that the Bible contradicts itself, a claim that some believe to be true. A serious study of the scriptures will prove that God’s message has been consistent throughout the history of mankind, from Genesis to Revelation. Finally in South Korea, Korean Pentecostalism preaches the â€Å"prosperity gospel†. If one gives an offering, they are guaranteed success. To his credit, one Korean minister revealed that the â€Å"true† success lies in applying the will of God in your life and reaping the rewards of a clean conscience. In the end, followers of Protestant faiths do not seem to be united in their beliefs. It is inherent in the denomination that a person can choose for himself the way to worship God. That also attests to the rapid growth and popularity of Protestant faiths, that people want to interpret God’s word for themselves, not necessarily to find out what God wants from

Management Functions and Roles Essay Example for Free

Management Functions and Roles Essay This week I interviewed Mr. Bradford, the health care administrator of Willis Knight Health Center. Mr. Bradford has been in the health care field for 17 years. He has been the coordinator and director at the Willis Knight Health Center for 11 years. Human Resources and leadership are two most pressing functions according to Mr. Bradford for his organization. Human resources is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. humanresources. about. com). Human Resource is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective human resource management enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization’s goals and objectives. (humanresources. about. com) Leadership plays an important role as well. As a leader you should be able to create more leaders, you must be able to have the people following you stand up and get noticed so they in turn have other people following them while a chain of responsibility and cohesiveness forms so you create a well-oiled machine. Working with different individual on daily basics there is no way that you can satisfy each and every one. Creating a safe, healthy and happy workplace will ensure that your employees feel homely and stay with your organization for a very long time. Paying out bonuses or having any kind of variable compensation plan can be both incentive and disillusionment, based on how it’s administered and communicated. Adopt a systematic approach to ensure that knowledge in databases to provide greater access to information posted either by the company or the employees on the knowledge portals of the company. Have open house discussions and feedback mechanism as a leader you should be able to take constructive criticism. (empxtrack. com) There are five key challenges or areas, some strategic and some operational. Leadership, pay and reward, equality and diversity, talent management and service transformation and efficiency. Placing and shaping community leadership and delivering services to empowered and engaged citizens requires a new order of leadership skill and capacity from public sector leaders, both political and managerial. Pay and reward remains the immediate battleground for HR in the short term. National negotiating machinery is increasingly out of touch with the needs of local employers, politically directed by ministers and, as a consequence, is more focused on managing cost managing cost pressures and the broader economic position. Increasingly, the need to ensure organizational approaches to diversity has a true focus upon communities and community cohesion has meant that the role of HR in shaping, supporting and embedding good approaches to equality and diversity. Supply and demand: talent spotting and development and, most importantly, the ability to deploy talent effectively for the future means that HR needs to provide resourcing and development solutions that are faster, more flexible and technology enabled to reduce the bureaucracy and paper-based approaches that many still protect and love. Finally service transformation and efficiency the big challenge, in the future get involved with service transformation and modernisation. (personltoday. com) In conclusion to better services the people we serve is to continue to educate the staff, make winners out of your staff, always make individuals better as you become better and have a great relationship with your staff and patients. Additions to training life experiences can help alone the way, best lessons learned are the ones we learn on our own.

The Image Made in China in Manufacturing :: Chinese Trade Manufacturing Appliances Essays

The Image "Made in China" in Manufacturing In order to provide the Chinese home appliance manufacturers consortium with assistance in achieving their goal of improving the â€Å"Made in China† image, our first objective was to accurately define the perception of products that are â€Å"Made in China.† In particular, to determine whether or not â€Å"Made in China† has a negative connotation in the U.S. marketplace and if so, to better understand the contributing factors to this perception. First, we conducted secondary research consisting of a review of literature and statistical studies. The focus was on the broader topic of a product’s country-of-origin and its effect on the consumer purchase decision process. Second, we focused on the specific impact of â€Å"Made in China† on purchase behavior. Third, to gain further insight into the consumer perception of â€Å"Made in China† in the home appliances category, we conducted primary research in the form of consumer surveys, retailer interviews and secret shopper studies. Finally, we conducted secondary research on the actions that can be taken to overcome or change a negative country-of-origin image. Secondary Research Our secondary research identified several key themes, all of which support the hypothesis that a product’s country-of-origin plays a significant role in the purchase decision process. These findings are summarized below: Impact of Country-of-Origin (COO) On Consumer Perceptions and Purchase Decision-Making Process: A number of statistical studies have explored the effect of country-of-origin on consumers’ perceptions of products and how it influences the decision-making process. Studies by Heslop and Papadopoulous (1993, 2000) concluded that COO image is one of the most important influences on decision making for foreign-made products. These studies revealed that buyers evaluate COO using multiple criteria including the country’s level of advancement, the buyer’s feelings about the people of the country and the buyer’s desire to be more closely aligned with the country. In addition, a study by Liefeld and Wall (1987, 1991, 1993) found a positive relationship between product evaluation and the degree of economic development of the COO. Support of these finding was found in a study by Wang and Lamb (1983) in which it was determined that U.S. consumers evaluate products according to the country in which they are produced. Culture, political situation and economic develo pment of the source country were contributing factors to this evaluation criterion. Further support that COO plays an important role in shaping consumers’ attitudes towards products was found in studies by Hong and Wyer & Nooh, Sa’ari, and Powers (1989, 1999). The Image "Made in China" in Manufacturing :: Chinese Trade Manufacturing Appliances Essays The Image "Made in China" in Manufacturing In order to provide the Chinese home appliance manufacturers consortium with assistance in achieving their goal of improving the â€Å"Made in China† image, our first objective was to accurately define the perception of products that are â€Å"Made in China.† In particular, to determine whether or not â€Å"Made in China† has a negative connotation in the U.S. marketplace and if so, to better understand the contributing factors to this perception. First, we conducted secondary research consisting of a review of literature and statistical studies. The focus was on the broader topic of a product’s country-of-origin and its effect on the consumer purchase decision process. Second, we focused on the specific impact of â€Å"Made in China† on purchase behavior. Third, to gain further insight into the consumer perception of â€Å"Made in China† in the home appliances category, we conducted primary research in the form of consumer surveys, retailer interviews and secret shopper studies. Finally, we conducted secondary research on the actions that can be taken to overcome or change a negative country-of-origin image. Secondary Research Our secondary research identified several key themes, all of which support the hypothesis that a product’s country-of-origin plays a significant role in the purchase decision process. These findings are summarized below: Impact of Country-of-Origin (COO) On Consumer Perceptions and Purchase Decision-Making Process: A number of statistical studies have explored the effect of country-of-origin on consumers’ perceptions of products and how it influences the decision-making process. Studies by Heslop and Papadopoulous (1993, 2000) concluded that COO image is one of the most important influences on decision making for foreign-made products. These studies revealed that buyers evaluate COO using multiple criteria including the country’s level of advancement, the buyer’s feelings about the people of the country and the buyer’s desire to be more closely aligned with the country. In addition, a study by Liefeld and Wall (1987, 1991, 1993) found a positive relationship between product evaluation and the degree of economic development of the COO. Support of these finding was found in a study by Wang and Lamb (1983) in which it was determined that U.S. consumers evaluate products according to the country in which they are produced. Culture, political situation and economic develo pment of the source country were contributing factors to this evaluation criterion. Further support that COO plays an important role in shaping consumers’ attitudes towards products was found in studies by Hong and Wyer & Nooh, Sa’ari, and Powers (1989, 1999).

Marilyn Monroe Speech

My name is Amor Serrano and today I will speak to you about the life of Marilyn Monroe. She was one of America’s most famous idols. Mrs. Monroe was a huge Civil Rights Movement// Ella Fitzgerald was one of Marilyn’s idols and inspiration. The Mocambo nightclub in West Hollywood (famous at the time) would refuse to allow Ella to perform there because she was black. ////// Marilyn, extremely upset, told the owners that if they allowed Ella to perform, she would be front tow every time Ella was onstage. When she did this the two women became good friends.Ella said, â€Å"I owe Marilyn Monroe a real debt†¦it was because of her that I played the Mocambo, a very popular nightclub in the ’50s. She personally called the owner of the Mocambo, and told him she wanted me booked immediately, and if he would do it, she would take a front table every night. She told him – and it was true, due to Marilyn’s superstar status – that the press would go wi ld. The owner said yes, and Marilyn was there, front table, every night. The press went overboard. After that, I never had to play a small jazz club again. She was an unusual woman – a little ahead of her times.And she didn’t know it. † American model turned actress, she was famous for her seductive blonde persona on and off camera from the late 1940s to the early 1960s. Monroe appeared in a few popular movies, but remembered as an international sex symbol that died at age 36. Today// I will inform you of her childhood, her pathway to fame, and ultimately her death. Marilyn was an important idol. She is extremely inspiring and I find that women coming of age should look at her with aesthetics. First, I will discuss her childhood, then her pathway to fame Then ultimately her deathHer birth-name is Norma Jeane Mortenson. She was considered an illegitimate child because she did not know her father. Monroe spent two years at the orphanage and in and out of a successi on of foster homes. It is believed that during this time, Monroe was molested. Monroe and Dougherty were married on June 19, 1942. At age 16, the arrangement was made. I’ve now discussed Marilyn’s childhood, I will now discuss her road of fame. Marilyn started off as a model/// World War II was when her husband Dougherty joined the Merchant Marine in 1943 and was shipped out to Shanghai.Monroe had found a job at Radio Plane Munitions Factory. She was discovered by a photographer named David Conover. Her first appearance was on Yank magazine in 1945 The photos were sent to Potter Hueth, a commercial photographer. Hueth and Monroe soon struck a deal: Hueth would take pictures of Monroe but she would only be paid if magazines bought her photos. Monroe caught the attention of Miss Emmeline Snively she who ran the Blue Book Model Agency, the largest model agency in Los Angeles. Dougherty, still overseas, was not happy about his wife modeling. Marilyn Monroe Signs With a Mov ie StudioIn August of 1946///20th Century Fox offered Monroe a six-month contract with the studio having the option of renewing it every six months. When Dougherty returned, he was even less happy about his wife becoming a starlet. The couple divorced in 1946. Transforming From Norma Jeane to Marilyn Monroe 20th Century Fox helped her create a screen name. //First called, Marilyn Miller, a popular 1920s stage performer. Monroe chose her mother’s maiden name for her last name. †¢Scudda Hoo! Scudda Hay! (1948) †¢Ladies of the Chorus (1948) †¢Marilyn Monroe Poses Nude- Tom Kelly 6. Marilyn Monroe’s Big Break Love Happy (1949) – Asphalt Jungle (1950) – All About Eve (1950) – Don't Bother to Knock (1952) The Public Finds Out About Marilyn Monroe's Nude Pictures. Fans only found to love her more. – Niagara (1953), Gentlemen Prefer Blondes (1953), How to Marry a Millionaire (1953), River of No Return (1954), and There’s No Bus iness Like Show Business (1954 Marries multiple men James Dougherty (m. 1942–1946) Joe DiMaggio (m. 1954–1954) Arthur Miller (m. 1956–1961) Rumors of Affairs Marilyn Monroe Dies of Overdose Monroe was depressed and continued to rely on sleeping pills and alcohol.Yet it was still a shock when 36-year-old Monroe was found dead in her Brentwood, California, home on August 5, 1962. Monroe’s death was marked â€Å"probable suicide† and the case closed. DiMaggio claimed her body and held a private funeral. Many people have questioned the exact cause of her death. Some speculate it was an accidental overdose of sleeping pills, others think it may have been purposeful suicide, and some wonder if it was murder. For many, her death remains a mystery. In conclusion, we should remember the remarkable woman Marilyn Monroe had been, and how inspiring she is to others. She is a figure of beauty.

The Relationship Among Working Memory

The general focus of this research is to examine performance in standard cognitive frameworks and online tasks. The researchers hope to examine the influence that math anxiety exerts on mathematical cognition and to identify the processing components that are so influenced. HYPOTHESIS: The higher the math anxiety, the lower the working memory capacity, the higher the probability to get a low performance. VARIABLES: IV – math anxietyDV –working memory capacity, performance The independent variable math anxiety is manipulated into three levels: high, medium, low. The level of anxiety is determined through the use of sMARS (short math anxiety rating scale) is a 25-item version of the most widely used measure of this construct, 98 item MARS. The sMARS assesses an individual’s level of apprehension and anxiety about math on a 1-5 Likert scale, asking for participants’ responses about how anxious they would be made by various settings and experiences. The depend ent variables —– working memory capacity and performance.Salthouse and Bobcock’s listening span (L-span) and computation span (C-span) tasks assessed participants’ working memory capacity by requiring them to store increasing numbers of words or digits in working memory while processing simple verbal or arithmetic tasks. In L-span task, participants hear a number of simple sentences, one by one, and must answer a simple question about current sentence before hearing the next. In C-span test, simple arithmetic problems replace the sentences then the participants give the answer to each problem, one by one, and must recall the last number in each of the several problems within that, in order.In experiment 2, participants see the problem and are timed as they produce its answer verbally. In experiment 3, participants were given the L-span and C-span plus they were given a letter transformation task to test working memory capacity and processes. In the perfor mance, examines through the results of the intensive working memory tasks. PROCEDURE: Experiment 1 Experiment 2 Experiment 3 CONCLUSION: The researchers concluded with two more general remarks. First, math anxiety is not epiphenomenon — it is not a cognitive appraisal about oneself that is unrelated to the nature of mental processing.For example, statistics students who do poorly on an exam claim that they become confused, are unable to focus on the task at hand, or keep thinking about how poor they are at math. Regardless of the subjectivity of these claims, they are entirely consistent with the researchers’ main result: Math anxiety disrupts the on-going, task-relevant activities of working memory, slowing down performance and degrading its accuracy. Second, the researchers note the positive effects of following advice with which this article began: that effect is an aspect of problem solving that deserves empirical attention.Cognitive investigations that include ind ividual difference characteristics like math anxiety are rare, yet may prove useful in gaining an understanding of domain-specific cognitions. Furthermore, it now appears that customary assessments of working memory span, especially those using arithmetic stimuli, are sensitive to at least two classes of influences: the central capacity and processing characteristics of the individual, to be sure, but also the transitory effects of anxiety in the testing situation.Given current and important efforts that relate working memory mechanisms to processes such as reading comprehension, memory retrieval, and the like, it would be sensible to consider the possibility that anxiety or other individual difference factors may be influencing both the assessments of individuals’ working memory span and their on-line performance. * The subjects were assigned to the treatment are mixed —- in experiment 1 the lower level undergraduate sychology classes were recruited and they are to re ceive a credit for participating, in experiment 2 they have some subject from experiment 1 and the additional subjects volunteered their participation in return for extra credit, while in experiment 3 did again get additional subjects which also undergraduate psychology graduates . * The researchers used ANOVA — column 3 of table 2 (page 228) presents the correlation between sMARS and the remaining variables, using math anxiety group (low, medium, high) as a between-subjects variable.They also used ANOVA two-way to see if the decline in capacity differed as a function of type of span task. * The objective of the study was realized for they have gathered two general remarks form their experiments and they have explained well the conclusions they have made regarding the relationship among working memory, math anxiety and performance.

How Spelling Diverges Between American and British English

How Spelling Diverges Between American and British English How Spelling Diverges Between American and British English How Spelling Diverges Between American and British English By Mark Nichol As George Bernard Shaw is said to have said, â€Å"England and America are two countries separated by the same language.† It’s easy enough to find books and Web sites that provide evidence to back the old boy up, detailing such transoceanic translations as elevator/lift and critical divergences such as the relative meanings of â€Å"knocked up† (British English: â€Å"called on,† â€Å"woke up,† or â€Å"worn out†: American English: â€Å"impregnated†). What you’ll find here, however, is a discussion of differences not in vocabulary but in spelling between the English language’s two primary variants. The blame for the ornery orthography of American English (which is even more annoying to its users than to those who speak other variants of the language, because we actually have to, you know, use it) is primary laid at the oft-pedestal-mounted feet of Noah Webster, a nineteenth-century writer, editor, and lexicographer who almost single-handedly created the dialect I will hereafter in this post abbreviate as AE (as opposed to BE, or British English). Webster’s impetus was nationalistic he desired a distinct language for Americans that they could feel they owned, and one that represented democratic ideals as well. The problem is, for all his meticulousness, he was maddeningly inconsistent, and the myriad successors who have added to the American word-hoard have followed suit. Here, to do my part to make amends, is a brief guide to the major distinctions in AE and BE spelling (and within AE spelling itself), with one or more examples: -ae (encyclopaedia, mediaeval) AE usually deletes the a from the diphthong ae, which is unfortunate, because the words look so cool with it. It is retained, however, in such words as aesthetic (though that word is also spelled esthetic). -ed (fitted, forecasted, knitted) AE usually drops the past-tense ending in these words. However, exceptions are made in such usages as â€Å"The tailor fitted him for a tuxedo.† -ed [irregular] (lighted, strived) AE prefers forms such as lit and strove, though the BE forms are often employed. -ement (acknowledgement, arguement, judgement) AE omits the first e from the suffix, though some writers of AE remain unaware as far as the first and third examples are concerned. -ence (defence, licence, offence) AE spells these words with an s in place of a c. -ise/-yse (analyse, criticise, memorise, realise) AE favors -ize/-yze endings. -l (enrol, fulfil, skilful) AE doubles the l that is not part of -ful/ful-; the l in that syllable is never doubled (except in inflected forms of full). -lled/-lling (cancelled/cancelling, levelled/levelling, travelled/travelling) AE omits one l in this form; some writers of AE still haven’t received the memo. -mme (diagramme, programme, telegramme) AE omits the second m and the e at the end of these words. -ogue (analogue, catalogue, dialogue, epilogue) In AE, catalog is clipped, though the full form is preferred for all its analogues. (See?) -our (colour, favour, honour, labour) In AE, the u is jettisoned in most words with -our; glamour is an exception. -oeuvre (manoeuvre) AE simplifies this ending to -euver (maneuver). -que (banque, checque) In AE, the French-influenced -que is replaced by a Germanic k. -re (centre, litre, metre, theatre) In AE, the letters in the -re ending are reversed, though the BE spelling for the first and last examples is sometimes employed in proper names for facilities to convey Old World class. -st (amidst, amongst) In AE, amid and among are preferred, though many writers of AE, professionals and amateurs alike, retain the -st ending. -t (dreamt, leapt, learnt) AE replaces -t with -ed, though some writers of AE, out of ignorance or because they prefer the more poetically pleasing appearances, use the BE form. -wards (backwards, inwards, upwards) AE omits the -s, though many writers of AE retain it (often inconsistently from one word to another). -xion (complexion, connexion) This suffix is unique to complexion, spelled identically in AE and BE, and connexion, now almost obsolete in the United Kingdom. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Spelling category, check our popular posts, or choose a related post below:100 Whimsical WordsRound vs. Around5 Keys to Better Sentence Flow

Industry and risk analysis

Industry and risk analysis Discuss the future outlook and industry trends related to the new venture The new the venture is a healthy snacks business that target mostly, commuters in the transport industry and also households within the country. In Kenya through improved infrastructure transport industry has been growing steadily. This has been evident in major towns and cities such as Nairobi, Kisumu, Mombasa, Thika, Nakuru and Eldoret just to mention but a few. In addition to this, food industry has become a giant sector in this era of increased urbanization coupled with globalization.Advertising We will write a custom essay sample on Industry and risk analysis specifically for you for only $16.05 $11/page Learn More As population growth increases and demand for food also rise, food industry has played a great role in that it has made food available all the year round even when food crops have failed. It has been able to achieve this through technological innovation in food processi ng and preservation which has increased the shelf life of food stuffs. For this reason, people have been able to access foods from many outlets even in regions where certain types of foods are not grown. Food industry is increasingly becoming a very important sector in any economy simply because it has made food available in ready to eat form; some of the processed foods take lesser time to prepare as they are precooked during processing and have made some foods which are only found during certain seasons to be available during all the year round. In relation to transport industry which is growing steadily, it is projected that the industry of new venture will also grow. There is marked by economic growth in the country and this translates that potential consumers have relatively high purchasing power. Also, this is very important because with growing economy of the country people are able to transact as they move from one point to another. Though the country had experienced politic al instability three years ago, there seems to be a stable political climate with ushering in of new constitution in the country. Snacking is very common with commuters. Commuters will tend to have snacks in bus terminals as they are about to travel while others buy food snacks to eat when on transit. This is a clear indication that provided the business will offer products that are tailored to meet consumers’ needs there is market for these products and that the future outlook of the business is bright. Discuss the legal or concerns related to the venture idea A sole proprietorship kind of business in Kenya does not have many legal formalities. To start with there need to be a business name which should be applied at a registrar of business so that certificate of registration can be issued. The business needs to apply for trading license from city council because it will be situated at Nairobi City in the central business district.Advertising Looking for essay on bus iness economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This is necessary because it will enable the government to earn revenue. In addition, business needs to conform to public health laws such as Food and Drug Act that governs business that deal in food commodities for sale to the public of Kenya. Discuss the approach to raising capital for the venture There are number of approaches which can be used to raise capital for this new venture. In order to be able to have a breakthrough in raising business capital, a business plan should be prepared. Business plan acts as financial tool which provide adequate information to facilitate secure capital particularly in form of loan from financing institutions. The first approach to consider when raising the capital for the business is bootstrapping. This is where one uses any resources at disposal to get business started. Basically, this is in formed of home-equity loans and personal loan s. Another approach is use of family and friends. Though this approach is not formal, family members and colleagues can help to raise needed capital. Using personal loans is another approach to raise business capital. This can be in form of re-investment into the business. A step further can be taken for more capital if it is needed. This can be through cash out credit card transfers or home equity loans. However, when using such methods to have initial capital for a start up business it can be extremely risky and therefore need to be done with a lot of care ( Berkery, 2007). Suppliers can also be used to provide business capital. This is in form of product development which necessitates customization with such suppliers for them to be able to respond positively. By guaranteeing that business will be able to pay for their material they have provided perhaps by holding inventory they may agree to support business through raw materials for making business products. Some large supplier s may have some funds that have been kept aside purposely for investing in rising up businesses that would facilitates expand their investment portfolios and businesses. Besides this , they help business have steady follow of supply of the products they supply because they understand new venture vertical market well and may have competitive rates for their products (Pride, Hughes Kapoor, 2008). Bank loan is another alternative approach though not that relatively easy to obtain especially for start up business. Most of the bank will often take into consideration those businesses which have been operating for at least two years. This is due to the fact that they prefer seeing assets which are tangible that can be used as collateral.Advertising We will write a custom essay sample on Industry and risk analysis specifically for you for only $16.05 $11/page Learn More If such methods mentioned above do not work or fail to raise the needed capital to start the bu siness, selling partial business ownership can be a last resort. This involves selling business ownership in form of ownership interest or stock. Lastly, venture capitalists can be potential sources of business capital. They are wealthy persons who specialize in providing start up capital for coming up business in form of equity capital (Berkery, D. 2007). Discuss the obstacles to raising capital for the venture One of the challenges in raising capital for the business is that when you sell the ownership interest or shares of stock as a proprietor you sell the equity and you are bound to loose control of the business because you are not sole decision maker in matters of running the business. Another obstacle is that when one opts for using family and friend as a way of raising business which is an informal way, it may bring problems in future. It is not advisable to mix business and social relationships because this may interfere with business policy. Even though venture capitalists are potential sources of business capital, they are not easy to find. Also, personal loans to provide start-up capital for the business can be a reasonable option. Nevertheless, it can be extremely risky because in case business run at a loss one is bound to incur all the risk alone and this means that the proprietor will loose all that had been invested in the business (Sutton, 2009). References Berkery, D. (2007). Raising venture capital for the serious entrepreneur. Columbus: McGraw-Hill. Pride, W. M., Hughes, R. J., Kapoor, J. R. (2008). Business. Florence: Cengage Learning. Sutton, G. (2009). The challenges of raising money with equity financing. Retrieved from: https://www.allbusiness.com/

How to format a business document

How to format a business document Hook your reader: 5 killer formatting tips to get your document read Theres nothing like it, is there? That satisfying moment when you finally finish the document youve been working on for days. Youve done the research, youve marshalled your facts and youve made it through the hardest part: getting it down on paper. Job done. But hold on. Before you attach it to an email, send it and celebrate, ask yourself: how does it look? Your documents presentation may seem like a small point. Yet it could be the difference between your hard work being read and acted on or it being put aside for a later that never comes. You may well have been hunched over a hot keyboard slaving away on it all week. Its only natural that you should think its a must-read, which would capture the readers attention even if it were printed on the back of a till receipt from Lidl. But dont be fooled. Very few documents genuinely fall into that category – especially in a world where too much information is more of a problem than too little. The appearance of your document is the first impression your would-be reader gets. So it needs to hook them in and encourage them to read on. Theres nothing very enticing about a wall of text, tiny fonts or endless tables. We talk a lot on this blog about how to make your writing more readable. But no matter how compelling your words may be, theyll be wasted if they go unread. So here are five proven document-formatting techniques that will stop your work being thrown back into the sea of other discarded documents and make sure what youve written actually gets read. 1) White space is not wasted space White space is simply anywhere on the page where there is no text or images. Dont be fooled into thinking this space is wasted. Wider margins are your friend. They reduce the length of each individual line of text, making your writing easier for your readers eyes to scan. And they create mental breathing space* that makes the whole document more pleasant to read. *(We know thats not a thing, but you get the idea.) Newspapers have been using this trick for a very long time – its why they use narrow columns. Pick up a newspaper and youll probably find yourself tempted to read something on the page, and the easy-to-read appearance of the text in narrow columns is a big reason for this. Of course, most of us have been tempted at some point to make a documents margins narrower and lines of text longer, in order to reduce the overall length. So a document that was once three-and-a-half pages will instantly become a nice round three. (We even had one client proudly tell us how consultants had redesigned their templates to reduce margins down to a minimum, to save paper.) But this is a bad idea. Yes, youll hand over a document with fewer pages – but every one of those pages will look less professional and be more difficult to read. Better to use more paper than waste all of it. So avoid the temptation to squeeze as much text onto a page as possible – your reader will thank you for it. Were not suggesting that you use newspaper-like columns; just that you consider making the margins a bit wider and the body text a little narrower than you might otherwise do. 2) Use fonts well Our top tip on this topic is to avoid overthinking it. There are lots of business-appropriate fonts available. Youre faced with lots of good choices, so youre unlikely to go far wrong. Weve written about the best fonts for business documents in more detail before, but heres a quick summary: Both serif fonts (eg Garamond or Times New Roman) or sans-serif fonts (eg Helvetica or Arial) are fine for business documents. Try pairing fonts: use one kind of font for the headlines and subheads, and another for the body text. If youre using a serif font for the body text, try using a sans-serif font for the headlines, or vice versa. And resist the urge to use too many different fonts: no more than two on a page is a good rule of thumb. You can also try pairing two fonts from the same font family; for example, using Lucida Bright for the headings and Lucida Sans for the body text. 3) Use headlines and subheads as signposts Headlines and subheads are crucial signposts for the reader. Used effectively, they can summarise the entire story of a document by themselves and guide the reader through your most important points. They also break up large blocks of text, which can be hugely off-putting. Format headlines and subheads in bold (and in a larger font size if you like). In the documents we analyse for participants in our courses, we often see people using underline for subheads (or bold and underline). But this isnt necessary and can look cluttered or old-fashioned. Bold is enough by itself. We also frequently see people using subheads that are an equal distance from the paragraph that preceded them and the paragraph that comes after them. This gives the subheads the appearance of floating halfway between the two paragraphs.  So make sure there is more space before a subhead than there is below it. This will make clear that the subhead is for the paragraph below it. 4) Use lists and tables carefully Lists are an effective way to draw the eye, but thats probably why theyre frequently overused. Always bear in mind that each extra list that you add reduces the impact of every other list on the page. Some documents even consist mainly of lists – probably because theyre easy to write. But whats easier for the author is much harder for the reader. Such documents are disjointed and therefore usually difficult to follow. Tables are often a handy substitute for lists, as well as a neat way to format straightforward information. Theyre especially useful if you need to compare two or more things directly, against the same criteria. (For example, you might need to compare sales figures or possible outcomes of different courses of action.) When formatting tables, avoid using gridlines that run close to the text. Instead, insert space above and below it (using the paragraph formatting menu, if youre using Microsoft Word). And experiment with taking out vertical – or even all – internal gridlines. The extra space around the information should make it easier to read. You can differentiate long rows by shading every other one. In Word, you can do this by going to Table tools → Design. 5) Draw attention with boxes Boxes can form a vital entry-point into your document. Do you have a fact or piece of information that you know will interest your reader? A box will help you make the most of that. On the other hand, boxes are also a good place to put information that doesnt easily fit into the natural flow of your body text. Remember that a box needs to make sense on its own, as it will probably be read before the main text. You can make a box stand out by giving it a different font to the rest of the text (but remember to stick to a maximum of two fonts in your document), or by using background shading. And, as ever, remember to give the text plenty of space (white or otherwise) around it. Text crammed inside a small box will look very uninviting, defeating the point of separating it from the rest of the document. No design experience needed You might be surprised at the big impact small tweaks like these can have. So keep these simple rules in mind when you write your next document. When youve put them in place, youll have a much more readable document to hand over. And, when youre finished, you really will be able to say, job done. Image credit: Rapala fishing lures by Chau kar Man used under CC BY-NC-SA / cropped from original

Short answers_THE RISE OF NAZISM IN WEIMAR GERMANY (1919-1934) Assignment

Short answers_THE RISE OF NAZISM IN WEIMAR GERMANY (1919-1934) - Assignment Example ect the country to economic recovery, and assert German nationalism, solutions that the country greatly needed (Fritzsche, 1998).   Hitler’s diplomatic successes in foreign nations also added to the appeal of the Nazi movement to the German people. The German National Socialist party was based on the ideology that the German people were superior to other people (Hitler, 1925). In this respect, the movement emphasized German nationalism. As noted by Adolf Hitler in his Mein Kampf, the movement was founded on the premise that the Aryan master race was superior to all other races and that other races were in conflict especially with the master race. More especially, the Nazi movement believed that Jews were a mixed race which had infiltrated many societies was behind the repression and exploitation of the master race. Apart from its racial and anti-Semitic ideals, the Nazi movement was based on the need to expand Germany to provide more living space and resources to the Germans (Hitler, 1925). The Nazi movement felt that Germany was overpopulated and the territory occupied by the Germans was not enough for the people’s wellbeing, especially following the First World War. In this respect, Hitler noted that Germany’s relationship with Russia would be friendly if the latter if only Russia agreed to the re-establishment of the borders created by the Treaty of Brest-Litovsk. Nazis believed that communism and capitalism were both dangerous to the nation (Hitler, 1925). Communism according to the Nazis would dissolve private property and would aggravate class conflict among other reasons. On the other hand they believed that capitalism destroys nations because of Jewish influences, international finance, and dominance by big corporations. Totalitarianism was yet another ideal of the Nazi m ovement as it believed that individual needs were less important compared to those of the community. Hitler, the main brain behind the Nazi movement stated that order and national

People in Organizations Essay Example | Topics and Well Written Essays - 2500 words

People in Organizations - Essay Example standing of the way people would react to a ‘change’ scenario and as to what their reactions would be in the wake of closing certain offices and more than that putting an end to their jobs. This brings to light the situation at NIC. The key issues which could be had in the wake of Gloria Barker’s initiatives are bringing a sense of change within the attitudes of the people as they must know that this change is for their own betterment, both in the short term scenario as well as in the long run. They must be told that these initiatives will bring in the much needed stability for the operations of the organization as well as provide incentives to the employees in different forms. However this is a totally different matter altogether that the people who are told to leave their jobs, as the offices coming under the direct hold of NIC close, will have a sense of resentment which is quite understandable but within the global contexts of a changing business climate, this is all the more common at the present. The key issues also bring to light the aspect of ‘Building the New NIC’ which is a philosophy that needs strenuous thinking and action to back up the very mindset which has been developed as a result of the same. This asks of the management culture to bring about an environment which is full of positive attitude since this is much needed at the end of the day. People must be motivated enough in their job to adopt the changing regime because if the same is missing, then there is little room for improvement within the changing culture of the organization. (Gellerman, 1968) Also the role of Human Resources Department is of essence since it must cut down on the traditional mindset that it has had of late and give up the same for the contemporary office climate as the latter will bring in employees who are better equipped to handle tasks and more learned than are present within the realms of NIC at the current stage. It will also motivate and encourage the

Workplace Spirituality Thesis Example | Topics and Well Written Essays - 4500 words

Workplace Spirituality - Thesis Example The findings of the study showed that the main challenge of adopting spirituality is that employees are not aware of the difference between spirituality and religion. In addition, expression of spirituality can only be achieved through the management's intervention. It is the most important factor because without the management's initiative to set clear guidelines on how employees can express their belief and promote spirituality; employees would continue to function as they do. With the adoption of spirituality, each employee would be recognized and diversity would be accepted, thus increasing job satisfaction and productivity. Interest in the concept of workplace spirituality continues to gain traction, as spirituality is taken into the context of connecting with one's inner self and the other people around him (Ashmost & Duchon, 2000). The conquest towards spirituality is not tied to incorporating religion onto the workplace or enforcing individuals to adopt a religious mindset. I n workplace spirituality, the concept of spirituality focuses on creating meaning out of work and finding the underlying purpose that forms the bond between the company and its employees (Ashforth & Pratt, 2010). Workplace Spirituality is referred to a culture in an organization wherein individuals are encouraged and empowered to search for purpose and meaning in the work they perform in light with one's physical and mental presence. It is in line with an employees' interest in connecting with each other and form a bond as a community (Besk & Jessup, 2004). Workplace spirituality is geared towards a harmonious environment in an organization, of people working together towards a common goal. It is important to note that the concept of workplace spirituality does not specifically cater to traditions or practices that have been organized. It is beyond the context of theology, wherein one leads as a spiritual guide among individuals. In truth, workplace spirituality focuses on the recog nition of each individual in a community under an organization (Cragg, 2000). The challenge in tapping spirituality in organizations is that it didn't used to exist in work management. Productivity models that are adapted in the workplace are directed towards efficiency without the necessity to be concerned of other people's welfare. In that regard, most organizations do not pay heed to an individual's inner life as common conception dictates that personal beliefs are to be separated from work (Besk & Jessup, 2004). However, it is important to note that studying human emotions help in expanding our knowledge and comprehension of the reason behind people's actions and the manner in which they act. In essence, tapping one's inner spirituality helps an individual understand others better in terms of behavior, thus leading to greater productivity and efficiency (Ashmost & Duchon, 2000). Research Problem The researcher intends to determine how the adoption of spirituality affects the wor kplace. Research Questions 1. What are the benefits of adopting spirituality in the workplace? 2. What are the challenges in adopting workplace spirituality? 3. How does workplace spirituality influence employee performance? Significance of the Study The present study is being conducted to identify the challenges and benefits of adopting spirituality in a work place setting. The researcher chose Convergys (a call center) in the United States to assess in terms of the impact of workplace spirituality is because this organization functions on a collective effort to attain the organization's goals. In addition, the type of job of most

Divorce in the Pentateuch Essay Example | Topics and Well Written Essays - 2000 words

Divorce in the Pentateuch - Essay Example This essay will critically analyze what the Pentateuch has to say on the topic. According to the Creation story it would appear that divorce was not a part of God’s plan when he created man and woman. â€Å"This is why a man leaves his father and mother and clings to his wife, and the two of them become one body† (Genesis 2: 24). If marriage was meant for two persons to be as one body then divorce would be viewed as an illness since it was making the body less wholesome. ‘If a man, after marrying a woman and having relationships with her, comes to dislike her, and makes monstrous charges against her and defames her by saying, â€Å"I married this woman, but when I first had relations with her I did not find her a virgin,† (Deut 22:13 – 14). The woman is viewed as an object and is always the property of the man whether it is the husband or the father. The verse further explained that the father should try to prove her innocence. Although this passage gave instructions that if the girl is found to be innocent the man should not divorce her it shows the responsibility that the community has when it comes to marriage and divorce. In return the couple is supposed to bear witness to the community and they had to show proof before a divorce could take place. The man was supposed to write the woman a certificate of divorce and send her away from his house. According to Hall this certificate was â€Å"crucial to protect her status† (359). Furthermore it served as a way of announcing to society that the woman was eligible to remarry. The man according to this verse in Deuteronomy is bound by the law in keeping his wife. He cannot divorce her because she was found to be innocent. This shows that this was the only grounds he had. â€Å"Moreover, she shall remain his wife, and he may not divorce her as long as he lives.† On the other hand

Psychology (left-brain activity) Essay Example | Topics and Well Written Essays - 1250 words

Psychology (left-brain activity) - Essay Example It is the seat of visual and spatial processing. The right brain controls driving in traffic. On the right, processing is rapid and non-linear. The right brain looks at the big picture and deals with complexity, ambiguity, and paradox. It is intuitive and the crucible of creativity (Pitek, 1998). For example, if you are right-brain dominant, it is your emotional right hemisphere that guides the decisions you make throughout the day. If you are left-brain dominant, it is your sequential, time-oriented left hemisphere which tells you how to think, what to believe, and what choices to make (Connell 2002). Nearly 80% of people have a more developed left brain because the left is better at handling language and logical thinking. In many life situations, the left brain takes over, assembling a logical train of thought (Lee, 1999). Other factors are also detrimental to right brain development. Education has a big prejudice against the right brain with its emphasis on mathematics, language, logic and analysis, and its tendency to ignore the arts, music and creativity. In traditional methods, teaching uses charts, logic, and mathematical formulae. Multiple choice, true/ false are much easier to grade and quantify (Pitek, 1998). There are parental pressures to become doctors and lawyers and scientists rather than poets and artists. And there is the world itself, which requires us to do more left-brain thinking than right. Under these circumstances, our left brains become more and more developed while our right brains shrink, metaphorically speaking, from under-use (Lee, 1999). In this age of education by test-taking, all our instructional efforts seem to help students master left-brain skills because that's what the tests measure. But to what extent should we also be helping kids develop a sense of design, storytelling abilities, feelings for others, humor, and the ability to detect the importance of the information they learnThe right brain thinks in wholes, so the student will understand math concepts but struggle with math facts or double-checking answers. Right brain children will use 'gut feeling' instead of pulling in multiple facts before arriving at a decision. They may prefer essay tests where they can present the whole picture (Craft, n.d.). Eighty percent of struggling learners are right brained. Schools and schoolwork are set up to teach in left brain style. Workbooks, worksheets, rote memorization, timed tests, lectures, learning facts from a test, learning vocabulary by looking up meanings words in a dictionary and writing them out, these are all left-brain activities. A right brain child will have difficulty with them (Craft, n.d.). Right-brain students might shuffle through papers and have trouble finding correct pages. They might daydream in class. Might dramatize a point instead of backing it with statistics. Homework and desktop might be messy. Some believe that the common syndrome, Attention Deficit Hyperactivity Disorder (ADHD) may result from cross-brain problems. Affected children are usually right-brain

Divorce in the Pentateuch Essay Example | Topics and Well Written Essays - 2000 words

Divorce in the Pentateuch - Essay Example This essay will critically analyze what the Pentateuch has to say on the topic. According to the Creation story it would appear that divorce was not a part of God’s plan when he created man and woman. â€Å"This is why a man leaves his father and mother and clings to his wife, and the two of them become one body† (Genesis 2: 24). If marriage was meant for two persons to be as one body then divorce would be viewed as an illness since it was making the body less wholesome. ‘If a man, after marrying a woman and having relationships with her, comes to dislike her, and makes monstrous charges against her and defames her by saying, â€Å"I married this woman, but when I first had relations with her I did not find her a virgin,† (Deut 22:13 – 14). The woman is viewed as an object and is always the property of the man whether it is the husband or the father. The verse further explained that the father should try to prove her innocence. Although this passage gave instructions that if the girl is found to be innocent the man should not divorce her it shows the responsibility that the community has when it comes to marriage and divorce. In return the couple is supposed to bear witness to the community and they had to show proof before a divorce could take place. The man was supposed to write the woman a certificate of divorce and send her away from his house. According to Hall this certificate was â€Å"crucial to protect her status† (359). Furthermore it served as a way of announcing to society that the woman was eligible to remarry. The man according to this verse in Deuteronomy is bound by the law in keeping his wife. He cannot divorce her because she was found to be innocent. This shows that this was the only grounds he had. â€Å"Moreover, she shall remain his wife, and he may not divorce her as long as he lives.† On the other hand

Ancient Persian Cuisines and Dinning Rituals Research Paper

Ancient Persian Cuisines and Dinning Rituals - Research Paper Example For example, the Mesopotamian, Central Asia and the Anatolian cuisines are some cuisines that have influenced the Persian cuisine such as ice cream and kebab (Batmanglij 2011, 34). Some of these Persian cuisines rice that is served along with meat, basmati rice served with stew, soup made from herbs and vegetables, pure white rice, pastries, salad, appetizers, desserts and drinks (Batmanglij 2011, 34). Notably, the Iranian people love rice although they have an extensive list of cuisines. Logically, the Persian community loves to take green herbs together with fruits. This includes fruits like quince, plums, prunes, raisins, pomegranates and apricots (Batmanglij 2011, 35). Typically, the Iranians love meat, rice, fish, chicken and lamb. Moreover, they work hard to ensure that they take a balanced diet but add some flavor (Ghanoonparvar 2006, 67). Consequently, cinnamon, saffron, parsley and lime are some of the spices used in making special dishes. In summary, the Persian cuisine and dinning ritual that is intriguing and exciting to adapt into the daily dishes. Evidently, rice is a common Persian dish. There are different modes devised in cooking to ensure that the meals had a different touch. Sometimes, the rice is served with marinated chicken or served as saffron ice-cake (Batmanglij 2011, 97). Historically, rice was imported from India into Iran. For instance, the basmati rice is an import from India while Pakistan rice is definitely from Pakistan but is similar to that of Persia. On the other hand, rice is seen as a staple food in northern Iran. However, the rest of the Iranians consider bread as their staple food. Interestingly, the aroma of the Persian rice caused it to be a prized cuisine. In summary, rice and bread are the main staple foods in Persia. Logically, every community has its ways of preparing its cuisines. Therefore, the Persians have their ways of preparing different rice cuisines. The common ones are Tah-deeg, damy and kateh, alongside oth ers (Ghanoonparvar 2006, 79). One is soaking of rice in salt water, followed by boiling. This is called chelo, which is returned for steaming after boiling. Consequently, the rice becomes fluffy, and the grains are not sticky. The other is Tah-deeg, which has a golden crust at the bottom of the pot (Ghanoonparvar 2006, 79). This rice is taken plainly but is eaten alongside bread of potato slices. On the other hand, there are additions of nuts, meat, fruits and vegetables. Interestingly, all these additions can be served together in one meal. Interestingly, the heat is lowered when the chelo is still in the pot then covered with a piece of cloth so that it absorbs the steam (Ghanoonparvar 2006, 81). This chelo is plain and is mainly served with kebab or stew. However, chelo and polo are more or less cooked in the same way. On the other hand, kateh is rice that is cooked until water is completely dry. This is the most traditional mode of cooking rice. Finally, the preparing of the dam y is more like kateh, one starts with other ingredients such as beans. Damy is stemming of the rice. In summary, there are different methods used in the preparation of rice, which makes a difference to each rice meal. The other major additions in the Persian cuisines are vegetables and fruits. Luckily, Iran is known for its wide production of vegetables and fruits. Consequently, most homes in Persia will have a fruit bowl on their tables. Moreover, most meals are accompanied with herbs and vegetables. Additionally, Persians have promoted eating fruits and vegetables because of the health benefits they have on them. As a result, some vegetables like garlic, pomegranate and onion are included in the cooking of

Destructive natural phenomena Essay Example for Free

Destructive natural phenomena Essay Among the most destructive natural phenomena caused by nature and known to man are earthquakes. Earthquakes are not only considered as one of the most destructive, but among the most frightening, traumatic and violent as well. In addition, earthquakes are beyond man’s control. They are also unpredictable. This paper aims to answer the following questions: How do earthquakes occur? What causes earthquakes? Based on its scientific definition, an earthquake is the result of a sudden movement of the earths crust due to the stress released from geologic faults or by volcanic activity. Sometimes it is also called as seism or temblor (â€Å"Earthquakes†). We often think that an earthquake is merely the shaking of the ground based on what we experience and what we see in the news. What we are not really aware of is that an earthquake happens everyday. It is reported by the United States Geological Survey that over 3 million earthquakes occur yearly which means every 11 seconds, an earthquake takes place. That’s around 8,000 earthquakes a day. Most of the time, the majority of these quakes are and cannot be felt. What alert us are the stronger earthquakes that happen in highly populated areas. In order to determine an earthquake’s strength, scientists measure earthquake strength by using a seismograph. The information gathered by the graph is then calculated. The unit of measuring an earthquake’s strength or ‘intensity’ is the Richter scale which is in turn used to rate the energy released by the quake which is known as the magnitude. When an earthquake occurs, it continuously produces waves referred as seismic wave. There are several types of seismic waves but the waves responsible in the first few strikes of movement during an earthquake are called body waves. These waves often travel at the earth’s inner part (Harris, 2001). With the help of the P waves and the S waves, which are the types of body waves, scientists are able to determine where an earthquake took place. P waves also known as primary waves can travel through different mediums. It can travel through solids, liquids and even gases. It travels faster and hit the ground first. On the other hand the S waves or the secondary waves follows through making the ground also shake. Apparently these waves helps scientist locate an earthquake’s epicentre of location. Through the help of seismographs, the amount of time between the P waves and the S waves are then recorded which is called seismogram, this will then determine how far away the earthquake was from the location. Most of the time it takes 3 seismographs to locate the epicenter or the exact direction of the earthquake which is called triangulation (Wald, 2008). During early times, natural causes were accounted with the anger of the gods that were displeased with mans action. Today, natural disasters are no longer accounted to ancient gods anymore. Instead, man explains such occurrences based on modern science. There are many causes of earthquakes. These can be attributed to volcanic eruptions or even explosions created by humans but the most frequent potential cause of this is the seismic plate movement. The plate tectonic theory states that the surface layer of the earth called lithosphere is comprised of different plates. Through the advent of the plate tectonic theory, different phenomena and facts that were formerly unknown were finally understood. Facts such as the movement of the continents and volcanic activities were just among the few facts that plate tectonics had unveiled. Since plates tend to slide on the region below the lithosphere, any of the three different things can happen at the boundaries between these huge plates: (1) the plates can move apart- whenever this occurs, hot, molten rock called magma, flows up. Magma will then appear on the surface, an activity that mostly happens on the ocean floor turning it into lava which in turn cools down and fills the gaps when it hardens. The area where this occurs is called the divergent plate boundary. (2) The plates can push together- an occurrence where in one plate is pushed under the other one which is called subduction. When the plate is then pushed beneath, it melts down in the lower mantle layers. Although plates have the tendency to subduct with one another there are certain boundaries wherein neither of these two plates would be able to do so thus, the tendency of each plate is to push one another and form mountains. The convergent plate boundaries are an area where plates are more like to push against each other. The plates would slide against each other- when this happens the plates are then pushed tightly together building a great tension in the transform boundary (Harris, 2001). We all know that earthquakes may occur anywhere and anytime but there are certain areas that are close enough where frequent actions of tremblors take place. The ring of fire is a zone where frequent earthquakes as well as volcanic eruptions occur. It is said that almost 90% of earthquakes in the world is experienced in this area. Countries like the United States, Indonesia, Canada, Brazil, Colombia and Chile are some of the areas that are prone to tremblors (Crystal, 2008). An earthquake brings fear and devastation is alarming. Furthermore, the inability to predict an earthquake makes it even more fearful. Though scientists are still looking for ways to minimize the devastating effects of an earthquake, knowledge and the understanding earthquakes are man’s best defence. Earthquakes education serves as the best protection and the hopes and continuous researches provides more security and helps in devastation prevention. References Earthquakes. The American Heritage Dictionary of the English Language, Fourth edition. Retrieved June 11, 2008, from http://dictionary. reference. com/browse/earthquakes Harris, T. (2001). How Earthquake Works. How Stuff Works. Retrieved June 12, 2008, from http://science. howstuffworks. com/earthquake. htm Wald, L. (2008). The Science of Earthquakes. U. S. Geological Survey. Retrieved June 12, 2008 from http://earthquake. usgs. gov/learning/kids/eqscience. php Crystal, E. (2008). Pacific Ring of Fire. Crystalinks. Retrieved June 12, 2008 from http://www. crystalinks. com/rof. html

An organisation climate analysis

An organisation climate analysis In this chapter, we will describe the research background which included a clear brief of organization climate, employee engagement, problem statement, research objective, and research question and significant of the research. Research Background The Organization Climate Organization climate usually do not have a clear definition and is simply explained as a perception that every employee in an organization feels, understood and shared (Kouzes, 1993). It is weather that a particular organization is having, reflecting how its system deal with the members. This is something that is difficult to be measured because it is senses or feels of employee perception toward the organization which is cannot be evaluated using tools. The combination of the perceptions reflects the actual work place of the organization. Organization climate is important for the junior employees to observe and adapt. Their observation and perceptions are usually is the better reflection of the truth than senior employees. This is because senior employees perceptions are affected by many factors in the organization. A positive organization climate that set by the executives could be a motivation for employees, resulting effective and efficiency in productivity. Organization climate is determined by factors from both internal and external environment. Internal environment refers to the factors that affect the perception of the employees which occur within the organization and external environment factors are occur from outside the organization which is difficult to predict and control. In our study, we focus in the internal environment rather than external environment. Background of Banking Industry in Malaysia The banking industry had gone through constant transformation over years in keeping up the changing needs of economy. Service quality is one of the important elements to the industry evolved trend (Brown and Kleiner, 2010). Today, excellent service quality had become a crucial factor for a business survival in the present banking industry. This is because the service quality is directly influencing the competitive advantages and corporate profitability. Thus, the majority banks in Malaysia is ongoing their focus in improvement of their service quality. Nowadays, to achieve the prior competitive advantages in the banking industry, the banks must increasing their demand on providing a better service quality, lower interest rate for loan and greater beneficial for the customers. The banks need to embrace changing and response pro-actively in order to maintain its competitive advantage. In the past decade, Malaysia banking industry had been transformed significantly and undertaking the effort of restructuring, placing the financial sector to a new and stronger foundation (Adbullah, Andrew and Boo, 2010). It had successfully integrate many business process and redeployed the resources to support the growth of new areas, increased the flexibility of the financial institutions, resulting in new business opportunity. Besides that, the banking and insurance sector had provide employment to over 123, 000 Malaysia citizens. The service from the sector had benefits many industry development and encouraging development of small business. Such consumers lending had increase from RM 134 billion to RM 343 billion while loan disbursed to small and medium enterprise. The domestic banking institution is expanding, building their strong position in the local country. According to Abdullah et al (2010), there are several trends in Malaysia banking sector. First of all, the trend is the changes in global economy configuration. This trend illustrate the rapid expanding in economy of many developing country had created many business opportunity for global banking sectors. The raise in India, China and South East Asia economies have increase Asias global role. The increment in countries output had boost up the economy in Asia and as a collectively region, Asia contribute about 40% of global and one-fourth of the world trade. This is an open tremendous business opportunity for Malaysia as a part of this dynamic growing region. Secondly, the trend is the current industry is shaping towards the integration of economic and financial regions. The merger and acquisition of many domestic bank with foreign bank had help the domestic bank emerge into a new market, generating a better profit and help the local bank industry expand their target market. The investment among Asias economics is increasing the financial activities. These activities involved merger and acquisition which require fund as capital rising. Thus, financial institutions of the related region are becoming the primary source for them to obtain funds. Thirdly, the trend is the Asia region is moving towards financial integration in helping on the development of financial sector. Many financial institutions were restructuring, improving their financial system in order to attract the investors. The new services or strategies that launch were private equity, structured products, Islamic finance, hedge funds and etc. In developed countries such as America and Europe countries, their financial institutions are sustain fully managed by their strong government in terms of strong economic background, beneficial policies, better living standard and etc. Malaysia, unlikely the developed countries, which is a developing country is unable to gain total control over external environment, therefore Malaysia have to rely on better control in internal environment. Trends of Employee Engagement Employee engagement can be defined as the commitment that an employee has towards the organization, attracted and inspired by the works (Rudledge, 2005). Engaged employees will put their organization in the first place to be concerned, physically and emotionally willing to play their role as part of their organization or sometimes exceeding their duty call to contribute their effort (Seigts and Crim, 2006). They will evaluate every possible alternative to maximize the benefits of their company. In year 2008, Macey and Schneider presented a framework for understanding the elements of employee engagement, illustrating that conditions of the workplace have both a direct and indirect impact on engagement. However, employee engagement required a two-way relationship among employer and employees. Employer is responsible in building clear roles for employees to take part and also figured the best ways to motivate the employees to be engaged. The first way is to remove roadblock of employees to be engaged. This roadblock refers to those barriers such as lack of confidence, negative perceptions towards the company, demotivated factors and others. The second way is creating an engaged culture that beliefs and values are wired spread along the organization. The culture can be effective only when everyone is understood and agreed upon. The third way is to set a proper reward system that is allowing the employees to perceive what they will get as the return from the engagement. Reward is a best way to serve as a motivating factor. When employer getting along with employee, he or she should communicating rather than announcing or listening rather than surveying and paying attention rather than getting attention. Thus, engagement is implemented through persuading rather than enforcing. Besides employer, employees should also play their part to be engaged in organization. They have to set their mindset that they willing to contribute towards the organization without any complaints. They have to observe what reasons that made the employee to be engaged. According to Nitin, (2007), he outlined that the levels of employee engagement can be categorized into engaged, not engaged and actively disengaged. Engaged employees form a bond between themselves and the organization, driving it to move forwards. Not engaged employees satisfied in what they have contributed. Although they are unhappy with the organization but they will not complain about that. They are putting in time but not contributing passion in their work. The last is actively disengaged. They are not only unhappy but also trying to influence others perception and denied others accomplishments. These three categories reflect the current organization climate of a company. Many organization trying to seek a way to influence their employees become engaged, result in creating a positive organization climate. In the other hands, if not engaged employees do not being pay attention, they will slowly become actively disengaged which will result in negative impact of organization climate. Problem Statement Employee engagement has long been a concern of organization climate of its construct to engagement in organizational behavioural. In engagement, people employ and express themselves physically, cognitively, and emotionally during role performances. Employee engagement is very important to determine the future of the organization. Employee is a vital resource for nearly all organization and high performing employee is the organizations valuable asset. This mean when skill employee had started to leave the organization, it is an indication that the organization is in trouble. Nowadays, it is hard to having organization climate in an organization. There are few antecedent variables that will influence organizational climate toward banking industry such as leadership, communication, compensation, decision making and organization design. Based on the study, it revealed that older workers ages between 55 years old to 64 years old have been more loyal to their employers with a median of 9.3 years, while workers ages 25 to 34 have a median tenure of only 2.9 years. That means there is hardly possible to expect younger workers to spend their careers in one organization. They are more likely to resign in the particular organization if th ey get a better and attractive offer in other organization (Taylor, 2006). There is no one will sacrifice and perspiration in one organization without compensation, however, there is a complementary executive compensation strategy that employers should pursue, and it usually involves cash bonuses, stock awards, and deferred compensation plans. Any or all of these may be refined in a manner which are better positions the employer to seek judicial enforcement of loyalty covenants and provides for benefit forfeitures and claw-backs when disloyalty prevails. The lack of awareness regarding significant of employee commitment has caused the high turnover and uncomfortable among the employees. As you can see, some banks which are making huge profits and which have introduced performance appraisal systems do not give any rewards to the lowest category of workers whereas in the higher category they continue to give them huge bonuses (Solomon, 2010). As a result,  National Union of Bank Employees (NUBE) members began to wearing of protest badges and slogans demanding a 30% pay increase. So, there is very hard to keep employee loyalty since there are some indistinct factors that influence the loyalty of employee. Nowadays, perhaps that the importance of employee engagement has been overlooked by the banking industry and the industry is more emphasize on looking the new employees and not retain the existing skill employees. However, the replacement can actually cost a company anywhere from 35% to 50% of an hourly workers salary. Based on the research run by loyalty research centre, for a technical or professional worker, the cost can go as high as 125% of that workers salary. According to the loyalty research centre, most of the managers do not realize that how expensive to lose a good worker, those who do their jobs well and productive. For anything less than a loyal, productive worker will cost a company; which is why performance goal setting and review are so important for weeding out the bad ones; or for providing additional training and support to those who can be developed or rehabilitated. Employee turnover is extremely costly to companies with large numbers of employees. In the banking industry, employee turnover can also mean the loss of valuable customer relationships. Hence, it is good to keep the employee rather than recruit new employee. Employee engagement is growing as more important construct, driving and influencing important factors of a business. On the other words, whether the business able to survive in the market is affecting by the employee engagement. Unfortunately, many companies struggle with measuring and improving engagement levels in their organization. Therefore, it is important for companies to have a strong understanding of engagement in order for them to be successful in improving the level of engagement. This study will look at best practices that companies can use to measure and use engagement data as their advantages. Overall, the purpose of this study is to find out where the lacuna is and to try and find what corrective measures can be taken to reserve this undesirable trend. The engagement levels of the entry level employees were observed. Besides that, various factors considered, and thereafter the attempt to address the problem of reducing the turnover level was undertaken. Research Objectives General Objective The primary objective of this study is to examine the relationship of organization climate towards employee engagement in banking industry. Specific Objective To examine the impact and relationship of organization climate which are the leadership, communication, compensation, decision making and organization design towards employee engagement. Research Questions Answer all these question will give more understanding of the dimensions in organizational climate underlying the foundation of employee engagement in banking industry. Does the leadership significantly effect on employee engagement? Does the communication significantly effect on employee engagement? Does the compensation significantly effect on employee engagement? Does the decision making significantly effect on employee engagement? Does the organization design significantly effect on employee engagement? Does the organization climate associate with employee engagement? Hypotheses of the Study H1: There is significant positive relationship between leadership and employee engagement. H2: There is significant positive relationship between communication and employee engagement. H3: There is significant positive relationship between compensation and employee engagement. H4: There is significant positive relationship between decision making and employee engagement. H5: There is significant positive relationship between organizational design and employee engagement. H6: There is significant positive relationship between organizational climate and employee engagement Significance of the Study The main importance and contribution of this research is to improve the awareness and knowledge about employee engagement in private corporate, which is commercial bank. First, this research enables banks allocate in Malaysia to further study on employee engagement with factors that will lead to the loyalty of their employees. By conducting this research, it will recommend the banks effective ways of employee engagement in banking industry. Organizational performance and retention can have a greater impact on an organizations profitability. Therefore, the managers of the particular banks will find out what resources and benefits are most desired by employees and lead to satisfaction and loyalty in that organization by considering on the five dimensions of organization climate of this research and hence make the employer to retain the talented employees. There is hardly possible for corporate researcher to do such study on organizational climate and its influence towards employee engagement in banking industry, so we decided to do such research in order to help the corporate researchers and higher education institution to have better understanding on it as well as serve as a base for the future research towards banking industry. Other than banking industry, it also helps to improve higher education institution interests and concern in employee engagement in other industry. Then, our research studied on employee engagement is also very significant for government that who act as a policy maker. It enables government to uses the research to as the guidelines to amend the policy if necessary to enhance the employee engagement in the banking industry. For example, the current compensation benefit is likely unfair to the employee. Therefore, the government could amend the current policy to be more better, which that the employee will feel more satisfy to it. Chapter Layout This paper is organized into 5 chapters namely introduction, literature review, research methodology, data analysis and discussions, conclusion and implication. Chapter 1: Introduction In this chapter, we will explain the background of our study and clarify the research problems. Then, we will outline our research objectives and questions that to be answer by our result of research. The significant of study explain who will be benefit after reading our project. Chapter 2: Literature Review This chapter aims to review the critical points of published and unpublished information on the basis of secondary data on the topic. A summary is a recap of the important information of the source in a clear and logical manner. The aid of theoretical framework and theoretical model will be discuss in this chapter, enables a more understandable problem in this research. Chapter 3: Methodology This chapter encompasses the process of data gathering procedures. This chapter also will discuss the sampling design, data collection methods, sampling design, operational definitions of constructs, measurements scales, and method of data analysis. Chapter 4: Data Analysis This chapter provides the understanding on how data is being analyzed and how the survey data relate to the research questions. This chapter provides the analysis of the related hypotheses. Chapter 5: Discussions, Conclusion and Implication This chapter provides the linkage of all chapters. Also there will be discussions, conclusion and implication of this study. This chapter also will cover the statistical analysis, discussion and limitation of the study. Finally, recommendations and conclusion will be done for the whole research project. 1.8 Conclusion In first chapter, we introduce our topic starting with research background, developed our research problem statements, objectives of our study and also the research question. From the information gathered, we developed the hypothesis of our study.

Successfully Teaching Mathematics Essay -- Teaching Education Philosop

Successfully Teaching Mathematics The classroom is a widely diverse environment with many topics to discuss, many discoveries to make, and many different ways to learn. This wide palette of knowledge potential is a blessing and a curse to teachers, challenging them to reach each mind, to convey to everyone an understanding of the world that will improve their lives. The ever-increasing importance of mathematics in the computer age draws attention to the methods with which we teach it. I think that the most successful tool that I might have to teach mathematics is the mastery learning method, because it allows students to move through the many facets of math with great understanding and confidence, allows heavy use of the powerful tools in computers, and ensures that no one lacks the skills necessary to live easily in today’s rapidly advancing intellectual world. As a student, I found that one of the biggest problems my peers encountered in math was that they had very little confidence in their skills, affecting their ability to learn more complex ideas. I also found tha...

Lincoln’s Second Inaugural Speech Essay

Abraham Lincoln begins his second inaugural speech on March 4, 1865, in which he addresses the nation on the ongoing civil war and his high hopes to unite the nation once again under God. Lincoln began his speech by saying that the war has taken so much time and energy out of the country and that there is no need to report on it. He declares himself an equal with the public and says he has also felt the wars effects. â€Å"The progress of our arms†¦is as well known to the public as to myself.† He states that he isn’t going to attempt to predict the war but he expresses his hopes for the future and encourages the public to be optimistic as well. Lincoln looks back four years prior to his first inaugural address. He says we were all awaiting a civil war but were hoping to stop it and save the Union. However, insurgent agents hoped to divide the Union. Lincoln says one party would make the war and the other would accept it. PARAPHRASE Today is the second time I am addressing the nation as your president. I no longer see the need to have a drawn out speech, rather I hope to eventually unite us as a country again and help rebuild our future. We all know how the war has played out and there is no reason for me to further discuss it. The war is coming to a close but the outcome is still a mystery. Today is a time to come together and look ahead towards our hopeful future as a nation. At this time, four years ago, all efforts were on controlling the oncoming civil war. The war seemed a necessity at the time in some American eyes and attempts to start a national tragedy were achieved without much hesitancy by opposing parties. No negotiations would resolve the issues so a civil war did come.

Ifrs Accounting Solution

Solutions to Problems and Exercises TABLE OF CONTENTS * Chapter 11 Concepts for Analysis 1-51 Concepts for Analysis 1-62 Concepts for Analysis 1-103 Concepts for Analysis 1-113 * Chapter 24 Brief Exercise 2-34 Brief Exercise 2-44 Brief Exercise 2-54 Exercise 2-35 * Chapter 36 Exercise 3-66 Exercise 3-96 Exercise 3-118 Exercise 3-1410 Exercise 3-1510 Exercise 3-1610 * chapter 412 Exercise 4-212 Exercise 4-413 Exercise 4-516 Exercise 4-1217 Exercise 4-1318 Exercise 4-1519 Problem 4-119 Problem 4-721 * Chapter 523 Exercise 5-223 Exercise 5-423 Exercise 5-1325Exercise 5-1525 Problem 5-227 * Chapter 729 Exercise 7-529 Exercise 7-730 Exercise 7-1330 Exercise 7-1531 Exercise 7-1631 Exercise 7-2432 Problem 7-834 Problem 7-1135 Problem 7-1536 * Chapter 838 Exercise 8-138 Exercise 8-1538 Exercise 8-2539 Exercise 8-2640 * chapter 942 Brief Exercise 9-242 Brief Exercise 9-442 Brief Exercise 9-742 Brief Exercise 9-843 Exercise 9-243 Exercise 9-744 Exercise 9-1245 Exercise 9-1446 Exercise 9-1947 P roblem 9-447 * Chapter 1849 Exercise 18-249 Exercise 18-450 Exercise 18-751 Exercise 18-1152 Exercise 18-1553 Exercise 18-1954Problem 18-755 Problem 18-857 * Chapter 2359 Exercise 23-159 Exercise 23-559 Exercise 23-660 Exercise 23-1160 CHAPTER 1 CA 1-5 (a)One of the committees that the AICPA established prior to the establishment of the FASB was the Committee on Accounting Procedures (CAP). The CAP, during its existence from 1939 to 1959, issued 51 Accounting Research Bulletins (ARB). In 1959, the AICPA created the Accounting Prin-ciples Board (APB) to replace the CAP. Before being replaced by the FASB, the APB released 31 official pronouncements, called APB Opinions. b)Although the ARBs issued by the CAP helped to narrow the range of alternative practices to some extent, the CAP’s problem-by-problem approach failed to provide the well-defined, structured body of accounting principles that was both needed and desired. As a result, the CAP was replaced by the APB. The APB had more authority and responsibility than did the CAP. Unfortunately, the APB was beleaguered throughout its 14-year existence. It came under fire early, charged with lack of productivity and failing to act promptly to correct alleged accounting abuses.The APB also met a lot of industry and CPA firm opposition and occasional governmental interference when tackling numerous thorny accounting issues. In fear of governmental rule making, the accounting profession investigated the ineffectiveness of the APB and replaced it with the FASB. Learning from prior experiences, the FASB has several significant differences from the APB. The FASB has: (1) smaller membership, (2) full-time, compensated membership, (3) greater autonomy, (4) increased independence, and (5) broader representation. In addition, the FASB has its own research taff and relies on the expertise of various task force groups formed for various projects. These features form the bases for the expectations of success and support f rom the public. In addition, the due process taken by the FASB in establishing financial accounting standards gives interested persons ample opportunity to make their views known. Thus, the FASB is responsive to the needs and viewpoints of the entire economic community, not just the public accounting profession. (c)The AICPA has supplemented the FASB’s efforts in the present standard-setting environment.The issue papers, which are prepared by the Accounting Standards Executive Committee (AcSEC), identify current financial reporting problems for specific industries and present alternative treat-ments of the issue. These papers provide the FASB with an early warning device to insure timely issuance of FASB standards, Interpretations, and Staff Positions. In situations where the FASB avoids the subject of an issue paper, AcSEC may issue a Statement of Position to provide guidance for the reporting issue. AcSEC also issues Practice Bulletins which indicate how the AICPA believes a given transaction should be reported.Recently, the role of the AICPA in standard-setting has diminished. The FASB and the AICPA agreed, that after a transition period, the AICPA and AcSEC no longer will issue authoritative accounting guidance for public companies. CA 1-6 (a)The Financial Accounting Foundation (FAF) is the sponsoring organization of the FASB. The FAF selects the members of the FASB and its Advisory Council, funds their activities, and generally oversees the FASB’s activities. The FASB follows a due process in establishing a typical FASB Statement of Financial Accounting Standards.The following steps are usually taken: (1) A topic or project is identified and placed on the Board’s agenda. (2) A task force of experts from various sectors is assembled to define problems, issues, and alternatives related to the topic. (3) Research and analysis are conducted by the FASB technical staff. (4) A preliminary views document is drafted and released. (5) A public hearing is often held, usually 60 days after the release of the preliminary views. (6) The Board analyzes and evaluates the public response. (7) The Board deliberates on the issues and prepares an exposure draft for release. 8) After a 30-day (minimum) exposure period for public comment, the Board evaluates all of the responses received. (9) A committee studies the exposure draft in relation to the public responses, reevaluates its position, and revises the draft if necessary. (10) The full Board gives the revised draft final consideration and votes on issuance of a Standards Statement. The passage of a new accounting standard in the form of an FASB Statement requires the support of five of the seven Board members. (b)The FASB issues three major types of pronouncements: Standards and Interpretations, Financial Accounting Concepts, and Technical Bulletins.Financial accounting standards issued by the FASB are considered GAAP. In addition, the FASB also issues interpretations that rep resent modifications or extensions of existing standards and APB Opinions. These interpretations have the same authority as standards and APB Opinions in guiding current accounting practices. The Statements of Financial Accounting Concepts (SFAC) help the FASB to avoid the â€Å"problem-by-problem approach. † These statements set forth fundamental objectives and concepts that the Board will use in developing future standards of financial accounting and reporting.They are intended to form a cohesive set of interrelated concepts, a body of theory or a conceptual framework, that will serve as tools for solving existing and emerging problems in a consistent, sound manner. The FASB may issue a technical bulletin when there is a need for guidelines on implementing or applying FASB Standards or Interpretations, APB Opinions, Accounting Research Bulletins, or emerging issues. A technical bulletin is issued only when (1) it is not expected to cause a major change in accounting practic e for a number of enterprises, (2) its cost of implementation is low, and (3) the guidance provided by the bulletin does ot conflict with any broad fundamental accounting principle. In addition, the FASB’s Emerging Issues Task Force (EITF) issues statements to provide guidance on how to account for new and unusual financial transactions that have the potential for creating diversity in reporting practices. The EITF identifies controversial accounting problems as they arise and determines whether they can be quickly resolved or whether the FASB should become involved in solving them. In essence, it becomes a â€Å"problem filter† for the FASB.Thus, it is hoped that the FASB will be able to work on more pervasive long-term problems, while the EITF deals with short-term emerging issues. CA 1-10 1. (b), (e) 2. (a) 3. (c) 4. (d) CA 1-11 1. (d) 2. (f) 3. (c) 4. (e) 5. (a) 6. (b) CHAPTER 2 BRIEF EXERCISE 2-3 (a)Equity (b)Revenues (c)Equity (d)Assets (e)Expenses (f)Losses (g)L iabilities (h)Distributions to owners (i)Gains (j)Investments by owners BRIEF EXERCISE 2-4 (a)Periodicity (b)Monetary unit (c)Going concern (d)Economic entity BRIEF EXERCISE 2-5 (a)Revenue recognition (b)Expense recognition (c)Full disclosure (d)Historical cost EXERCISE 2-3 (15–20 minutes) a)Gains, losses. (b)Liabilities. (c)Investments by owners, comprehensive income. (also possible would be revenues and gains). (d)Distributions to owners. (Note to instructor: net effect is to reduce equity and assets). (e)Comprehensive income. (also possible would be revenues and gains). (f)Assets. (g)Comprehensive income. (h)Revenues, expenses. (i)Equity. (j)Revenues. (k)Distributions to owners. (l)Comprehensive income. CHAPTER 3 EXERCISE 3-6 (10–15 minutes) 1. | Accounts Receivable| 750| | | Service Revenue| | 750| | | | | 2. | Utilities Expense| 520| | | Utilities Payable| | 520| | | | | 3. | Depreciation Expense| 400| | Accumulated Depreciation—Dental Equipment| | 400| | | | | | Interest Expense| 500| | | Interest Payable| | 500| | | | | 4. | Insurance Expense ($15,000 X 1/12)| 1,250| | | Prepaid Insurance| | 1,250| | | | | 5. | Supplies Expense ($1,600 – $400)| 1,200| | | Supplies| | 1,200| EXERCISE 3-9 (15–20 minutes) (a)| 10/15| Salaries Expense| 800| | | | Cash| | 800| | | (To record payment of October 15 payroll)| | | | | | | | | 10/17| Accounts Receivable| 2,100| | | | Service Revenue| | 2,100| | | (To record revenue for services performed for which payment has not yet been received)| | | | | | | | | 10/20| Cash| 650| | | Unearned Service Revenue| | 650| | | (To record receipt of cash for services not yet performed)| | | | | | | | (b)| 10/31| Supplies Expense| 470| | | | Supplies| | 470| | | (To record the use of supplies during October)| | | | | | | | | 10/31| Accounts Receivable| 1,650| | | | Service Revenue| | 1,650| | | (To record revenue for services performed for which payment has not yet been received)| | | | | | | | | 10/3 1| Salaries Expense| 600| | | | Salaries Payable| | 600| | | (To record liability for accrued payroll)| | | | | | | | | 10/31| Unearned Service Revenue| 400| | | | Service Revenue| | 400| | (To reduce the Unearned Service Revenue account for service that has been performed)| | | EXERCISE 3-11 (20–25 Minutes) (a)CAVAMANLIS CO. | Income Statement| For the Year Ended December 31, 2010| Revenues| | | Service revenue| | $12,590| Expenses| | | Salaries expense| $6,840| | Rent expense| 2,760| | Depreciation expense| 145| | Interest expense| 83| 9,828| Net Income| | $ 2,762| (b)CAVAMANLIS CO. | Statement of Retained Earnings| For the Year Ended December 31, 2010| Retained earnings, January 1| $11,310| Add: Net income| 2,762| Less: Dividends| 3,000| Retained earnings, December 31| $11,072| c)CAVAMANLIS CO. | Balance Sheet| December 31, 2010| Assets| | | Current Assets| | | Cash| $18,972| | Accounts receivable| 6,920| | Prepaid rent| 2,280| | Total current assets| | $28,172| Property, plant, and equipment| | | Equipment| 18,050| | Less: Accumulated depreciation| (4,895)| 13,155| Total assets| | $41,327| | | | Liabilities and Stockholders’ Equity| | | Current liabilities| | | Notes payable| | $ 5,700| Accounts payable| | 4,472| Interest payable| |   Ã‚  Ã‚  Ã‚  Ã‚   83| Total current liabilities| | 10,255| Stockholders’ equity| | | Common Stock| $20,000| | Retained Earnings| 11,072*| 31,072|Total liabilities and stockholders’ equity| | $41,327| *Beg. Balance + Net Income – Dividends = Ending Balance $11,310 + $2,762 – $3,000 = $11,072 EXERCISE 3-14 (10–15 minutes) Sales| 340,000| | Sales Returns and Allowances| | 13,000| Sales Discounts| | 8,000| Income Summary| | 319,000| | | | Income Summary| 302,000| | Cost of Goods Sold| | 202,000| Freight-out| | 7,000| Insurance Expense| | 12,000| Rent Expense| | 20,000| Salary Expense| | 61,000| | | | Income Summary| 17,000| | Retained Earnings| | 17,000| EXERCISE 3-15 (10–1 5 minutes) (a) $5,000 ($90,000 – $85,000)(d) $95,000 ($5,000 + $90,000) b) $29,000 ($85,000 – $56,000)(e) $52,000 ($90,000 – $38,000) (c) $14,000 ($29,000 – $15,000) EXERCISE 3-16 (10–15 minutes) Sales| 390,000| | Cost of Goods Sold| | 235,700| Sales Returns and Allowances| | 12,000| Sales Discounts| | 15,000| Selling Expenses| | 16,000| Administrative Expenses| | 38,000| Income Tax Expense| | 30,000| Income Summary| | 43,300| | | | (or)| | | | | | Sales| 390,000| | Income Summary| | 390,000| | | | Income Summary| 346,700| | Cost of Goods Sold| | 235,700| Sales Returns and Allowances| | 12,000| Sales Discounts| | 15,000| Selling Expenses| | 16,000| Administrative Expenses| | 38,000|Income Tax Expense| | 30,000| | | | Income Summary| 43,300| | Retained Earnings| | 43,300| | | | Retained Earnings| 18,000| | Dividends| | 18,000| CHAPTER 4 EXERCISE 4-2 (25–35 minutes) (a)| Total net revenue:| | | | | Sales| | | $400,000| | Less: Sales discounts| | $ 7,800| | | Sales returns| | 12,400| 20,200| | Net sales| | | 379,800| | Dividend revenue| | | 71,000| | Rental revenue| | | 6,500| | Total net revenue| | | $457,300| | | | | | (b)| Net income:| | | | | Total net revenue (from a)| | | $457,300| | Expenses:| | | | | Cost of goods sold| | $184,400| | | Selling expenses| | 99,400| | Administrative expenses| | 82,500| | | Interest expense| | 12,700| | | Total expenses| | | 379,000| | Income before income tax| | | 78,300| | Income tax| | | 26,600| | Net income| | | $ 51,700| (c)| Dividends declared:| | | | | Ending retained earnings| | | $134,000| | Beginning retained earnings| | | 114,400| | Net increase| | | 19,600| | Less: Net income (from (b))| | | 51,700| | Dividends declared| | | $ 32,100| ALTERNATE SOLUTION (for (c)) | Beginning retained earnings| | | $114,400| | Add: Net income| | | 51,700| | | | | 166,100| Less: Dividends declared| | | ? | | Ending retained earnings| | | $134,000| | | | | | | Dividends declared must be $32,1 00| | | | ($166,100 – $134,000)| | | | EXERCISE 4-4 (30–35 minutes) (a)Multiple-Step Form| WEBSTER COMPANY| Income Statement| For the Year Ended December 31, 2010| (In thousands, except earnings per share)| Sales| | | $96,500| Cost of goods sold| | | 63,570| Gross profit| | | 32,930| | | | | Operating Expenses| | | | Selling expenses| | | | Sales commissions| $7,980| | | Depr. of sales equipment| 6,480| | | Transportation-out| 2,690| $17,150| | Administrative expenses| | | |Officers’ salaries| 4,900| | | Depr. of office furn. and equip. | 3,960| 8,860| 26,010| Income from operations| | | 6,920| | | | | Other Revenues and Gains| | | | Rental revenue| | | 17,230| | | | 24,150| Other Expenses and Losses| | | | Interest expense| | | 1,860| | | | | Income before income tax| | | 22,290| Income tax| | | 7,580| Net income| | | $14,710| | | | | Earnings per share ($14,710 ? 40,550)| | | $. 36| (b)Single-Step Form| WEBSTER COMPANY| Income Statement| For the Year Ended Dec ember 31, 2010| (In thousands, except earnings per share)| Revenues| | | | Sales| | | $ 96,500|Rental revenue| | | 17,230| Total revenues| | | 113,730| | | | | Expenses| | | | Cost of goods sold| | | 63,570| Selling expenses| | | 17,150| Administrative expenses| | | 8,860| Interest expense| | | 1,860| Total expenses| | | 91,440| | | | | Income before income tax| | | 22,290| Income tax| | | 7,580| Net income| | | $ 14,710| | | | | Earnings per share| | | $0. 36| Note: An alternative income statement format for the single-step form is to show income tax as part of expenses, and not as a separate item. (c)Single-step: 1. Simplicity and conciseness. 2. Probably better understood by users. . Emphasis on total costs and expenses and net income. 4. Does not imply priority of one revenue or expense over another. Multiple-step: 1. Provides more information through segregation of operating and nonoperating items. 2. Expenses are matched with related revenue. Note to instructor: Studentsâ€⠄¢ answers will vary due to the nature of the question; i. e. , it asks for an opinion. However, the discussion supporting the answer should include the above points. EXERCISE 4-5 (30–35 minutes) PARNEVIK CORP. | Income Statement| For the Year Ended December 31, 2010| Sales Revenue| | | Sales| | $1,280,000|Less: Sales returns and allowances| $150,000| | Sales discounts| 45,000| 195,000| Net sales revenue| | 1,085,000| Cost of goods sold| | 621,000| Gross profit| | 464,000| | | | Operating Expenses| | | Selling expenses| 194,000| | Admin. and general expenses| 97,000| 291,000| Income from operations| | 173,000| Other Revenues and Gains| | | Interest revenue| | 86,000| | | 259,000| Other Expenses and Losses| | | Interest expense| | 60,000| | | | Income before tax and extraordinary item| | 199,000| Income tax ($199,000 X . 34)| | 67,660| Income before extraordinary item| | 131,340|Extraordinary item—loss from earthquake damage| 120,000| | Less: Applicable tax reduction ($ 120,000 X . 34)| 40,800| 79,200| Net income| | $ 52,140| Per share of common stock:| | | Income before extraordinary item ? ($131,340 ? 100,000)| | $1. 31*| Extraordinary item (net of tax)| | (0. 79)| Net income ($52,140 ? 100,000)| | $0. 52| *Rounded EXERCISE 4-12 (15–20 minutes) Net income:| | | Income from continuing operations before income tax| | $21,650,000| Income tax (35% X $21,650,000)| | 7,577,500| Income from continuing operations| | 14,072,500| Discontinued operations| | |Loss before income tax| $3,225,000| | Less: Applicable income tax (35%)| 1,128,750| 2,096,250| Net income| | $11,976,250| | | | Preferred dividends declared:| | $ 860,000| | | | Weighted average common shares outstanding| | 4,000,000| | | | Earnings per share| | | Income from continuing operations| | $3. 30*| Discontinued operations, net of tax| | (0. 52)**| Net income| | $2. 78***| *($14,072,500 – $860,000) ? 4,000,000. (Rounded) **$2,096,250 ? 4,000,000. (Rounded) ***($11,976,250  œ $860,000) ? 4,000,000. EXERCISE 4-13 (15–20 minutes) (a) 2010 Income before income tax$460,000Income tax (35%) 161,000 Net Income$299,000 (b)Cumulative effect for years prior to 2010: Year| Weighted Average  | FIFO| Difference| Tax Rate (35%)   | Net Effect| 2008| $370,000| $395,000| $25,000| | | 2009| 390,000| 420,000| 30,000| | | | | Total| $55,000| $19,250| $35,750| (c)| |   Ã‚  Ã‚   2010  Ã‚     |   Ã‚  Ã‚   2009  Ã‚     |   Ã‚     2008  Ã‚     | | Income before income tax| $460,000| $420,000| $395,000| | Income tax (35%)| 161,000| 147,000| 138,250| | Net income| $299,000| $273,000| $256,750| EXERCISE 4-15 (15–20 minutes) BRYANT CO. | Statement of Stockholders’ Equity| For the Year Ended December 31, 2010| | Total| |Compre-hensive Income| | Retained Earnings| | Accumulated Other Comprehensive Income| | Common Stock| Beginning balance| $520,000| | | | $ 90,000| | $80,000| | $350,000| Comprehensive income| | | | | | | | | | Net income *| 170,000| | $170,000| | 170,000| | | | | Other comprehensive income| | | | | | | | | | Unrealized holding loss| (50,000)| | (50,000)| | | | (50,000)| | | Comprehensive income| | | $120,000| | | | | | | Dividends| (10,000)| | | | (10,000)| |   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  | |   Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  | Ending balance| $630,000| | | | $250,000| | $30,000| | $350,000| *($750,000 – $500,000 – $80,000).SOLUTIONS TO PROBLEMS | PROBLEM 4-1| | DICKINSON COMPANY| Income Statement| For the Year Ended December 31, 2010| Sales| | $25,000,000| Cost of goods sold| | 16,000,000| Gross profit| | 9,000,000| Selling and administrative expenses| | 4,700,000| Income from operations| | 4,300,000| Other revenues and gains| | | Interest revenue| $ 70,000| | Gain on the sale of investments| 110,000| 180,000| Other expenses and losses| | | Write-off of goodwill| | 820,000| Income from continuing operations before income tax| | 3,660,000| Income ta x| | 1,244,000| Income from continuing operations| | 2,416,000|Discontinued operations| | | Loss on operations, net of tax| 90,000| | Loss on disposal, net of tax| 440,000| 530,000| Income before extraordinary item| | 1,886,000| Extraordinary item—loss from flood damage, net of tax| | 390,000| Net income| | $ 1,496,000| Earnings per share:| | | | Income from continuing operations| | $ 4. 67a| Discontinued operations| | | Loss on operations, net of tax| $(0. 18)| | Loss on disposal, net of tax| (0. 88)| (1. 06)| Income before extraordinary item| | 3. 61b| Extraordinary loss, net of tax| | | (0. 78)| Net income| | | $ 2. 83c| DICKINSON COMPANY|Retained Earnings Statement| For the Year Ended December 31, 2010| Retained earnings, January 1| | $ 980,000| Add: Net income| | 1,496,000| | | 2,476,000| Less: Dividends| | | Preferred stock| $ 80,000| | Common stock| 250,000| 330,000| Retained earnings, December 31| | $ 2,146,000| a$2,416,000 – $80,000| =| $4. 67| 500,000 shares| | | | | | b$1,886,000 – $80,000| =| $3. 61| 500,000 shares| | | | | | c$1,496,000 – $80,000| =| $2. 83| 500,000 shares| | | | PROBLEM 4-7| | WADE CORP. | Income Statement (Partial)| For the Year Ended December 31, 2010| Income from continuing operations before income tax| | $1,200,000*| Income tax| | | 456,000**| Income from continuing operations| | | 744,000| Discontinued operations| | | | Loss from operations of discontinued subsidiary| $ 90,000| | | Less: Applicable income tax reduction| 34,200| $ 55,800| | Loss from disposal of subsidiary| 100,000| | | Less: Applicable income tax reduction| 38,000| 62,000| 117,800| Income before extraordinary item| | | 626,200| Extraordinary item:| | | | Gain on condemnation| | 125,000| | Less: Applicable income tax| | 50,000| 75,000| Net income| | | $ 701,200| | | | | Per share of common stock:| | | |Income from continuing operations| | | $4. 96| Discontinued operations, net of tax| | | (0. 79)| Income before extraordinary item| | | 4. 17| Extraordinary item, net of tax| | | 0. 50| Net income ($701,200 ? 150,000)| | | $4. 67| *Computation of income from continuing operations before income tax:| | As previously stated| | | $1,210,000| Loss on sale of equipment [$40,000 – ($80,000 – $30,000)]| (10,000)| Restated| | | $1,200,000| | | | | **Computation of income tax expense:| | | $1,200,000 X . 38 = $456,000| | | | Note: The error related to the intangible asset was correctly charged to retained earnings.CHAPTER 5 EXERCISE 5-2 (15–20 minutes) 1. | h. | 11. | b. | 2. | d. | 12. | f. | 3. | f. | 13. | a. | 4. | f. | 14. | h. | 5| c. | 15. | c. | 6. | a. | 16. | b. | 7. | f. | 17. | a. | 8. | g. | 18. | a. | 9. | a. | 19. | g. | 10. | a. | 20. | f. | EXERCISE 5-4 (30–35 minutes) GULISTAN INC. | Balance Sheet| December 31, 2010| Assets| Current assets| | | | Cash| $XXX| | | Less: Cash restricted for plant expansion| XXX| $XXX| | Accounts receivable| XXX| | | Less: Allowance for doubtful accounts| XXX| XXX| | Notes receivable| | XXX| | Receivables—officers| | XXX| | Inventories| | | | Finished goods| XXX| | |Work in process| XXX| | | Raw materials| XXX| XXX| | Total current assets| | | $XXX| | | | | Long-term investments| | | | Preferred stock investments| | XXX| | Land held for future plant site| | XXX| | Cash restricted for plant expansion| | XXX| | Total long-term investments| | | XXX| | | | | Property, plant, and equipment| | | | Buildings| | XXX| | Less: Accum. depreciation— buildings| | XXX| XXX| | | | | Intangible assets| | | | Copyrights| | | XXX| Total assets| | | $XXX| Liabilities and Stockholders’ Equity| Current liabilities| | | | | Accrued salaries payable| | $XXX| | |Notes payable, short-term| | XXX| | | Unearned subscriptions revenue| | XXX| | | Unearned rent revenue| | XXX| | | Total current liabilities| | | | $XXX| | | | | | Long-term debt| | | | | Bonds payable, due in four years| | | $XXX| | Less: Discount on bonds payable| | | (XXX)| XXX| Total liabilities| | | | XXX| | | | | | Stockholders’ equity| | | | | Capital stock:| | | | | Common stock| | XXX| | | Additional paid-in capital:| | | | | Paid in capital in excess of par—common stock| | XXX| | | Total paid-in capital| | | XXX| | Retained earnings| | | XXX| |Total paid-in capital and retained earnings| | | XXX| | Less: Treasury stock, at cost| | | (XXX)| | Total stockholders’ equity| | | | XXX| Total liabilities and stock- holders’ equity| | | | $XXX| Note to instructor: An assumption made here is that cash included the cash restricted for plant expansion. If it did not, then a subtraction from cash would not be necessary or the cash balance would be â€Å"grossed up† and then the cash restricted for plant expansion deducted. EXERCISE 5-13 (15–20 minutes) (a)| 4. | (f)| 1. | (k)| 1. | (b)| 3. | (g)| 5. | (l)| 2. | (c)| 4. | (h)| 4. (m)| 2. | (d)| 3. | (i)| 5. | | | (e)| 1. | (j)| 4. | | | EXERCISE 5-15 (25â₠¬â€œ35 minutes) (a)SONDERGAARD CORPORATION| Statement of Cash Flows| For the Year Ended December 31, 2010| Cash flows from operating activities| | | Net income| | $160,000| Adjustments to reconcile net income| | | to net cash provided by operating | | | activities:| | | Depreciation expense| $17,000| | Loss on sale of investments| 7,000| | Decrease in accounts receivable| 5,000| | Decrease in current liabilities| (17,000)| 12,000| Net cash provided by operating activities| | 172,000| Cash flows from investing activities| | |Sale of investments| | | [($74,000 – $52,000) – $7,000]| 15,000| | Purchase of equipment| (58,000)| | Net cash used by investing activities| | (43,000)| Cash flows from financing activities| | | Payment of cash dividends| | (50,000)| Net increase in cash| | 79,000| Cash at beginning of year| | 78,000| Cash at end of year| | $157,000| (b)Free Cash Flow Analysis| Net cash provided by operating activities| | $172,000| Less: Purchase of equipment| | (58 ,000)| Dividends| | (50,000)| Free cash flow| | $ 64,000| | PROBLEM 5-2| | MONTOYA, INC. | Balance Sheet| December 31, 2010|Assets| Current assets| | | | Cash| | $ 360,000| | Trading securities| | 121,000| | Notes receivable| | 445,700| | Income taxes receivable| | 97,630| | Inventories| | 239,800| | Prepaid expenses| | 87,920| | Total current assets| | | $1,352,050| | | | | Property, plant, and equipment| | | | Land| | $ 480,000| | Building| $1,640,000| | | Less: Accum. depreciation— building| 270,200| 1,369,800| | Equipment| 1,470,000| | | Less: Accum. depreciation— equipment| 292,000| 1,178,000| 3,027,800| | | | | Intangible assets| | | | Goodwill| | | 125,000| Total assets| | | $4,504,850|Liabilities and Stockholders’ Equity| Current liabilities| | | | Accounts payable| | $ 490,000| | Notes payable to banks| | 265,000| | Payroll taxes payable| | 177,591| | Taxes payable| | 98,362| | Rent payable| | 45,000| | Total current liabilities| | | $1,075,953| | | | | Long-term liabilities| | | | Unsecured notes payable| | | | (long-term)| | $1,600,000| | Bonds payable| $300,000| | | Less:Discount on bonds payable| 15,000| 285,000| | Long-term rental obligations| | 480,000| 2,365,000| Total liabilities| | | 3,440,953| | | | | Stockholders’ equity| | | | Capital stock| | | |Preferred stock, $10 par; 20,000 shares authorized, 15,000 shares issued| $150,000| | | Common stock, $1 par; 400,000 shares authorized, 200,000 issued| 200,000| $350,000| | Retained earnings ($1,063,897 – $350,000)| | 713,897| | Total stockholders’ equity ($4,504,850 – $3,440,953)| | | 1,063,897| Total liabilities and stockholders’ equity| | | $4,504,850| CHAPTER 7 EXERCISE 7-5 (15–20 minutes) (a)| 1. | June 3| Accounts Receivable—Arquette| 2,000| | | | | Sales| | 2,000| | | | | | | | | June 12| Cash| 1,960| | | | | Sales Discounts ($2,000 X 2%)| 40| | | | | Accounts Receivable—Arquette| | 2,000| | | | | | | 2. | June 3| Accounts Receivable—Arquette| 1,960| | | | | Sales ($2,000 X 98%)| | 1,960| | | | | | | | | June 12| Cash| 1,960| | | | | Accounts Receivable—Arquette| | 1,960| (b)| July 29| Cash| 2,000| | | | Accounts Receivable—Arquette| | 1,960| | | Sales Discounts Forfeited| | 40| | | | | | | (Note to instructor: Sales discounts forfeited could have been recog-nized at the time the discount period lapsed. The company, however, would probably not record this forfeiture until final cash settlement. )| EXERCISE 7-7 (10–15 minutes) (a)| Bad Debt Expense| 7,500| | | Allowance for Doubtful Accounts| | 7,500*| | | | | . 01 X ($800,000 – $50,000) = $7,500| | | | | | | (b)| Bad Debt Expense| 6,000| | | Allowance for Doubtful Accounts| | 6,000*| | | | | *Step 1:. 05 X $160,000 = $8,000 (desired credit balance in Allowance account) Step 2:$8,000 – $2,000 = $6,000 (required credit entry to bring allowance account to $8,000 credit balance) EXERCISE 7-13 (10– 15 minutes) (a)| Cash| 290,000| | | Finance Charge| 10,000*| | | Notes Payable| | 300,000| | | | | *2% X $500,000 = $10,000| | | | | | | (b)| Cash| 350,000| | | Accounts Receivable| | 350,000| EXERCISE 7-13 (Continued) (c)| Notes Payable| 300,000| | | Interest Expense| 7,500*| | Cash| | 307,500| | | | | *10% X $300,000 X 3/12 = $7,500| | | EXERCISE 7-15 (10–15 minutes) Computation of net proceeds:| Cash received| | $190,000| Less: Recourse liability| | 2,000| Net proceeds| | $188,000| Computation of gain or loss:| Carrying value| | $200,000| Net proceeds| | 188,000| Loss on sale of receivables| | $ 12,000| The following journal entry would be made:| Cash| $190,000| | Loss on Sale of Receivables| 12,000| | Recourse Liability| | 2,000| Accounts Receivable| | 200,000| EXERCISE 7-16 (15–20 minutes) (a)| To be recorded as a sale, all of the following conditions would be met:| | | | 1. The transferred asset has been isolated from the transferor (put beyond reach of the trans feror and its creditors). | | | | | 2. | The transferees have obtained the right to pledge or to exchange either the transferred assets or beneficial interests in the trans-ferred assets. | | | | | 3. | The transferor does not maintain effective control over the trans-ferred assets through an agreement to repurchase or redeem them before their maturity. | (b)| Computation of net proceeds:| | Cash received ($250,000 X 94%)| $235,000| | | Due from factor ($250,000 X 4%)| 10,000| $245,000| | Less: Recourse obligation| | 3,000| Net proceeds| | $242,000| | Computation of gain or loss:| | Carrying value| | $250,000| | Net proceeds| | 242,000| | Loss on sale of receivables| | $ 8,000| | The following journal entry would be made:| | Cash| $235,000| | | Due from Factor| 10,000| | | Loss on Sale of Receivables| 8,000| | | Recourse Liability| | 3,000| | Accounts Receivable| | 250,000| *EXERCISE 7-24 (15–20 minutes) (a)KIPLING COMPANY| Bank Reconciliation | July 31| Balance per bank stat ement, July 31| | $ 8,650| Add: Deposits in transit| | 2,850a| Deduct: Outstanding checks| | (1,100)b| Correct cash balance, July 31| | $10,400| | | Balance per books, July 31| | $ 9,250| Add: Collection of note| | 1,500| Less: Bank service charge| $ 15| | NSF check| 335| (350)| Corrected cash balance, July 31| | $10,400| aComputation of deposits in transit| | | Deposits per books| | $5,810| Deposits per bank in July| $ 4,500| | Less deposits in transit (June)|   (1,540)| | Deposits mailed and received in July| | (2,960)| Deposits in transit, July 31| | $2,850| bComputation of outstanding checks| | | Checks written per books| | $3,100| Checks cleared by bank in July| $ 4,000| | Less outstanding checks (June)*| (2,000)| |Checks written and cleared in July| | (2,000)| Outstanding checks, July 31| | $1,100| *Assumed to clear bank in July (b)| Cash| 1,150| | | Office Expenses—Bank Charges| 15| | | Accounts Receivable| 335| | | Notes Receivable| | 1,500| | PROBLEM 7-8| | 10/1/10 | Notes Receivable| 120,000| | | Sales| | 120,000| | | | | 12/31/10| Interest Receivable| 2,400*| | | Interest Revenue| | 2,400| | | | | *$120,000 X . 08 X 3/12 = $2,400| | | | | | 10/1/11| Cash| 9,600*| | | Interest Receivable| | 2,400| | Interest Revenue| | 7,200**| | | | | *$120,000 X . 08 = $9,600**$120,000 X . 08 X 9/12 = $7,200| | | | | | 2/31/11| Interest Receivable| 2,400| | | Interest Revenue| | 2,400| | | | | 10/1/12| Cash| 9,600| | | Interest Receivable| | 2,400| | Interest Revenue| | 7,200| | | | | | Cash| 120,000| | | Notes Receivable| | 120,000| Note: Entries at 10/1/11 and 10/1/12 assumes reversing entries were not made on January 1, 2011 and January 1, 2012. | PROBLEM 7-11| | SANDBURG COMPANY| Income Statement Effects| For the Year Ended December 31, 2010| Expenses resulting from accounts receivable| | | | | assigned (Schedule 1)| | | | $22,320| Loss resulting from accounts receivable| | | | | sold ($300,000 – $270,000)| | | | 30,000|Total expenses| | | | $52, 320| Schedule 1 Computation of Expense| for Accounts Receivable Assigned| Assignment expense:| | | | | Accounts receivable assigned| | $400,000| | | | | X 80%| | | Advance by Keller Finance Company| | 320,000| | | | | X 3%| | $ 9,600| Interest expense| | | | 12,720| Total expenses| | | | $22,320| | *PROBLEM 7-15| | (a)The entries for the issuance of the note on January 1, 2010: The present value of the note is: $1,200,000 X . 68058 = $816,700 (Rounded by $4). | Botosan Company (Debtor):| | | | Cash| 816,700| | | Discount on Notes Payable| 383,300| | | Note Payable| | 1,200,000| | | | | National Organization Bank (Creditor):| | | | Notes Receivable| 1,200,000| | | Discount on Notes Receivable| | 383,300| | Cash| | 816,700| (b)The amortization schedule for this note is: SCHEDULE FOR INTEREST AND DISCOUNT AMORTIZATION— EFFECTIVE-INTEREST METHOD $1,200,000 Note Issued to Yield 8% Date| | Cash Paid| | Interest Expense| | Discount Amortized| | Carrying Amount of Note| 1/1/10| | | | | | | | $ 816,700| 12/31/10| | $0| | $ 65,336*| | $ 65,336| | 882,036**| 12/31/11| | 0| | 70,563| | 70,563| | 952,599| 12/31/12| | 0| | 76,208| | 76,208| | 1,028,807| 12/31/13| | 0| | 82,305| | 82,305| | 1,111,112| 2/31/14| | 0| | 88,888| | 88,888| | 1,200,000| Total| | $0| | $383,300| | $383,300| | | *$816,700 X 8% = $65,336. **$816,700 + $65,336 = $882,036. (c)The note can be considered to be impaired only when it is probable that, based on current information and events, National Organization Bank will be unable to collect all amounts due (both principal and interest) according to the contractual terms of the loan. (d)| The loss is computed as follows:| | | | Carrying amount of loan (12/31/11)| | $952,599a| | Less: Present value of $800,000 due in 3 years at 8%| |   (635,064)b| | Loss due to impairment| | $317,535| | | | | aSee amortization schedule from answer (b) on page 7-66. | | | b$800,000 X . 79383 = $635,064. | | | | December 31, 2011| | National Organization Bank (Cred itor):| | | | Bad Debt Expense| 317,535| | | Allowance for Doubtful Accounts| | 317,535| Note: Botosan Company (Debtor) has no entry. CHAPTER 8 EXERCISE 8-1 (15–20 minutes) Items 2, 3, 5, 8, 10, 13, 14, 16, and 17 would be reported as inventory in the financial statements. The following items would not be reported as inventory: 1. Cost of goods sold in the income statement. 4. Not reported in the financial statements. 6. Cost of goods sold in the income statement. . Cost of goods sold in the income statement. 9. Interest expense in the income statement. 11. Advertising expense in the income statement. 12. Office supplies in the current assets section of the balance sheet. 15. Not reported in the financial statements. 18. Short-term investments in the current asset section of the balance sheet. EXERCISE 8-15 (15–20 minutes) (a)ESPLANADE COMPANY| Computation of Inventory for Product| BAP Under FIFO Inventory Method| March 31, 2010| | Units| | Unit Cost| | Total Cost| Mar ch 26, 2010| 600| | $12. 00| | $ 7,200| February 16, 2010| 800| | 11. 00| | 8,800|January 25, 2010 (portion)| 100| | 10. 00| | 1,000| March 31, 2010, inventory | 1,500| | | | $17,000| (b)ESPLANADE COMPANY| Computation of Inventory for Product| BAP Under LIFO Inventory Method| March 31, 2010| | Units| | Unit Cost| | Total Cost| Beginning inventory| 600| | $8. 00| | $ 4,800| January 5, 2010 (portion)| 900| | 9. 00| | 8,100| March 31, 2010, inventory| 1,500| | | | $12,900| (c)ESPLANADE COMPANY| Computation of Inventory for Product| BAP Under Weighted Average Inventory Method| March 31, 2010| | Units| | Unit Cost| | Total Cost| Beginning inventory| 600| | $ 8. 0| | $ 4,800| January 5, 2010| 1,100| | 9. 00| | 9,900| January 25, 2010| 1,300| | 10. 00| | 13,000| February 16, 2010| 800| | 11. 00| | 8,800| March 26, 2010| 600| | 12. 00| | 7,200| | 4,400| | | | $43,700| | | | | | | Weighted average cost| | | | | | ($43,700 ? 4,400)| | | $ 9. 93*| | | | | | | | | March 31, 2010, inventory| 1,5 00| | $ 9. 93| | $14,895| *Rounded off. EXERCISE 8-25 (20–25 minutes) | Current $| | Price Index| | Base Year $| | Change from Prior Year| 2007| $ 80,000| | 1. 00| | $ 80,000| | —| 2008| 111,300| | 1. 05| | 106,000| | +$26,000| 2009| 108,000| | 1. 0| | 90,000| | (16,000)| 2010| 122,200| | 1. 30| | 94,000| | +4,000| 2011| 147,000| | 1. 40| | 105,000| | +11,000| 2012| 176,900| | 1. 45| | 122,000| | +17,000| Ending Inventory—Dollar-value LIFO: 2007| $80,000| | | 2011| $80,000 @ 1. 00 =| $ 80,000| | | | | | 10,000 @ 1. 05 = | 10,500| 2008| $80,000 @ 1. 00 =| $ 80,000| | | 4,000 @ 1. 30 =| 5,200| | 26,000 @ 1. 05 =| 27,300| | | 11,000 @ 1. 40 = | 15,400| | | $107,300| | | | $111,100| | | | | | | | 2009| $80,000 @ 1. 00 =| $ 80,000| | 2012| $80,000 @ 1. 00 =| $ 80,000| | 10,000 @ 1. 05 =| 10,500| | | 10,000 @ 1. 5 =| 10,500| | | $ 90,500| | | 4,000 @ 1. 30 =| 5,200| | | | | | 11,000 @ 1. 40 =| 15,400| 2010| $80,000 @ 1. 00 =| $ 80,000| | | 17,000 @ 1. 45 =| 24,650| | 10,000 @ 1. 05 =| 10,500| | | | $135,750| | 4,000 @ 1. 30 =| 5,200| | | | | | | $ 95,700| | | | | EXERCISE 8-26 (15–20 minutes) Date| | Current $| | Price Index| | Base-Year $| | Change from Prior Year| Dec. 31, 2007| | $ 70,000| | 1. 00| | $70,000| | —| Dec. 31, 2008| | 88,200| | 1. 05| | 84,000| | +$14,000| Dec. 31, 2009| | 95,120| | 1. 16| | 82,000| | (2,000)| Dec. 31, 2010| | 108,000| | 1. 0| | 90,000| | +8,000| Dec. 31, 2011| | 100,000| | 1. 25| | 80,000| | (10,000)| Ending Inventory—Dollar-value LIFO: Dec. 31, 2007| $70,000| | | | | Dec. 31, 2008| $70,000 @ 1. 00 =| $70,000| | 14,000 @ 1. 05 =| 14,700| | | $84,700| | | | Dec. 31, 2009| $70,000 @ 1. 00 =| $70,000| | 12,000 @ 1. 05 =| 12,600| | | $82,600| | | | Dec. 31, 2010| $70,000 @ 1. 00 =| $70,000| | 12,000 @ 1. 05 =| 12,600| | 8,000 @ 1. 20 =| 9,600| | | $92,200| | | | Dec. 31, 2011| $70,000 @ 1. 00 =| $70,000| | 10,000 @ 1. 05 =| 10,500| | | $80,500| CHAPTER 9 BRIEF EXERCISE 9-2 Item| | Cost| | Design ated Market| |LCM| Jokers| | $2,000| | $2,050| | $2,000| Penguins| | 5,000| | 4,950| | 4,950| Riddlers| | 4,400| | 4,550| | 4,400| Scarecrows| | 3,200| | 3,070| | 3,070| BRIEF EXERCISE 9-4 Group| | Number of CDs| | Sales Price per CD| | Total Sales Price| | Relative Sales Price| | Total Cost| | Cost Allocated to CDs| | Cost per CD| 1| | 100| | $ 5| | $ 500| | 5/100*| X| $8,000| =| $ 400| | $ 4**| 2| | 800| | $10| | 8,000| | 80/100| X| $8,000| =| 6,400| | $ 8| 3| | 100| | $15| | 1,500| | 15/100| X| $8,000| =| 1,200| | $12| | | | | | | $10,000| | | | | | $8,000| | | $500/$10,000 = 5/100**$400/100 = $4 BRIEF EXERCISE 9-7 Beginning inventory| | $150,000| Purchases| | 500,000| Cost of goods available| | 650,000| Sales| $700,000| | Less gross profit (35% X 700,000)| 245,000| | Estimated cost of goods sold| | 455,000| Estimated ending inventory destroyed in fire| | $195,000| BRIEF EXERCISE 9-8 | Cost| | Retail| Beginning inventory| $ 12,000| | $ 20,000| Net purchases| 120,000| | 170,000| N et markups|   | | 10,000| Totals| $132,000| | 200,000| Deduct:| | | | Net markdowns| | | 7,000| Sales| | | 147,000| Ending inventory at retail| | | $ 46,000| | | | |Cost-to-retail ratio: $132,000 ? $200,000 = 66%| | | | Ending inventory at lower-of cost-or-market (66% X $46,000) = $30,360 EXERCISE 9-2 (10–15 minutes) Item| | Net Realizable Value (Ceiling)| | Net Realizable Value Less Normal Profit (Floor)| | Replacement Cost| | Designated Market| | Cost| | LCM| D| | $90*| | $70**| | $120| | $90| | $75| | $75| E| | 80| | 60| | 72| | 72| | 80| | 72| F| | 60| | 40| | 70| | 60| | 80| | 60| G| | 55| | 35| | 30| | 35| | 80| | 35| H| | 80| | 60| | 70| | 70| | 50| | 50| I| | 60| | 40| | 30| | 40| | 36| | 36| | | | | | | | | | | | | | Estimated selling price – Estimated selling expense = $120 – $30 = $90. **Net realizable value – Normal profit margin = $90 – $20 = $70. EXERCISE 9-7 (15–20 minutes) Cost Per Lot (Cost Allocated/ No. of Lots)| $2,040| 2,720| 1,360| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cost Allocated to Lots| $18,360| 40,800| 25,840| $85,000| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Cost| $85,000| 85,000| 85,000| | | | | | | | | | | | | | | | | | | | X| X| X| | | | | | | | | | | | | | | | | | |Relative Sales Price| $27,000/$125,000| $60,000/$125,000| $38,000/$125,000| | | $78,000| 53,040| 24,960| 18,200| $ 6,760| | | Gross Profit| $ 3,840| 10,240| 10,880| $24,960| | | | | | | | | | | | | | | | | | | | | | | | | | | Total Sales Price| $ 27,000| 60,000| 38,000| $125,000| | Sales (see schedule)| Cost of goods sold (see schedule)| Gross profit| Operating expenses| Net income| | | Sales| $12,000| 32,000| 34,000| $78,000| | | | | | | | | | | | | | | | | | | | | | | | | | | SalesPrice Per Lot| $3,000| 4,000| 2,000| | | | | | | | | | Cost Cost of Per Lots Lot Sold| $2,040 $ 8,160| 2,720 21,760| 1,360 23,120| $53,040| | | | | | | | | | | | | | | | | | | | | | | | | | | No. of Lots| 9| 15| 19| | | | | | | | | | Number of Lots Sold*| 4| 8| 17| 29| | * 9 – 5 = 4| 15 – 7 = 8| 19 – 2 = 17| | | | | | | | | | | | | | | | | | | | | | | | Group 1| Group 2| Group 3| | | | | | | | | | | Group 1| Group 2| Group 3| Total| | | | | EXERCISE 9-12 (10–15 minutes) a)| Inventory, May 1 (at cost)| | $160,000| | Purchases (at cost)| | 640,000| | Purchase discounts| | (12,000)| | Freight-in| | 30,000| | Goods available (at cost)| | 818,000| | Sales (at selling price)| $1,000,000| | | Sales returns (at selling price)| (70,000)| | | Net sales (at selling price)| 930,000| | | Less: Gross profit (25% of $930,000)| 232,500| | | Sales (at cost)| | 697,500| | Approximate inventory, May 31 (at cost)| | $120,500| (b)Gross profit as a percent of sales must be computed: | 25%| = 20% of sales. | | 100% + 25%| | | Inventory, May 1 (at cost)| | $160,000| Purchases (at cost)| | 640,000| | Purchase discounts| | (12,000)| | F reight-in| | 30,000| | Goods available (at cost)| | 818,000| | Sales (at selling price)| $1,000,000| | | Sales returns (at selling price)| (70,000)| | | Net sales (at selling price)| 930,000| | | Less: Gross profit (20% of $930,000)| 186,000| | | Sales (at cost)| | 744,000| | Approximate inventory, May 31 (at cost)| | $ 74,000| | | | | EXERCISE 9-14 Beginning inventory| | $170,000| Purchases| | 450,000| | | 620,000| Purchase returns| | (30,000)| Goods available (at cost)| | 590,000|Sales| $650,000| | Sales returns| (24,000)| | Net sales| 626,000| | Less: Gross profit (30% X $626,000)| (187,800)| 438,200| Estimated ending inventory (unadjusted for damage)| | 151,800| Less: Goods on hand—undamaged (at cost) $21,000 X (1 – 30%)| | (14,700)| Less: Goods on hand—damaged (at net realizable value)| | (5,300)| Fire loss on inventory| | $131,800| EXERCISE 9-19 (12–17 minutes) | Cost| | Retail| Beginning inventory| $ 200,000| | $ 280,000| Purchases| 1,425,000| | 2, 140,000| Totals| 1,625,000| | 2,420,000| Add: Net markups| | | |Markups| | $95,000| | Markup cancellations| _________| (15,000)| 80,000| Totals| $1,625,000| | 2,500,000| | | | | Deduct: Net markdowns| | | | Markdowns| | 35,000| | Markdown cancellations| | (5,000)| 30,000| Sales price of goods available| | | 2,470,000| Deduct: Sales| | | 2,250,000| Ending inventory at retail| | | $ 220,000| Cost-to-retail ratio =| $1,625,000| = 65%| | $2,500,000| | Ending inventory at cost = 65% X $220,000 = $143,000 | PROBLEM 9-4| | Beginning inventory| | $ 80,000| Purchases| | 290,000| | | 370,000| Purchase returns| | (28,000)|Total goods available| | 342,000| Sales| $415,000| | Sales returns| (21,000)| | | 394,000| | Less: Gross profit (35% of $394,000)| 137,900|   (256,100)| Ending inventory (unadjusted for damage)| | 85,900| Less: Goods on hand—undamaged| | | ($30,000 X [1 – 35%])| | 19,500| Inventory damaged| | 66,400| Less: Salvage value of damaged inventory| | 8,150| Fire loss on inventory| | $ 58,250| CHAPTER 18 EXERCISE 18-2 (15–20 minutes) (a)1. 6/3Accounts Receivable—Ann Mount8,000 Sales8,000 6/5Sales Returns and Allowances600 Accounts Receivable—Ann Mount600 6/7Transportation-Out24Cash24 6/12Cash7,252 Sales Discounts (2% X $7,400)148 Accounts Receivable—Ann Mount7,400 2. 6/3Accounts Receivable—Ann Mount7,840 Sales [$8,000 – (2% X $8,000)]7,840 6/5Sales Returns and Allowances588 Accounts Receivable—Ann Mount [$600 – (2% x $600)]588 6/7Transportation-Out24 Cash24 6/12Cash7,252 Accounts Receivable—Ann Mount7,252 (b)8/5Cash7,400 Accounts Receivable—Ann Mount7,252 Sales Discounts Forfeited (2% X $7,400)148 EXERCISE 18-4 (20–25 minutes) (a)Gross profit recognized in: | 2010| 2011| 2012| Contract price| | $1,600,000| | $1,600,000| | $1,600,000| Costs:| | | | | | |Costs to date| $400,000| | $825,000| | $1,070,000| | Estimated costs to complete| 600,000| 1,000,000| 275,000| 1,100,00 0| 0| 1,070,000| Total estimated profit| | 600,000| | 500,000| | 530,000| Percentage completed to date| | 40%*| | 75%**| | 100%| Total gross profit recognized| | 240,000| | 375,000| | 530,000| Less: Gross profit recognized in previous years| | 0| | 240,000| | 375,000| Gross profit recognized in current year| | $ 240,000| | $ 135,000| | $ 155,000| **$400,000 ? $1,000,000**$825,000 ? 1,100,000 (b)Construction in Process ($825,000 – $400,000)425,000Materials, Cash, Payables, etc. 425,000Accounts Receivable ($900,000 – $300,000)600,000 Billings on Construction in Process600,000 Cash ($810,000 – $270,000)540,000 Accounts Receivable540,000 Construction Expenses425,000 Construction in Process135,000 Revenue from Long-Term Contracts560,000* *$1,600,000 X (75% – 40%) (c)Gross profit recognized in: | 2010| 2011| 2012| Gross profit| $–0–| $–0–| $530,000*| *$1,600,000 – $1,070,000 EXERCISE 18-7 (25–30 minutes) (a)1. Gross pro fit recognized in 2010: Contract price$1,200,000 Costs: Costs to date$280,000Estimated additional costs 520,000 800,000 Total estimated profit400,000 Percentage completion to date ($280,000/$800,000) 35% Gross profit recognized in 2010$ 140,000 Gross profit recognized in 2011: Contract price$1,200,000 Costs: Costs to date$600,000 Estimated additional costs 200,000 800,000 Total estimated profit400,000 Percentage completion to date ($600,000/$800,000) 75% Total gross profit recognized300,000 Less: Gross profit recognized in 2010 140,000 Gross profit recognized in 2011$ 160,000 2. Construction in Process ($600,000 – $280,000)320,000 Materials, Cash, Payables, etc. 20,000 Accounts Receivable ($500,000 – $150,000)350,000 Billings on Construction in Process350,000 Cash ($320,000 – $120,000)200,000 Accounts Receivable200,000 Construction in Process160,000 Construction Expenses320,000 Revenues from Long-Term Contracts480,000* *$1,200,000 X [($600,000 – $280,000) ? $800,000] (b)Income Statement (2011)— Gross profit on long-term construction contract$160,000 Balance Sheet (12/31/11)— Current assets: Receivables—construction in process$180,000* Inventories—construction in process totaling $900,000** less billings of $500,000$400,000 **$180,000 = $500,000 – $320,000 **Total cost to date$600,000 010 Gross profit140,000 2011 Gross profit 160,000 $900,000 EXERCISE 18-11 (15–20 minutes) (a)Computation of gross profit recognized: | 2010| 2011| $370,000 X 34%*| $125,800| | $350,000 X 34%*| | $119,000| $450,000 X 32%**|   Ã‚     | 144,000| | $125,800| $263,000| *($900,000 – $594,000) ? $900,000 **($1,000,000 – $680,000) ? $1,000,000(b)Installment Accounts Receivable—20111,000,000 Installment Sales1,000,000 Cost of Installment Sales680,000 Inventory680,000 Cash800,000 Installment Accounts Receivable, 2010350,000 Installment Accounts Receivable, 2011450,000 Installment Sales1,000,000 Co st of Installment Sales680,000Deferred Gross Profit on Installment Sales, 2011320,000 Deferred Gross Profit on Installment Sales, 2010119,000 Deferred Gross Profit on Installment Sales, 2011144,000 Realized Gross Profit on Installment Sales263,000 Realized Gross Profit on Installment Sales263,000 Income Summary263,000 EXERCISE 18-15 (10–15 minutes) (a)Realized gross profit recognized in 2011 under the installment-sales method of accounting is $83,000. When gross profit is expressed as a percentage of cost, it must be converted to percentage of sales to compute the realized gross profit under the installment-sales method of accounting.Thus, 2010 and 2011 gross profits as a percentage of sales are 20% and 21. 875% respectively. Sale Year|   Ã‚  Gross Profit Percentage  Ã‚  | 2011 Collections| 2011 Realized Profit| 2010| . 25/(1. 00 + . 25) = 20%  | $240,000| $48,000| 2011| . 28/(1. 00 + . 28) = 21. 875%| 160,000| 35,000| | | TOTAL| $83,000| (Note to instructor: The proble m provides gross profit as a percent of cost. ) (b)The balance of â€Å"Deferred Gross Profit† could be reported on the balance sheet for 2011: 1. As a current liability on the theory that it is related to Installment Accounts Receivables that are normally treated as current assets; . As a deferred credit between liabilities and stockholders’ equity. This treatment is criticized because there is no obligation to outsiders; or 3. As an adjustment or offset to the related Installment Accounts Receivable. This is because the deferred gross profit is a part of revenue from installment sales not yet realized. The related receivable will be overstated unless the deferred gross profit is deducted. On the other hand, the amount of deferred gross profit has no direct relationship with the estimated collectibility of the accounts receivable.It is not a settled matter as to the proper classification of â€Å"deferred gross profit† on the balance sheet when the installment- sales method of accounting is used to measure income. As indicated in the text, the FASB in Statement of Financial Accounting Concepts No. 6 indicates that it conceptually is an asset valuation. We support the FASB position. (c)Gross profit as a percent of sales in 2010 is 20% (as computed in (a) above); gross profit therefore is $96,000 ($480,000 X . 20) and the cost of 2010 sales is $384,000 ($480,000 – $96,000). Because the amounts collected in 2010 ($130,000) and 2011 ($240,000) do not exceed the total cost of