Techniques of Data Warehousing

Techniques of Data Warehousing Data Warehousing is the method for reporting and data analysis, also known to be the care component of business intelligence environment.   Data can be a wide range of things, form financial to management.   With everybody within the organization having access to some form of data; security and integrity is always at risk. A Transactional Database is where a database transaction might consist of one or more data-manipulation statements and queries, each reading and/or writing information in the database.   Ex. Gym memberships, credit card purchases and mostly every banking transaction in all countries are recorded in databases unless youre paying cash.   The risk and integrity of these transactions are always accessed.   Many insurance company take the risk that their customers may never need them but always pay the bill. Even though there are some laws regarding the disclosure of health and other private information.   But the legal protection of privacy regarding the disclosure of grocery shopping habits and other things for example is slim to none in the US.   Therefore, you are at the mercy of the self-imposed privacy policies of the individual companies you deal with along with your ability to stay out of those transactional databases in the first place. Within a data warehouse you have two systems in place; OLTP and OLAP.   OLTP (On-line Transaction Processing) is characterized by a large number of short on-line transactions (INSERT, UPDATE and DELETE). The main emphasis for OLTP systems is put on very fast query processing, maintaining data integrity in multi-access environments and an effectiveness measured by number of transactions per second.   OLAP (On-line Analytical Processing) is characterized by relatively low volume of transactions. Queries are often very complex and involve aggregations. For OLAP systems a response time is an effectiveness measure. OLAP applications are widely used by Data Mining techniques. Another important factor to consider is the use of Business Intelligence.   Business Intelligence or BI is the technology infrastructure for gaining maximum information from available data for the purpose of improving business processes.   Typical BI infrastructure components are as follows: software solution for gathering, cleansing, integrating, analyzing and sharing data.   Business Intelligence produces analysis and provides believable information to help making effective and high quality business decisions. Data across Borders have become more common and frequent in everyday business.   Over the last 20 years, patterns of global dataflow have evolved at a rapid pace due to developments in global communication networks and business processes. As data is moved from data center to data center and/or across borders, security breaches become a tangible risk. To effectively protect data you must consider its lifecycle. The main features of the data lifecycle are: Create/Capture: To Receive or create data, whether captured from a website, a file transfer or a physical acquisition, will affect handling. Every method of creation or capture is going to require a different form of protection to ensure the information is safeguarded. Index and Classify: Once the data has been securely acquired, certain rules must be applied. The first step is to identify the type of data acquired. Is it personally identifiable information (PII)? Is it an image or a document? What kind of document is it?   Categorizing the document will make the process mare efficient. Store/Manage:   Where the data is stored will drive what protection controls are applied. If the data consists of PII or potential PII, then the organization may be legally required to store the data in a disk-based encryption format and encrypt backup copies of the data. Retrieve/Publish: After securely transferring data across the border, enable availability for use by ensuring that data is encrypted at each stage when transferred, stored and displayed.   Data cannot be decrypted in countries where it is not being transferred to, and access to systems such as network paths which enable cross-border transfers must be controlled. Process: To ensure the data is only used for authorized purposes and in compliance with applicable laws, application controls and metadata tagging are helpful tools. Archive: Once Data in not nedded, issues of long-term storage in compliance with the applicable policies and legal requirements arise. Is the backup onsite or offsite? Do your backups cross international borders? Are the backups governed by other countries privacy and data protection laws? The answers to these questions will help ensure that all potential risk areas are mitigated. Destroy: Sooner or later data will be deemed unusable, in accordance with applicable legislation. Ensure the destruction of archives, files, physical copies and any other copies. However, processes need to be in place for data excluded from regularly scheduled destruction cycles. For example, data subject to legal holds and discovery requests, as well as data governed by cross-border privacy legislation. Even with the most robust policies, processes and systems, continuous vigilance is required. Organizations should; Monitor change to regulatory and security. References: http://www.howtovanish.com/2009/11/transactional-databases-what-me-worry/ http://datawarehouse4u.info/OLTP-vs-OLAP.html http://datawarehouse4u.info/What-is-Business-Intelligence.html http://www.globallegalpost.com/commentary/data-across-borders-96787229/

Cognitive-Behavioral Therapy Essay

Abstract Human behavior can be explained by a variety of biological, psychosocial, and environmental factors interacting on a person over time. The values, beliefs, and goals that determine the behaviors one engages in are developed through cognitive processes unique to each individual as a result of the interplay between previous learning and the aforementioned factors. When considered together, the Model of Human Occupation and Cognitive Behavioral Therapy give an explanation for this view of human behavior. These frames of reference are reviewed in regards to their conceptions of behavior, dysfunction, treatment approach, and their relevance to occupational therapy. Cognitive-Behavioral Therapy and the Model of Human Occupation Man is an open system that can change and develop through interaction with the environment. Behavior is an expression of psychosocial, biological, and environmental factors interacting within the system. Biological factors may predispose someone to a certain disease or dysfunction which may be expressed in the presence of stress. Factors such as family structure, work environment, and culture can contribute to positive or negative experiences from which an individual learns. There is an innate drive within humans for self-efficacy; the ultimate goal is to master one’s environment. A person’s values, beliefs, and goals determine the behaviors one engages in to accomplish the ultimate goal of environmental mastery. These values, beliefs, and goals are developed through cognitive processes unique to each individual and are a result of the interplay between previous learning and psychosocial, biological, and environmental factors throughout life. Because each person’s cognitive processes are unique, experiences are subjectively interpreted in different ways. People react in context with their desire for environmental mastery and their personal beliefs and values learned throughout life. When considered together, the Model of Human Occupation and Cognitive-Behavioral Therapy frame of reference give an explanation of behavior that includes psychosocial, biological and environmental factors  while maintaining the importance of cognition. The purpose of this paper is to review how Cognitive-Behavioral Therapy and the Model of Human Occupation explain behavior, dysfunction, treatment approach, and their relevance to occupational therapy. Theory Kielhofner and Burke’s Model of Human Occupation (MOHO) (1980) believes that humans have an innate drive for exploration and mastery of their respective environments. Man interacts with the environment though engagement in occupation. Occupations are the means through which an individual pursues their goals. Within this model, occupations are defined as complex, organized groups of goal-oriented behaviors (Bruce & Borg, 1993). One’s chosen actions and occupations are a meaningful reflection of personal beliefs and goals for environmental mastery. Mastery is the extent to which an individual perceives the result of their behavior as effective, efficient, and satisfying (Stein & Cutler, 1998). MOHO postulates an open systems theory in regards to human behavior. â€Å"An open system is an organized complex of subsystems that are in dynamic interaction. The system is, in turn, in dynamic interaction with its environment. All parts are maintained and transformed through this dynamic interaction† (Kielhofner & Burke, 1980, p. 573). The open system interacts with the environment through a process of input, throughput, output, and feedback. Input is information from the environment; throughput is the processing of input by the internal cognitive structures of a human; output is the mental, physical, and social aspects of behavior; and feedback is information from the environment about the consequences of a behavior (1980). The open system can be divided into a hierarchical arrangement of three subsystems that are responsible for behavior. The highest level governing over behavior is volition. This is the underlying, energizing component behind behavior responsible for which one will be chosen and initiated. Volition is determined by one’s innate drive to master his/her environment, as well as his/her beliefs surrounding a behavior (Bruce & Borg, 1993).  Personal causation, values, and interests comprise volition. Personal causation is the motivation and expectations surrounding a behavior. It incorporates past successes and failures to form images of self-efficacy. Values represent the importance of certain behaviors to an individual. Interests are determined by the pleasure one derives from engaging in a specific occupation (Kielhofner & Burke, 1980). Volition is believed to govern over the lower subsystems of the hierarchy (Kielhofner & Burke, 1980). The middle subsystem is defined as habituation. Habituation is responsible for organizing behavior into roles, patterns, and routines. Roles reflect a group of behaviors with which an individual may have certain expectations of performance. The individual’s beliefs and society influence these expectations. Roles contribute to self-identity and influence behavior. This organization allows for certain behaviors to be performed automatically and adapted to various environments. Performance, the lowest subsystem within the hierarchy, consists of the skills necessary for producing behavior. These include perceptual-motor processing skills, cognition, and communication. The function of the performance subsystem is to produce behaviors called upon by volition and habituation, which are located higher in the hierarchy of the human system (Bruce & Borg, 1993). MOHO’s governing subsystem, volition, can be compared to the concept of cognition described by the Cognitive-Behavioral Therapy frame of reference. Through this comparison, Cognitive-Behavioral Therapy (CBT) provides an explanation for the acquisition and structure of volitional system. The major theorists under CBT believe that cognitive structures such as beliefs, thinking styles, problem-solving styles, and coping styles as well as the environment are the determinants of behavior (Johnston, 1987). The above structures are represented by a schema, which is developed through reactions to social, environmental, and genetic influences over time. A schema is defined as the global cognitive processes associated with past experience (Bootzin, 1988). Schema can be influenced by positive and negative experiences, such as culture, family structure, and social roles. Another assumption of CBT is that people are capable of guiding the course of their lives via their thoughts. Ellis, as cited in Barris, Kielhofner, and Watts (1988), believes that â€Å"humans are responsible for their emotions and behavior, as having the potential to create personal meaning, and as behaving in ways influenced by thought processes rather than determined by unconscious forces† (p. 92). The concept of personal responsibility for behavior is also incorporated into MOHO through the volitional system. This subsystem is responsible for choices regarding behavior. According to CBT theorists, the cognitive events responsible for behavior are learned. Albert Bandura’s theory of social learning explains how learning impacts cognition and behavior. Learning is seen as an outcome of the interaction between behavior, person, and environment. People choose behaviors based on expectancy, or what they anticipate will happen if a behavior is performed. Therefore, individuals are more likely to perform a specific behavior if they believe the results will lead to something they want (Bruce & Borg, 1993). Personal causation, a component of volition, is responsible for expectancy and links Bandura’s theory to MOHO. Reinforcement influences whether behaviors are performed. These can be external, vicarious or self-produced. External reinforcement comes from the environment in many forms, including social praise/acceptance, rewards, privileges or penalties. Vicarious reinforcement is the individual’s values and previously learned images of success or failure associated with a particular behavior. Self-produced reinforcement involves the interpretation of a behavior as satisfying or unsatisfying. Personal satisfaction is seen as the best reinforcement for behavior (1993). Thus, behavior is driven by the goal of self-efficacy, an idea shared by MOHO. This feeling of satisfaction after occupational performance develops into a sense of effectiveness. Satisfaction alters CBT’s cognition and MOHO’s volitional subsystem, making it more likely for a behavior to occur again. Bandura explains that personal experience, modeling, and observational learning are ways behaviors are acquired. Cognition plays a major role in the selection of behaviors because people will repeat behaviors they believe will have positive outcomes (Cole, 1998). Cognitive appraisal is the internal processing, which occurs between the stimulus and response. Behaviors are elicited after this cognitive appraisal  occurs. One’s beliefs and values are derived from the cognitive appraisal of events over time (Bootzin, 1988). The process of cognitive appraisal is synonomous with MOHO’s concept of throughput, a process that also elicits behaviors. Some behaviors performed daily over time do not require extensive cognitive appraisal. Aaron Beck describes these behaviors as automatic thoughts (Bruce & Borg, 1993). People do not recognize the problem-solving and internal cognition associated with these automatic thoughts. Automatic thoughts are closely related to the habituation subsystem in MOHO. Behavior Change Within the human system, each subsystem and the environment are interdependent. A disturbance in functioning in one of the subsystems will affect all the subsystems requiring the person to adapt to the resultant changes. The system changes throughout a lifetime to respond to the changing demands and expectations of the environment (Kielhofner & Burke, 1980). Restructuring or restoration of any of the internal subsystems as well as the environment can mediate behavior change. The process of feedback informs the system of the consequences of behavior. During feedback, actual performance is compared to the expected outcome, which helps the system adjust its performance and restructure the internal hierarchy. Feedback also shapes self-images created by the personal causation component (1980). Treatment can target behavior change directly at the volitional level by changing the cognitive structures associated with personal causation, values, and interests thereby affecting the lower level s of the system. Other levels may be impacted through environmental modification or increasing occupational performance by strengthening performance components or improving habits. Improving performance will alter one’s perception of the effectiveness of a behavior, thereby changing volition (Bruce & Borg, 1993). In the healthy, well functioning individual, the volitional level governs behavior. Comparisons could be made between MOHO and CBT over the role volition and cognition play in the acquisition and determination of behavior. CBT’s central tenet states that behavior change occurs only when  the beliefs surrounding the behavior are altered. Similarly, MOHO’s construct of personal causation represents the beliefs surrounding a behavior. Cognition allows man to regulate his behavior. Behaviors are determined by one’s expectations of the outcome and efficacy of a behavior, therefore the thoughts behind expectations must change for behavior to change. According to Bandura, self-produced reinforcement is the most effective way to change expectancy. This requires observational learning or participation in an activity, in which the consequences of behavior are perceived to be successful, thus changing one’s expectations about the effectiveness of that behavior. Oth er CBT theorists, such as Beck and Ellis believe people can be taught to view the world in a more accurate way, which alters behavior. This approach targets changes in behavior through the alteration of irrational thinking patterns. This involves evaluation of the validity of thoughts; formulation of new, more rational thoughts; and practice of the new thinking styles (Bruce & Borg, 1993). Depression According to MOHO, when considering a dysfunction such as depression, the individual must be viewed holistically to determine where in the open system a breakdown has occurred. Because the subsystems are interdependent, the depressed feelings may be caused by a disturbance in any of the subsystems or the environment. This disturbance will subsequently affect engagement in occupation. Disruptions of occupational performance due to biological dysfunction, harsh environmental circumstances, or a negative schema are possible explanations for depression according to this frame of reference. Unrealistic expectations or imbalance of roles within the habituation system may also lead to dysfunction (Kielhofner & Burke, 1980). The factors mentioned above lead to disturbance in occupational behavior causing the feelings of depression and incompetence. For example, a physical disability may alter a client’s performance of important occupations, thereby affecting their expectations, belief s, habits, and roles surrounding the behavior. If the client perceives the performance as negative, motivation regarding the behavior will decrease, interests will change and a negative self-image may occur within the volitional system. An eclectic approach to treatment is required due to the many factors influencing behavior (Miller, et al, 1988). It may be appropriate to concentrate on negative beliefs within the volitional system, or on a lower subsystem that is disrupted, causing the negative feelings to occur. Environmental modification or improvement in the performance or habituation subsystems may help bring forth changes in volition by improving expectancy. It is necessary to consider occupational performance because engagement in occupation is meaningful to the individual and the means through which one pursues his/her goals. Occupational analysis, an evaluation technique, identifies where the disturbance in an occupation occurs. The steps include â€Å"observation of the environment, evaluation of how an occupation can promote a sense of purpose and identify one’s values and interests, anticipation of how occupation contributes to goal fulfillment, consideration for the performance skills required to engage in the occupation, and evaluation of the balance of work, play and daily living tasks† (Bruce & Borg, 1993). The application of CBT to treatment for a depressed individual may help restructure volition. According to CBT theorists, faulty, irrational thinking and inaccurate self-perception cause dysfunction. It is assumed that people can control their cognition; therefore, self-regulation of behavior, thoughts, and feelings through the use of logic and deductive reasoning is possible (Cole, 1998). Consequently, it would be necessary to aim treatment of a depressed individual at cognitive restructuring. Beck hypothesizes that dysfunction is caused by â€Å"automatic thoughts, which reflect habitual errors in thinking† (Cole, 1998, p. 131). Depression is thought to be the result of the â€Å"cognitive triad†: self-devaluation, negative view of life experiences and a pessimistic view of the future (Bootzin, 1988). The rationale of Beck’s cognitive therapy is that behavior change comes from cognitive change. Therapy focuses on alteration of negative schema including identification of negative thoughts, evaluation of their validity, formulation of more realistic, positive responses and modification of the dysfunctional attitudes that underlie the negative thoughts. The Socratic method is utilized to allow the individual to discover the irrational beliefs for themselves (Bruce and Borg, 1993).  Specific techniques include development of assertive beliefs, identification of personal rights, thought-stopping, role reversal, and symbolic modeling. By improving one’s performance and thoughts behind behavior, self-produced reinforcement can occur, thus changing beliefs about that behavior (1993). In a longitudinal study of newly injured persons with spinal cord injury (Craig, Hancock, Dickson, & Chang, 1997), levels of depression were compared between groups receiving CBT services in addition to traditional rehabilitation services to those who received no CBT during hospitalization. A psychologist and occupational therapist provided CBT to small groups over a ten-week period. Topics addressed during CBT included anxiety, depression, self-esteem, assertion, sexuality, and family relations. The therapists utilized cognitive restructuring techniques, relaxation, deep-breathing exercises, and visualization. From the follow-up measures of the patients one year post-treatment, the researchers found that the treatment group had greater levels of improvement in depression scores over time in comparison to the controls. It was also found that those with the highest levels of depression before treatment were significantly less depressed one year after treatment. The authors concluded t hat while not every person with spinal cord injury needs CBT, those with high levels of depression may benefit the most from CBT. Application to Occupational Therapy According to MOHO, a person interacts with the environment through engagement in occupation. MOHO and the professions of occupational therapy believe that engagement in occupation mediates change in capacities, beliefs, and occupational roles (Stein & Cutler, 1998). Assessment should include the subsystems, the feedback loop, organization of occupations in life, and the environment. Thorough assessment will assist the OT in developing a picture of occupational function and dysfunction as well as treatment goals (Miller, et al., 1988). MOHO provides a framework for an occupational therapist to find an explanation for occupational function and dysfunction. The OT should apply whichever theories, modalities, and facilitative activities that best meet the treatment goals of the individual, however goals should reflect the  client’s values. A case study by Pizzi (1990) examined the clinical application of MOHO to treatment of an adult with AIDS. The physical, psychosocial, and environmental dysfunctions encountered by persons with HIV and AIDS affect all aspects of a person’s occupational functioning. Therefore, a comprehensive assessment of the subsystems within the human system as well as the environment was required. This assessment allowed for the formulation of a treatment plan that met the complex needs of the client with AIDS. This case study shows how MOHO acts as a framework for a therapist to picture a client holistically when determining function and dysfunction, but does not necessarily prescribe a specific treatment technique. CBT fills the gaps left by MOHO in outlining specific treatment approaches in regards to disturbances in cognition. Mahoney, as cited in Barris, Kielhofner, and Watts (1998), states that when following the CBT frame of reference, â€Å"the resultant task of the therapist is that of a diagnostician-educator who assesses maladaptive cognitive processes and subsequently arranges learning experiences that will alter cognitions and the behavior and affect patterns with which they correlate† (p. 90). An occupational therapist coming from CBT frame of reference should evaluate person-environment match; self-image, goals, and self-acceptance; the client’s view of the environment; learning style and appropriate reinforcements; and environmental expectations and demands to help in the development of treatment goals (Cole, 1998). The goals set in treatment can serve as guidelines for clients to monitor their self-regulation and measure progress (1998). CBT relates to the practice of occupational therapy in that  Ã¢â‚¬Å"cognitive behavioral skills may not be the traditional skills associated with occupational therapy, but they involve basic interpersonal skills, problem-solving skills, and self-management skills. As such, they are often prerequisites to the ability to perform effectively in the roles of player, student or worker† (Johnston, 1987). Johnston outlined how an occupational therapist might use a CBT approach.  Acting as an educator/facilitator, the OT would target skills such as problem solving, communication, and assertiveness. Techniques for treatment include the breakdown of skills into simpler steps, client examination of thoughts and assumptions regarding the skills, teaching of new skills, and practice of the skills (1987). Social learning theory provides a treatment model for occupational therapy. Bandura’s philosophy agrees with the logic of occupational therapy, â€Å"doing facilitates change† (Bruce & Borg, 1993, p. 211). According to Bandura, reinforcement is what motivates learning. OT’s must determine the level of reinforcement and motivation required by each client for effective learning to occur (Cole, 1998). Engagement in activities allows clients to change thoughts of themselves from incapable to capable. By grading these activities, mastery of simple tasks occurs before difficult tasks are attempted. This grading allows the client to develop feelings of competence. These feelings of competence are self-reinforcing, which is in concordance with the highest level of reinforcement identified by Bandura (1998). Yakobina, Yakobina, and Tallant (1997) discussed how an occupational therapist might apply the CBT frame of reference to the treatment process of women with dysthymic disorder. The OT would act as an educator and emphasize the therapeutic use of pleasurable activities during treatment. The therapist would attempt to change negative thought patterns and facilitate the development of problem solving skills necessary to cope with daily activities by engaging in role-playing, group discussions, and homework assignments. In addition to traditional CBT techniques, engagement in occupation would allow the depressed person to test the validity of her negative assumptions. Conclusion As reviewed in this paper, the MOHO and CBT frames of reference both view behavior as the result of the interaction between a person and their  environment. The complex interplay between biological, psychosocial, and environmental factors influences the way people view themselves and the world. Those cognitive processes determine what behaviors a person will engage in, as well as how the consequences are interpreted. Lazarus, as cited in Johnston (1987), explains the interaction between cognition and the environment, â€Å"the way a person moves or behaves can be adversely influenced by emotions, sensations, and the way people behave toward them. Conversely, if a person changes some aspect of his behavior, this change will alter his cognitions, emotions, sensations, and self-image† (p. 73). Together, MOHO and CBT provide a way to understand behavior and how change occurs. MOHO acts as a framework for understanding the interdependent nature of humans and their environment. CBT provides an explanation for the cognitive processes seen by both frames as the commanding structures over behavior, as well as several treatment approaches to induce change in behavior. Applying the two frames of reference when formulating a treatment approach allows the therapist to individualize treatment while considering the multi-faceted nature of humans. Additionally, both frames see the engagement in occupation as an important mediator of change in the treatment process. References Barris, R., Kielhofner, G., & Watts, J. H. (1988). Cognitive approaches to therapy. In G. Kielhofner (Ed.), Bodies of knowledge in psychosocial practice (pp. 89-100). Thorofare, NJ: Slack. Bootzin, R. R., & Acocella, J. R. (1988). Abnormal psychology: Current perspectives (5thed.). New York: Random House. Bruce, M. A. & Borg, B. (1993). Psychosocial occupational therapy: Frames of reference for intervention. Thorofare, NJ: Slack. Craig, A. R., Hancock, K., Dickson, H., & Chang, E. (1997). Long-term psychological outcomes in spinal cord injured person: Results of a controlled trial using cognitive behavior therapy. Archives of Physical Medicine and Rehabilitation, 78, 33-38. Cole, M. B. (1998). Group dynamics in occupational therapy: The theoretical basis and practice application of group treatment (2nd ed.). Thorofare, NJ: Slack. Johnston, M. T. (1987). Occupational therapists and the teaching of cognitive-behavioral skills. American Journal of Occupational Therapy, 7 (3), 69-81. Miller, R. J., Sieg, K. W., Ludwig, F. M., Shortridge, S. D., & Van Deusen, J. (1988). Gary Kielhofner. In Six perspectives on theory for the practice of occupational therapy (pp. 169-204). Gaithersburg, MD: Aspen Publishers. Pizzi, M. (1990). The model of human occupation and adults with HIV infection and AIDS. American Journal of Occupational Therapy, 44, 257-263. Stein, F. & Culter, S. K. (1998). Theoretical models underlying the clinical practice of psychosocial occupational therapy. In Psychosocial occupational therapy: A holistic approach. San Diego, CA: Singular Publishing Group. Yakobina, S., Yakobina, S. & Tallant, B. K. (1997). I came, I thought, I conquered: cognitive behavior approach applied in occupational therapy for the treatment of depressed females. Occupational Therapy in Mental Health, 13 (4), 59-73.

Managing Financial Decisions And Resources Finance Essay - Free Essay Example

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

The Case of Susan Essay example - 1273 Words

Susan is a freshman enrolled at your small private university. She hopes to graduate with a Bachelor of Fine Arts degree, majoring in visual arts and maybe someday attend graduate school for a master’s in fine arts. Although Susan is an art major, she is required to take two English courses that require a great deal of writing. Susan reveals to you that she has an Auditory Processing Disorder. You learned in your EDCEP 853 College Students with Special Needs course that a person with an auditory processing disorder periodically experiences an inability to process verbal information. This learning disability (LD) can make it difficult for students to understand and organize large amounts of spoken information presented in lectures or class†¦show more content†¦Susan has convinced her parents that she can handle her situation and she is very concerned about letting herself and her parents down. Susan shares that she is reluctant to ask for help, fearing that her profess ors and fellow students will think that she is asking for â€Å"special† treatment and she explains that she is not really sure what kind of assistance is available to her in college. When she was in high school, she had an Individualized Education Plan (IEP) and everything was mapped out for her. You can hear the frustration in Susan’s voice. Because learning disabilities are not visible to the common observer, family, teachers and peers often do not understand the challenges faced by individuals with learning disabilities. The University of Wisconsin-Madison notes in College Students with Learning Disabilities (2012), those individuals with learning disabilities often have to prove their disability is real. Susan can organize and communicate her thoughts in a one-on-one conversation but she finds it difficult to organize and articulate her ideas in writing. 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