Cash Flows and Financial Statements at Sunset Boards

CASH FLOWS AND FINANCIAL STATEMENTS AT SUNSET BOARDS Below are the financial statements that you are asked to prepare. 1. The income statement for each year will look like this: | Income statement| | | 2008| | 2009| | Sales| $247,259| | $301,392| | Cost of goods sold| 126,038| | 159,143| | Selling & administrative| 24,787| | 32,352| | Depreciation| 35,581| | 40,217| | EBIT| $60,853| | $69,680| | Interest| 7,735| | 8,866| | EBT| $53,118| | $60,814| | Taxes| 10,624| | 12,163| | Net income| $42,494| | $48,651| | Dividends| $21,247| | $24,326| | Addition to retained earnings| 21,247| | 24,326| . The balance sheet for each year will be: | Balance sheet as of Dec. 31, 2008| | Cash| $18,187| Â  | Â  | Accounts payable | $32,143| Â  | Accounts receivable| 12,887| Â  | Â  | Notes payable | 14,651| Â  | Inventory| 27,119| Â  | Â  | Current liabilities | $46,794| Â  | Current assets| $58,193| Â  | Â  | Â  | | | Â  | | Â  | Â  | Long-term debt | $79,235| | Net fixed assets| $156,9 75| Â  | Â  | Owners' equity | 89,139| Â  | Total assets| $215,168| Â  | Â  | Total liab. ; equity | $215,168| In the first year, equity is not given. Therefore, we must calculate equity as a plug variable.Since total liabilities ; equity is equal to total assets, equity can be calculated as: Equity = $215,168 – 46,794 – 79,235 Equity = $89,139 | Balance sheet as of Dec. 31, 2009| | Cash| $27,478| Â  | Â  | Accounts payable | $36,404| Â  | Accounts receivable| 16,717| Â  | Â  | Notes payable | 15,997| Â  | Inventory| 37,216| Â  | Â  | Current liabilities | $52,401| Â  | Current assets| $81,411| Â  | Â  | Â  | | | Â  | | Â  | Â  | Long-term debt | $91,195| | Net fixed assets| $191,250| Â  | Â  | Owners' equity | 129,065| Â  | Total assets| $272,661| Â  | Â  | Total liab. & equity | $272,661|The owner’s equity for 2009 is the beginning of year owner’s equity, plus the addition to retained earnings, plus the new equity, so: Equity = $89,139 + 24,326 + 15,600 Equity = $129,065 3. Using the OCF equation: OCF = EBIT + Depreciation – Taxes The OCF for each year is: OCF2008 = $60,853 + 35,581 – 10,624 OCF2008 = $85,180 OCF2009 = $69,680 + 40,217 – 12,163 OCF2009 = $97,734 4. To calculate the cash flow from assets, we need to find the capital spending and change in net working capital. The capital spending for the year was: | Capital spending| | Ending net fixed assets| $191,250| | – Beginning net fixed assets| 156,975| | + Depreciation| 40,217| | Net capital spending| $74,492| And the change in net working capital was: | Change in net working capital| | Ending NWC| $29,010| | – Beginning NWC| 11,399| | Change in NWC| $17,611| So, the cash flow from assets was: | Cash flow from assets| | | Operating cash flow| $97,734| | – Net capital spending| 74,492| | – Change in NWC| 17,611| | Cash flow from assets| $ 5,631| 5. The cash flow to creditors was: | Cash flow to credito rs| Â  | | Interest paid| $8,866 | – Net new borrowing| 11,960 | | Cash flow to creditors| –$3,094| 6. The cash flow to stockholders was: | Cash flow to stockholders| Â  | | Dividends paid| $24,326 | | – Net new equity raised| 15,600 | | Cash flow to stockholders| $8,726| Answers to questions 1. The firm had positive earnings in an accounting sense (NI > 0) and had positive cash flow from operations. The firm invested $17,611 in new net working capital and $74,492 in new fixed assets. The firm gave $5,631 to its stakeholders. It raised $3,094 from bondholders, and paid $8,726 to stockholders. . The expansion plans may be a little risky. The company does have a positive cash flow, but a large portion of the operating cash flow is already going to capital spending. The company has had to raise capital from creditors and stockholders for its current operations. So, the expansion plans may be too aggressive at this time. On the other hand, companies do need capita l to grow. Before investing or loaning the company money, you would want to know where the current capital spending is going, and why the company is spending so much in this area already.

Animal Should Not Be Kept in Zoo

In Luke 7, when John the Baptist sends his disciples to find out if Jesus was the Messiah, Jesus tells them, â€Å"Go back and tell John what you have seen and heard: the blind see again, the lame walk, those suffering from virulent skin-diseases are cleansed, and the deaf hear, the dead are raised to life, the good news is proclaimed to the poor. † So, who are the poor? The poor are those who are in need of the help of God; those who are open to the plan of God in their lives; those who are simple hearted; the humble.When Elizabeth hears the ‘good news’ (Lk 1:19) that was announced to Zachariah, she acknowledges that the Lord has removed her humiliation of being barren (Cf. Lk 1:25). When Mary sings her magnificat in the presence of Elizabeth, she would say, â€Å"The Lord has looked upon the humiliation of his servant† (Lk 1:48). In short, being poor simply means being open to God. It is to those who rely, depend on God that the Good News is proclaimed. A nd it is to us that the Good News is proclaimed.If we consider the Good News as a message, then, it is liberty to captives – the experience of freedom from all that binds us including sin; it is healing to the sick. It is the promise of the favorable year (kairos), the time of Grace. So Good News is not a set of information. It is an experience! Again, the Good News is a community and personal experience with Jesus. It is the possibility to experience God in the person of Jesus. Jesus Christ is the Good News. This is what actually amazed the hearts of those listeners in the synagogue, as Jesus said: â€Å"Today this Scripture is fulfilled in your hearing† (Lk 4:21).In other words Jesus was saying, â€Å"The times that Isaiah prophesied are here. It is possible to experience the Good News in my person! † Therefore, today Jesus is bringing hope, joy and favor to us. On the table of his altar we will have the greatest opportunity of being able to experience Jesus i n person. He is the living word that has power to change and transform lives, and bring freedom and healing to those who receive him as their Lord and Savior. Open your heart. Do not be afraid. Let him to make you free from any oppression, spiritual emptiness or lack of happiness. The gospel of salvation is â€Å"good news† for us today.

Coptic Christians Essay

As one of the most dominant sources of primary readership in the world newspapers have a great deal of power over what their recipients read and believe; with this being the case it is no surprise that it is the editorial standpoint of the articles presented in your local newspaper that dictate how you feel about particular subjects, especially those of international appeal, not unlike the varying views of the recent pig culls in Egypt. With tensions in the area high and ready to boil over the Egyptian government has started a controversial pig cull that has left outside nations confused and poverty stricken pig farmers throwing stones. After having learned some very hard lessons with mad cow disease and bird flu fatalities, the Egyptian government began the cull to prevent the infestation of swine flu and it has since been deemed a general health measure of great concern and unending debate. People consider newspaper articles to be almost as valid a source as a first-hand account, often viewing news reports as individuals writing â€Å"live† from the location of the story as if a part of the incident taking place; it is never taken into account the fact that a great deal of newsprint stories are taken down from the Associated Press and reported in the way that the writer and editors of newspaper should see fit. Thus, with the story being reported and relayed differently the perceptions of readers in France, America, the United Kingdom and various other parts of the world are likely to be very different when it comes to stories like this one. Although the story has been reported all over the world, the only way to get the mixings of the real story with all of its elements would be to include the information obtained in every newspaper that has covered the story, or to at least take representative samples from varying parts of the world like what has been done here. Where one country may report predominantly on the religious aspects of the dispute another country may focus more on money and another on class, so in order to get the full story you must put together the pieces that you receive from the sources you review. In presenting information like the fact that the World Health Organization reports that the swine flu outbreak was spread through a person-to-person system of transmission and that in none of the more than 700 cases reported worldwide was there believed to be any animal-to-person transmission, nor were there any fatalities or serious cases reported outside of Mexico it is clear that BBC News is attempting to portray the views and understandings of various international organizations like the United Nations and their World Health Organization. This newspaper is attempting to present how the issue is being perceived by international health officials. BBC News also spent a great deal more time presenting the religious argument than on the monetary aspects and the class issues over the controversy of physical disputes. They reported that most people living in Cairo are Muslim, so it is the belief of the pig farmers, as Coptic Christians, that the pig cull is a personal attack on them as a direct insult against their chosen faith. With Muslims having taken a vow against pork, the pig farming and consumption that takes place in Egypt is enacted by its Coptic Christian minority, which constitutes only about 10% of the Egyptian population. BBC News is trying to make clear here that the Coptic Christians are being unfairly targeted as the lower class minority, an element not very well touched on in some of the other periodicals.

Government Grants for Alternative Energy Source Research Paper

Government Grants for Alternative Energy Source - Research Paper Example Introduction As our world population grows day by day, it is becoming far more evident that our generations to come will have far more problems in their hands that they could handle. Alternative energy sources can evidently provide us with the edge we require to make this world a healthier place to live and more importantly to ensure the continuity of our future generations. Currently there are quite a few different establishments that are involved in researching alternate energy sources; it is a well known fact that our fossil fuel reserves will run out in the near future, depriving us of the leisure and comfort of our lives that some of us take for granted. One of the main problems that are faced with research is the fact that they require funding, however there are companies who are involved in such activities based on the assumption that there efforts will pay off in the near future, but is it enough? Evidently there is a strong need for governments to take the responsibility and provide gran ts to organizations that are involved in researching the fuels of the future. One of the biggest problems with the use of fossil fuels is the carbon dioxide emissions into the environment, everyday carbon dioxide is injected into our system, and these emissions stay there in our system building up every single day, it is the single most known factor for the global warming that our world faces (Alternative Energy, n.d.) There are quite a few different energy sources that are currently in use today, however the fact still remains that these sources are quite limited. According to British Petroleum and Royal Dutch Shell, by the year 2050 one third of our energy needs will have to be fulfilled by wind, solar and other renewable sources, the statement has been originated from the biggest oil companies in the world. (Alternative Energy, n.d.) Solar energy has been in existence for quite some time but still there are problems that need to be resolved. Solar energy is one of the best ways to reduce the carbon dioxide emissions, it has been calculated that a 1.5 kilowatt PV system will help reduce the carbon emissions by 110,000 pounds over the next 25 years (Alternative Energy, n.d.) Apart from reducing the carbon emissions the technology also helps in reducing the consumption of the limited fossil fuels, this figure of reduced conventional fuels comes out to be a reduction of around 60,000 pounds of coal (Alternative Energy, n.d.) There are added advantages of using such energy source; it eliminates the acid rains and overall pollution of the atmosphere. However it is not always that simple, the electrical suppliers are reluctant to change their conventional way of producing electricity, this is where the governments role is most important. Some of the argumentations present the fact that the production of the solar panels itself consumes a lot of energy, although the argument is self founded but many studies have shown that the amount of electricity used to make a solar panel is equivalent to the amount of electricity that the panel will generate in two years time, hence this debt will be paid in that time (Alternative Energy, n.d.) The other most common environmentally friendly power generation system is driven by the forces of nature itself, wind. This technology has been around for quite some time now; there are quite a few areas that are generating their complete power supply t hrough this system. Studies have shown that the use of wind power generation has doubled three times between 1999 and 2000; in the year 2000 the electricity produced by these systems was around 10,000 megawatts. This amount of electricity is enough to power five cities of the size of Miami (Alternative Energy, n.d.) Yet again there are problems associated with producing electri

Teaching of Psychology Essay Example | Topics and Well Written Essays - 500 words

Teaching of Psychology - Essay Example To understand the mind and its complications is not simple. But there have been attempts and many successful ones. In fact, the interpretation of the psyche has developed as a formal academic discipline - 'Psychology'. Psychology is an extensive field amd its ambit is an amalgam of research and teaching. Teaching of psychology becomes very significant in the contemporary individualistic and collective notions of this multi-cultural global society. Teaching is a very responsible activity. The teacher's words can make or mar perspectives. Therefore it requires a thorough expertise on the subject matter as well as the ability to put across the subject effectively. In the area of psychology, the teacher generally has to balance between his/her role of a psychologist and a teacher. The 'how of learning' becomes very important in the teaching of psychology. This is because it has to tread the path of commonalities differences, the impact of culture as well as the benefits and challenges that human diversity brings to relationships and communities. Psychology teaching should be a journey of insight, emotions and imagination. It is very important for the teacher to foster the development of independent, critical thought, evaluative skills, depth of learning, to explore ideas and questions. Teaching of psychology is better performed through demonstration.

Financial Market Assessment Bahrain Essay Example | Topics and Well Written Essays - 2000 words

Financial Market Assessment Bahrain - Essay Example The Index of Economic Freedom measures countries against a list of 50 independent variables divided into 10 broad factors of economic freedom. Low scores are more desirable. The higher the score, the greater the level of government interference in the economy and the less economic freedom a country enjoys. These 50 variables are grouped into ten categories: Trade policy, Fiscal burden of government, Government intervention in the economy, Monetary policy, Capital flows and foreign investment, Banking and finance, Wages and prices, Property rights, Regulation, and Informal market activity. As shown in Table 1, Bahrain ranked 20th of 155 countries (North Korea is 155th). Using the table, we can make a quick comparison of Bahrain and Hong Kong (HKG), the country with the highest economic freedom, and the United Arab Emirates (UAE), Bahrain's closest competitor for the title of the Middle East's financial capital. As Table 1 shows, Bahrain had the same scores as HKG in five out of ten categories, but in one of these (Fiscal burden), it scored higher (meaning, it performed worse) than the UAE, which is developing Dubai to compete with Bahrain. Since our paper is a study of Bahrain's competitive weaknesses in financial markets, we have a tool we can use to know what it should fix if it wants to win the competition with Dubai. The comparison with the United States gives us a better idea of how Bahrain fares in economic freedom. The U.S. is ahead only by a margin of two: better in three categories: Trade policy, Government intervention, and Informal market; worse in one: Fiscal burden; and tied in the rest. We now look briefly at where Bahrain did well. Then, by focusing on those where it scored badly, we can come out with the basic tools to analyze the degree of openness of Bahrain's financial sector. Bahrain's Good Points1 Bahrain scored well in four areas: monetary policy, banking and finance, wages and prices, and property rights. The main reasons for these are: Monetary Policy. Measured on the basis of the weighted average annual inflation rate of 0.04 percent, Bahrain is stable. Banking and Finance. Bahrain's banking and finance sector has very few restrictions. It is relatively easy to establish a bank; there are few, if any, restrictions or requirements on new banks; and foreign banks are welcome. At the end of 2003, there were 25 commercial banks, mostly foreign, and foreigners and Bahrainis alike have ready access to credit on market terms. The banking system is sound and undergoes examination and supervision by the Bahrain Monetary Agency (BMA), which has a solid international reputation. Efforts are being made to increase the liquidity of the Bahrain Stock Exchange (BSE), which opened in 1989. The government allows Gulf Co-operation Council (GCC) nationals to own 100% stakes in firms listed on the BSE and increased the proportion that could be owned by other foreigners to 49%. The Minister of Commerce has announced that ownership for non-GCC nationals will be increased to 100% by end-2005. Wages and Prices. Bahrain, despite issuing a minimum wage law, improved its wages and prices regimes in the past year, reducing its influence over setting of domestic prices. It liberalized its telecommunications sector, where it had monopoly power, and reduced state power over

Debate for Australia euthanasia Essay Example | Topics and Well Written Essays - 1750 words

Debate for Australia euthanasia - Essay Example The same view is held by the Islamic religion (Bulow et al., 2008). Therefore, the opponents view legalization of euthanasia as being immoral and against God’s commandment since it does not sanctify life. However, the proponents have responded by arguing that legalizing euthanasia will actually uphold human dignity. They have argued that no person should be allowed to undergo torture from terminal illness. Such continuous pain, they have pointed out, which medicine has no control over degrades human dignity and defeats the very logic for continuing to live. Therefore, euthanasia will do more good than harm (Norval & Gwyther, 2003). In addition, they have also said that the society is built on fundamental values of compassion and mercy. The society should therefore rise to the occasion and help the terminally ill from suffering unbearably without any help (Norval & Gwyther, 2003). Euthanasia as murder versus right-based arguments The opponents have viewed legalization of euthan asia has a commission to commit murder. They have argued that any action intended to take away another person’s life is inherently wrong and should never be allowed even if the victim has given the consent (Somerville, 2003). Euthanasia has therefore been viewed has killing of other human beings and fervently opposed on those grounds. On the other hand, the proponents have made an argument against this view by pointing out to the principles of autonomy and self-determination. The argument has been that a patient has a right to his or her life and therefore can determine on how he or she should die (Bartels & Otlowski, 2010; Kerridge, Lowe & Stewart, 2009). The autonomy principle allows... The argument has been that a patient has a right to his or her life and therefore can determine on how he or she should die (Bartels & Otlowski, 2010; Kerridge, Lowe & Stewart, 2009). The autonomy principle allows a patient of sound mind to make any decision pertaining to his or her life as long as such a decision does nobody any harm (Norval & Gwyther, 2003). Along this line, it is argued that a patient has a right to determine when he or she no longer wants to live. It is further argued that, due to the principle of autonomy, a patient has a right to his or her own decisions and equally a right to a dignified death (Bartels & Otlowski, 2010). In general, the proponents argue that by patients being denied the right to euthanasia, the society is actually tramping upon their (patients’) rights and forcing decisions on them (patients) which they (patients) do not necessarily ascribe to. In other word, the insistence on the sustenance of the status quo in reference to legalizatio n of euthanasia is a continued violation of patients’ rights and thus those of human rights. How have the opponents responded to these accusations of violating human rights specifically the principles of autonomy? The proponents have come out strongly and fiercely claiming that actually allowing euthanasia is an abuse of autonomy and human rights contrary to what the proponents have said. The opponents have argued that the principle of autonomy advocates for conditions that favor autonomy. Any attempt to suppress any condition.