Criminology -Differential Association + Institutional Anomie Theories Essay

Criminology -Differential Association + Institutional Anomie Theories - Essay Example Agnew assumes that individuals from all social classes engage in crime, as all are geared towards success and economic fulfilment. In fact, the general strain theory should not be confined to economic fulfilment as whether from a low social class or higher, individuals would rebel if what they own is taken away from them and their success therefore hampered or in cases of negative emotions. In such a case therefore, the poor will have to steal or rob in order to recover the lost property or be at the same social level with the rest of the members of the community, while those in a higher social class would engage in fraud or embezzlement of funds, in most cases at the work place so that they can keep being rich; so as to be able to deal with the negative emotions that are as a result of the strain they experience. He further argues that an individual’s inability to achieve the success they aspire, in terms of money can lead to strain and therefore push someone into engaging in crime. He also says, â€Å"Many middle and upper class people in the United States want more money than they can have and obtain through legitimate channels†. Therefore, this strain on an individual to attain monetary success is what pushes them to engage in white-collar crime so that they can deal with the strain completely; mostly in cases where they are not offered solutions for the strain they are experiencing. An individual may for instance fake various documents in order to land a new lucrative job they have always wished to have. This is fraud, which is a white collar-crime. In relation to the general strain theory, white collar crime, just like any other criminal activity is as a result of the negative emotions one has when what they want or need is not being achieved. Fraud and embezzlement of funds for instance in most cases takes place in

Evilness beyond comprehension Essay Example for Free

Evilness beyond comprehension Essay This story depicts how a certain innocent person was condemned and was sentenced to death for a crime he did but with an innocent motive. The story goes on around a certain person’s life in a ship where he was said to be one of the crew. Billy as a character depicted in the story is a person whose innocence can not be changed into hatred for other people. Though his surrounding is full of people with evil motives, he is still into trusting them with full innocence. Evilness beyond comprehension Such evilness is beyond the main character’s understanding, and his being weak causes him to lose his sense of defending himself. With this state of the character’s condition, some people around him tend to abuse his weakness, such as the character which is depicted as an evil person in the story who’s Claggart. Claggart as an evil influence in the story caused Billy to use a brutal way to express Billy’s madness because he is speechless; Billy was then susceptible in making an attack due to the evil atmosphere on the ship. By Billy’s innocence, he was dragged to the wilderness of violence. It is beyond his comprehention that it is indeed the evil’s intention to ruin the goodness in his heart. Indeed the evilness had him offguard that had caused him to be condemned. The writer depicted his main character’s innocence as something to be really loved and liked by other people but also a personality which is something to be pitied about. Billy depicting Jesus Christ In simple but complex ways, the main character was said to be somehow depicting Jesus Christ’s sacrifice for the betterment of everyone. He was, as Jesus was condemned to death though they are both innocent. It is showed in the story that the main character’s innocence is really a great lost of its essence in the humankind; though it is said to be wrong depicting Christ’s figure in an ordinary man such as Billy who is said to be an unsound person. The distinction between the divine characters of Christ with that of Billy is that; Billy will not intentionally give up his life or sacrifice himself for other people’s good. On the contrary, Christ accepted being condemned to death for people in the world’s salvation. Another way in which the story of Billy could depict the story of Christ is the story when Pontius Pilate tends to wash his hand to show that he is not responsible for Christ condemnation. On the other hand in Billy’s story, Captain Vere pushed through the military view of law and condemned Billy because he was thinking about what his mates would think of him if he will not punish Billy with what they think would suit the latter for his crime. Both of the character who’s Pontius and Vere, are playing innocent for an unjust case. Between innocence and evil, the author depicted Claggart as the evil one, and goodness was depicted by Billy. The character of Billy in the story is paralleled to many of the bibbles characters and some of those are Adam which is said to be the first man who is born innocent in the world and was also presented as having the same figure of Christ. On the contrary, Claggart was depicted as characterized by evil wher he was paralleled to Satan’s characteristics and figures who motivated and/or influenced Billy to do evil. Billy died simply because he could not defend himself from the evilness that’s in this world, he could not understand the role of evil, and mostly he could not do any defense from evil because he don’t understand what is meant by being evil. Conflict after Billy’s death After Billy had been condemned, there had been a lot of conflicts that had happened after his execution; such as the Bellipotent engaging in a ship war where captain Vere died. The continuous spread of Billy’s story which had became a chronicle for the others, and mysteriously there were a continuous condemnation that happened to different ports in the manner that Billy was condemned. Themes There were themes considered in the story such as a certain Conscience Versus Law this was shown when captain Vere had a confusion of how to decide for Billy’s case. Captain Vere as a friend, he had difficulty on deciding what to do with Billy’s case because Billy was a dear friend to him but then Captain Vere’s responsibility as an authority caused him to sentence Billy for condemnation. After that, the captain was chased by the thoughts of Billy and was bothered by his own conscience because he know that he did not consider Billy’s reasons until he died and repeatedly uttered his friend’s name. Another one is a person’s Vulnerability of Innocence; the story was all about the main character’s innocence versus the evilness around him. It is said that innocence versus evilness is different from goodness versus evilness. Billy was a person who is innocent about almost everything which caused his weakness to do evil. He was a person who is morally weak and so naive about evilness because it is shown that evilness is beyond his comprehension. The story showed how Billy’s heart was corrupted and changed into evilness because he was unable to distinguish which is evil when he encountered it. The result is that he let alone violence to come out of him that caused him to kill Claggart unintentionally. Individual Versus Society is also considered as a theme of the story. In the story, the author tried to depict how the society pushed its forces for a certain person to be individually oppressed, that the society limits a certain person of his/her being as an individual. It is shown in the story when Captain Vere encountered difficulty dealing with Billy’s case; he had difficulty in considering what the society wants according to his obligation and what he feels. In deciding for the main characters condemnation, Captain Vere considered his obligation and followed what the law implies; hence he knows and feels that Billy is an innocent person by nature. He then as a leader by profession, pushed through to the jurors about Billy’s execution. It is depicted in the story how society dictates a certain person of how to decide, that their view is more important than that of a persons own view. Considered law The law is made by a constitution for all the people to follow in order to maintain a peacefull world to live in hence a law can still be bend or altered by the people who work on it such as jury and society. They can change law according to their own views and consideration thus it can also be altered through the views of others. One example of a circumstance in the story is when Captain Vere sentenced Billy to death though he knew to himself that Billy is innocent. He decided to condemn billy because hye was afraid of what other people would think if he considered Billy and gave him a simple punishment. The law which Billy’s case was considered was in a military law where the people who are considered as enemies are brutally punished. And that the law was very different from the law in which Billy was supposed to be considered; in a civilian law, where considerations to human were given. There are a lot of strategies and different views when it comes to law, but the best way in viewing law in which it is not considered in Billy’s case was seeking for a principle that would lead them into a just result to both sides. On the contrary, the law which is depicted in the story is really unjust. The loss of correct judgment of the law in the story was shown when Billy was condemned even without hearing his side of the story or considering his motive why he had done such crime. Billy’s justice was also deprived when the ship’s captain did not tell the true story about what had really happened, instead, he pushed the case through until poor Billy was sentenced death. In the context of the story, mercy came in when Billy’s death was given justice. It happened when the ship, Bellipotent, lost from a ship war and captain Vere was wounded and eventually did not survived. In the captain’s last minutes of his life, he was continuously murmuring Billy’s name. This only depicts that â€Å"evil ones who do not give justice are also not given justice in the end†. â€Å"Those who deprive other’s life are also deprived in life in the end†. What the story meant for the readers We can learn a lot of moral values in the story. We can learn in the story that innocence is indeed an admirable character hence it should not cover a person’s knowledge about evilness because it could cause a person to be easily influenced in doing evil. We can also learn from the story that innocence could cause a certain person weakness and vulnerability that could be the main cause for him/her to be deprived by others by his own life. Thesis This story only tends to show the readers how difficult it is to live in this world full of evil forcess thus a person like Billy is innocent about such thing. It depicts how a human would only suffer of his innocence in this kind of world. And that innocence is vulnerable to evilness and deprivation to life. as the character was deprived of his life due to his innocence and lack of comprehention about evilness. Also that the law which is supopsed to give justice; it is the one that deprives people by not considering a certain accused persons statement or side. The kind of law in the story is the one that manipulates a person to view the case in a right manner according to the true essence of justice (Melville, 1924). Works Cited Melville, H. (1924). Billy Budd [Electronic Version] from http://www. sparknotes. com/lit/billybudd/canalysis. html.

Road Rage: The Scourge Of Americas Roadways :: essays research papers fc

Topic: Road RageGeneral Purpose: To convinceSpecific Purpose: To convince the audience to combat "road rage" by increasing driver awarenessThesis Statement: "Road rage" caused by aggressive driving tendencies is a growing epidemic affecting today's roadways, but there is a solution.Ethos: Include myself in my statements.Pathos: Audience should feel horrified at the consequences of road rage.Logos: Cite statistics and research resources.IntroductionI. How many of you have ever been in a motor vehicle? Did you know that "motor vehicle crashes are the leading cause of death among Americans 1-37 years old." With the largest % being our age group. (Insurance Institute for Highway Safety)II. Many traffic accidents could have been easily prevented if not for the angry menace called road rage. Road rage caused by aggressive driving tendencies is a growing epidemic affecting today's roadways, but there is a solution.Transition 1: As you can see road rage is a serious problem that could potentially affect us all. But many of us have different ideas of the scope of road rage.BodyI. You can better combat "road rage" by understanding what it is...A. Road rage or aggressive driving is defined as behavior behind the wheel in which furious drivers lose their temper and engage in risk-taking behavior or attempt to injure or kill another driver or pedestrian over minor traffic disputes.(Dr. Leon James, Professor of Psychology at the University of Hawaii, further defines road rage by breaking it down into three types)1. Verbal Road Rage is composed of behaviors such as yelling, swearing, gesturing, honking, and insulting.2. Quiet Road Rage includes complaining, rushing, competing, and resisting.3. Epic Road Rage includes cutting off, blocking, chasing, fighting, and shooting.B. You all are thinking that we've all done some of those things, but no one really gets hurt. You can be sure that's exactly what Tracie Alfieri and Narkey Terry also thought.1. According to a June 2, Newsweek article, Tracie Alfieri became enraged by the manner in which Rene Andrews pulled into her lane. Alfieri tried to pass Andrews on the right then cut in front and hit the brakes causing Andrews to swerve into a stopped tractor resulting in the loss of Andrews' 6 month old unborn child. Tracie Alfieri was convicted this May of vehicular manslaughter and sentenced to 18 months in prison. (Newsweek)2. In the most commonly cited incident of road rage, which ended in three deaths: Narkey Terry and Billy Canipe became involved in a game of cat and mouse because Canipe was moving too slowly in the left lane.

How Boko Haram Developed And Under Developed Nigeria Essay

1.0 INTRODUCTION The stability of any society depends largely on the ability of its citizens to live together in harmony and peace. However, history has provided us with many instances of occasional uprisings in Nigeria which might have occurred as a result of a political, religious, cultural or tribal misunderstanding. Such squabbles, many a time, have ended up in bloodletting. Presently, Nigeria has not ceased to experience some misguided and misled fellowship in the name of religion. This is because, for some years now, many Nigerians especially in the Northern part of the country have lived in a perpetual fear of the unknown as a result Boko Haram insurgence. Thus, since 2009 till date, the activities of an Islamic sect called â€Å"BOKO HARAM† have bedevilled the Nigerian society and threatened the very foundation of her unity and peace. What baffles me is that these insurgents even claim to be fighting for justice in Nigeria. Also, it is pertinent to remark that while Nigeria is endowed with abundant resources, numerous challenges of insecurity orchestrated by Boko Haram insurgency nowadays within the polity appears to have created porous security condition that engenders violence and retards development. The basic question many Nigerians and foreigners ask is: How has Boko Haram developed or underdeveloped Nigeria? This paper is thus an attempt to address this question posed above. But this paper argues that boko haram activities have not been of any good help to Nigeria; hence, it has contributed to Nigerian underdevelopment especially the Northern part of the country. Before we proceed, it is of utmost necessity to clarify certain terms that will appear within this intellectual exposition. 2.0 CLARIFICATION OF TERMS According to Aristotle, ab initio disputandis, definitio nominis, (definition of terms is the beginning of any discussion.) hence, it is of paramount importance for us to clarify some of our key words that will frequently occur within the fabrics of this intellectual study. 2.0.1 Definition of Development and Underdevelopment According to Agbakoba, â€Å"development denotes a type of change, a purposeful or goal-oriented change†. While in the words of Walter Rodney, development â€Å"implies increased skill and capacity, greater freedom, creativity,  self-discipline, responsibility and material well-being†¦.more often than not, the term development is used in an exclusive economic sense-the justification being that the type of economy is itself an index of other social features†. Hence, our definition of development here is from economic perspective. Development therefore, could be defined as the process of empowering people to maximise their potentials and their ability to explore nature in order to meet daily human needs. It is a process by which the quality of human lives and capacity to surmount daily needs are considerably improved. However, according to Rodney, â€Å"underdevelopment is not absence of development, because every people have developed in one way or another and to a greater or lesser extent. Underdevelopment makes sense only as a means of comparing levels of development†. So, underdevelopment implies inadequate development, low levels of economic productivity as compared to other developed countries or regions. 2.0.2 BOKO HARAM Etymologically, the term Boko Haram is made up of two different words namely; Boko and Haram. Boko is the Hausa word meaning â€Å"western education† while Haram is the Arabic word figuratively meaning â€Å"sin† and literally meaning â€Å"forbidden or impermissible†. Thus, the term when loosely translated means â€Å"western education is forbidden†. Boko Haram group propagates that western education is forbidden because it sees western education as corrupting the Muslims. However, Boko Haram group seems to me as a destructive political tool with a cosmetic pretension of being religious. Because Boko Haram group attempts not only to sow panic but also to undermine confidence in the government and political leadership of Nigeria, it could also be called a Terrorist Group. Little wonder the US government though belatedly has confirmed Boko Haram as one the Terrorist groups in the world. (cf. Punch Newspaper on Dec; 1, 2013) 3.0 Nigeria and Boko Haram Insurg ence: An Exposition Since independence, Nigeria appears to have been bedevilled with ethno-religious conflicts. With over 400 ethnic groups, belonging to several religious sects, Nigeria since independence has been grappling and trying to cope with the problem of ethnicity and ethno-religious conflicts. Needless to say that, in May 1999, Nigeria returned to civil rule which was  accompanied with fresh hopes and latent optimism Regrettably, the worst seems to have occurred due to current rise in Boko Haram uprising. Boko Haram insurgency is a destructive political tool with a cosmetic pretension of being religious. Nigeria does not seem to have suffered only from the economic setbacks caused by Boko Haram bombings but also suffers from the battered image and humanitarian disaster the group inflicted on her. For instance, between July 27, 2009 and February 17, 2012, Boko Haram has launched fifty three (53) attacks in which 1157 people were killed and hundreds of people injured in the Northern Nigeria. T his indiscriminate and sporadic bombing seem to make Northern Nigeria increasingly unsafe and has compelled most non-indigenes of the region to relocate especially the Igbos. I therefore set out in this paper to argue with the following points, how the despicable activities of Boko Haram group have underdeveloped Nigeria. 4.0 How Boko Haram Underdeveloped Nigeria: A Critical Analysis The lethal activities of the Islamic sect, Boko Haram, are crippling the economy of Nigeria especially the North and has stultified the developmental strategies of the country thereby leaving us in the abysmal state of economic backwardness and underdevelopment. Although some may say that Boko Haram has some developmental characters because it has revealed the ineffectiveness of our force men, ensured checks and balances in government and has increased the rate development in the Southern part of the country. But I stand here to refute such claims saying that Boko Haram (Terrorism) has been of no benefit to Nigeria, rather it has led to the underdevelopment of Nigeria with these points: 4.0.1 Insecurity No meaningful development will thrive in any environment where people are in constant fear of the unknown due to insecurity. This is the dismal state in which Boko Haram activities in the Northern Nigeria have left us. Needless to say that, the security situation in Nigeria has become so alarming, disturbing, and upsetting nowadays because of the recurrent attacks of these Boko Haram insurgents. The spate of insecurity in the Northern Nigeria has impacted negatively on both the private and public sectors of the economy as many business men and traders have relocated their businesses from the region. This, though pathetically, has led to a massive underdevelopment of the North. This has warranted channelling of the money which would have been  used for other developmental strides to security in Nigeria annual budget. Little wonder the federal government spent 950 billion naira in 2013 only to combat insecurity caused by Boko Haram insurgence. Depopulation of the North and Overpopulation of the South Since current attack by Boko Haram group has become the order of the day in most Northern states, it has led to many Southerners and even some Northerners to relocate to the South for the sake of their life. This has led to the depopulation of the North and Overpopulation of the South; hence decreasing the Internal Revenue (1GR) of most Northern states thereby leaving the government with little or no money to carry out some developmental projects. In the other hand; due to large influx of people to the South, it has led to environmental problems like overpopulation, dilapidation of existing infrastructures, deforestation, cultural breakdown etc. These make life in both regions unbearable; hence pointing out that Boko Haram activities have succeeded in under developing both Northern and Southern part of the country. 4.0.3 Stifling of Economic and Social Development Boko Haram activities have led to dislocation of people from their business base, hence leading to disruption of economic activities. In Nigeria presently, the fear of Boko Haram is everywhere. Financial and business activities have been paralysed as everyone live in fear. Banks and their customers are also operating under difficult situation and have reduced their business hours to guard against being attacked by members of the sect. In most states in the North, the devastating socio-economic effects of the sect’s sequential killings and bombings, especially in Borno, Yobe, Niger, Kaduna, Kano, Kogi, Bauchi, Sokoto etc., have destroyed economic and commercial activities with many people relocating to other places. It should then be noted that Boko Haram have not only led to closure and/or abandonment of people’s business activities within affected region but also led to migration of people from the affected Region. It has also led to reduction of people’s patron age of product from the Northern Region. Also, the Boko Haram insurgence has reduced drastically; government derivation from the affected region (IGR) due to restiveness in those places as well as reduced investment and growth of business in the affected places without excluding government executed project. Little wonder why the 2011 World  Investment Report of the United Nations Conference on Trade and Development reported that stillness in business activities caused by insecurity in Kano State alone has cost the Nigerian economy N1.3trillion. Furthermore, Boko Haram activities have stifled social developmental programmes like; youth employment, housing, health schemes, education, welfare services etc. in the Northern part of the country. In fact, almost all the states under Boko Haram rampage have been completely isolated economically, socially and politically. The resultant effect of these is underdevelopment of the country, especially the affected region. 4.0.4 Scaring Away of Foreign and Local Investors The inimical uprising of Boko Haram has negatively affected the relationship between Nigeria and other Nations of the world. Incessant bombing coupled with kidnapping and hostage taking with or without demand for ransom by the members of Boko Haram has scared away both foreign and local investors from Nigeria, especially the Northern part of the country. In fact, this terrorist group has paralyzed the diplomatic relation between Nigeria and many countries of the world. The concomitant result of all these are poverty, low per capita income and underdevelopment. 4.0.5 Reduction of Human resources The crisis occasioned by Boko Haram has led to the death of many ebullient Nigerians thereby reducing the skilled and unskilled labour force of the country. The United Nation affirmed this assertion by saying that about 1,200 people have been killed since May 2013 when a state of emergency was declared in three North Eastern states (Cf. Punch Newspaper Dec; 16, 2013 or Daily Sun of Dec; 17, 2013. Aljazeera TV on September 30, 2013 reports that since 2009, an estimated 3,600 people have been killed through Boko Haram’s disastrous activities. We can even talk of brutal Bama attack, 22 people killed in Catholic Church at Waga Chakawa village in Adamawa just last Sunday and myriads of other attacks perpetuated by Boko Haram insurgents at the end of 2013 and the beginning of 2014. All these lead to reduction of lives and properties worth over billions of naira and live our nation in the miserable state of underdevelopment. 5.0 EVALUATION AND CONCLUSION From the above analysis, we can affirm without any fear of equivocation that Boko Haram has really underdeveloped Nigeria especially the Northern part of the country that is why socio-economic activities in the North have drastically been reduced. The implication is that the crisis is rather under-developing Northern region and threatens Nigeria’s prospect of joining the league of highly developed countries come the year 2020. Personally speaking, the impact of the activities of the Boko Haram group in Nigeria cannot be overemphasised. It retards economic growth and distorts socio-cultural equilibrium and leads to environmental deterioration. At the same time, it resurrects the issue of suspicion which led to the Nigerian civil war of 1967-1970 among three major ethic groups in Nigeria. Regrettably, the activities of Boko Haram in Nigeria have paralysed almost all sectors of the country’s life and have distorted peace and stultified progressive development of Nigeria. B oko Haram has really underdeveloped Nigeria.

Abstract Globalization Essay

Abstract Globalization is a term now circulating frequently in both popular media as well as formal academic disciplines. It has many meanings, some of which are contestable, others simply descriptive. This work attempts to explore some implications of globalization for the field of curriculum studies. This paper is an attempt to explore some of the symbols of nationality that are embedded in, or associated with, our curriculum, and to suggest that these may present some problems in terms of values and of equality. The work will explore the hegemonic relationship exerted by culture through the curriculum, relating this particularly to the ways in which a curriculum might be assessed. The particular curricular examination suggests that African-American life and history are reflected in various conceptions of the curriculum. Therefore the study will also consider how functional approach to teaching social skills to African American students is infused throughout the curriculum. Curriculum Development Introduction A vague presumption has come to pervade the public’s understanding of education, namely that its content should somehow be apolitical and value-free. If values are not explicitly addressed in the classroom then what is taught are simple â€Å"facts† – unadulterated and value-neutral. Values, however, are not a separate category of the mind, but arise, part and parcel, out of our total understanding of reality, our worldview. It is this realization that three of our contributors bring to bear, each in a different way, on the problems of the contemporary curriculum. James B. Macdonald (1971) asserts: The process of curriculum development †¦ includes selection from the total culture and the creation of a pattern of encounter that will maximize the authenticity of the material and the probability of its being internalized by learners. As a system of ideas and beliefs, it includes aspects of the cognitive world isolated by disciplines and/or subjects in terms of facts, information, generalization, principles, laws, and the like. It also includes awareness of and facility in the use of expressive symbols such as art, music and language. Further, it includes systems of value orientation for action in the form of such things as modes of inquiry, seeking new knowledge, respecting the integrity and worth of individuals, being concerned for other peoples, using democratic procedures , and so forth (pp. 97-98). Macdonald takes issue with the attempt of all scholars to mimic science as the only reliable path to â€Å"truth. † For him, restructuring the curriculum does not mean trying to integrate the disciplines as they now exist, but rather, seeking an altogether new worldview -what he calls a new â€Å"anthropology. † His point is that we need to consider values, meaning, and purpose in the curriculum in order to create a more adaptive and accurate vision of the world. A balance must be maintained between local culture and global culture. Thanks to that balance, groups win be able to develop or reinforce local cultures, and at the same time will be able to communicate with the main global culture in a mutually reinforcing relationship. We must of course agree as to what language to use to communicate throughout the global network. The problem is not very different from what we do for instance in air traffic control. At a certain moment we must accept that in order to communicate we must have a common global language. This does not negate local languages and cultures – on the contrary. The fact that one speaks English does not prevent him/her from communicating in his/her native Italian, nor does it reduce his/her pride in Italian culture. By speaking English, he/she is able to communicate that culture to other cultures, and vice versa. The â€Å"Global Education† mentioned in the abstract might be understood as the universal education of humankind – a worthy goal. But we first have to ask: what will we teach? There are too many facts to be taught, yet they are insufficient. We need instead to exercise our intelligence to grasp and teach what is best – namely the promotion of our well-being. The cultural/historical dimension, whereby students are stimulated to broaden their perspective on life, is already being addressed in some programs of curriculum reform. At my home institution, Temple University, for example, a two semester course entitled â€Å"The Intellectual Heritage† is required for all undergraduate students. This course introduces seminal texts and ideas from Western, African, and Asian traditional intellectual histories and cultures. Through classic works such as the Tao Te Ching, the Koran, and the Analects, the heritage of all humankind, students are able to enlarge their intellectual and historical vision, while becoming sensitized to the values of their own, often unexplored, roots. This suggests that curriculum must include voices, visions, and perspectives of people of color and other marginalized groups. Literature Review Henderson noted in her paper that conventional economic theory is based more on the values of economic theorists and their wealthy sponsors than on actual observation of real economies (Davis 1988). Not only economics, but everything that is taught bears the stamp of someone’s values – whether those of a legislator, a teacher, a textbook writer, or a group of academic theorists. Value-neutrality is one of the most pervasive misconceptions of modern education. The curriculum is not unbiased, and students are not left to form their own opinions. Whatever is taught bears the imprint of the values implicit in society, and if by chance those values are part of the cause of a society’s problems, then it becomes necessary to address them openly and critically in the educational curriculum. This, of course, is the real meaning of â€Å"academic freedom,† something that the American public has yet to accept. The problem of what set of values, what sort of vision of humankind, we could put in place of – or at least use to modify – our present faulty vision is taken up by Charles Weihsun Fu in a brilliant analysis of the distinctions between two of the world’s dominant worldviews: the Eastasian and the modern Western. Fu skillfully juxtaposes the Confucian and Judeo-Christian understandings, pointing out the social and political consequences of each, and especially their inherent weaknesses. More specifically, he contrasts their respective bases in personal morality and social responsibility on the one hand and in law and contractual relationships on the other. Fu concludes with a proposal for interweaving these two approaches which, if introduced into the Western curriculum, could serve simultaneously to correct our destructive tendencies toward alienation while softening our pretensions of moral superiority. His arguments seem to us to feed well into those of Johan Galtung, who discusses the path to global peace under the next theme. The process by which change is to be accomplished likewise is addressed by Frances Moore Lappe, as she critiques our political value system. Too often, Lappe argues, the curriculum teaches only superficial explanations for society’s problems, relying upon the unexamined assumptions of single disciplines, which are often graced with the label of common sense. She calls for the introduction of dialogue into the curriculum to force us to delve deeper into the underlying causes of problems, thus revealing their true complexity. Such dialogue ultimately demands the critical self-evaluation of values and a sense of political engagement that she believes are essential for an active, informed, truly democratic citizenry. If they are to achieve a productive dialogue rather than a polarizing debate, both Western traditionalists and the multiculturalists must face some facts. The growing number of people of color in our society and schools constitutes a demographic imperative educators must hear and respond to. The 1999 Census indicated that one of every four Americans is a person of color. By the turn of the century, one of every three will be of color. Nearly half of the nation’s students will be of color by 2020 (Council for Exceptional Children 2002). Although the school and university curriculums remain Western-oriented, this growing number of people of color will increasingly demand to share power in curriculum decision making and in shaping a curriculum canon that reflects their experiences, histories, struggles, and victories. People of color, women, and other marginalized groups are demanding that their voices, visions, and perspectives be included in the curriculum. They ask that the debt Western civilization owes to Africa, Asia, and indigenous America be acknowledged (Grossman 1998). The advocates of the Afro centric curriculum, in sometimes passionate language that reflects a dream long deferred, are merely asking that the cultures of Africa and African-American people be legitimized in the curriculum and that the African contributions to European civilization be acknowledged. People of color and women are also demanding that the facts about their victimization be told, for truth’s sake, but also because they need to better understand their conditions so that they and others can work to reform society. The significance of culture in curriculum implementation is supported by Michaels’ (1981) study of differences in narrative styles used by African American children and their European-American teacher. In Michaels’ study, a European-American teacher did not make explicit the literate narrative style employed in school learning and, thus, African-American children did not acquire a prerequisite skill for reading acquisition. Narrative styles are culturally acquired. The narrative style employed in school is based on the European-American culture and does not need to be made explicit to most members of that culture. Schools and the curriculum are often portrayed as culturally neutral and, because the practice of schooling has become traditional, it is difficult to identify the specific aspects of culture that are present. A more specific example of teachers’ response to students’ cultural or ethnic background is found in a research study reported by Perry Gilmore (1985) in which African-American children’s access to advanced literacy is denied on the basis of their level of acculturation rather than acquisition of prerequisite skills. Creators of the standard curriculum as members, of the society, function in multiple settings (e. g. , systems) and, as a result, are socialized by many agents. Attitudes about what children should be taught and how they should be taught are shaped. Likewise, attitudes about social issues such as race and ethnicity are also influenced heavily by multiple systems-giving messages, sometimes conflicting messages, about the importance of these factors. Branch (1993) suggested that the ethnicity and race of the teachers/educators and learners figure prominently in the learning equation. He posits that the attribution of characteristics to learners influences how they perform in the classroom, perhaps as much as their abilities. Frequently, teachers view African-American children’s academic performance as a function of their race and ethnicity and the children themselves may develop limiting self-perceptions as a consequence of their interactions within the ecosystem. For example, Fordham and Ogbu (1986) reported that some African-American high school students perceive academic excellence as an instance of â€Å"acting White. † Background It was not easy, even in the heyday of nineteenth-century nationalism, to define what was meant by national identity. Nations were often based on some notion of unity, or of consanguinity, or of some shared culture, or appearance, or language. None of these seems to be either a necessary or a sufficient condition, however. The United States manages without consanguinity, for example—though it currently seems to see language as a defining issue, as can be seen in the moral panic about the possibility of non-English speakers forming a majority. The pedagogic will seek to produce structures and curricula that are designed to maintain national identity, particularly at moments when national authority might seem to be in question. Bernstein (1971) expressed part of this when he wrote that â€Å"how a society selects, classifies, distributes, transmits and evaluates the educational knowledge that it considers to be public reflects both the distribution of power and the principles of social control†. If existing power structures and distribution are to be maintained, knowledge, and the particular kinds of knowledge that constitute cultural capital, must be selected and transmitted to particular groups. Such cultural capital must be identified, protected and valued over other cultural phenomena. Authorities need to assert their identity and control, and, in the context of the arguments presented in this paper, they need national and cultural symbols to do this, and they need control over the way in which they are transmitted. Some of the unhappy facts of our condition are being disseminated through the media, but in spite of this we still suffer from serious misunderstandings about the nature of global problems. While we have all been told that there are environmental, economic, and political crises – the greenhouse effect, species extinction, the hole in the ozone layer, the Third World debt, the instability of political institutions – and have been informed that there are some causative agents such as carbon dioxide emissions, deforestation, poverty, and a dearth of the appropriate sustainable development, we clearly do not comprehend. We misunderstand precisely because an insistence on the facts alone constitutes that little bit of knowledge that is a dangerous thing. Western traditionalists and multiculturalists must realize that they are entering into debate from different power positions. Western traditionalists hold the balance of power, financial resources, and the top positions in the mass media, in schools, colleges and universities, government, and in the publishing industry (Duckworth 1996). Genuine discussion between the traditionalists and the multiculturalists can take place only when power is placed on the table, negotiated, and shared. However, multiculturalists must acknowledge that they do not want to eliminate Aristotle and Shakespeare, or Western civilization, from the school curriculum. To reject the West would be to reject important aspects of their own cultural heritages, experiences, and identities. The most important scholarly and literary works written by African-Americans, such as works by W. E. B. DuBois, Carter G. Woodson, and Zora Neale Hurston, are expressions of Western cultural experiences. African-American culture resulted from a blending of African cultural characteristics with those of African peoples in the United States (Wald 1996). Rather than excluding Western civilization from the curriculum, multiculturalists want a more truthful, complex, and diverse version of the West taught in the schools. They want the curriculum to describe the ways in which African, Asian, and indigenous American cultures have influenced and interacted with Western civilization (Combleth 1988). They also want schools to discuss not only the diversity and democratic ideals of Western civilization, but also its failures, tensions, dilemmas, and the struggles by various groups in Western societies to realize their dreams against great odds. The inclusion of African-American literature (a) clearly reveals the conflicts and contradictions of class, race, and gender bias in a democratic society, (b) puts students in touch with their own bias and that of their peers, and (c) helps students learn to challenge bias in themselves, their peers, and the larger society, and in the literature they read. The teacher’s personal commitment allows to overcome aspects of the school culture and resistance and racial conflict among students to reach a point of shared understanding and experience for students. The racial conflict clearly raises the issue of personal and group identity, however. Method Curriculum development is designed to reflect the course of study in schools. It is intended to present information to students in an organized manner through various instructional methods and strategies. Teachers must be cognizant of creative and innovative ways to individualize and maximize learning for pupils by providing practical learning activities. Designing curriculum involves two major methodologies (Grossman 1998). The first methodology is experimental instruction. Experimental instruction is designed to intrinsically motivate student interests inside and outside of the classroom. The second approach, systematic instruction, involves teacher/student interaction. The major purpose of systematic instruction is to develop a skill or concept and design materials and activities that enable students to achieve the selected objectives. Curriculum development in most school districts is concerned with developing academics in order to equip pupils to master the complex tasks presented by our society. This approach is valid for most pupils. However, due to poor social and interpersonal skills development of many minority and young African-American students, social skill development may be necessary before academic skills can be mastered. It is generally agreed by most professionals in the field of education that schools should be involved in teaching social and interpersonal skills. For example, social skills education and interpersonal skills development are ideal ways to teach responsibility for self and others and for exploring the meaning of human interaction and relationships. A social skills curriculum can also help students understand: (1) how to develop self-esteem along with their emotions and how their emotions affects others; (2) how to develop positive social relationships; (3) respect for others; (4) respect for rules and regulations; (5) ways to develop moral and character; (6) ways to examine one’s values; (7) ways to make responsible choices; (8) their potential and worth as human beings; (9) How to develop a sense of responsibility toward others and ways of behaving appropriately in public places; (10) the role and duty of responsible citizens; and (11) how to develop effective communication skills. Curriculum strategies outlined in this text are designed to address the social skills and others as they relate specifically to African American students. Experimental, direct, and systematic curriculum methodologies were employed. The phenomenon of educating African-American students has been studied and investigated extensively, resulting in numerous educators advocating that these â€Å"special† students demonstrate inappropriate social skills/ behaviors inside as well as outside the classroom. Developing the appropriate social skills for successful interaction with peers and significant adults (teachers, parents) can be considered one of the most important accomplishments of childhood and early adolescence should be addressed as soon as possible. This is particularly true in the area of establishing and maintaining relations with peers and authority figures. Not only can social skills deficits have a negative impact on future interpersonal functioning, it may also affect current functioning, reducing the quality and quantity of the learning experiences to which students are exposed in their educational settings. Social skills have been defined as goal-oriented, rule-governed, situation-specific learned behaviors that vary according to social context. Social skills involving both observable and nonobservable cognitive and affective elements that help elicit positive or neutral responses and avoid negative responses from others. As such, social behavior constitutes an intricate interfactional process. As a result, the behavior of school-age children influences and is influenced by that of their partners (e. g. , teachers, mentors, tutors, and peers) within the interaction. Society expects that when children reach various developmental stages, they will demonstrate greater foresight and more controlled behaviors. Society also expects that children will be capable, not only of meeting increased demands within learning tasks, but also more complex, subtle social situations. Failure to meet these expectations may increase their sense of social alienation and helplessness. The curriculum presented here is designed to enable African American students to become socially contributing members of society by meeting expected standards. Strategies have been developed to assist educators in providing these students appropriate social skills training to enable them to operate successfully in the schools and society. Intervention techniques have been selected based upon research techniques to assist young Black students in controlling aggression, assuming responsibility, and becoming productive members of the group. The author highly endorses that proactive approach be employed when teaching social skills to African-American students. Since proactive instruction provides children with social intervention before negative behaviors occur, this approach is preferable to reactive teaching. Whereas proactive instruction teaches social skills before social rejection is experienced, reactive instruction waits for the individual to fail and then applies intervention strategies. Many African-American students have problems developing appropriate social skills due to the problems outlined throughout the text. Proactive instruction will prevent many of the negative consequences of inappropriate social skills, as well as improve the self-image of young African-American males. Recommended strategies for proactive instruction may assist the boys in: 1. dealing positively with accusations 2. accepting the feelings of others in a nonthreatening manner 3. respecting the feelings of others 4. avoiding fights and conflicts 5. dealing effectively with teasing 6. giving praise or compliments to others 7. accepting compliments from others 8. apologizing for inappropriate behavior 9. expressing anger in a positive way 10. showing affection and appreciation toward others 11. practicing self-control These instructional activities may be expanded or modified as needed. As indicated, African-American students must be taught appropriate social skills if they are going to be contributing members of society. The social skills outlined here should be infused throughout the curriculum and integrated as needed by the teacher. These strategies are seen as immediate, useful sources for teaching pro-social skills to African-American students. Additionally, the curriculum is based upon in-depth research and years of teaching and observing the social skills development of African-American students. Results The initial step in developing a social skills curriculum is to identify those general social behaviors that are critical to successful social functioning. These general social behaviors are then rewritten as general objectives, which provide the framework for constructing other components of the curriculum. The second stage is to sequence specific objectives as they relate to the general objectives. All specific objectives are designed to achieve the general objectives. Specific objectives are stated in behavioral and measurable terms. The third step is to identify activities and resources that can achieve the stated objectives. Activities should be functional and reflect real life experiences that African-American students are exposed to. As much as possible, parents should be involved in reinforcing the social skills taught. Parents may be used as resource individuals and may offer suggestions relative to material and activities. The fourth step is to include cultural, ethnic, and racial diversity into the curriculum. This approach affords young African-American males the opportunity to appreciate and understand their own self-worth and sense of importance and belonging as well as identify Blacks and other minorities who have made significant contributions in several fields. An additional benefit is that the young Black males can identify and associate with appropriate role models. A curriculum that does not highlight the contributions of Blacks and minorities gives an inaccurate and distorted view of the many significant contributions made by them. Multicultural activities and strategies enrich the curriculum by showing differences in cultural styles, patterns, and interests of diverse groups. Conclusions and Recommendations A social skills curriculum should be based upon those social skills needed to function successfully in one’s society. Much of the research reviewed indicates that a significant number of y African American students have not mastered the social skills needed to function successfully in our society. A functional approach involves exposing the learner to real-life situations, concepts, and activities such as self-identity, acquiring self-concept, achieving socially acceptable behavior, bonding, respecting the rights of others, maintaining good interpersonal skills, achieving independence, employing problem-solving skills, taking turns, and communicating appropriately with others. It is language – the exquisite use of symbols – that makes us truly human, and I would like to see a core curriculum in which students study the origins of language – not just parts of speech (Frisby 1993). I would also like to see students consider how symbol systems vary from one culture to another, how language can be shared, and perhaps all students should become familiar with a language other than their own, so they can step outside their own language skin to understand better the nature of communication. And surely a course of study on the centrality of language would include mathematics, which is a universal symbol system. All human beings respond to the aesthetic. This condition is found in all cultures on the planet, and students, in the new core curriculum, should study the universal language we call art. When Picasso confronts the unspeakable agonies of war, the dismembered child, the scream of a bereft mother, the shattered home, and puts them on a huge canvas called â€Å"Guernica,† he makes a universal statement about destruction that can be felt in the heart of every human being (Spears-Bunton 1990). I am suggesting that for the most intimate, most profound, most moving experiences, we need subtle symbols, and students should learn how different cultures express themselves through the universal language of the arts. Bibliography Bankee N. C. & Obiakor F. E. (1992). â€Å"Educating the Black male: Renewed imperatives for Black and white communities. † Scholar and Educator: The Journal of the Society of Educators and Scholars, 15, 2:16-31. Bernstein, B. (1971). â€Å"On the Classification and Framing of Educational Knowledge†, in Young, M. F. D. (ed. ) Knowledge and Control: New Directions for the Sociology of Education, London: Collier-Macmillan. Bok, Derek. Higher Learning. Cambridge, Mass. : Harvard University Press, 1986. Branch C. (1993). â€Å"Ethnic identity as a variable in the learning equation. † In E. Hollins, J. King, & W. Hayman (Eds. ), Teaching diverse populations. Albany: State University of New York Press. Combleth, Catherine. (1988). â€Å"Curriculum In and Out of Context,† Journal of Curriculum and Supervision, 3:2, pp. 85-96. Council for Exceptional Children (CEC). (2002). Addressing over representation of African American students in special education: The prereferral intervention process – An administrator’s guide. Washington, DC: National Alliance of Black Schools Educators. Davis, Allen J. (1988). â€Å"Education for Citizenship: The Role of Progressive Education and Interdisciplinary Studies,† Innovative Education 13, 1. Duckworth E. (1996). The having of wonderful ideas and other essays on teaching and learning. New York: Teachers College Press. Falvey, M. A. (Ed. ). (1995). Inclusive and heterogeneous schooling: Assessment, curriculum, and instruction. Baltimore: Brookes. Frisby C. (1993). â€Å"One giant step backward: Myths of Black cultural learning styles. † School Psychology; Review, 22(3), 535-557. Fu Charles Wei-hsun. (1988). On the Task of Constructive Modernization of Confucian Ethics and Morality, Taipei: Universitas (Philosophy and Culture) Monthly. Fordham S. & Ogbu J. U. (1986). â€Å"Black students’ school success: Coping with the burden of ‘acting white’. † The Urban Review, 18(3), 176-205. Grossman, H. (1998). Ending discrimination in special education. Springfield, IL: Charles C. Thomas. Hirsch E. D. , Jr. , (1993). â€Å"The core knowledge curriculum – What’s behind its success? † Educational Leadership, 50, 23-30. Macdonald, James B. (1971). `Curriculum Development in Relation to Social and Intellectual Systems. In The curriculum: Retrospect and Prospect, part I, pp. 97-112. Seventeenth Yearbook of the National Society for the Study of Education. Chicago: University of Chicago press, 1971. Michaels S. (1981). â€Å"Sharing time: Children’s narrative styles and differential access to literacy. † Language in Society, 10, 423-442. Obiakor, F. E. (1994). The eight-step multicultural approach: Learning and teaching with a smile. Dubuque, IA: Kendall/Hunt. Obiakor, F. E. (1999). Beyond the steps: Multicultural study guide. Dubuque, IA: Kendall/Hunt. Obiakor, F. E. , & Schwenn, J. O. (1996). Assessment of culturally diverse students with behavior disorders. In A. F. Rotatori, J. O. Schwenn, & S. Burkhardt (Eds. ), â€Å"Advances in Special Education: Assessment and Psychopathology Issues in Special Education† (Vol. 10, pp. 37-57). Greenwich, CT: JAI Press. Spears-Bunton, Linda A. (1990). â€Å"Welcome to My House: African American and European American Students’ Responses to Virginia Hamilton’s House of Dies Drear,† The Journal of Negro Education, 59:4, pp. 566-576. Wald, J. L. (1996). â€Å"Diversity in the special education training force. † NCPSE News, 1, l&6.

Eddie Carbone and the tragedy of the common man Essays

Eddie Carbone and the tragedy of the common man Essays Eddie Carbone and the tragedy of the common man Paper Eddie Carbone and the tragedy of the common man Paper Arthur Millers play, A View from the Bridge, was a successful tragedy, when it appeared on Broadway in New York in 1955.Artur Miller, born in 1915 died in 2005. His father was a prosperous manufacturer until 1931, during the great depression, when his business failed and he became bankrupt. Miller briefly became a member of the communist party because of the failure of his fathers business then turned to a belief in socialism for the rest of his life. After graduating from the University of Michigan, Miller began to write plays. His marriage to Marilyn Monroe, the most famous movie actress of her era, lasted merely four years. Miller won the Nobel Prize for literature in recognition of his successful career as a dramatist. He is without doubt one of Americas finest playwrights. During the cold war the United States fear of the Soviet Union led to a witch hunt for communists. Miller, as a former communist and a socialist believing that it was the role of society to help those who cannot help themselves, was summoned before the senate sub-committee to answer questions about his political affiliations. From this experience his tragedy, The Crucible, arose, in which he uses the hunt for witches in Salem Massachusetts in the eighteenth century as an allegory of the hunt for communists in the 1950s. A View from the Bridge, written just two years later, is generally seen as a tragedy, in which the central character is driven to his ruin and death by his illicit passion for his niece. Miller believed that he was living in a tragic age, what with two world wars, depression and the cold war. What was new, he believed, was the possibility of a tragedy of a common man, rather than only kings and queens which it always had been, dating back to the first tragedies in ancient Greece. Furthermore, it would make the play something that ordinary people could relate to. The twentieth century was the age of democracy America didnt have a monarch and the ones left in the world no longer held any power. Therefore everyone in society could aspire to achieve power no matter what their background, and the way to achieve that power was through the accumulation of money. His plays mount attacks on the American dream that happiness is attainable through financial success, even for a common man like Eddie; his belief in that dream is the source of his tragedy Eddie Carbone does not only contribute to the tragedy of the play, he is the tragedy. Although other characters help to assist the tragedy, like Rodolfo and Catherine, most of it was brought on by Eddie himself. Therefore his death seems inevitable. Eddie Carbones problem was, as Alfieri the lawyer and narrator, to whom Eddie turns in distress, said, He wouldnt settle for half. Throughout the whole play, there was hardly an occasion when he would back down or compromise. This partly stems from his patriarchal Sicilian culture where the man of the house is the most important figure in the family and is never questioned. There was a strong belief in the importance of honour and the need to respond to any sleight upon it, as is very evident throughout the play. Eddie and his family live under the Brooklyn Bridge, in the slums of New York, a community called Red Hook. Eddie and all his neighbours were once illegal immigrants or the children of illegal immigrants who would have come to America with nothing, in the hope of achieving happiness and respect through material success. This idea of the American dream contributes to the tragedy, since Eddie was trying to give Marco and Rodolfo this chance of attaining the dream too. The two illegal immigrants were from impoverished post-war Sicily; they were cousins of Eddies wife Beatrice. It is ironic that what was originally a kind thing to do turned out to be his fatal mistake. In the opening scene we can clearly see that Eddie is the dominant figure within the family. Catherine defers to him and obeys his every word. She will do anything to please him, which is typical of a Sicilian family where the father is the head of the house: Listen you been given me the willies the way you walk down the street. Eddie, by modern standards, appears incredibly interfering and intrusive. Just the word listen illustrates the fact that he thinks hes very important. Eddie goes on to say, Im telling you youre walkin wavy. This is a strange way of putting it, as though the subject embarrasses him and he probably realises its not something a father should really be saying to a seventeen year old girl. He starts the sentence with Im telling you, a very over-powering way of starting the sentence, implying that the subject is not up for discussion. Catherines reaction to Eddies accusation is, Im walkin wavy? This shows how naà ¯Ã‚ ¿Ã‚ ½ve she is, as though she cant believe what hes saying. Such a dominant figure as Eddie obviously doesnt expect to be questioned so snaps back: Dont aggravate me Katie, you are walkin wavy Eddie is not willing to compromise on the subject, so that is the end of it: The heads are turnin like windmills. Eddie doesnt like the attention Catherine gets from any man and what he probably means is that he cant stop looking at her himself. It makes him feel uncomfortable. Catherines behaviour torments him as he realises he should not be fancying her, but at the same time he doesnt want her having any other admirers the conflict consumes him and on the surface appears as if Eddies is merely over-protective towards Catherine.

Whos Afraid of Virginia Woolf essays

Who's Afraid of Virginia Woolf essays Whos Afraid of Virginia Woolfe is far and away one of the most personal plays that I have ever been to. This play seemed to hit on all aspects of life in the 60s, materialism, plastic appearances and an abundance of alcohol to help bring about the true nature of the characters. The most amazing thing about Albees play was the fact that it seemed to describe human nature to a tee. The differences between 1962 and 2001 are huge, we have basically created new lifestyles for ourselves, but this play proves once again that human nature never becomes outdated. Albee hits on several aspects of the way we project ourselves as couples in social situations, George and Martha probably seemed like a perfectly happy couple on the outside to all the other faculty members who attended the party but once they were in private their image is projected in a whole new light. In a time when divorce was not nearly as prevalent as it is today this was probably a fairly common scene for the middle class of the time. Couples stayed together because that is what society condoned, breakups in marriage were scorned and high position families and couples stayed together for the sake of their careers no matter what kind of difficulties they experienced with each other. One of the major points made in this play was the fact that George just was not living up to Marthas expectations he wasnt the head of the History department even though he had been there for a very long time, this failure was present throughout the entire play suggesting that it was a major issue with the couple that was causing many problems. This lack of success on Georges part was also evident from the way he treated the young and upcoming Biology professor Nick, his apparent contempt seemed to stem from the fact that Nick had a better shot at becoming what George never could be. Marthas obsession with Georges career seemed to disappo...

Practice in Using the Prepositions In, Into, On, and At

Practice in Using the Prepositions In, Into, On, and At Complete each of the following ​sentences with the appropriate preposition: in, into, on, or at. When youre done, compare your responses with the answers below. Assignment Slocum stepped (in, into, on, or at) the elevator and pressed the button for the fifth floor.As Slocum stood silently (in, into, on, or at) the elevator, the woman beside him began to sing.The woman was wearing a paper crown (in, into, on, or at) her head.Slocum was scheduled for an appointment in the clinic (in, into, on, or at) the fifth floor.He was due for his appointment (in, into, on, or at) five minutes.Slocum spotted a large dead roach (in, into, on, or at) the greasy floor of the elevator.Slocum stared (in, into, on, or at) the roach for a few seconds and then closed his eyes.He slipped (in, into, on, or at) a familiar fantasy world.In that world, dolphins were swimming (in, into, on, or at) a circle around him.When the doors opened (in, into, on, or at) the fifth floor, the elevator was empty. Answers Here youll find the answers (in bold) to the above exercise. Slocum stepped  into  the elevator and pressed the button for the fifth floor.As Slocum stood silently  in  the elevator, the woman beside him began to sing.The woman was wearing a paper crown  on  her head.Slocum was scheduled for an appointment in the clinic  on  the fifth floor.He was due for his appointment  in  five minutes.Slocum spotted a large dead roach  on  the greasy floor of the elevator.Slocum stared  at  the roach for a few seconds and then closed his eyes.He slipped  into  a familiar fantasy world.In that world, dolphins were swimming  in  a circle around him.When the doors opened  on  the fifth floor, the elevator was empty.

Professionalism in Nursing Essay Example | Topics and Well Written Essays - 2000 words

Professionalism in Nursing - Essay Example This essay discusses that  Tilda Shalof detailed all the joys, excitement, challenges, and frustrations that nurses face every day. Nurses are almost always physically exhausted but also emotionally drained after caring for patients with all their skills, modern scientific resources, and a host of other heroic interventions to prolong life but sometimes they question at what cost? The nursing profession is not what most people believe it to be, something that is as sterile as most of the hospital environments are, but Ms. Shalof showed how nurses can be humorous at times, they can get excited over new patients, be committed to their work, rebellious at times to hospital administration authorities, have a strong sense of responsibility, and a shared camaraderie despite a busy workload.  This discussion stresses that  the author detailed her early days as a nurse-trainee in the intensive care unit (ICU) of a big metropolitan hospital. There are many new challenges of a nurse work ing in an ICU than compared to other hospital wards. The nurses there have to be familiar with all the medical lingo preferred by the doctors, such as arterial blood gases (ABGs), a multi-system organ failure, a hepatic failure, congestive heart failure, and all kinds of shocks, like   anaphylactic, hypovolemic, or septic shock, for example.  Tilda recounted how the son of an old woman patient named Mrs. Templeton wants everything done to save his mother from certain death.... There are many new challenges of a nurse working in an ICU than compared to other hospital wards. The nurses there have to be familiar with all the medical lingo preferred by the doctors, such as arterial blood gases (ABGs), a multi-system organ failure, a hepatic failure, congestive heart failure, and all kinds of shocks, like anaphylactic, hypovolemic, or septic shock, for example (Shalof, 2004, p. 15). The third chapter of her book tells the reader how some patients or their relatives can be quite cruel to the nurses caring for them, not considering or taking into account all their efforts, time, and energies spent on trying to save their patients. Tilda recounted how the son of an old woman patient named Mrs. Templeton wants everything done to save his mother from certain death. Her case shows the importance of having advance directives concerning future care or a choice of dying in a hospice (Goodnough, 2013, para. 3) and decide on it and not her son. Conclusion Nursing today ha s many viable theories on the proper role of this part-art and part-science profession. Among these theorists are Jean Watson (carative factors and caring moment), Rosemarie Parse (human becoming), Dorothy Johnson (a system model), Lydia Hall (core, cure, and care), Ernestine Weidenbach (as a helping art), Virginia Henderson (assist a patient regain independence), Patricia Benner (from novice to expert), and Martha Rogers (science of unitary human beings). Whatever theory works best, it worth remembering that patients are individuals who appreciate the care, attention, and empathy extended to them by the nursing profession. Final Scholarly Essay (Part 2)

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Case Study Suicide Among Adolescents - Essay Example At first he seemed upset but more or less normal. Nothing in his behaviour was different than any other young man who had had his heart broken. However, over the weeks that then followed he began to act increasingly strange. He began to sing sad songs to himself and began to drink heavily and use drugs. He drew strange pictures on the walls of his house and even on his clothes. When the new school year began, his behaviour worsened. He began to harass Samantha’s friends, in one case leaving dead flowers on one of their doorsteps, addressed to Samantha. He also began a relationship with a girl he met on the Internet. This girl was effectively a shut-in with no social skills. At times, their relationship gave the appearance of abuse. John began to make threats about killing himself. His friends tried to support him, but increasingly John pushed them away. His behaviour was sporadic. He stopped attending classes and was often drunk in the daytime. He began to steal from his friends. When walking down the street he would sometimes skateboard into traffic. He often described the world as evil and as a joke. John’s father, Herman, came to visit John and try to comfort and support him. He told him that he was loved and tried to get him to open up to him. He tried to talk about what was happening, but John was not responsive. Herman had to go back home to go to work. John appeared increasingly agitated and anxious. He withdrew almost entirely from his friends and roommates and no one knew where he was. A few days later he tried to hang himself. What treatment should be used on John? He is living on a knife’s edge and he needs immediate help. His problems have been unaddressed for too long, in part because he is not being supervised by anyone. Too many of the people who should have a responsibility for him live too far away. That support structure should be addressed. He should be a started on a course of

The impact of Wireless technology on the field of Communication and Essay

The impact of Wireless technology on the field of Communication and computer engineering - Essay Example Today, we have wireless technology. Examples of wireless technology are all around us including mobile phones, laptops, USB internet, and cameras etc. These technologies are very important because they help us stay connected with each other all the time. The impact of wireless technology on communication and computer engineering is very big. In this paper, it has been discussed how big the impact of wireless technology on communication and computer is engineering. Communication is conversation, interaction, or change of words, ideas, or messages between two or more than two people at the same time. For a long time in the history, when there used to be no wireless technology or even wired technology, people used to send letter to each other through post. That was a very time consuming process. The postman delivered the letters by hand. It took even more time for the sender to get the reply from the person through letter. Then came wired technology. The history of wireless technology c an be traced back to â€Å"1896 [when] Marconi took his apparatus to England where he was introduced to Mr. (later Sir) William Preece, Engineer-in-Chief of the Post Office, and later that year was granted the world's first patent for a system of wireless telegraphy† (nobelprize.org, 2013). When telephone was created, it changed communication a lot. It took the quality of communication and its speed to a whole new level. People contacted each other by phone. Those used to be large phones with bells and buttons containing digits. Although those wired telephones improved communication a lot, yet they were difficult to set up as one needed to do proper wiring in order to be able to talk through them. Then came mobile phones. In the start, only few people had mobile phones and it was considered a status symbol. However, over the last decade, mobile phones became very common and even very poor people started having them. Mobile phones took the communication to an even higher level . Using mobile phones, people did not have to connect to each other through wires because mobile phones were wireless. They worked by catching signals from the air. This shifted the responsibility over to the mobile phone companies and the telecommunication companies to install their towers everywhere so that the signals would propagate everywhere. Once these towers were installed, people became very free. They could talk to each other both within the country and outside using mobile phones. Communication became completely wireless. Over the passage of time, mobile phones improved in quality. They became thinner, smarter, and sharper in that their features were improved. Then came mobile phones with cameras installed in them. This further improved communication because people could not only talk to each other, but also exchange photos with each other that were captured using the mobile phone’s camera. Internet is another technology that is available in wireless form and has h ad a great impact over communication and computer engineering. Today, internet is available in different forms. There is a wired form and there is a wireless form also. In the wired form, internet companies provide wired connection to the users at their homes. They connect their computers or laptops to the internet device using wires. Wires are inserted in ports, one in the desktop computer and the other in the internet device. Laptops have an edge over desktop computers because they consist of wifi facility. Wifi catches signals of the internet device so that internet can be run on the laptop without having to connect it to the internet device using a wire. Using such internet connections, people started communicating with each other in an

Interpersonal Communication Skills Essay Example | Topics and Well Written Essays - 500 words

Interpersonal Communication Skills - Essay Example With the innovation in the era of technology, it is exigent to grasp, memorize, espouse rapidly and the usage of effective communication. One is required to furnish leadership in its growth, for the interest of time, cultivation, evolution and accountability. It is also significant to fathom that communication through various mechanisms, contraption and modes gives different defiance and ruminations. It is through conversation that individual's memorizing principles and policies and the growth of shared meaning associated within the citizenry of rules and observance. Dialogue empowered communicants to reconnoiter their identity within the community, employed in conventions, make drift of their experiences, and cultivate a feeling of intimacy. Conversation helps the participants to enhance the chronicle of the locale and each individual appendage of that locale, which furnished a varied magnitude to their own growth. Finally, this authorized the participants to scrutinize the connotation they deduce of their surveillance and co-operations vis--vis the individual, the community, and the profession.

Climate Change Mitigation Research Paper Example | Topics and Well Written Essays - 2000 words

Climate Change Mitigation - Research Paper Example Its effects, importance and control procedures, are also evaluated to ensure that sufficient information is provided to various stakeholders to facilitate the development of effective mitigation approaches. Work schedule The following work schedule provides my work itinerary for successful completion of this project No Activity Completion Date 1 First research proposal 24TH Feb 2012 2 Approval by Supervisor 14th March 2012 3 Interview 16th March 2012 4 Library and electronic search 23rd March 2012 5 Final copy preparation 5th April 2012 6 Approval by the supervisor and presentation 28th April 2012 Literature Review Clear understanding of the effects of climatic changes is an imperative element towards building a vibrant future that embraces quality social and economic standards of life. Environmental dilapidation, which is caused by carbon and other toxic emissions to the atmosphere currently, poses a great challenge to the development of businesses due to increased cost of productio n with limited resources in the production chain (Locker & Kaczmarek, 2010). Adverse climatic changes cause immense dilapidation of natural resources, which is vital in developing a strong economy with cute social benefits. Governments and various organizations must sufficiently understand the need for preventing environmental degradation. This significantly occurs through reduction of green house emissions to the environment by major producing industries to ensure a safe environment, which supports social and financial ventures. As indicated by Locker & Kaczmarek (2010), mitigation of climatic changes is the process of providing necessary interventions towards reducing sources of green house gases. These causes require effective mitigation through clear-cut policies and development of stringent measures with an aim of preventing ethical environmental practices. According to Crawford, Davoudi & Mehmood (2009), understanding of the need to mitigate and prevent climatic adverse condit ions is increasingly becoming a major impediment to most organizations. In business organizations, quality of goods produced relates to capacities and strengths provided by the operating environment, which is a basic factor, vital for organizational success. No corporation can effectively administer its trade successfully without proper management of its environment (Crawford et al, 2009). Hence, environmental factors have become an increasingly critical concern for most institutions where regardless of organizational size, environmental issues impacts profitability and general performance. The concept of ecological dilapidation directly affecting atmospheric changes has existed for quite a while. However, it is recently that its awareness has lead to the establishment of measures towards curbing climate issues. Authorities intending to conduct mitigation have made environmental apprehension critical for climate change mitigation (OECD, 2008). Forestation and deforestation are the m ost common activities associated with tackling these environmental challenges. This processes influence the intensity of concentration for green house gases (GHG) within the atmosphere. Therefore, climate change requires immediate solutions than can minimize the long-term shifts that may result to environmental degradation. Its impact in one area directly affects the whole planet, as climate is not confined. Climate mitigation

Social Media Essay Example | Topics and Well Written Essays - 1250 words - 2

Social Media - Essay Example These websites are designed for sharing messages, pictures, events, updates and such other activities. Social Media sometimes feeds in innovating and discovering new contents like news, stories and other activities. There are hundred thousand of people, who daily perform searches on social media websites to search social media contents (Thomas, 2012). At managerial ability of permissible astuteness, it has four important components: The Attitudinal Component Officially astute teams hold the instruction of commandment and identify the ethical features of planned choice. The astute TMTs take duty for handling the permissible features of corporate and would not delegate those conclusions to people such as counsel, who could not comprehend the wider business points. It is identified that it is a duty of the general manager to take decision that which provision of possessions and rewards creates the sensible business. Counsel does not advise that a certain course of act is legal or not, i t depends upon the administration team to take decision whether a certain risk is valuable or not. A prominent data administration software and hardware manufacturer will have to decide whether to obtain the entire standard of VMware, the designer of leading-edge Virtual software that allowed customers to run unlike computer operating classifications like Unix, Linux and Windows instantaneously on a single server (Mandiberg, 2012). The Proactive Component Officially astute administration teams claim lawful guidance that is professional business oriented, and they assume their solicitors to support them in addressing corporate opportunities and pressures in conducts that are lawfully permissible, actual, and competent. Rather than observing the rule purely as a restraint, somewhat to respond to and fulfill with, officially astute administration teams contain lawful restraints and opportunities at each phase of plan preparation and implementation. They take a preemptive method to rule , both to elude extra difficult government rule and to take benefit of the renewal opportunities parameter and de rule suggestion. Such as Regina Company decreased its product accountability disclosure and shaped an improved product in the method when it fortified its home-grown spa applications with an engagement recognition circuit interrupter that sheltered customers from electrical tremor if they unintentionally let fall the appliance in water. The Judgment Component Officially astute administrators with proper legal training do not have reason to guide themselves on permissible issues of significance. They appreciate the significance of choosing a right counselor at rule, who syndicates information of the black-note rule with decision and knowledge. Convinced developments of achievement might be lawful but not astute. Part of the highest administration team’s work is assimilating all method of viewpoints, from economic specialists, HR specialists, and marketing administr ators to solicitors. General Executives must take decision, how much to devote for gaining extra information, whether it is in the marketplace research or based upon lawful opinion. The Knowledge Component Although the knowledgeable administrator may realize the role that rule plays in setting the directions of the good game, it is frequently less clear, how commandment distresses the risk ratio for any

Climate Change Mitigation Research Paper Example | Topics and Well Written Essays - 2000 words

Climate Change Mitigation - Research Paper Example Its effects, importance and control procedures, are also evaluated to ensure that sufficient information is provided to various stakeholders to facilitate the development of effective mitigation approaches. Work schedule The following work schedule provides my work itinerary for successful completion of this project No Activity Completion Date 1 First research proposal 24TH Feb 2012 2 Approval by Supervisor 14th March 2012 3 Interview 16th March 2012 4 Library and electronic search 23rd March 2012 5 Final copy preparation 5th April 2012 6 Approval by the supervisor and presentation 28th April 2012 Literature Review Clear understanding of the effects of climatic changes is an imperative element towards building a vibrant future that embraces quality social and economic standards of life. Environmental dilapidation, which is caused by carbon and other toxic emissions to the atmosphere currently, poses a great challenge to the development of businesses due to increased cost of productio n with limited resources in the production chain (Locker & Kaczmarek, 2010). Adverse climatic changes cause immense dilapidation of natural resources, which is vital in developing a strong economy with cute social benefits. Governments and various organizations must sufficiently understand the need for preventing environmental degradation. This significantly occurs through reduction of green house emissions to the environment by major producing industries to ensure a safe environment, which supports social and financial ventures. As indicated by Locker & Kaczmarek (2010), mitigation of climatic changes is the process of providing necessary interventions towards reducing sources of green house gases. These causes require effective mitigation through clear-cut policies and development of stringent measures with an aim of preventing ethical environmental practices. According to Crawford, Davoudi & Mehmood (2009), understanding of the need to mitigate and prevent climatic adverse condit ions is increasingly becoming a major impediment to most organizations. In business organizations, quality of goods produced relates to capacities and strengths provided by the operating environment, which is a basic factor, vital for organizational success. No corporation can effectively administer its trade successfully without proper management of its environment (Crawford et al, 2009). Hence, environmental factors have become an increasingly critical concern for most institutions where regardless of organizational size, environmental issues impacts profitability and general performance. The concept of ecological dilapidation directly affecting atmospheric changes has existed for quite a while. However, it is recently that its awareness has lead to the establishment of measures towards curbing climate issues. Authorities intending to conduct mitigation have made environmental apprehension critical for climate change mitigation (OECD, 2008). Forestation and deforestation are the m ost common activities associated with tackling these environmental challenges. This processes influence the intensity of concentration for green house gases (GHG) within the atmosphere. Therefore, climate change requires immediate solutions than can minimize the long-term shifts that may result to environmental degradation. Its impact in one area directly affects the whole planet, as climate is not confined. Climate mitigation

Buss low Essay Example | Topics and Well Written Essays - 250 words

Buss low - Essay Example The case involved Apple and Samsung in argument of products manufactory. The jury found Samsung guilty by willfully infringing Apple patents. Apple requested to triple the compensation, but the lawyers defended the claim. Apple requested the court to prevent Samsung to ship products infringing Apple’s patents. The court decision favored Apple. Samsung penalty served as a deterrent effect to worn other companies trying to manufacture products similar to their competitor. The court ruling that Samsung should compensate Apple for damages was right, since Samsung had made profit from Apples products (Wingfield, p. 4). Apple did not make the products for their competitors to flagrantly copy but for delighting their customers. I strongly agree with the courts decision. Each company should use skills but not to copy other company’s product. The ruling served as a warning to Samsung and other companies trying to copy their competitor’s products. Nick Wingfield. Jury Awards $ 1 Billion to Apple in Samsung Patent Case. Viewed on August 24, 2012 from

Oman requires Westerners Essay Example for Free

Oman requires Westerners Essay Carrying out business in Oman requires Westerners to rethink their standard working practices. Simply dispatching the companies most highly qualified and intelligent staff without giving any thought to the wider implications of the character of the individuals is likely to cause the companies presence to fail. Patience and resilience are probably the first two qualities needed alongside professional competence by those being considered for employment in Oman. A willingness to change and adopt a more relaxed approach to local ways and methods is important as Omanis can be almost impossibly frustrating in business negotiations, in timekeeping or when bargaining on price. There are many never dos which may seem trivial but whose result is likely to be out of all proportion. Never lie (or be caught lying) to make a point. This will result in immediate distrust of you and the company. Never patronise or talk down and never show impatience or worse, anger during negotiations. These points will guarantee that you will go no further in that project. But furthermore, as the Omani social network extends in wide and diverse areas, you may find that you are unable to do business anywhere else as well! Equally, you may unknowingly be capitalising on that as well with your good trading practices being passed on. The matter of face and saving face has a great deal of importance when dealing with Omanis. Westerners should be particularly cautious when dealing with a situation which might suggest a fault or limitation, especially if the matter is brought into the public arena such as at an office meeting. Quick offence can be taken and will almost certainly lead to immediate dismissal often from the country on that day! The threat of instant removal from the country should not be discounted as a hyped-up story. It is very real and can be invoked by Omani nationals and lead to you being flown out of the country on the morning or afternoon, that is within a few hours, of the transgression. Lack of time keeping is a major cause of frustration for Westerners. Yet Omanis will always say that they are always available and access to them is simple. Westerners have no concept of the absolute duty that Arabs have towards family situations, which is far greater than those expected in Western societies. A phone call from a brother wanting to see them will take an overriding priority on the day. Unfortunately, a call to reschedule a meeting is unlikely to occur, they will just not appear. The Arab culture is so much different to Western priorities that they just simply cannot comprehend the Western fascination with the minor matter of Time. Patience and plenty of it is an absolute requirement. Another source of irritation is the time it takes to get-to-the-point at meetings, even more so if the point is likely to be contentious or controversial. Arabs will way up the mood and feelings of the decision-makers at the meeting and only bring up unpopular items if the mood is right. They see no point in advertising and bringing up these matters if the influential person or persons are not going to be receptive. Therefore, you may have to await several meetings before an item is discussed. Arabs hate to be the bearer of bad news such as saying no. They will hesitate or defer continually, keeping your hopes alive, when they have no intention of agreeing.

Fire Fighting Technology Essay -- Technology Technological Essays

Fire Fighting Technology Innovations in Communication Technology This 80,000 pound powerhouse was just purchased by the Swarthmore Fire & Protective Association. Equipped with a 100-foot aerial and a 2000 gallon per minute (gpm) Hale single stage pump, Tower 14 can knock down just about any fire. "The first five minutes after the first fire apparatus arrives on scene at a large-scale fire are coordinated chaos." Joe Lombardo of the Garden City Fire Department made it a point during fire school to emphasize that a good firefighter will always maintain a clear head even in the most harrowing of circumstances. This task may be difficult in situations where an enormous amount of information must be transmitted to effectively fight the fire. Recent innovations in fire scene communication technology have allowed for more information to be transferred to the appropriate firefighters before and during the initial attack. The following outline some of the more important innovations to fire communication technology: Communications between Incident Command and Firefighters on scene: Digital technology is rapidly becoming integrated into fireground operations because, in general, voice clarity is much better than conventional radio, because it is easier to encrypt than analog. Mary Jane Dittmar, of Fire Engineering magazine, describes the technologies as working by "converting a voice into binary information and then compressing it. Through modulation and encoding formats, the analog information is converted to digital data, compressed, and then converted back again, while still maintaining acceptable levels of voice quality. Digital technology is clearer and easier to understand than analog technology because background ... ...er units. All this information is now immedeately available to the first out engine so that the incident commander can come up with a plan of attack before even assessing the scene first hand. As such, the coordinated chaos may very well be sorted out before the apparatus even arrives on scene. Works Cited: Anderson, Leif. Using Technology to Manage the Information Overflow. "Fire Engineering." May 2002. Bachman, Eric. Pre-Incident Size Up: An Important Response Tool."Fire Engineering." April 2002. Cobb, Ralph. Benefiting from Military Technology. "Fire Engineering." May 2002. Dittmar, Mary Jane. Fireground Communications: Strategies for Meeting Today's Challenges. "Fire Engineering." May 2002. Hawkins, Clayton. A Model to Improve Emergency Management. "Fire Engineering." April 2002. http://www.nfpa.org/Home/index.asp (visited December 15, 2002)

Brave New World: The Advancement of Science :: Brave New World

Brave New World: The Advancement of Science Christy Campbell Mrs. Doig Eng OAC 2 16 May, 1996 When thinking of progress, most people think of advances in the scientific fields, believing that most discoveries and technologies are beneficial to society. Are these advances as beneficial as most people think? In the novel Brave New World, the author Aldous Huxley, warns readers that scientific advances can be a threat to society. This is particularly evident in the fields of biology, technology and psychology. According to Huxley, "The theme of Brave New World is not the advancement of science as such; it is the advancement of science as it affects human individuals"(Huxley CLC 79 290). One scientific advance of which Huxley warns readers of is that in biology. In the setting of Brave New World, henceforth referred to as the reservation, the mass production of humans is accomplished with the Bokanovsky process. In this process, human beings are genetically engineered in laboratories. "... a bokanovskified egg will bud, will proliferate, will divide. From eight to ninety-six buds, and every bud will grow into a perfectly formed embryo, and every embryo into a full sized adult"(Huxley Brave New World 4). One of the threats of this genetic breeding is that no family structures exist on the reservation. Instead, humans are raised in conditioning centres. R.T. Oerton points out that "Present knowledge indicates, for instance, that a child cannot be deprived of parents or parent figures, as were the children in Brave New World, without suffering lasting pathological damage to his personality."(Oerton CLC 7 308). Another threat that the Bokanovsky process poses to society is that life is not highly valued. "Murder kills only the individual and, after all what is an individual? With a sweeping gesture he [Mr. Foster, director of hatcheries and conditioning] indicated the rows of microscopes, the test-tubes, the incubators. We can make a new one with the greatest ease-as many as we like"(Huxley Brave New World 133). Human life holds no value because it can be easily replaced through the Bokanovsky process. Furthermore, Bokanovsky's method of mass production prevents individuality, as on the reservation, all people are cloned. Starting from the time of decanting, each embryo is genetically cloned to fall into one of the various social classes. Within each social class, all members are cloned to be intellectually and physically equivalent. Biological technology helps to achieve this equality by genetically shaping the minds of society. In Brave New World , one's intelligence depends on the amount of alcohol injected into their embryo. For example, one of the lower classes in society, Epsilons, have quite a high amount

Managing Working Capital

MANAGING WORKING CAPITAL Cash Budgets and Current Assets Learning Objectives Upon reading this chapter, students should: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Be able to compare and contrast working and fixed capital †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Understand the impact of the operating cycle on the size of investment in accounts receivable and inventories †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Know the differences between the three motives †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Be able to differentiate between float, collection float, and disbursement float †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Know how to appraise a firm’s credit worthiness †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Be able to appraise the effectiveness of a firm’s inventory management policiesChapter Summary A firm can invest in both working capital and fixed capital. Working capital is a firm’s current assets and includes cash, marketable securities, inventory, and accounts receivable. Fixed capital is a firm’s fixed assets and includes plant, equipment and property. Firms that cannot obtain short-term financing become candidates for bankruptcy. Management of working capital is particularly important to the entrepreneurial or venture firm because there is such a pull on resources.Two important concepts in managing working capital are the operating cycle and the cash conversion cycle: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The operating cycle measures the time between receiving raw materials and collecting the cash from credit sales posted to accounts receivable †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The cash conversion cycle measures the time it takes to collect money from the company’s customers and use those funds to pay its suppliers Calculating three ratios will reveal the average length of these cycles: 1. Inventory days     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   =   365 / (Cost of goods sold / Inventories) 2.Accounts receivable period (average collection period ) =   Accounts receivable / (Net sales / 365) 3. Average payment period   =   Accounts payable / (Cost of goods sold / 365) The operating cycle is the inventory conversion period plus the average collection period. The cash conversion cycle is the operating cycle minus the average payment period. In order to determine average investment in accounts receivable, multiply net sales per day by the average collection period. With this number, a manager can now estimate what the investment in accounts receivable will be fore ht following year given sales increases and average collection period.In order to determine investment required in inventories, multiply average cost of goods sold per day by inventory conversion period. The required amount of accounts payable can be found by multiplying the cost of goods sold per day by average payment period. Armed with these numbers, a manager can tweak the business practices and use these numbers as metrics for improvement. If savings can be wrung out of the operating cycle and conversion cycle, this means less money will have to be raised in financing. A cash budget details the cash inflows and outflows of a firm over a specific time frame.Small firms may prepare annual or monthly cash budgets while larger firms will forecast cash flows weekly or daily. Most firms have a minimum desired cash balance that depends on the firm’s ability to acquire financing on short notice, management preferences, and the predictability of cash inflows and outflows. Estimates of cash inflows are driven by two main factors: 1. Sales forecast (may exhibit seasonality) 2. Customer payment patterns Cash outflows will go to suppliers, payroll, taxes, operating expenses, and purchases of plant and equipment.In order to construct the cash budget, list all expected cash inflows and then all expected cash outflows for the particular period, generating a net cash flow amount. As a general rule of thumb, the average firm has 1/3 or more of i ts assets in the form of current assets (cash, accounts receivable and inventory). Seasonal production and forecasting can lead to idle plant capacity and laid-off workers during the off-season. Under a level production plan, the same amount of raw material is purchased and the same amount of finished product is manufactured every month.There are three types of motives for holding cash: 1. The transactions motives are demands for holding cash – cash is needed to conduct day-to-day operations 2. Precautionary motives are demands that may be caused by unpredictable events, such as delays in production or in the collection of receivables; marketable securities are held in such a contingency 3. Speculative motives are demands for funds to take advantage of unusual cash discounts for needed materials Cash and marketable securities include: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cash itself †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   U. S. Treasury bills   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Commercia l paper – short-term, unsecured notes of well-known business firms †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Negotiable certificates of deposit – a receipt issued by a bank in exchange for a deposit of funds †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Bankers’ acceptances – primarily used to finance exports and imports †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Eurodollars – deposits placed in foreign banks that remain denominated in U. S. dollars There are several reasons why U. S. banks have entered the Eurodollar market through overseas branches: 1. To finance business activity abroad 2. To switch Eurodollars into other currencies 3. To lend to other Eurodollar banksIn general, managers try to speed up cash collections while slowing down the payment process. The float is the time between sending out payments and having them actually be charged to the bank account. The collection float is the time between when a payer sends payment and funds are credited to the payee ’s bank account. The disbursement float is the time between when a payer sends payment and when the funds are deducted from the payer’s bank account. Float has three components: 1. Delivery or transmission float – the delay in transferring the means of payment from the payer (customer) to the payee (provider of goods/services) 2.Processing float – once payment reaches the destination, it needs to be entered and processed 3. Clearing float – delay in transferring funds because of the banking system itself In order to speed up the process: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Preauthorized checks are regular (typically monthly) deductions by a vendor from a customer’s checking account. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Under the Check 21 law, enacted in 2004, payee banks can present electronic or digital images of checks to payer banks rather than having to physically deliver the paper checks for payment.In order to facilitate sales, firms of ten offer the customers credit for purchases; this process calls in credit analysis. The five Cs of credit analysis are: 1. Character – ethical quality of the applicant and the history of paying bills on time (credit checks) 2. Capacity – the ability to pay bills (liquidity ratios) 3. Capital – adequacy of owners’ equity relative to existing liabilities 4. Collateral – whether assets are available to provide security 5. Conditions – current economic climate and state of the business cycleCredit bureaus obtain credit information about business firms and individuals; two such organizations are Experian and Equifax. Dun & Bradstreet reports contain information assembled through many channels and is one of the best sources of information on privately-held companies; reports are typically divided into five sections:   (1) rating and summary; (2) trade payments; (3) financial information; (4) operation and location; and (5) history. Trade credit is extended on purchases to a firm’s customers. Sometimes, customers are given a discount if they pay early.The financial manager must be careful not to impose onerous credit terms that will alienate customers and lower sales. With respect to global credit, the concern is forex. There are two ways to handle the issue: 1. Invoice customers in the firm’s home currency 2. Hedge the forex risk Inventory management: †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The just-in-time (JIT) inventory control system is a system where there are enough materials in inventory to cover needs for a short time, but not more inventory than is needed for short-term needs.Vendor and manufacturer work together to reduce lead time, setup time, and production time so that inventory shows up â€Å"just in time†Ã‚   †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   JIT II further integrates the activity of vendor and purchaser, wherein the position of buyer’s purchasers or materials planners is eliminate d and replaced by a representative of the supplier †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Tracking inventory also allows firms to reduce the inventory conversion period and the cash conversion cycle. RFID (radio frequency identification) tags send out a radio signal to electronic readers that allow companies to know the location of inventory at any timeInventory management can result in reduced cost of warehousing and handling inventory. Cost savings and smaller asset bases should lead to higher return on assets and increasing shareholder wealth. Technology is improving asset management by making information available with which managers make business decisions in a real-time setting. Technology may be the key to reducing procurement and supply chain costs. Portals are specialized and secure Web sites through which clients can access order and account information. Key TermsCapacity  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The ability to pay bills and often involves an examination of liquidity ratios. Capital  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The adequacy of owners’ equity relative to existing liabilities as the underlying support for creditworthiness. Cash budget  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The cash inflows and cash outflows of a firm over a specific time frame. Cash conversion cycle  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time it takes to collect money from the company’s customers and use those funds to pay its suppliers.Character  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The ethical quality of the applicant and his/her willingness to pay bills on time and is best judged by reviewing the past credit hist ory for the company or person. Collateral  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Assets that secure credit. Collection float  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time between when a payer sends payment and the   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   funds are credited to the payee’s bank account. Conditions  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The current economic climate and state of the business cycle.They are an important consideration in assessing whether the applicant can meet credit obligations. Credit bureaus  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Firms that obtain credit information about   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   business firms and individuals. Disbursement float  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time between when a payer sends payment and when the funds are deducted from the payer’s bank account. Fixed capital  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A firm’s fixed assets, which include plant, equipment, and property. Float  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time between sending out payments and having them actually be charged to the bank account.Level production plan  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Schedule where the same amount of raw material is purchased and the same amount of finished product is manufactured every month. Operating cycle  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The time between receiving raw materials and collecting the cash from credit sales posted to accounts recei vables. Portals  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Specialized and secure web sites through which clients can access order and account information. Pre-authorized checks  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Regular (typically monthly) deductions by a vendor from a customer’s checking account.Precautionary motives  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Demands for funds that may be caused by   unpredictable events, such as delays in production   or in the collection of receivables. Speculative motives  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Demands for funds to take advantage of unusual cash discounts for needed materials. Trade credit  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Credit that is extended on purchases to a firm’s customers. Transactions motives  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Demands for holding cash is that cash is needed to conduct day-to-day operations.Working capital  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A firm’s current assets as shown on the balance sheet and includes cash in the bank accounts, marketable securities, inventory, and accounts receivable. Suggestions for Additional Resources 1. http://en. wikipedia. org/wiki/Just_In_Time_%28business%29 2. http://www. lean. org/ 3. http://www. equifax. com/ 4. http://www. experian. com/ 5. http://www. investopedia. com/terms/c/creditbureau. asp 6. http://en. wikipedia. org/wiki/Credit_bureau 7. http://www. investopedia. com/terms/w/workingcapital. asp 8. http://en. wikipedia. org/wiki/Working_capitalAnswers to Summary Questions 2. Fixed capital would be defined as the firm’s fixed assets, which include plant, equipment and property. True or false? True. .   3. The operating cycle measures the time it takes between o rdering materials and collecting cash from receivables. True or false? True. .   4. If a firm has $50,000 in profit and pays out about one half to the owners of the company, the amount of profit retained in the firm would show up as: (a) an increase in owners’ equity (b) a decrease in owners’ equity (c) a decrease in retained earnings (d) a decrease in long-term debt .   5.The accounts payable period is the time between a firm’s paying its suppliers for inventory and collecting cash from inventories. True or false? False. .   6. Increases in the cash conversion cycle will lower the firm’s short-term financing needs. True or false? False. .   7. The inventory conversion period is calculated by inventory divided by costs of goods sold. True or false? False. .   8. Activities that decrease the cash conversion cycle will increase the firm’s need to obtain financing. True or false? False. .   9. More efficient management of working capital a ssets will lessen the firm’s needs for financing.True or false? True. . 10. A cash budget is a tool the treasurer uses to forecast future cash flows and estimate future short-term borrowing needs. True or false? True. . 11. To construct a cash budget, two sets of information are needed: estimated cash inflows and estimated cash outflows. True or false? True. . 12. The estimated cash inflows are affected by the sales forecast and customer payment patterns. True or false? True. . 13. Assume a firm’s production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold.If the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the short-term operating cycle be? (a) 110 days (b) 130 days (c) 190 days (d) 270 days . 14. If a firm has net sales of $400,000, annual cost of goods sold of $315,000, an inventory turnover of 4. 5 times a year, and an accounts re ceivable turnover of five times a year, the combined investment in inventories and accounts receivable would be: (a) $64,500 (b) $92,000 (c) $122,500 (d) $150,000 . 15. Calculation of a firm’s average collection period is the same as calculating the: (a) accounts receivable cycle (b) inventory cycle c) accounts payable cycle (d) short-term operating cycle . 17. A level production plan has problems, such as idle plant and laid-off workers during slow sales months and production bottlenecks during busy times. True or false? False. . 18. The account receivable period may be calculated as accounts receivable divided by sales. True or false? False. . 19. The account receivable period may be calculated as accounts receivable divided by daily sales. True or false? True. . 20. The transactions motive is the demand for holding cash. True or false? True. . 22. The federal funds rate is normally several points lower than the Treasury Bill rate.True or false? False. . 23. The five C†™s of credit analysis is a popular concept used by inventory managers. True or false? False. . 24. A mercantile credit bureau serves primarily as a (n): (a) collection agency for delinquent accounts (b) common meeting place where credit managers may exchange information (c) organization through which accounts receivable may be sold to other businesses (d) central record-keeping organization for credit information on business firms . 25. The objective of just-in-time (JIT) inventory control is to carry a minimum level of inventories.True or false? True. . 26. The delivery or transmission float is the delay in transferring the means of payment from the payer (customer) to the payee (the provider of goods or services). True or false? True. . 27. The disbursement float is the delay in transferring the means of payment from the payer (customer) to the payee (the provider of goods or services). True or false? False. Answers to â€Å"Review Questions† .   1. What is meant by wor king capital? Net working capital is defined as current assets minus current liabilities. .   2. Briefly describe a manufacturing firm’s operating cycle.The operating cycle measures the time between receiving materials and collecting cash from receivables. Raw materials are purchased and products are manufactured from them to become finished goods. Effort then is made to sell the finished goods. If the goods are sold on credit, then the receivables must be collected. .   3. Explain how the cash conversion cycle differs from the operating cycle. The cash conversion cycle typically is shorter than the operating cycle. The cash conversion cycle measures the time between when a firm pays for its supplies or raw materials and when it collects cash from receivables.    4. Describe how the length of the cash conversion cycle is determined. It is equal to the operating cycle (inventory period minus the accounts receivable period) minus the payables period. .   5. Explain how the length of the operating cycle affects the amount of funds invested in accounts receivable and inventories. All else being equal, a longer (shorter) inventory period and receivables period will increase (decrease) the amount of inventory and accounts receivable carried by the firm. .   6. What affects the amount of financing provided by accounts payable as viewed in terms of the cash conversion cycle?The level of the firm’s cost of goods sold and the average payment period affect the amount of financing provided by accounts payable. .   7. What is a cash budget? How does the treasurer use forecasts of cash surpluses and cash deficits? A cash budget lists, period by period, expected cash inflows and outflows. The treasurer can plan ahead to find suitable marketable securities in which to invest excess cash. If cash deficits are forecast, the treasurer can arrange for short-term financing sources. .   8. Three sets of information are needed to construct a cash budget.E xplain what they are. The firm’s minimum desired cash balance, forecasted cash inflows, and forecasted cash outflows are needed to construct a cash budget. .   9. Why might firms want to maintain minimum desired cash balances? Firms want to maintain minimum desired cash balance to ensure they can pay bills on time (transactions motive) and to have a cushion, as forecasts of cash flows may differ from actual future cash flows. . 10. What are the sources of cash inflows to a firm over any time frame? The main sources of cash inflows are cash sales and customer payments on credit sales. . 11.What are the sources of cash outflows from a firm over any time frame? The main sources of cash outflows are payments for raw materials, labor and overhead expenses, rent/lease payments, plant and equipment purchases, interest and principal payments, dividend payments, and taxes. . 12. How does the choice of level or seasonal production affect a firm’s cash over the course of a year ? Under level production, inventory becomes large before the peak selling season; whatever cash the firm has will probably be borrowed funds as cash is used to pay workers and suppliers over the course of the year as inventories are building.Under seasonal production, there is still a build-up of inventories prior to the selling season but probably less than under level production, as inventory can be sold shortly after it is made. Cash is conserved for much of the year; materials and labor expenses are less during the off-peak times when production is low. . 13. Describe what happens to a firm’s current asset accounts if the firm has seasonal sales and they use (a) level production; (b) seasonal production. a. Under a level production plan, the same amount of raw materials are purchased and the same amount of finished product is manufactured every month.Inventory builds up in anticipation of higher seasonal sales while cash and accounts receivable are quite low. When the sel ling season begins, inventories fall and receivables rise. After a time, inventories are nearly exhausted, and the firm is collecting cash from its customers. The changing composition of current assets for a firm with a seasonal sales pattern is illustrated in Figure 15. 4. b. Under seasonal production, raw material purchases will rise or fall in anticipation of higher or lower sales.Such a strategy can help minimize the effect of seasonal sales on inventory; goods are manufactured shortly before sale. Receivables will rise during the peak selling season but will fall thereafter as cash is collected. . 14. Describe the three motives or reasons for holding cash. a. need for day-to-day bill-paying? Transactions motive: b. hold funds to meet unexpected needs—a safety level of? Precautionary motive: cash hold funds? c. Speculative motive: to take advantage of attractive input prices or discounts 15. What characteristics should an investment have to qualify as an acceptable market able security?Marketable securities must be highly liquid (easily converted into cash at a price close to fair market value) with little chance of price risk or default risk. . 16. Identify and briefly describe several financial instruments used as marketable securities. Marketable securities that can be used as a means to â€Å"park† the firm’s excess cash include a. short-term securities issued and backed by the U. S.? U. S. Treasury Bills: government b. a bank’s temporary excess reserves that are lent to other banks? Federal Funds: on a day-to-day basis c. short-term unsecured notes of large financially stable? Commercial Paper: firms . large dollar CDs ($100,000 or more) for? Negotiable Certificates of Deposit: which a secondary market has evolved e. business paper used to finance international trade, backed? Bankers’ Acceptances: (accepted) by a bank with a high quality rating f. deposits placed in foreign banks that remain denominated in U. S.? Euro dollars: dollars (so there is no currency risk) . 17. What is float? Why is it important to cash management? Float is the delay between when funds are sent by a payer to a payee. Collection float is the time between when a payer sends payment and the funds are credited to the payee’s bank account.Disbursement float is the time lag between when a payer sends payment and when the funds are deducted from the payer’s bank account. It is important to cash management as the firm will have larger cash balances to invest and to reduce its own financing needs, all else being equal, the shorter the collection float and the larger the disbursement float. . 18. What are the three components of float? Which are under the control of the firm seeking to reduce collection float? The three components of float are delivery (or transmission) float, processing float, and clearing float.Delivery float and processing float are most directly under the control of the firm. Clearing float is c ontrolled mainly by the banking system’s check-clearing process but the firm can try to reduce it (and delivery float) by using lockboxes that are geographically closer to customers then the firm’s main office. . 19. What are some strategies a firm can use to speed up its collections by reducing float? Using a lockbox, incoming receipts are placed in a Post Office box which can be emptied several times a day by bank personnel, who process the payments and deposit the incoming funds into the firm’s accounts.This reduces mail delivery delay and processing delay, as the bank processes the payments rather than the firm. A second popular method, best used for regular payments such as utility, cable bills, or insurance premiums, is the use of preauthorized checks that allow the firm to deduct funds from the payer’s bank account. . 20 How can processing float be reduced? Vendors reduce processing float by improving the process of receiving payments and depositin g them. Large incoming payments (say, over $1 million) are automatically flagged and deposited expeditiously.Electronic check images and electronic payments (rather than the use of paper checks) remove the human component and thus can reduce processing delays. Lockboxes and preauthorized checks reduce processing delays, as processing is handled by banks, speeding deposit of incoming receipts. .. 21. How can a firm use float to slow down its disbursements? A firm can increase mail float by mailing payments from out-of-the-way locations, but that may hurt its reputation with suppliers who can direct the firm to send payments to another, closer, lockbox location.Another means are to use disbursement banks that are located around the country to increase disbursement float via the check-clearing process. So excess (and noninterest bearing) funds are not kept in a disbursement account, a firm can arrange to use a zero balance account for its disbursements. A bank will transfer sufficient funds every day into the ZBA to cover the day’s presented checks; other funds can remain invested in marketable securities. . 22. Why can’t a firm that wants to increase disbursement float simply make payments after the stated due date?There is an ethical issue with paying invoices late. If a vendor has provided needed goods and services the customer should pay for them in a timely and appropriate manner. Paying late can lead to negative notations on credit reports. Credit availability to late payers can be discontinued if the vendor’s credit standards are tightened. . 23. What is credit analysis? Identify the five C’s of credit analysis. Credit analysis involves appraising the creditworthiness or quality of a potential credit customer. Credit analysis includes examining the 5 C’s of credit. a. illingness to repay debts? Character: b. ability to repay debts (liquidity)? Capacity: c. equity cushion? Capital: d. what assets can provide security for t he credit? Collateral: e. the state of the business cycle and its expected movement during the? Conditions: credit period . 24. Describe various credit-reporting agencies that provide information on business credit applicants. Credit bureaus provide firms with information about a firm’s financial condition and its record on paying its past debts. Local credit bureaus service community credit information needs.The National Credit Interchange System facilitates exchange of information between bureaus. The National Association of Credit Management established the Foreign Credit Interchange Bureau to service firms with overseas customers. Dun & Bradstreet is perhaps the best-known private firm supplying credit information. . 25. How can a firm control the risk of changing exchange rates when billing an overseas customer? First, a firm can invoice the overseas customer in the firm’s home currency; this transfers the risk of changing exchange rates to the customer.Second, if the customer may pay in their own currency, the supplier can use currency futures or options contracts to hedge or reduce the risk of changing exchange rates. . 26. What risks arise when a firm lowers its credit standards to try to increase sales volume? Marginal and poor-risk customers may purchase the firm’s goods/services on credit. If they are unable to make payment, the firm must revise its sales figures and faces the added expense of trying to recover the goods and whatever funds it can from the delinquent customer. . 27. How do credit terms and collection efforts affect the investment in accounts receivable?All else being equal, lax credit terms increase the investment in accounts receivable and increase the chance for larger bad debts. Stricter credit terms will likely reduce receivables balances, but at the cost of possibly losing sales to competitors with easier standards. Collection efforts are aimed at having customers with overdue accounts pay their bills. Thus, successful collection efforts can reduce receivable balances and bad debt expense. On the other hand, collection efforts that offend customers can lead to lost future business. 28. How is the financial manager involved in the management of inventories? Inventory management concerns the financial manager because inventory, like all other assets, must be financed. Overly large inventories use warehouse space and have larger financing costs and insurance costs. Smaller inventories run the risk of selling out and causing customer dissatisfaction. Answers to â€Å"Applying this Chapter† Questions 2. The Robinson Company has the following current assets and current liabilities for these two years: 2004   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2005 Cash and marketable securities |$50,000 |$50,000 | |Accounts receivable |300,000 |350,000 | |Inventories |350,000 |500,000 | |Total current assets |$700,000 |$900,000 | |Accounts payable |$200,000 |$250,000 | |Bank loan |0 |150,000 | |Accruals |150,000 |200,000 | |Total current liabilities |$350,000 |$600,000 | |   |   |   | If sales in 2004 were $1. 2 million and sales in 2005 were $1. 3 million, and cost of goods sold was 70 percent of sales, how long were Robinson’s operating cycles and cash conversion cycles in each of these years? What caused them to change during this time?AR period = $350,000/($1,300,000/365) = 98. 27 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $300,000/($1,200,000/365) = 91. 25 days (2004) Inventory period  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $500,000/($910,000/365) = 200. 55 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $350,000/($840,000/365) = 152. 08 days (2004) AP period   = $250,000/($910,000/365 ) = 100. 27 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $200,000/($840,000/365) = 86. 90 days (2004) Operating cycle = AR period + Inventory period = 98. 27 + 200. 55 = 298. 82 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 91. 25 + 152. 08 = 243. 33 days (2004) Cash conversion cycle = Operating cycle – AP period = 298. 82 – 100. 27 = 198. 5 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 243. 33 –   86. 90 = 156. 43 days (2004) Both the OC and CCC rose in 2005, primarily because of a large rise (almost 48 days) in the inventory period. 5. The Robinson Company from Problem 2 had net sales of $1,200,000 in 2004 and $1,300,000 in 2005. (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Determine the receivables turnover in each year. AR turnover  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = Sales/AR = $1,300,000/$350,000 = 3. 71 (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $1,200,000/$300,000 = 4. 00 (2004) (b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Calculate the average collection period for each year. Average collection period  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = AR/(Sales/365)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $350,000/($1,300,000/365) = 98. 7 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $300,000/($1,200,000/365) = 91. 25 days (2004) (c)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Based on the receivables turnover for 2004, estimate the investment in receivables if net sales were $1,300,000 in 2005. How much of a change in the 2005 receivables occurred? Receivables investment  Ã‚  Ã‚  Ã‚  Ã‚   = Sales per day ? Average collection period   Ã‚  Ã ‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = ($1,300,000/365) ? 91. 25 days = $325,000 6. Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2004 and $1,200,000 in 2005. (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Calculate the inventory turnover for each year. Comment on your findings.Inventory turnover  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = COGS/Inventory = $1,200,000/$500,000 = 2. 40 (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $1,000,000/$350,000 = 2. 86 (2004) Inventory turnover fell in 2005; inventory rose more quickly than cost of goods sold. (b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What would have been the amount of inventories in 2005 if the 2004 turnover ratio had been maintained? Inventories investment  Ã‚  Ã‚  Ã‚  Ã‚   = COGS per day ? Inventory period   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $1,200,000/365 ? (365/2. 86) = $419,580. 42 7. Given Robinson’s 2004 and 2005 financial information presented in problems 2 and 4,   Ã‚  Ã‚  Ã‚   (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Compute its operating and cash conversion cycle in each year. Robinson Company |   |   |   |   | |   |2004 |   |2005 |   | |Sales |$1,200,000 |   |$1,300,000 |   | |Cost of Goods sold |$1,000,000 |   |$1,200,000 |   | |profit margin |5. 0% |   |5. 0% |   | |   |   |   |   |   | |Accounts Receivable |$300,000 |   |$350,000 |   | |Inventory |$350,000 | $500,000 |   | |Accounts Payable |$200,000 |   |$250,000 |   | |   |   |   |   |   | |Sales/ day = |$3,287. 67 |   |$3,561. 64 |= $1,300,000/365 | |COGS/day= |$2,739. 73 |   |$3,287. 67 |= $1,200,000/366 | |   |   |   |à ‚   |   | |Inventory conversion period = Inventory/COGS per day | |   |127. 75 |days |152. 8 |days | |   |   |   |   |   | |Average collection period = AR/sales per day |   | |   |91. 25 |days |98. 27 |days | |   |   |   |   |   | |Average payment period = AP/COGS per day |   | |   |73. 0 |days |76. 4 |days | |   |   |   |   |   | |Operating cycle = Inventory conversion + collection periods | |   |219. 00 |days |250. 35 |days | |   |   |   |   |   | |Cash cycle = Inventory conversion + collection period – payment period | |   |146. 00 |days |174. 31 |days | (b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What was Robinson’s net investment in working capital each year? |Net investment in working capital = AR + Inventory – AP (as used in his chapter) | |   |2004 |   |2005 |   | |   |=$300,000+$350,000-$200,000 |=$350,000+$500,000-$250,000 | |   |=$450,000 |   |=$600,000 |   | 8. Robinson expects its 2006 sales and cost of goods sold to grow by 5 percent over their 2005 levels. (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2005 levels? What will be its net investment in working capital? If the ratios remain the same, a |   |   | |5 |percent increase in sales and COGS will increase AR, | |inventory, and AP proportionately in 2006 |   |   | |AR: $350,000 + 5%= |$367,500 |   |   | |Inv: $500,000 + 5%= |$525,000 |   |   | |AP: $250,000 + 5%= |$262,500 |   |   | |Net investment in working capital = AR + Inventory – AP |   | |=$367,500 + $525,000 – $262,500 = |$630,000 |   | |   |   |   |   | |The new sales will be |$1,300,000 + 5% = |$1,365,000 |   | |Sales/day = |   |$3,739. 3 |   | |The new COGS will be |$1,200,000 + 5% = |$1,260,000 |   | |COGS/day = |   |$3,452. 05 |   | (b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What will b e the impact on its net investment in working capital in 2006 if Robinson is able to reduce its collection period by five days, its inventory period by six days, and increase its payment period by two days? |The new sales will be |$1,300,000 + 5% = |$1,365,000 | |Sales/day = |   |$3,739. 3 | |The new COGS will be |$1,200,000 + 5% = |$1,260,000 | |COGS/day = |   |$3,452. 05 | |Estimated AR if collection period reduced by |5 |days: | |New AR = sales/day x collection period |   |   | |Sales/ day = |$3,739. 73 |   |   | |Old collection period |98. 27 |   |   | |New collection period |93. 27 |   |   | |New AR estimate= |$348,801. 7 |   |   | |   |   |   |   | |Estimated inventory if conversion period reduced by |6 |days: | |New Inv = COGS/day x conversion period |   |   | |COGS/day |$3,452. 05 |   |   | |Old conversion period |152. 08 |   |   | |New conversion period |146. 08 |   |   | |New Inv estimate= |$504,287. 7 |   |   | |   |   |   |   | |Estimated AP if payment period increased by |2 |days: | |New AP = sales/day x payment period |   |   | |COGS/day |$3,452. 05 |   |   | |Old payment period |76. 04 |   |   | |New payment period |78. 04 |   |   | |New AP estimate= |$269,404. 1 |   |   | |   |   |   |   | |2006 working capital = AR + Inventory – AP |   |   | |=$360,020. 55 + $514,643. 84 – $259,047. 95 |   |   | |=$583,684. 93 |   |   |   | |which is a reduction of |$46,315. 07 |from part a) | 9. Robinson expects its 2006 sales and cost of goods sold to grow by 20 percent over their 2005 levels. (a)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2005 levels? What will be its net investment in working capital? If the ratios remain the same, a |   |   | |20 percent increase in sales and COGS will increase AR, | |inventory, and AP proportionately in 2006 |   |   | |AR: $350,000 + 5%= |$420,000 |   |   | |Inv: $500,000 + 5%= |$600,000 |   |   | |AP: $250,000 + 5%= |$300,000 |   |   | |Net investment in working capital = AR + Inventory – AP |   | |=$367,500 + $525,000 – $262,500 = |$720,000 |   | |   |   |   |   | |The new sales will be |$1,300,000 + 20% = |$1,560,000 |   | |Sales/day = |   |$4,273. 97 |   | |The new COGS will be |$1,200,000 + 20% = |$1,440,000 |   | |COGS/day = |   |$3,945. 21 |   | b)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What will be the impact on its net investment in working capital in 2006 if Robinson is able to reduce its inventory period by ten days? |Estimated AR if collection period reduced by 0 days: | |New AR = sales/day x collection period |   |   | |Sales/ day = |$4,273. 97 |   |   | |Old collection period |98. 27 |   |   | |New collection period |98. 27 |   |   | |New AR estimate= |$420,000. 0 |   |   | |   |   |   |   | |Estimated inventory if conversion period reduced by 10 days: | |New Inv = COGS/day x conversion period |   |   | |COGS/day |$3,945. 21 |   |   | |Old conversion period |152. 08 |   |   | |New conversion period |142. 08 |   |   | |New Inv estimate= |$560,547. 5 |   |   | |   |   |   |   | |Estimated AP if payment period increased by 0 days: | |New AP = sales/day x payment period |   |   | |COGS/day |$3,945. 21 |   |   | |Old payment period |76. 04 |   |   | |New payment period |76. 04 |   |   | |New AP estimate= |$300,000. 0 |   |   | |   |   |   |   | |2006 working capital = AR + Inventory – AP |   |   | |=$360,020. 55 + $514,643. 84 – $259,047. 95 |   |   | |$680,547. 95 |   |   |   | |which is a reduction of |$39,452. 05 |from part a) |   | 10. Following are financial statements for the Genatron Manufacturing Corporation for the years 2004 and 2005: Selected Balance Sheet Information 2004   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2005 Cash |  $ 50,000 |$ 40,000 | |Accounts receivable |200,000 |260,000 | |Inventory |450,000 |500,000 | |Total current assets |$700,000 |$800,000 | |Bank loan, 10% |$ 90,000 |$ 90,000 | |Accounts payable |130,000 |170,000 | |Accruals |50,000 |70,000 | |Total current liabilities |$270,000 |$330,000 | |Long-term debt, 12% |300,000 |400,000 | Selected Income Statement Information 2004   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2005 |Net sales |$1,300,000 |$1,500,000 | |Cost of goods sold |780,000 |900,000 | |Gross profit |$ 520,000 |$ 600,000 | |Net income |$93,000 |$ 114,000 |Calculate Genatron’s operating cycle and cash conversion cycle for 2004 and 2005. Why did they change between these years? Inventory period  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = Inventory/(COGS/365)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $500,000/($900,000/ 365) = 202. 78 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $450,000/($780,000/365) = 210. 58 days (2004) AR period = AR/(Sales/365) = $260,000/($1,500,000/365) = 63. 27 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $200,000/($1,300,000/365) = 56. 15 days (2004) AP period   = AP/(COGS/365) = $170,000/($900,000/365) = 68. 94 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $130,000/($780,000/365) = 60. 83 days (2004) Operating cycle   = Inventory period + AR period 202. 78 days + 63. 27 days = 266. 05 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 210. 58 days + 56. 15 days = 266. 73 days (2004) Cash conversion cycle = Operating cycle – Average payment period   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 266. 05 days – 68. 94 days = 197. 11 days (2005)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = 266. 73 days – 60. 83 days = 205. 90 days (2004) The operating cycle remained constant in 2004 and 2005 as a reduction in the inventory period was balanced by an increase in the average collection period. The cash conversion cycle sell for 2005 was longer. Genatron took, on average, longer to pay its suppliers. 11.Genatron Manufacturing expects its sales to increase by 10 percent in 2006. Estimate the firm’s investment in accounts receivable, inventory, and accounts payable in 2006. If the inventory, collection, and payment periods remain constant, each account should rise by 10 percent. $260,000 (1. 10) =? Accounts receivable: $286,000 $500,000 (1. 10) = $550,000? Inventory: $170,000 (1. 10) = $187,000? Accou nts payable: 12   . With concerns of increased competition, Genatron is planning in case its 2006 sales fall by 5 percent from their 2005 levels. If cost of goods sold and the current asset and liability accounts decrease proportionately, (a) Calculate the 2006 cash conversion cycle.    |   |   |   |   |5% decline | |   |2004 |   |2005 |   |2006 | |Sales |$1,300,000 |   |$1,500,000 |   |$1,425,000 | |Cost of Goods sold |$780,000 |   |$900,000 |   |$855,000 | |profit margin |7. 2% |   |7. 6% |   |   | |Net income |$93,000 |   |$114,000 |   |   | |Accounts Receivable |$200,000 |   |$260,000 |   |$247,000 | Inventory |$450,000 |   |$500,000 |   |$475,000 | |Accounts Payable |$130,000 |   |$170,000 |   |$161,500 | |   |   |   |   |   |   | |Sales/ day = |$3,561. 64 |   |$4,109. 59 |= $1,500,000/365 |$3,904. 11 | |COGS/day= |$2,136. 99 |   |$2,465. 75 |= $900,000/366 |$2,342. 47 | |   |   |   |   |   |   | |Inv entory conversion period = Inventory/COGS per day |   | |   |210. 58 |days |202. 78 |   |202. 8 | |   |   |   |   |   |   | |Average collection period = AR/sales per day |   | |   |56. 15 |days |63. 27 |   |63. 27 | |   |   |   |   |   |   | |Average payment period = AP/COGS per day |   | |   |60. 8 |days |68. 94 |   |68. 4 | |   |   |   |   |   |   | |Operating cycle = Inventory conversion + collection periods |   | |   |266. 73 |days |266. 04 |   |266. 04 | |   |   |   |   |   |   | |Cash cycle = Inventory conversion + collection period – payment period |   | | |205. 90 |days |197. 10 |   |197. 10 | (b) Calculate the 2006 net investment in working capital. Net investment in working capital = AR + Inventory – AP (as used in this chapter) | |2004 |2005 |2006 |   |   | |   |   |=$247,000+$475,000-$161,500 | |$520,000 |$590,000 |=$560,500 |   |   | 13. .In problem 10 we assumed t he current asset and liability accounts decrease proportionately with Genatron’s sales. This is probably unrealistic following a decline in sales.What will be the impact on the working capital accounts if its collection period lengthens by five days, its inventory period lengthens by seven days, and its payment period lengthens by three days if Genatron’s sales and COGS fall 5 percent from their 2005 levels? |The new sales will be |$1,500,000 – 5% = |$1,425,000 |   | |   |Sales/day = |$3,904. 11 |   | |The new COGS will be |$900,000 – 5% = |$855,000 |   | |   |COGS/day = |$2,342. 7 |   | |   |   |   |   | |Estimated AR if collection period lengthens by |5 |days: | |New AR = sales/day x collection period |   |   | |Sales/ day = |$3,904. 11 |   |   | |Old collection period |63. 27 |(from problem 10) |   | |New collection period |68. 27 |   |   | |New AR estimate= |$266,520. 5 |   |   | |   |   |   |   | |Estim ated inventory if conversion period lengthens by |7 |days: | |New Inv = COGS/day x conversion period |   |   | |COGS/day |$2,342. 47 |   |   | |Old conversion period |202. 78 |   |   | |New conversion period |209. 8 |   |   | |New Inv estimate= |$491,397. 26 |   |   | |   |   |   |   | |Estimated AP if payment period increased by |3 |day: | |New AP = sales/day x payment period |   |   | |COGS/day |$2,342. 47 |   |   | |Old payment period |68. 4 |   |   | |New payment period |71. 94 |   |   | |New AP estimate= |$168,527. 40 |   |   | |   |   |   |   | |2006 working capital = AR + Inventory – AP |   |   | |=$266,520. 55 + $491,397. 26 – $168,527. 40 |   |   | |=$589,390. 1 |   |   |   | |which is an increase of |$28,890. 41 |from problem 10. |   | 14. .Suppose Global Manufacturing is planning to change its credit policies next year. It anticipates that 10 percent of each month’s sales wil l be for cash; two thirds of each month’s receivables will be collected in the following month, and one-third will be collected two months following their sale. Assuming the Global’s sales forecast in Table 10. 5 remains the same and the expected cash outflows in Table 10. 6 remain the same, determine Global’s revised cash budget. Nov. Dec. Jan. Feb. Mar. Apr.Sales  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   $80,000  Ã‚   $100,000  Ã‚  Ã‚  Ã‚   $ 30,000  Ã‚   $   40,000  Ã‚  Ã‚  Ã‚   $ 50,000  Ã‚  Ã‚  Ã‚   $ 60,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cash (10%)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   3,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   4,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   5,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   6,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   1 Month Later (2/3)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   60,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   18,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   24,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   30,000 [pic][pic][pic][pic]  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2 Months Later (1/3)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   24,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   30,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   9,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   12,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Total Cash Receipts  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   $ 87,000  Ã‚   $   52,000  Ã‚  Ã‚  Ã‚   $ 38,000  Ã‚  Ã‚  Ã‚   $ 48,000 [pic][pic][pic][pic]  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Less: Total Cash Payments  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   60,000  Ã‚  Ã‚  Ã‚   127,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   44,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   40,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Net Cash Flow  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   $ 27,000  Ã‚   $ –75,000  Ã‚  Ã‚  Ã‚   $ –6,000  Ã‚  Ã‚  Ã‚   $   8,000 [pic][pic][pic][pic]  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Beginning Cash Balance  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   25,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   52,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   25,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   25,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cumulative Cash Balance  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã ‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   $ 52,000  Ã‚   $ –23,000  Ã‚  Ã‚  Ã‚   $ 19,000  Ã‚  Ã‚  Ã‚   $ 33,000Monthly Loan  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      (or repayment) 0  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   48,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   6,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   –8,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cumulative Loan Balance  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   0  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   48,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   54,000  Ã‚  Ã‚  Ã‚      46,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Ending Cash Balance  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚