Is information society the consequence of a revolutionary change from Essay

Is information society the consequence of a revolutionary change from previous social relations or has there just been gradual evolution - Essay Example An information society would be meaningless if it is following a set agenda. This could be a politically backed agenda or could derive its motivation from a number of different areas, most of which remain within the state itself. The society has a very pertinent role to play as far as the information spreading regimes are concerned. If the society is naà ¯ve and does not actually know what this information would do towards their own lives, it would be safe to state that such an information society is serving the cause of absolutely no one. Propagation of political thought within an information society would be equivalent to meeting an objective or a goal which is intended and hence motivated in such a manner that it changes the perceptions of the people. Following an agenda within an information society is therefore filled with different dispositions, all of which have an important role at understanding the dictum of bringing in a social change, one that is either of a short-term na ture or meant to bring a long run progression. Then there is the important discussion of political tilts getting shifted through the incorporation of media outlets and under such aegis, an information society would only work best towards providing that competitive advantage that has been envisaged.

How an organisation communicates Essay Example for Free

How an organisation communicates Essay Introduction The aim of this assignment is to relate how an organisation communicates its core values and mission to the public, shareholders and employees. This is an objective that can easily get overlooked in the rush to master environmental analysis, strategic choice and outsourcing decisions. However it is important in practice and it is a challenge that many organisations take very seriously. Setting of organisational objectives is the starting point of managerial actions. An organisation’s end results for which an organisation strives is termed as mission, purpose, objective, goal, target etc. Many times, these terms are used interchangeably as all these denote end results. This unit is about providing direction to people in the organisation and enabling, inspiring, motivating and supporting them to achieve what the organisation has set out to do. It is expected to apply different styles of leadership appropriate to different people and situations. For the purposes of this unit, an organisation can mean a self-contained entity such as a private sector company, a charity or a local authority, or a significant operating unit, with a relative degree of autonomy, within a larger organisation. Task 1 Relate the organisation’s purpose, values and vision to people across the organisation (1.1, 1.2, and 1.3) An organisation’s mission is its basic purpose: e.g., what is it for? Why does it exist? A mission statement formalises the organization’s mission by writing it down. Johnson Scholes and Whittington define a mission statement as ‘a statement of overriding direction and purpose of an organisation’. Some companies refer to ‘vision statements’ instead of mission statements. Below is an example of Tesco’s mission statements; Tesco (a UK supermarket chain) their vision is to be the most highly valued by its customers. Their core purpose is to create value for customers to  earn their life time loyalty. This objective sits right at the heart of their business as one part of their values – ‘No one tries harder for customers.’ For Tesco to be considered a force for good, they must be a good neighbour and a responsible member of society. They know that if they look after their staff, they will look after their customers. Work can be a large part of their lives so people deserve an employer who cares. That’s why one of their values is ‘Treat people how we like to be treated’. They are committed to providing opportunities for their people to get on and turn their jobs into careers and across all of their markets they offer a wide range of competitive benefits. According to Michael Hyatt, the author of the New York Times bestseller, Platform; Get noticed in a Noisy World, it is crucial to translate the core values into behaviours that are easy to understand by your employees. He has identified 6 ways to communicate the core values to every member of the organisation. Living the values; leading by example is the best communication tool any leader possesses. A survey conducted by Deloitte has found that 70% of the employees who agree that their companies had performed well financially said their executive management team speaks to them often about the core values associated with the culture of the company.  Hiring new people based on values; recruiting people who already have values that are in alignment with the company’s core values. You can always easily train a person on how to do the job, but it becomes much harder to train a person to have the same values as your organisation.  Reviewing people based on values; incorporating core values as part of performance management process. Reviewing people based on values is interrelated with rewarding people for demonstrating the values.  Business objectives are the ends that an organisation sets out to achieve. A business creates business plans to enable it to achieve these ends – thus plans are the means to the ends. The objectives and plans that an organisation creates are determined by balancing the requirements of the various stakeholders in the organisation. The stakeholders are those individuals and groups that are affected by and have interest in how the business is run and it achieves. Every business has a range of stakeholders including: The  objectives that a company establishes are based on blending the various interests of these stakeholder groupings.  For example; an objective to be the market leader, will benefit all stakeholders because customers will receive high quality products, shareholders will receive high dividends, and employees will receive good wages and so on. Organisations create a hierarchy of objectives. At the top level, an organisation will often create a ‘mission’ setting out the purpose of the organisation. This will be followed by a set of objectives relating to such aspects as: Objectives about employee satisfaction Objectives about cutting pollution Objectives about customer satisfaction Objectives about market share Objectives about return to shareholders.  A business plan will then enable an organisation to achieve its objectives. The business plan must be set within a time frame and set out how the organisation and the various components of the organisation will work towards meeting required objectives. Responsibilities for delivering various parts of the plan will be allocated to key individuals and performance targets will be established which enabled the plan to be delivered. The business will create a series of polices, programmes and budgets to enable it to achieve planned targets. It is also essential from the outset to clarify how the plan will be evaluated on an ongoing basis. (businesscasestudies.co.uk) Motivation in Virgin Media, the word motivation could be defined as the driving force behind actions and behaviour. It leads individuals to take action to achieve a goal or to fulfil a need or expectation. Understanding what motivates employees at work ensures that a business not only has employees that have the knowledge, skill and ability to do the job, but who are also committed to achieve a high standard of work. There are much positive behaviour that indicates employees are motivated including taking responsibilities, helping colleagues, a commitment to achieving company targets and goals as well as interest and concern of the business. Virgin Media recognises that reward is one of the many motivating factors for a lot of its people and offers competitive salaries. It also offers bonus schemes such as it’sASPIRE field  pay and reward scheme. The scheme rewards every Net Promoter Score (NPS) of 9 or 10 with  £10. However, as a forward thinking business, it understands the importance of different motivational factors. It offers additional benefits including private health care, life assurance, company pension scheme and staff saving scheme. The opportunity to progress within the organisation is also an important factor. All virgin media technicians are managed through the ‘Your Story Framework’ for career progression. This includes regular meetings to discuss performance, review progress against set objectives to enable progression within the company. (businesscasestudies.co.uk) One theorist whose studies became influential is Elton Mayo. Mayo’s research concluded that motivating factors include recognition, a sense of belonging and involvement as well as social aspects of the workplace. In 1943, Abraham Maslow published his theory of a hierarchy of needs. Maslow identified that as individuals, we have five set of needs. At the first level, basic needs are those of food, water, warmth and shelter with wages that meet those needs. Safety needs include protection from danger, for example; health and safety at work as well as job security. Social needs include a sense of belonging in work teams. He identified esteem needs as those of self-confidence, feeling useful and needed by other people. Maslow proposed that having satisfied all the lower needs an individual would then be able to realise their own potential for self-actualisation. (businesscasestudies.co.uk) Task 2 Explain the skills necessary to provide support and advice to people during periods of setbacks and change. (2.1 and 2.2) Change is something that happens in businesses all of the time. Change can occur in an organisation’s internal or external environment. As a result, this process of change is constant. Effective managers are proactive in creating solutions to improve the organisations performance. They must then manage employees through the change process. Managers have to plan and drive change initiatives. This involves managing the change process and making it part of an organisations strategy. Strategies a business achieve its aims and objectives. This helps businesses to develop in a more focused way to the environment in which it operates, whilst facing new challenges with more certainty.  Organisations  require skilled and well qualified managers and leaders to drive change initiatives and effectively manage employees through the process. (businesscasestudies.co.uk) When business is booming, employee morale usually soars. It seems like everyone’s getting bonuses, hiring assistants and basking in the company’s success. But when bad news rolls in, the collective mood of employees can plummet. This can happen when the firm looses a big account, suffers a severe downturn or experiences regulatory of legal setbacks. Employees will then look to managers for guidance and reassurance. During trying times, the manager becomes more than the business owner. They must lead employees by setting an inspiring example. When managers’exhibit strength in the face of adversity, they assure the troops that they are able to steer the company through a rough patch and prevent it from sustaining lasting image. Managers must delegate freely to manage a fast-growth business. But boosting employees’ morale during tough times is one job no one can pass off. (Democratic Leadership style) Managers should make themselves visible when setback occurs. They should start attending staff meetings they normally skipped. Help clerks do filing, answer the phone alongside customer service representatives or relieve exhausted workers on the assembly line or loading dock. By pitching in with a positive attitude, they will lift everyone’s sprit. There is no single best way to build morale in the midst of organisational setbacks. While some employees will shoulder crisis without much complaint, many others will react negatively. Managers can customise behaviour to address those employees’ personality. Here’s one morale booster that will work for all employees; see out their advice and act on it. By soliciting their suggestions and implementing as many of them as possible you make them feel like problem solvers who can exert at least some control over an unpredictable situation. This in other word will be identified as the democratic leadership style which is also known as participative leadership. It is a type of leadership style in which members of the group take a more participative role in the decision-making process. (psychology.about.com) Example; if a country zoning board imposes a steep fine on your business, ask employees for ideas on how to cut costs. Approve even modest proposals  to save office supplies; this will help employees take ownership of the crisis and work together to outlast it.(edwardlowe.org) There are different types of support and advice people may need and this could be provided in many ways.(www.invo.org.uk) Personal/Professional Development; to review people’s progress and performance and provide positive feedback and encouragement and/or to see if they need any additional pointers to further develop their skills. For example, members of the public who take on research roles such as peer interviewing, may need feedback and guidance when they first put their skills into practice. Practical Support; to help people to familiarise themselves with a new research environment, for example, all research team members might need help with finding their way around a new location or building. Members of the public may need support with meeting their practical needs, such as payment of fees and expenses, making travel arrangements, parking, and assessing childcare. Emotional/Psychological Support; to help people to cope with any distress that arises as a direct consequence of being involved in research, for example, if they become upset after discussing a sensitive or emotional topic, or from hearing about other people’s bad experiences, or from returning to an environment that has been traumatic in the past. Some people may also be challenged by others about the benefit of public involvement in research and may be helped by being prepared to cope with professional or criticism. Emotional/Psychological Support is often as relevant to researches as it is to involve members of the public. On-the-job-Support; to allow people to let off steam or raise any concerns after a difficult meeting or frustrating experience. Some of these types of support can be provided through informal mechanism that develops organically as colleagues start to work together and form a team. Others may be better provided through a more formal approach that will need to be properly resourced. Communicate with Customers and Employees; do not be reluctant to confront bad news. Develop a strategy to disseminate information. It may not be customers you need to talk to, but suppliers and vendors. Managers also have to engage their employees. Listen to staff and address any specific challenges they face. ‘Keep them up to par with what is going on; even you don’t have all of the answers’. Conduct overall cost Analysis; as a manager, look at where you can reduce overhead. Negotiate with suppliers for a better price, find ways to save money. If the company has a bunch of products that doesn’t sell, cut back on inventory. ‘Companies think that because headcount is the biggest line, item on their budget then that is where they should cut costs. Getting rid of employees is the easiest strategy but it might not be the right one’. ‘Layoffs are generally a reaction versus a well thought out strategy. As a manager, you don’t want to cut so deep it hurts the company’. Empower Employees; find ways to increase moral and empower employees to be the best that they can be, their inputs and opinions should be valued. ‘Happy employees, take care of customers’. Employees are an important asset because they are in direct communication with customers. Motivated employees attract more satisfied customers which in turn, lead to increased profits’. Embrace Change; ‘Most people are not good at taking risks when they are threatened, we have a tendency to react by fright or flight’ says James.By becoming too defensive, it could reduce chances which could lead out a set of crisis situations. When face with a company setback, it is necessary to stay positive; look at what is working, be proactive, find new growth opportunities, preserve-hang in there and ride out the storm. (www.inc.com) Task 3 Analyse the need for integrity, fairness and consistency in managerial  decision making. (3.1, 3.2, 3.3 and3.4) Decision-making is a crucial part of good business. It is good information and experience in interpreting information. Decision-making increasingly happens at all levels of a business. The board of directors may make the grand strategic decisions about investment and direction of future growth (www.tutor2u.net) Often, association leaders must make decisions that members do not agree with but maybe greatly affected by. Members may feel they have little to say over the actions implemented by their leaders. Association staff members are often charged with implementing decisions made by leadership, including communicating the decisions to members and helping members understand that the decision will ultimately result in good. Recently, the Interior Design Educators Council (IDEC) leadership increased annual membership dues. This change alone would help to fund the association better and also provide new opportunities and means for future development. This single alteration has expanded the parameters of this organisation dramatically. They are now considering additional functions, retreats, scholarships programs and resources etc.  It is no secret that economic times are difficult, we find ourselves suddenly in a world of hopeful get-rich-quick strategies, and ‘’extreme couponing’’ champions. Asking people to give more when they have less is not a decision that is considered to be popular. Although the actions and decisions of our leaders are sometimes confusing to others, we must have confidence in the leadership in place, and in the decisions that they make more times than not, members voted them into the position of leadership. (www.raybourn.com, 2012) I think that for unpopular decisions, the more personal the communications method, the better. The scale and geographic spread of an organisation will have a big influence, but the nearer one get to a face to face communication, the better. So, phone is better than email. Video conference is better than phone, in person is better than video conference.  It is useful to think about unpopular decisions from the point of view of the decision itself (unpopular outcome) the process of coming up with the decision (fair process), and the opportunity to deal with the consequences of the decision (work grounds).(www.changingorganisations.com) Different types of communication styles could be used to communicate difficult and unpopular decisions. In business world, communication is necessary for conducting business in an  efficient manner. Any business involves two types of communication; external communication that is directed to the actors in the business environment, and internal communication or organisational communication that is directed to employees. In addition, it is not possible to imagine organisational communication without conflicts. Conflicts are normal in any organisation, because people have different opinions. People communicate their thoughts, idea, knowledge and fears differently in conflicts situations. Managers and team members should know and understand these different styles of communications to avert conflicts. Oral communication is one common form of internal communication for example, in a group or one to one meeting. Nowadays, electronic communication is growing in importance. This can involve written communication, such as an email, text or tweet or oral communication via video conferencing. Intranet; enterprise has recently developed a new intranet system called ‘the hub’ this replaced a purely information based system. It enables input from employees at enterprise’s locations across Western Europe and North America. This channel of communication supports enterprise’s core values. When the outcome of a decision is not known with certainty, a manager faces a decision-making problem under either conditions of risks or conditions of uncertainty. A decision is made under risk when a manager can make a list of all possible outcomes associated with a decision and assign a probability of occurrence to each one of the outcomes. The process of assigning probabilities to outcomes sometimes involves rather sophisticated analysis base on the manager’s extensive experience in similar situations or on other data. An example of a decision made under risk might be the following; a manager decides to spend  £1000 on a magazine ad believing there are three possible outcomes for the ad, 20 percent chance the ad will have only a small effect on sales, a 60 percent chance of a moderate effect and a 20 percent chance of a very large effect. This decision is made under risk because the manager can list each potential outcome and determine the probability of each outcome occurring. Accommodation Style; people prefer to keep their emotions in control and to speak indirectly, using metaphors or other techniques to prevent a conflict from escalating and damaging the relationship. Discussion Style; most managers’ keep their emotions controlled but try to speak clearly and accurately about their disagreements  to the other person. Engagement Style; people in this group are more comfortable with feelings and express them openly. They try to be direct about what their concerns are and are often passionate in their conversations.(psychosocial.actalliance.org) There is no normal style of communication. It simply varies between people and cultures. Communication styles can vary between people in an organisation. As we work with people from different communities and countries, it can be expected we will meet people whose communication styles may differ from our own. It is therefore, important to clear up misunderstandings and misinterpretations early on and to be open to different styles of communications. In contrast to risk, uncertainty exists when a decision maker cannot list all possible outcomes and cannot assign probabilities to the various outcomes. When faced with uncertainty, a manager would know only the different decision option available and the different possible states of nature. The states of nature are the events or conditions that can influence the final outcome or payoff of a decision but cannot be controlled or affected by the manager.  My suggestion is to use the following as a starting point; Summarise the issues relating to the decision Outline the process you went through to arrive at the decision Say what the problem is   Provide opportunity for people to tell you the implications of the decisions from their perspective Ask them to identify possible action or solutions in response to the implications they raise.  Conclusion It is more powerful if top senior managers and directors in every work place get to their people (employees) before the decision is finalised, they need to tell workers what they are contemplating and ask them what the implications are from their own perspective. (Don’t assume you know what their perspective is, even if you know them well and used to do their job yourself). You can then problem solve with them about how to alleviate the negative implications they have identified. And you never know, they might identify some positive implications or opportunities the organisation has not thought of. Bibliography (n.d.). Retrieved March 4th, 2014, from businesscasestudies.co.uk: http://businesscasestudies.co.uk/business-theory/strategy/business-objectives-planning-and-stakeholders.html#axzz2v2QsaooB (n.d.). Retrieved March 4th, 2014, from businesscasestudies.co.uk: http://businesscasestudies.co.uk/teacher-resources/#axzz2v2QsaooB (n.d.). (K. Cherry, Producer) Retrieved March 5th, 2014, from psychology.about.com: http://psychology.about.com/od/leadership/f/democratic-leadership.htm (n.d.). Retrieved March 5th, 2014, from edwardlowe.org: http://edwardlowe.org/digital-library/maintaining-employee-morale-during-setbacks/ (n.d.). Retrieved March 6th, 2014, from www.invo.org.uk: http://www.invo.org.uk/different-types-of-support/ (n.d.). (R. Bowett, Producer) Retrieved March 7th, 2014, from www.tutor2u.net: http://tutor2u.net/business/organisation/decisionmaking.htm (n.d.). (C. M. Brown, Producer) Retrieved March 8th, 2014, from www.inc.com: http://www.inc.com/guides/2010/10/7-tips-for-dealing-with-a-company-setback.html (Ducham)

Religion In Life Of Pi Theology Religion Essay

Religion In Life Of Pi Theology Religion Essay If you stumble about believability, what are you living for. Love is hard to believe, ask any lover. Life is hard to believe, ask any scientist. God is hard to believe, ask any believer. What is your problem with hard to believe. Life of Pi is a tale about survival, belief in God and coming of age that unfolds while the protagonist is floating in a lifeboat on the Pacific Ocean. Belief in God is clearly a major theme in this novel, and has been the most controversial in reviews of the book. Throughout the novel, Pi makes his belief in and love of God clear. This exhilarating story begins with an old man in Pondicherry who tells the narrator, I have a story that will make you believe in God. The protagonist explores the different issues of religion and spirituality from an early age and survives even 227 days shipwrecked in the ocean. Storytelling and religious beliefs are two closely linked ideas in the novel. On a literal level, each of Pis three religions, Hinduism, Christianity, and Islam, come with its own set of tales and fables, which are used to spread the teachings and illustrate the beliefs of the faith. This book defends not only the common spirit behind these three religions, but the rituals and ce remonies of each. Its as if all three religions find harmonious common ground in this character. Seems unlikely, but then again, the protagonist argues passionately that the miraculous happens in our darkest moments. These three religions are really all the same except for small differences in the practice of their faith. Hindus have a great capacity for love; Muslims see God in everything; and Christians are quite devout. In this case, Pi enjoys the wealth of stories, but he also senses that, as Father Martin assured him was true of Christianity, each of these stories might simply be aspects of a greater, universal story about love. Pi remains unattached to any one interpretation of God. Sure, he believes each religion but he doesnt guard their specific tenets jealously. Pi shares a rich parable: Each time the milkmaids try to possess Krishna he vanishes. Likewise, each time a religious faith tries to claim sole ownership of God, true religion vanishes. This story reveals a few of the workings of Pis complex religious beliefs. You may have wondered how anyone could ever hold Hindu, Christian, and Muslim beliefs all at once. Pis answer: without a trace of jealousy. Stories and religious beliefs are also linked in Life of Pi because Pi asserts that both require faith on the part of the listener or devotee. Surprisingly for such a religious boy, Pi admires atheists. To him, the important thing is to believe in something, and Pi can appreciate an atheists ability to believe in the absence of God with no concrete proof of that absence. Pi has nothing but disdain, however, for agnostics, who claim that it is impossible to know either way, and, who therefore refrain from making a definitive statement on the question of God. So Pi sees that this as an evidence of a shameful lack of imagination. To him, agnostics who cannot make a leap of faith in either direction are like listeners who cannot appreciate the non-literal truth a fictional story might provide. Regarding with the plot of this novel, we begin with a little boy, Pi Patel, who is the main character of Yann Martels novel Life of Pi. Hes the son of a zookeeper who runs a small zoo in India. Despite all his familys ideas of modern secularism, Pi is drawn to religion. In his adolescence he adopts not only the beliefs of Hinduism, but Catholicism and Islam as well. Each religion gives Pi something that he felt was missing in his spiritual life so, because of this, he never feels compelled to choose one belief system over the other. Religion will save us, I said. Since when I could remember, religions had always been close to my heart. So, in this case and because of his family, he was first introduced to Hinduism and describes it as the religion of his birth and a deep part of himself. For him, Hinduism is not a religion to be left behind when he discovers another, but rather the intrinsic framework of his own spirituality. Then, when he finds out Catholicism, he studies it through curiosity for what it entails, not because of any dissatisfaction with his current understanding of Hinduism, largely for his own pleasure. The same is true at the time that he later adds the religion of Islam to his quilt of religious beliefs. While the young boy is comfortable with his firm and serious belief in three seemingly disparate religions, the leaders of these religions are obviously not so happy when they learn of his expanded view of religion. As chance would have it, Pis priest, pandit and imam all happen upon Pi and his parents at the same time. This ensuing conversation captures current religious discord as all of the religious leaders agree that Pi cannot be Hindu, Catholic, and Muslim at the same time and despite their prodding, Pi insists that he simply wants to love and adore God. He says: I just want to love God (Martel 69) and will not choose between religions. Then, during his adolescence, he also discovers atheism through his biology teacher, Mr. Kumar. Though Pi greatly respects Mr. Kumar, and calls him his favourite teacher, Pi isnt comfortable exploring all the ideas of atheism or seeing how science holds its own beauty without need for a deity. He decides that atheists are his brothers and sisters of a different faith, but it is not a belief that he understands or chooses to explore. In fact, the concept of atheism frightens him so much. Pi, who asks many questions when he is presented with other religions, is very silent when Mr. Kumar always offers some of his atheistic views: Religion? Mr. Kumar grinned broadly. I dont believe in religion. Religion is darkness. Pi answers: Darkness? I was puzzled. I thought, Darkness is the last thing that religion is. Religion is light. Was he testing me? Was he saying, Religion is darkness, the way he sometimes said in class things like Mammals lay eggs, to see if someone would correct him? (Only platypuses, sir.)(1.7.9 11) and finally explains: It wasnt for fear of angering Mr. Kumar. I was more afraid that in a few words thrown out he might destroy something that I loved. Pis education includes both science and religion; he comes to love both these disciplines but agnosticism the suspension of belief (e.g., I dont have enough evidence to believe in God so I wont commit one way or the other.) drives the boy bonkers. For Pi, belief is one of the most beautiful actions of human life. To live otherwise is to live statically. One can either choose a rich, dynamic life or a static, uncommitted life. Yet, this religious discussion takes place well before Pi is set adrift in a lifeboat filled with wild zoo animals. Here it is the groundwork that shapes the rest of the story, a wonderful and incredible story that is only and exclusively meant to make listeners believe in god. Part two of the book begins the tale of Pis shipwreck and subsequent survival. When Pi is 16, his family decides to sell the zoo and immigrate to Canada to escape the increasingly undesirable political developments in 1970s India. They will get a better price for many of their animals in America, so the family and several of the animals of the zoo begin their journey on a Japanese cargo ship named Tsimtsum. Midway to Midway the ship suddenly and quickly sinks for unknown reasons. When this unfortunate event takes place, Pi finds himself in a lifeboat with a hyena, an orangutan, a wounded zebra, and an adult Bengal tiger. There are no other human survivors, and it is not long before the animals do away with each other-the hyena dispatches the zebra and the orangutan and the tiger dispatch the hyena-, leaving Pi and the tiger alone in the lifeboat. In the same way, we can clearly assert that Pi Patel wins lots of different challenges covering from his psychic and spiritual learning to his basic and essential instinct and survival throughout his horrific and very hard adventures at sea. The most relevant fact is that his unbelievable believing in God, helps him to survive multiple obstacles that he faces on the lifeboat. His study about all three religions, serves as a great defensive safeguard from the difficult harsh situations of life. It is a very long journey filled with too much danger, loneliness and doubt, but most of all an exploration of faith. This astonishing character maintains all his religious beliefs while on the life boat through his daily ritual prayers, which helps to sustain him. Hes faced with physical difficulty almost all time, ranging from salt-water boils, to the threat of death by a tiger, to cold, to starvation, to dehydration, to dementia and many other difficulties. He continues to pray regularly, an d must plead to God in order to survive his ordeal. He remembers the misery he felt after such a long time away from God, saying: It was natural that, bereft and desperate as I was, in the throes of unremitting suffering, I should turn to God (Martel 315). With Pi keeping his ritual prayers going, that helped him to survive. Also, he was able to maintain somewhat the religious lifestyle that he had prior to the sinking of the Tsimtsum. He also makes many religious relationships throughout his journey and lots of comparisons between Orange Juice and the Virgin Mary. She came floating on an island of bananas in a halo of light, as lovely as the Virgin Mary (Martel 111). Truly, Pis religious faith remained strong throughout his journey on the Pacific Ocean. Straightway, when Pi eventually washes up on the shores of Mexico, and the tiger dashes off into the jungle never to be seen again, he is nursed back to health by locals. While Pi is recovering, two men from the company that owned the Japanese cargo ship come to visit him. They are very anxious because they are looking for answers about what might have caused the ship to sink so then he tells them the fantastic and amazing tale that he experienced and was presented through the book. Obviously, the men do not believe him so they became very upset and tell Pi that they want to know what really happened. They only want to know a rational truth. After some discussion, Pi agrees to tell them another story, another one that does not involve animals or any marvellous fact. His second boring story involves a handful of human survivors, including one who kills the others, even including Pis mother. He affirms that at the end of the story he kills the killer and is left as the only survivor. N either story sheds any light on why the ship might have sunk. Before the men leave, Pi asks him about which of the two stories is the best, since neither provides factual information that they can use. The men who appears at the beginning, who was listening the whole story, agree that the story with the animals was a better story. This is the point of the book. It is the reason why readers are supposed to now believe in god. When it comes down to a choice between realism and fantasy, or science and religion, which story is the best? Religious minded readers may find comfort in the notion that it is better to believe in an uplifting story over more believable, but less entertaining facts. However, this argument is unlikely to be persuasive to atheists or encourage them to believe in God.

The Yellow Wallpaper as an Attack on Radical Feminism -- Yellow Wallpa

The Yellow Wallpaper as an Attack on Radical Feminism  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚        Ã‚   â€Å"The Yellow Wallpaper† explores mental illness and, through this exploration, presents a critique of the place of women in a patriarchal society. Interestingly, Charlotte Perkins Gilman never intended the latter. The primary intent of her short story is to criticize of a physician prescribed treatment called rest cure. The treatment, which she underwent, required female patients to â€Å"’live as domestic a life as possible’† (Gilman). This oppressive treatment, however, parallels the oppression of women. As such, â€Å"The Yellow Wallpaper† has been interpreted as a feminist work. In the story, Gilman comments on the status of women, the nature and source of their confinement and the possible modes of escape. Afflicted by hysteria and â€Å"nervous depression,† the narrator in this story, symbolic of all women, is confined. The condition of the narrator is such that she is â€Å"absolutely forbidden to ‘work’† and unable to â€Å"relieve the press of ideas† through creative endeavours. The narrator makes continued reference to immovable objects and thereby, creates a sense of confinement. â€Å"Hedges and walls and gates that lock† seem to enclose the colonial mansion and hereditary estate. The garden is â€Å"full of box-bordered paths.† Everything is structured, rigid and restrictive. The windows of the nursery are barred. The narrator sleeps on a â€Å"great immoveable bed† which â€Å"is nailed down.† Yet, the nursery is a paradox of images; the images of confinement are contrasted with descriptions of the nursery. The nursery is â€Å"a big, airy room† that has â€Å"windows that look all ways, and air and sunshine galore.† and was, at one time, a â€Å"playroom and gymnasium.† The use of contrasting image... ...front her confinement the wrong way. It is through these events in the story that Gilman does seem to be criticizing women for seeking their freedom at the expense of men. Gilman, while attacking the repression and oppression of women, seems also to attack radical feminism by pointing out that contempt for the opposite sex does nothing to further the feminist cause. Feminists, therefore, should be examples of proper conduct. They should continue to strive for equality but in a manner, that does not alienate men and other women.    Works Cited Gilman, Charlotte Perkins. â€Å"The Yellow Wallpaper.† The Harbrace Anthology of Literature. Eds. Jon Stott, Raymond E. Jones, Rick Bowers. 2nd ed. Toronto: Harcourt Brace, 1998.    Gilman, Charlotte Perkins. â€Å"Why I wrote the Yellow Wallpaper† [reprinted article]. URL: http://fmc.utm.edu/~lalexand/reply.htm   

Ifrs Accounting Solution

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

Drug Abuse- a Menace to the Society

Drug Abuse is a serious issue affecting all sections of the society, Irrespective whether they are Young/Old, Poor/Rich, and Educated/Illiterate. To really understand the gravity of the situation one needs to understand a few very important points;- what actually is Drug-Abuse? As I understand a very simple definition of Drug abuse is that it means use of drugs for the purpose for which it is not meant to be used (in other words use of drugs not for treating ailments but to satisfy vicarious pleasure ). The destructive thing about this is that when people experience the hallucination under the influence of these drugs, they would like to this again & again causing a serious Drug Addiction. Now let’s try to understand the various Drugs frequently abused. The Most Common that is used by more than 80% of the people is Marijuana also called Ganja or Grass or weed in colloquial language. The most dangerous aspect to be noted is that in spite of being labeled a Banned Drug, Marijuana is available very easily to all & sundry. The reason for it to be a favorite among the Drug addicts is that it is not very expensive & it gives an instant kick and can be had instantly without even letting a non smoker know about it. We see thousands of people smoking cigarettes everyday & their may be many of them smoking Ganja & still we won’t know about it. Even though this is not an appropriate time to say I cannot prevent myself from saying that the If the Law enforcing authorities are strict, this menace can be controlled to a very large extent. Why would people get addicted to this? Other than the reasons of being easily available etc, as mentioned above Chemically a substance called as THC ( Tetra Hydroxy Cannibinol) a ketone present in this Drug makes the body become dependent on it. The relaxation it brings to the smoker along with the euphoria it creates makes the smoker misconceive that this actually is not destructive & some regulars believe that smoking grass helps in harnessing their creativity. Once again this is a misconception which needs urgent rattention. . Now let us see How it becomes a menace to the person abusing it so that we can understand how it affects the society. As the time goes by & the addiction takes root, it causes various personality disorders, serious psychological behavioral problems & loss of priority resulting in Poor judgments, Slowed reflexes, Distorted vision, Memory lapse, Anxiety, Confusion, Constant physical fights, tiredness, Black outs, Lowered inhibitions & problems in remembering recently said or did. They even start believing that Drugs is necessary to have fun & to even to exist. They constantly feel run-down or depressed leading to suicidal tendencies. They constantly complain of Dry mouth, Nausea, Head ache, decreased co-ordination, Increased Heart rates, Reduced Muscle strength, increased appetite & craving. Drugs & Alcohol together are contributing factors in at least half of all murders, Suicides, & Car accidents in an inebriated condition. Drug dependency pushes people to loose their self esteem & make them promiscuous. Approximately there are 1 lakh deaths occurring per year because of Drugs. The Illegal drug Mafia has a firm grip on the Market & is a very big source of funding Terrorism. Of course Marijuana is not the only drug & there are more serious Drugs like Cocaine, Heroin, LSD, and Phencyclidine which are more dangerous but luckily they are not very common as these are expensive, difficult to procure & more harmful. These drugs are snorted, smoked or injected. When these drugs are taken thru injections, it increases the chances of transmitting AIDS & HIV by sharing of needles. The Good News is that more than 98% of the teens have never tried these harder drugs like cocaine. Let me see if we can do anything about this, first of all on a personal level if we find our friends or other young people indulging in it, we have to report to the family immediately. On the family level care should be taken in handling these people & we should give them all the love & support to overcome the addictions with the help of De-addiction clinics. On a bigger scale the society of which we are a part of should take stringent steps to see there are no peddlers or users among them & finally the state should introspect & see why it cannot be rooted out if there is a will & conviction among them. My friends, Recently we saw the Grammy award winner Amy whinehouse dying at the age of 27 because of Alcohol & Drugs. It’s a pity that such a great talent has to loose out to Drugs. I can go on & on about the menace the Drug Abuse causes to the Individual first & then the society, but I feel the more we dwell upon it, the more we would be energizing it, so lets all say NO TO DRUGS & Promise to ourselves & to the society that we would weed out this menace in our generation completely.