Approaches to Management and Organizational Behaviour

205KM Management and Organizational Behaviour Report 1 Title: Approaches to Management and Organizational Behaviour: Pizza Hut and McDonald’s (Fill in the Name of Company A) (Fill in the Name of Company B) Student Name: HSU Ka Syn Syrus Student ID: 51878875 Tutorial Group: 2 Table of Contents Page Num 1. Objectives| 9| 2. Business Background| 9| 3. Organization Structure and Design3. 1 Organization Structure of Company A3. 2 Organization Structure of Company B3. 3 Compare the Similarities and Differences of Organization Structure between Company A & B| 10101214| 4.Approaches to Management & Organizational Behaviour| 15| 4. 1 Motivation| 15| 4. 2 Leadership| 16| 4. 3 Human Resource Management| 18| 4. 4 Culture & Diversity| 20| 4. 5 Information Technology| 22| 4. 6 Communication| 22| 5. Conclusion| 23| 6. References| 24| 1. Objective The purpose of this report is to find out the differences in the organization structures and approaches in management and organizational behaviour of two local restaurants, Pizza Hut Hong Kong and McDonalds Hong Kong.Besides, the report is to find out the information of the restaurants through identifying and analyzing the following: motivation, leadership, human resource management, culture and diversity, information technology, communication. 2. Business Background Business background of Pizza Hut: Pizza Hut, Inc. is an American  restaurant  chain and international  franchise  that offers different styles of  pizza along with  side dishes. Pizza Hut is a subsidiary of  Yum! Brands, Inc. , the world's largest restaurant company.According to the corporate website, there are more than 11,600 store locations in 94 other countries and territories around the world. About their history, the legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, were approached by a family friend with the idea of opening a pizza parlor. Although the concept was relatively new to many Americans at that time, the two brothers quickly saw the potential of this new enterprise. After borrowing $600 from their mother, they purchased some second-hand equipment and rented a small building on a busy intersection in their hometown.The result of their entrepreneurial efforts was the first Pizza Hut restaurant and the foundation for what would become the largest and most successful pizza restaurant chain in the world. Hong Kong Pizza Hut provides dine-in, takeout and delivery service. At present, there are over 80 stores in Hong Kong and Macau. In recent years, McDonald’s has invaded the delivery food service market, so Pizza Hut’s market share has also been thinned. This is Pizza Hut Hong Kong was facing the challenge. Business background of About McDonalds:McDonalds Corporation is the world's largest chain of  hamburger  fast food restaurants, serving in 119 countries and more than 30,000 restaurants. From a neighborhood restaurant established in Des Plaines, Illinois in 1955 t o today, more than 30,000 restaurants in more than 100 countries worldwide, McDonald's is the largest quick service restaurant organization in the world. McDonald's recognized that to be successful, it would have to be flexible and adapt to societal changes. In 1975, McDonald's opened its first drive-thruTM window in Sierra Vista, Arizona to accommodate a more mobile society.The company realized there was a need for a fast, quality morning meal and in 1973, the Egg McMuffinTM  was introduced. In Hong Kong, there are over 200 McDonald's restaurants, and more than 10,000 McDonald's staff. In few years, Hong Kong McDonald launched delivery service, officially invaded the delivery food service market. Although McDonald Hong Kong had a lot of charity work, moreover they established of the Ronald McDonald Houses, McDonald prominence has also made it a frequent topic of public debates about  obesity, corporate ethics and  consumer  responsibility. 3 Organization Structure and Desig n 4. Organization Structure of Pizza Hut Figure1. Hierarchy Division of Pizza Hut: Supervisor: A  supervisor is a team leader in a position of trust  in business. He / She always are an assistant to Manager. They have possession of part of the manager power, such as the allocation of the daily workflow, and void order of power. Restaurant General Manager: Restaurant General Manager is responsible for all problem of the restaurant. Not just manage all employees, but also they need to manage restaurant facilitates and service quality etc. In addition, they need to set daily sales target to fulfill organization goal.Operations Manager: They responsible for ensure that business needs to use as few resources as possible to meet customer requirements efficiently and effectively. Moreover, they need to establish operation policy to all operations department staff, included all restaurants manager. Chief executive officer: is the highest-ranking  corporate officer  (executive) or  administrator  in charge of total  management  of an  organization. An individual appointed as a CEO of a  corporation,  company,  organization, or  agency  typically reports to the  board of directors. At present, Hong Kong Pizza Hut chief executive officer is Henry Yip.Figure2. Functional Division of Pizza Hut: Finance department: Finance department is often simply defined as money management or the management of the fund. The major objectives of corporate finance are maximizing shareholder value. Marketing department: Commercial marketing  of individuals or organizations,  including  commercial enterprises,  governments and institutions  to  promote their  products or services sold  to other companies or  organizations,  in turn, resell  their practice,  and  use them as  components  in their  products or services, or use them to  support  their actions. . 2 Organization Structure of McDonald Figure3. Hierarchy Division of USA Headquarter McDonalds: Figure4. Hierarchy Division of Hong Kong McDonalds: Trainer: Trainer in McDonalds not the same in supervisor, they are same in senior staff to be an assistant to support Supervisor. Team Leader: Team Leader in McDonalds is the same in supervisor. Crew: Crew in McDonalds response for differences work in restaurant, it included Kitchen, cleaning, cashier, customer service representative and first line quality control. Figure5. Area division: Figure6.Functional Division of McDonalds: Human Resources Management Department: Human Resource Management is  an organization  of  employees  or  the management of human resources. This  attractive,  is  responsible for staffs election, training, appraisal,  rewards,  and  is also responsible for  organizational leadership and  culture,  and to ensure that  employment and  labor law. Held  in the employee's  wishes and  legally authorized  collective bargaining agreement, human re sources  usually  also  will serve as  the company's principal  liaison  with staff representativesPurchasing Department: Purchasing refers to the business or organization to attempt to obtain good or services, in order to achieve business goals. Although there are several organizations trying to set standards in the purchasing process, the difference between the processes organizations. 4. 3 Compare the Similarities and Differences of Organization Structure between Pizza Hut and McDonald’s Similarities of Organization Structure between Pizza Hut and McDonalds: Pizza Hut and McDonalds are the same using the Functional Division and Hierarchy Division.The relationship between the function is the position of the specialist, and other areas. In general, specialist will have the authority to adhere to the line manager, to achieve any of their instructions. In many large and global companies are always using Functional and hierarchy division to descript their company st ructure. In addition, these structures can make employee clear their job opportunities. Similarities of Organization Structure between Pizza Hut and McDonalds: Although the two companies are well-known company in the world, But in Hong Kong’s business size are different.Pizza Hut owned by Yum! Brands, Inc, but the business in Hong Kong is operated Franchise by Jardine Matheson. Region on district administration is relatively simple, because of only china regional business. On the other hand, Hong Kong McDonalds is not operated franchise of the way. Hong Kong McDonalds business was monitored by the management of the Asia (Figure5. ). Asia McDonalds Managed by the U. S Headquarters of non-Franchise operating worldwide business. So the difference of these companies is Hong Kong McDonalds was implemented area division models for global company structure. 4Approaches to Management ; Organizational Behavior 5. 4 Motivation Motivation is the degree to which an individual wants and c hooses to engage in certain specific behavior. People’s behavior is determined by what motivates them. Their performance is a product of both ability level and motivation. Therefore, the two companies are using the extrinsic and Intrinsic Motivation methods motivate employees. In the past, McDonalds had to hire employees with too low salaries, so that McDonalds scolded by social. On the contrary, Pizza Hut’s hourly rate is high within the food service industry.Since Hong Kong Government has implemented a minimum wage, McDonalds has also begun to focus on the welfare of the employees. Pizza Hut was using two motivation methods: extrinsic motivation and intrinsic motivation to motivate employees. For the extrinsic motivation, Pizza Hut’s crew salary increased to HK$ 28 from HK$ 21 (After the implement of minimum wage). Moreover, Pizza Hut’s salaries included restaurant Tips, Tips depend on customers given to restaurant and divide by the total number of empl oyees of the restaurant. Not just salary, but also Pizza Hut given bonus to all full time employees per year.And then, Pizza Hut established the outstanding staff award to motivate employee. About the award recommended by the restaurant manager, the winner will have HK$ 300 bonus. In addition, according to Hong Kong’s legal, Pizza Hut also provided Mandatory Provident Fund (MPF) to employee. Lastly, Pizza Hut provided differences fringe benefits for employees, included Medical benefit, insurance discount, and 20% off staff discount. Staff discount not just included pizza hut, but also is included all related Jardine Matheson subsidiary companies, for example: Maxim's Caterers Limited and Wellcome.For the intrinsic motivation, Pizza Hut will be timing implementation of the job rotation method to training staff. Employees not just learn their basic work, but also they have the opportunities to learn cashier or kitchen. Finally, staff can study the distribution of work managemen t to support supervisor. Give rise to sense of challenge, receiving appreciation and positive recognition. Moreover, the employee begin to work, supervisor will report the company’s new information to staff, and the daily sales targets.In addition supervisor will be highly praised the staff for good performance at the briefing. McDonalds was the same using two motivation methods: extrinsic motivation and intrinsic motivation to motivate employees. For the extrinsic motivation, McDonalds’s crew salary increased to HK$ 28 from HK$ 19 (After the implement of minimum wage). Moreover, the salaries included Profit sharing and restaurant cash incentive, like pizza hut tips bonus. And then, McDonalds established the outstanding staff award to motivate employee too. In addition, according to Hong Kong’s legal, McDonalds provided MPF to employee.Lastly, McDonalds provided differences fringe benefits for employees, included Group Term Life, Group Medical Insurance, Group D ental Plan, Education Sponsorship Program, and Professional Management Training both locally. About fringe benefits, McDonalds better than Pizza Hut. For the intrinsic motivation, McDonalds was the same in pizza hut intrinsic. In Fact, all of the food service industry company is using these methods to rise to sense of challenge, receiving appreciation and positive recognition etc. 5. 5 Leadership Hierarchy Division of Pizza Hut:Hierarchy Division of McDonalds: 5. 6 Human Resource Management Human Resource Management is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objective of the business. The Human Resources Management Process: For the McDonalds in people philosophy, they have a specific people vision â€Å"To be the best employer in each community around the World. † Being the best means â€Å"opportunities, traini ng and development; satisfaction, rewards and recognition†.Moreover, McDonalds make a promise to their employee. To all their present and future employees, McDonalds’d like you to know that there are committed. â€Å"We value you, your growth and your contributions. On the other hand, McDonalds have in place 5 people principles to reflect McDonald’s values and commitment to their people. It includes: (1) Respect and recognition (2) Values and Leadership behaviors (3) competitive pay and benefits (4) Learning, development and personal growth (5) Resources to get the job done. About the human resources management, McDonalds focus on every employee more than Pizza Hut.Recruitment: Pizza Hut and McDonalds are using these methods to attracting applicants. Internet-based Advertisement / Print-ad in Magazines or newspaper / Employee Referrals / Applicant Initiated / Job Fairs / Employment Agencies Selection: The process of screening job applicants to ensure that the mo st appropriate candidates are hired Pizza Hut and McDonalds are use differences types of selection Devices. Pizza Hut: Application form -> interview (restaurant manager) -> Reference checks McDonalds: Application form nd Questionnaire -> interview (restaurant manager) -> Reference checks Orientation: New employee orientation effectively integrates the new employee into your organization and assists with retention, motivation, job satisfaction, and quickly enabling each individual to become contributing members of the work team. Pizza Hut and McDonalds: Introduction (Rules, Policy, Organizational Structure and Company information) and a tour of the workplace Training: A basic operation in the work of the manager is to develop people and to direct, encourage and train employee.Those companies are using these methods to improve the availability, quality and skills of staff. Pizza Hut and McDonalds are using e-Leaning of job description, establish Lesson for differences hierarchy level, such as crew need to study customer service standard, how to handling complain; senior need to study how to contribute work to another colleague; Manager need to study manage in restaurant etc. Performance management: Approach to developing the capabilities of employees Pizza Hut and McDonalds in addition will be kept by the supervisor to practice role play training to subordinate.Moreover, the two companies will also hire external Mystery consumer companies to measure restaurant can achieve the setting of customer service standards, developed training plan or to enhance the training program based on test scores. Another will be conducted annually upward appraisal, Managers are appraised by their staff. 5. 7 Culture & Diversity Organizational Culture between Pizza Hut and McDonalds: Organizational culture  is the collective behaviour of people that are part of an organization, it is also formed by the organization values, visions, norms, working language, systems, and symbols, it includes beliefs and abits.Strong culture can create a stronger employee commitment to the organization. As the result, every organization must have their differences organizational culture. For the Pizza Hut, the mission statement is â€Å"With Customer Mania corporate culture, we ensure every dining occasion is a delightful experience. We promise† and the vision are to be the Leading Casual Dining Restaurant in Hong Kong and Macau – bringing our customers enjoyable yet affordable European cuisine by capitalizing on our brand equity and to be the No. 1 Pizza Delivery Provider offering world class pizza delicacies always hot and on time.Slogan of Pizza Hut: â€Å"With Customer Mania corporate culture, we ensure every dining occasion is a delightful experience. † In order to fulfill its mission, Pizza Hut has develop some unique, policies, principles, rules, processes and procedures, the sum total of which from the Pizza Hut culture: (1) Open door Policy: Manage rs doors are open to employees at all levels, because the manager dose not just do all about manage restaurant. During the peak hours, manager will work with general staff together. Therefore, manager can easier to listen to the voice from the employee. 2) Role culture – Bureaucratic control: roles and job description is most essential than the individual and position is the main source of power, control by procedures and rules, coordinated by a few senior managers.On the Pizza Hut, everything always have their standard for staff to fulfill, such as food quality standard, dress and grooming standard etc. If their staff cannot meet the standard, they will blame by the manager. (3) Ethical Culture: Pizza Hut has a very powerful and positive influence on employee behavior, focus on means as well as outcomes. 4) Customer Responsive Culture: Since Pizza Hut is very focus on increase customer satisfaction. They hiring the type of employees, for example ones with a more interest are helpful and friendly personality to serving customer. Having great listen skills to have ability to listen to and understand messages sent by the customer. Providing role clarity to employees to reduce ambiguity and conflict and increase job satisfaction. Having conscientious, caring employees willing to take initiative even outside their normal job duties For the McDonalds, the mission and values statement is to be our customers' favorite place and way to eat.Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience. In order to fulfill its mission, Pizza Hut has develop some unique, policies, principles, rules, processes and procedures, the sum total of which from the McDonalds culture: (1) Customer Responsive Culture: McDonalds same with Pizza Hut, th ey are focus on increase customer satisfaction.They hiring the type of employees, for example ones with a more interest are helpful and friendly personality to serving customer. Having great listen skills to have ability to listen to and understand messages sent by the customer. Providing role clarity to employees to reduce ambiguity and conflict and increase job satisfaction. Having conscientious, caring employees willing to take initiative even outside their normal job duties (2) Workplace spirituality: Recognize that their employees have an inner life, moisturize and nourish meaningful work, a place within the community.Since McDonalds focus on charity work, such as established Donald McDonald house Charities to offering a supportive environment, parents are able to care for their sick children during an incredibly stressful time. In addition, McDonalds often motivate employee to participate more about charity work. (3) People Orientation: Degree to which management decisions tak e into account the effects on people in the organization. Organizational Diversity between Pizza Hut and McDonalds: Managing diversity accepts that the workforce consists of a diverse population of people.The diversity consists of visible and non-visible differences which will include sex, age, background, race, disability personality and work style. It is founded on the premise that harnessing these differences will create a productive environment in which everybody feels valued, where their talents are being fully utilized, and in which organizational goals are met. According to the Hong Kong legal’s on eliminating age discrimination in employment, employers have the prime responsibility for encouraging equal employment opportunities and for eliminating discrimination in the workplace, so Pizza Hut and McDonalds are also comply with the law.Employees are Pizza Hut and McDonald’s greatest asset. But two companies have their own organizational diversity. For the pizza hut, there are more than 4,000 people, since pizza hut focus on customer satisfaction and customer service quality than McDonalds, so that Pizza Hut dose not employs any persons with intellectual disabilities in secretly. Contrary, McDonalds hire people not because of the people physical abilities and quality. For example, McDonalds staff Wong Man Yu awarded â€Å"Outstanding Disabled Employees Awards† by the Labour Department in 2006.It reflect McDonalds support their employees have any physical problem. 5. 8 Information Technology Information Technology is the use of computers and software to manage information. In some companies, this is referred to as Management Information Services (or MIS) or simply as Information Services (or IS). The information technology department of a large company would be responsible for storing information, protecting information, processing the information, transmitting the information as necessary, and later retrieving information as necessar y.Nowadays, many organizations are using information technology to increase work efficiency and effectiveness. Since information technology can increase business performance, better decision making based on information and greater accessibility to coworkers. So that, Pizza Hut and McDonalds are use many information technology to support their business: (1) Information Systems: accounting information system to record or calculate all about sales, salaries etc†¦ inventory system to monitor store inventory and though internet to purchase daily restaurants needs.Point of sales systems. Office automation systems, transaction processing systems, distribution systems, etc. (2) Electronic Commerce System: this part is very important in business, they’re use to selling, delivering, servicing and paying for products and services using internet. For the payment, Pizza Hut using credit card reader and Visa Pay wave; McDonalds using octopus and Visa pay wave. (3) Networked Computer s ystem: Linking individual computers to create an organizational network for communication and information sharing.They are using e-mail, instant messaging, Voice-mail to dealing with online delivery business, Fax machines to receive order confirm from food supplier. Electronic Data Exchange (EDI). Teleconferencing. Videoconferencing. 5. 9 Communication Communication between managers and employees provides the information necessary to get work done effectively and efficiently in organizations. Communication major functions are Control, Motivation, Emotional Expression and Information. Communication is very important part of business. Pizza Hut and McDonalds use interpersonal methods.For example: Face-to-face, Telephone, Group meetings, Formal presentation, Memos, Traditional Mail, Fax machines, Audio-and videotapes, Daily briefing, Hotline, E-mail, Voice mail and Teleconference to communicate with employee. Face to face, telephone and Memos are basic tools to connect employee and man agement. But about the organization contact restaurant, they are use daily briefing, E-mail to update information about organization. 5 Conclusion Through identifying and analyzing the following: motivation, leadership, human resource management, culture and diversity, information technology, communication. I found that:For the organization structure, the difference of these companies is Hong Kong McDonalds was implemented area division models for global company structure. On the other hand, Pizza Hut just implemented hierarchy and functional Division. For the approaches to management & Organizational behaviour, about the motivation, McDonald’s hourly salaries have been low for long. Yet, ever since Hong Kong Government has implemented the minimum wage, the corporate has no choice but to increase salaries of the workers. On the contrary, the average hourly wages of Pizza Hut workers are relatively higher than McDonalds.About the Leadership, Human Resources Management, Informa tion technology and communication, Since Pizza Hut and McDonalds are the same industry in food service restaurant, which means their organizational behaviour always the same. But about the diversity, McDonalds is better than Pizza Hut, it is because McDonalds hire people not because of the people physical abilities and quality. If Pizza Hut and McDonalds can solve above problem, they can improve their business more.

Which is more effective in fighting crime

Sociologists, in an attempt to explain and point out the reasons behind delinquency, have concluded that there are connections between specific youth behaviors with the home environment, family background, the neighborhood, associations, and many other aspects that together, or separately affect the formative years of young people’s social environment. Delinquent children usually come from a background of difficult circumstances. Parental alcoholism, poverty, breakdown of family, abusive conditions in the home, death of parents during armed conflicts or drug overdose, and the HIV/AIDS scourge, and etc. are some of the various reasons that can leave children virtually orphaned.One or both parents may be physically present, but because of irresponsibility on their part (if even one of them is addicted to drugs or alcoholic), a child may grow developing certain ways and attitudes that are directly/indirectly caused by the parent/s addiction or drug-related behavior. In this case, true delinquency lies on the parents; and the children are, in a way, orphaned or unaccompanied, and without any means of subsistence which, in the first place, the parents’ fundamental responsibility to provide. Generally, and increasingly, these children are born and/or raised without a father. They are first in the line of those who are at greatest risk of falling into juvenile delinquency.Without noticing it as it is typical of any youth to be lacking in prudence, with newly embraced group, the gang, a corresponding subculture starts to assimilate them, and before long, they start to engage in activities of adult criminal groups. It is usually after being engaged in criminal activities for an extended period of time with its accompanying consequences (such as ending up in prison or rehabilitation institutions for drug addicts) that delinquents realize they are into a very dangerous zone.A large portion of all juvenile violations (between two-thirds and three-quarters) ar e perpetrated by youths who are members of certain gangs (Venkatesh, 1997). Unlike in school and their family, these have no strict rules to be followed except loyalty to the group. It gives young people esteem when they somehow feel they are the â€Å"rule† in themselves. This is the lure of gangs. It gives the promise of fulfillment to would be delinquents. Popularity, access to the powerful figures on the streets, freedom to express one’s self, as well as easy flow of money (if the gang is also involved in some illegal activities such as drug dealings, which is common in most gangs) are seemingly within grasp of anybody who just have the guts to dare (OJJDP, Mar. 2003).Children who are well taken care of by their parents and are thus adequately supervised are at less odds to be involved in criminal activities. Studies have proven that. A dysfunctional family, on the other hand, which is commonly characterized by regular conflicts, parental negligence, poor communica tion because of absorption to outside activities by parents, are always assumed to be the breeding ground for delinquents (Venkatesh, 1997).~Studies on Risk versus Protective FactorsAn insightful paper prepared by Resnick describes the theoretical viewpoint that risk and protective factors are two things that may â€Å"mirror† each other. Risk factors like low academic performance increases the possibility of child or youth’s involvement in activities that may harm themselves and others while protective factors such as high academic performance increases the likelihood also of the individual committing aggression against another. These factors reside in an individual and that a disproportion of one especially the â€Å"risk factors† over the other indicates a caution or warning; the person may traverse in a direction which may foster a tendency to exhibit aggression or violent behavior. In the study, identifying these balance or imbalance within individuals may help reduce the occurrence of school violence by early detection of symptoms thus, interventions may be employed coming from various strategic points like the home, and the school and the community (Resnick, 2004).According to the Laub (1998), the home and the school are milieus that importantly direct the development of aggression or violence. Aggression at home significantly reflects what may eventually occur as aggression or violence in school, though not always. Male students attack peers or other male students. In addition, teachers are hurt either by verbal abuse, physical injury or threats of aggression. Fights that commonly occur in the campuses relate to â€Å"possession of toys, equipment and/or territory, about retaliation, & rules of games† (Laub, 1998).~Nature of Violence or Aggressionâ€Å"From very early, the oxygen of the criminal's life is to seek excitement by doing the forbidden.†-S.SamenowA radical turn from the contemporary to classical rationaliza tions on violent behavior equivalent to possessing a criminal mind, Stanton Samenow offered a quite â€Å"sweeping† point of view based on what he calls â€Å"errors of thinking.† Whereas years spent in studying and treating adolescence clinical disorders, he had leaned upon the understanding that adolescents, criminal behavior and/or violence in general have social determinants as a major factor, this change of mind was brought about by a collaborative work with another practitioner Dr. Yochelson (Genre,http://www.criminology.fsu.edu/crimtheory/samenow.htm).An elevated fear on the occurrence of violence in school is expectedly high not only because of what happened in Virginia Tech recently; this is because other forms of aggression or violent acts committed by students have not changed instead, increased in number among campuses today. In an excellent study by Jaana, the author specifically isolated these acts as becoming the source of fear for the average students t o experience anytime during their school lives. The study reveals that suburban schools are also profiled as becoming unsafe these days.These violent activities can be in the form of physical attack for no apparent reason or provocation, fights without using any weapon, pilfering, breaking and entering school property, and vandalism. In addition, victimization occurs, in the manner of students stealing property of another (e.g., books etc.), being threatened because of racial or cultural difference, bullying, and threats of injury to teachers and not only to students among othersReference:Genre, C.T. 2007. â€Å"Stanton Samenow:The Criminalpersonality). Retrieved May 6, 2008Laub, J.H., & Lauritsen, J.L. (1998). The Interdependence of School Violence with   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Neighborhood and Family Conditions. In D.S. Elliott, B. Hamburg, & K.R.   Ã‚   Williams (Editors), Violence in American Schools: A New Perspective, (pp. 127- 155). New York, NY:Cambridge University Press. Retrieved May 6, 2008from  Ã‚   the   Ã‚  Ã‚  Ã‚  Ã‚   Center for the Study and Prevention of ViolenceJaana, 2001 in Selected School and Youth violence   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   statistics. Department of Juvenile Justice   Ã‚  Ã‚  Ã‚   and Delinquency Prevention (DJJDP).Retrieved May 6, 2008.     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://www.ncdjjdp.org/cpsv/Acrobatfiles/statistics_2007.pdfVenkatesh, S. ‘The social organization of street gang activity in an urban ghetto,’   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   American   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Journal of Sociology, vol. 103, No. 1, July 1997, pp. 82-111.

Selecting toys for young children Essay Example | Topics and Well Written Essays - 250 words

Selecting toys for young children - Essay Example In as much as these toys are meant to stimulate children’s imagination and encourage learning safety the quality of the toys must be ensured (The Kiwi Families Team, 1). Some of the toys that are appropriate for this age group include building blocks and accessories, modeling dough, paint, crayons and collage materials. Tricycles and trolleys as well as jigsaw puzzles would are also encouraged (The Kiwi Families Team, 1). Modeling dough is clean clay like substance that is used for modeling. It is reusable and as such children can use it for longer periods. Most of the time, children will poke, roll and squash this dough but as they do that they develop fine motor skills. Modeling clay appeals to kids in that while they are playing with it, they get amazed and wonder at how far the clay can stretch or how they would make one piece stick to another and these will prompt their problem solving skills. Parents should choose this toy for their children since motor development is one of the crucial phases of life and these toys help children develop it, it also boosts imagination. Modeling clay is not messy; children simply need to wash their hands after using this dough (Goodson, 21). In addition to this, children who have talent in the crafts can be discovered early by paying attention to the things that they make with modeling clay and these talents can be nurtured early enough. As such, parents should select this toy for their children since it can unveil unique talents that they have. According to the Kiwi Families Team, another toy that most toy manufacturers recommend for preschoolers is building blocks. These are always plastic and can be in the model of a farm animal, car or building. They are always big blocks that can be inter-connected to build things such as houses, vehicles and a variety of other things. With these pieces, children around four years can spend hours

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Rifa - Essay Example Key Words financial terms, jargons, financial methods and techniques Discussion a) Jonny 1) According to Turner’s 2004 report, pension crisis is caused by two major factors. These are the downturn in financial markets and unpredicted improvement in longevity (Whitaker 1997, pg. 16). Of course there are other factors as well, but these two elements have the biggest role to play in anybody’s descent into pension crisis. Bill Murray should therefore watch them closely if he wants to avoid being caught up in the cobweb that is pension crisis. 2) A money purchase scheme is a variation of defined contribution pension schemes (Hearn 2004, pg. 32). It is normally created by employers as a pool from which they can pay their retired employees income. Despite the employer sponsoring it, it is managed by a board of trustees (with the only exception being public sector schemes). The Trustees are in charge of paying death and retirement benefits. The amount of income payable depends on the amount of contributions made to the scheme by an employer or member, the performance of investment funds and the annuity rate at the time one is retiring. 3) Jonny is not too young to think about pension schemes. In fact, at the age of 30, he should be ready to start putting money in a pension scheme. The reason for this is that he has 30 years or less of gainful employment, after which he will retire. Contributing consistently for 30 years in any pension scheme (especially a money-purchase scheme) is enough to sustain him for possibly the rest of his life. Pension Crisis Pension is a contract made in a regular basis to a person with a fixed sum on the retirement from service (Rein & Schma?hl 2004, pg. 69). Pension crisis can be defined as the predictable difficulty found in the payment for the federal, corporate and the state pensions in Europe caused by the difference between resources and the pension obligations used in funding them. Causes of Pension Crisis Underfunded Pe nsion Plan Pension funds have to maintain a funding status or the assets value to liabilities in order to be able to afford the retirement benefits for their employees. An underfunded pension plan has fewer assets used to afford its liabilities. This is mainly caused by mismanagement as the pension schemes rely on the amount of cash being contributed from the sponsor which can be an employer (Rein & Schma?hl 2004, pg. 71). This management has a negative impact to the employees because there pension money has not been well handled. Shifting Demographics have also led to the lower ratio of workers per retiree. These are caused by the number of people retiring thereby causing employers to spend a lot of money on them compared to the profit gain of the company. The lower birth rates are also seen as a major factor as it leads to the decreasing labor force that is the number of workers. Money Purchase Scheme A money purchase scheme includes stakeholder and other occupational pension plan s among others (Rein & Schma?hl 2004, pg. 73). Its benefits depend on contributions to the pension fund and also the investment of the assets placed which can be positive or negative. When one retires the amount of money depending on the two factors is what will lead to the income one will get on retirement. Money

Construction Management Coursework Example | Topics and Well Written Essays - 1000 words

Construction Management - Coursework Example Different sizes of projects require different services, and so before one makes a decision on the system to use to require the services, size is one of the basic things to consider. This report is about the construction project that we undertook. Being the four of us, each member was given a different role and each member had to closely work together with the other members of the group in order to succeed. Negotiation was very important in the whole process as every member of the group had to convince the other three members of the group to sign the given roles assigned to each member. Since this was a small project, we used the contract management procurement system to come up with the roles and services that each group member was supposed to perform (Rodgers, 2000, p. 87). This procurement system is very efficient in gaining greater visibility for the whole project. With the use of the procurement lifecycle, the system is able to appropriately assign different roles to different co ntractors without being unfair to one party. The procurement system A construction project requires different parties, each playing different roles in the project. In contract management procurement system, each member of the project is given a specific role to play. The members have to agree to the given task by having a head of terms which both parties have to sign. In our project, the main contractor assigns roles to the different stakeholders of the project. Each member has the power to accept the roles or refuse. The roles are then put down in a heads of terms in which each stakeholder has to sign to show compliance to the given tasks. Contract management has a strict measure of negotiation. This means that before the members agree to the given roles, they have to come together and negotiate the roles. This will ensure that both parties avoid exploitation from the other members (Walker, 2008, p. 45). Being the head of the procurement process, I had to set up a lot of terms for the whole project. It was agreed that 50% of the payments were to be given before the start of the project, and the other half to be given when the project was completed. Changes to the heads of terms had to be done through the person affected through a signed new heads of terms. This will ensure that the project management does not change the terms during the project. During the formation of the roles, each member of the project sat with the other party who was to perform the given roles; then, they started the negotiation process, and this is where each heads of terms were made. Each member gave the other member the task that they were to perform and instructed how the payments will be given out. In case of a disagreement, the project manager had to get in to consult the problem. The members then drafted the heads of terms which each one of them had to sign to show compliance to the given task (Green 2010, p. 89). After the signing process, it is assumed that each member is satisf ied with the given terms and that in case of any changes, then they had to communicate with the management, and the terms can be changed only with the agreement of the other member of the team. This type of contract management is very crucial in the definition and management of risk. Each member clearly understands the risks they are getting into and what is totally required from them. They do not therefore rise complains later. In our project, this stage was

Chinas Threats Essay Example | Topics and Well Written Essays - 2000 words

Chinas Threats - Essay Example Finally, the effects of these threats must be evaluated. Many believe that the four most important issues regarding this question are 1) population 2) economic 3) military and 4) technology. While these areas are easily justified, the real reason behind the threat is somewhat unclear. This is largely because China, as an international role player, has no known or declared objectives. Thus, in order to have a basic idea on China's immediate and future plans, one must look back in history and decipher China's policies and ideals. In the 1960s, according to Okabe (1968), China's medium-range objectives consist of the following: promotion of world revolution and acquisition of resources, markets and territories; bolstering national security primarily against the American "threats;" and asserting its role in the international community. Although the ideals of a world revolution are hard to discern in the current objectives of China, at that time, it was apparent that its leaders valued the importance of promoting world revolution to obtain lasting peace. Related to this is the aim of achieving self-reliance as manifested by the need to add territories, markets and resources. Self-reliance entails capability of protecting a nation internally and externally thus fortifying national security is a logical step. ... Population threat Being the most populated country in the world, China has always been considered a threat to the rest of the nations. The truth is, in order to avoid perpetual explosion of its population, China had come up with a policy obliging couples to have only one offspring. Issues had been raised regarding the implementation of the said strategy but nevertheless, an estimate of 300 million people would have added to China's population if the policy was not applied. In less than three decades, China achieved a far more advanced transition in terms of demography, an area wherein other developed countries spend centuries to attain. According to the country's Census, the total population of China as of 2000 is 1,242,610,000. Hand-in-hand with this is a relatively low total fertility rate of 1.2 which is a lot less than the figures previously reported. These records made an impact to people by raising speculations whether the results were reliable or not. Majority of the country's population believ ed that the Census might have underestimated the accurate population count of China; stating, too, that many of the younger members of country's inhabitants especially the newborns were not reported and registered in China's Census. The population figures and total fertility rate reported by the Census, whether it contained underestimated and unreported data, are still far less than the possible rate of population replacement of 2.1. At this point, the country's population would be described as steady or stationary. Therefore, no matter what the reported values were, it is undoubtedly evident that China was able to control the

Individual assignment---report Essay Example | Topics and Well Written Essays - 2750 words

Individual assignment---report - Essay Example The paper suggests use of trained technicians and enhancement in the quality of the products in order to increase the revenue of the company and to stimulate its acquired market share. Table of Contents Abstract 2 1.0.Introduction 4 2.0.Implementation of ICT in River Island 4 3.0.Issues at River Island 5 4.0.Literature Review on ICT 6 5.0.Utilisation of ICT to Solve the Matter 7 6.0.Conclusion 9 References 10 1.0. Introduction Information and Communication Technology (ICT) is universally identified as one of the most significant tools that are utilised for the purpose of social alterations as well as national development (Ministry of Human Resource Department, n.d.). In the current day phenomenon, ICT along with the internet are altering the human activities that have been dependent upon the information. It offers the individuals as well as the communities with an opportunity to be not only consumers of the goods and services, but also acts as active generators of the information. It is by means of media convergence that it becomes easier for ICTs to develop and coordinate the capacities of other Medias (FAO, 2000). ICTs are normally related with the issues of data processing as well as information management by means of large scale information systems. It is worth noting that it is not only the information technology itself which is a significant factor for the quality of work; rather, it can be regarded as the strategy that the company adopts so as to coordinate the aspect of technology with the changing requirements of the organisation (FAO, 2000). The company that has been chosen for the study is River Island. River Island is based in London and was initiated in the year 1948. The founders of the company were Andrew Hunt and Bernard Lewis. The company has more than 60 years of experience in fashion retailing and is considered as one of the successful companies in British High Street (River Island Style Insiders, n.d.). 2.0. Implementation of ICT in River Is land Information and Communication Technology facilitates in the smooth operations of the organisation and thus assists in many other ways such as stock control, keeping extra records, advancing the communication process, production as well as marketing. Through ICTs it is gradually becoming easier for the company to reduce its costs significantly (Business Studies Online, n.d.). It is to be mentioned that River Island also makes use of the ICT’s in order to improve its operation in an effective manner. River Island has worked with consultancy named Royal National Institute of Blind People Web Access Consultancy so that its new website offers high degree of accessibility ensuring that as far as possible it is reachable to all the users. It is worth mentioning that online shopping is a type of ICT used by the company for making its goods available to the consumers online. The company’s online services assist the consumers in purchasing clothes, shoes as well as accessor ies. Notably, River Island provides a wide on-line range of women’s as well as men’s fashion related clothing’s to the customers (River Island, 2012). The leading fashion retailer, River Island, demonstrated its plans to initiate stores that are mainly dedicated to accessories as well as shoes. It was noted that the company decided to bring certain alterations in its business’s in-store design policies and introduce numerous interactive technologies that can be utilised by the customers. It further planned to

Gas Chromatography Term Paper Example | Topics and Well Written Essays - 1750 words

Gas Chromatography - Term Paper Example It is also referred to as gas separator or aerograph. Gas chromatography is different from other forms of chromatography because the solutions are always in gas state as they travel through the column. Retention time occurs when different compounds separate in the column at different times. The gases have different eluting times due to the reactions between them and the column. The gases are now compared by their different retention times which give the gas chromatography the power to analyze the gases (Eli, pp. 217-220). Chromatography originated in 1903 by Mikhail Semenovich Tswett who was a Russian botanical scientist. He opened the way to gas chromatography. He used adsorbents like ethanol and calcium carbonate to elute carotenoids and chlorophylls this saw the use of the column chromatography. The foundation of the gas chromatography was later laid by the Nobel Prize winner John Porter Martin. In 1941, he used the liquid to liquid method and in 1944, paper chromatography which brought about gas chromatography. It later led to the formation of liquid-gas chromatography in 1950. This has led to the modern gas chromatography technique which is being used today as an important analytical technique in chemistry (Colin, pp. 161-165). The description of chemistry, physics and biology behind the gas chromatography technique can be explained ... This means it uses the inert gases like carbon dioxide, helium, nitrogen and argon. For one to choose the carrier gas, he or she needs to identify the type of detector to be used. It has a molecular sieve that sieves out impurities and water (Casimir, pp. 139-142). The injector port is a column in which the samples are passed in the instrument. The samples are not supposed to be very large and they are to be introduced in the column as in the state of vapor. Large sample injections can cause the band to broaden thus lose resolution. The most accurate and common method used is that of injecting samples via a rubber septum using the micro syringe. The injector is characterized by a heated chamber which has a glass liner where the sample is passed through the septum. When the injector is using the splitter mode, the carrier gas normally enters the chamber and leaves it by three outlets. Then the sample becomes vapor which leads to the formation of the mixture of carrier gas, vaporized solutes and solvents. A small amount of the mixture goes to the column leaving most of it to exit via the split outlets. Components can not enter the column due to the septum purge outlet in the instrument (Sawhney, pp.211-215). The column is divided in to two sections; capillary and packed. The capillary is further divided in to two whereby there is the support or wall coated open tubular (WCOT, SCOT). The wall coated has a liquid coated stationary phase while the support coated one has thin layer of a supportive material that absorbs the stationary phase. The most efficient type of capillary is the wall-coated capillary. The fused silica open tubular column is considered to be the best as it is a type of the WCOT.

Culture Essay Example | Topics and Well Written Essays - 750 words - 6

Culture - Essay Example addition, cultures can be learnt through interactions that people have, and this is because as individuals interact, they get to understand one another’s perception of things (Rosenblatt 105). Culture has a great influence on one’s communication since it shapes what people think and say all the time. Consequently, culture influences how people think and operate within business or in their professional environments. Rosenblatt (109) explains that in order to understand the impact of culture in business, one has to study the following cultural frameworks: contextual culture and the values attached to culture. Contextual culture refers to the nonverbal signs that are portrayed by an individual during communication. They include things such as gestures and facial expressions. Some cultures attach more value to these cues than to what an individual actually says. They help in interpreting the inner unexpressed feelings of a person, and they can be really helpful during interviews (Rosenblatt 110). High-contextual cultures have a high regard for non-verbal signs, while low-contextual cultures have a high regard for the verbal words that are said by an individual. Rosenblatt (112) asserts that in a communication, one has to study the message being put across closely in order to determine whether the message is direct or indirect. A direct message means that a person means exactly what she/he says, while indirect messages require a deeper understanding. Direct messages are mostly used in high-contextual cultures whereas indirect messages are mostly used in low-contextual cultures. Time orientation is equally important in communication since it shows the importance attached to time in different cultures. Time orientation has two dimensions: polychromic which emphasizes human relations and monochromic which on the other hand stresses on schedules and appointments (Rosenblatt 114). Finally, conflict communication is a key focus in high-context cultures because in these

Gulf War between Iraq and Kuwait Essay Example for Free

Gulf War between Iraq and Kuwait Essay This paper that in intensively researched, will examine on the reasons that led the Gulf war between Iraq and Kuwait, Saddam Hussein war invasion to Kuwait, Relations between Kuwait and Iraq, causes and effects of the war, the characteristics of Saddam Hussein, and the reason why he need money. According to the western sources especially from the USA, Saddam Hussein, a complex political leader, is portrayed as the â€Å"axis of Evil† in the Middle East. . He practiced cruel methods of leadership skills, his motivations, perceptions and decision making on behalf of the Iraq’s and his country neighbors for example the Kuwaitis. He has been pursing the development of weapons of mass destruction, despite the UN sanctions and terrorizing his associates especially in Kuwait. This information was gathered through the following sources. Information about â€Å"The Gulf Syndrome† www. geocities. com Retrieved on 6th April 2009 Information about â€Å"The profile of Saddam Hussein† www. mideastnews. co. Retrieved on 6th April 2009, Majid K. â€Å"War in the Gulf 1990-1991†, Information on â€Å"Persian Gulf War† www. encarta. msn. com Retrieved on 6th April 2009, Jerrold M. (2002), â€Å"Saddam Hussein of Iraq: Apolitical Psychology profile† and Information on â€Å"The characteristics of Saddam Hussein† www. qrmapps. com Retrieved on 6th April 2009 The historical background of Iraq and Kuwait Iraq was created under the British rule in 1932. The formation of this state under single administration resulted to third pole power in that region leading to unstable combination of people with collective influences that might lopsided its neighbors to the south. State of Kuwait northernmost emirate of Arabian isthmus dates its history as a take apart geopolitical body back to the founding of Kuwait City in 1710. It became independent from British. Following the 1973 oil crisis, the soaring oil prices brought with it extraordinary wealth to this small country. Relations between Kuwait and Iraq As Kuwait was declared a sovereign state, Iraq voiced objections to its admission to the Arab league but instead declared it an Iraq territory. In 1963 Iraq dropped the objectives and in 1980 they enjoyed close ties during war against Iran as Kuwait supported Iraq. Causes of the war The border between these two counties has been in question. Nominally, Kuwait was part of the Ottoman Empire from the 18th century. In 1899, it asked for and received British protection in return for autonomy in its local affairs. It was granted independence in 1961 and this lead to Iraq claiming that Kuwait had been governed as part of the Ottoman province in southern Iraq and was rightfully Iraq’s. It only recognized Kuwait in 1963. But since then, there have been occasional clashes between the two nations. The Iraq troops invaded Kuwait in August 2nd 1990 taking the emirates by one day headed by the strongest leader in this region, Saddam Hussein. The 150,000 of his troops from Iraq overwhelmed the 20,000 Iran’s troop staking control of the capital city of Kuwait and then controlled the whole country. Effects of war It had a vast impact to the oil industry and affects the future of the civilians in Iraq. This has reduced it from affluence to a third world status. This led to a large number of the US and British forces stationed in Kuwait and other gulf states as well as Turkey. There is an increasing rate of a multinational task force of warships patrols the red sea and the Persian Gulf which tries to prevent the illegal export of oil from Iraq. The war led to many environmental hazards such as the destruction of marshes, burning of hundreds of oil wells, hence polluting the global environment. Characteristics of Saddam Hussein He is a dictator who saw Iraq as a great country and as an extension to himself. He saw himself as the successor of Nebuchadnezzar. He once said that â€Å"Our nation has a message,† he once proclaimed. â€Å"That is why it can never be an average nation. Throughout history our nation has either soared to the heights or fallen into the abyss through the envy, conspiracy and enmity of others. † He is self-centered. He saw the Iraq treasury centered to himself. During the Gulf war, the Kuwaitis investigated on Iraq’s assets by Kroll Associates, a New York firm and the detected that he had $2. 4 controlled deposits which spread among 50 banks which were controlled by Hussein’s family. He used to skim five percent of the Iraq’s annual oil income and did business with other external firms in foreign territory. He is an exalted self concept. â€Å"Saddam is Iraq and Iraq is Saddam†. He made sure that he built a cult of himself allover Iraq. This can be proved by his images everywhere in Iraq. His name is linked to hundreds of public works projects. For example the Saddam housing companies and also the â€Å"Saddam Line† in Iraq. He named part of Kuwait to himself the moment he took over Kuwait. When he appears in public, he has created an environment where people cheer, clap, and even kiss his hand when he appears in a public gathering. He killed whoever who did not show enthusiasm to the great leader. He killed by imprisoning them, helicopter crashes, tortured to death, sealing their bodies to the coffins. He used a secret police unit to achieve his ordeals. He used his Messianic to achieve his ambition of political power. He is malevolent. He has cold canning behind his every action. His ruthlessness was found to be terrible leading to cruelty, for fun, leadership style of Vlad the Impaler. He was stupid because the boasts were proved to be hollow. His lies were proven false quickly His is also portrayed as the madman of the Middle East and his name means the one who confronts. He is a paranoid in decision making His achievements were the transformation of the country where he built new roads, improved housing standards; food was brought to the people’s tables, cut illiteracy by 11% according to the official estimates. The cultural aspects of Muslims were relaxed allowing women equal pay for equal work. Reasons as to why he needed money The oil money allowed him to accumulate the largest and best equipped military machine in the Arab world. Most of them were Soviet, French and from other nations. Most of them were first rated. He had an annual budget of $12. 9 billion which was an average f $721 per Iraq citizen ye the average annual per citizen was $1950. He therefore equipped his army to distress the regional balances by ruthless mass killings, He was the veteran in army in the region. According to Jordanian newspaper ad-Dustour, Saddam â€Å"awakened the desire in every Arab soul for a glorious Arab stand,† Saddam Hussein was a ruthless dictator who was used to terrorizing his neighbors and gassed his own subjects. He normally followed his mafia rules which were not well understood by many in the world including the United States of America. He grew up as a thug and a hired gun, yet he has a soaring popularity in the Arab world. The differences between a Totalitarian and Authoritarian leader A totalitarian political power is in the hands of a few groups while the authoritarianism refers political power is in the hands of one person. Hence Saddam Hussein can be equated to both an authoritarian leader and a totalitarian according to the definitions and his leadership skills. Reference Information about â€Å"The Gulf Syndrome† www. geocities. com Retrieved on 6th April 2009 Information about â€Å"The profile of Saddam Hussein† www. mideastnews. co. Retrieved on 6th April 2009 Majid K. â€Å"War in the Gulf 1990-1991. New York: McMillan. Information on â€Å"Persian Gulf War† www. encarta. msn. com Retrieved on 6th April 2009 Jerrold M. (2002), â€Å"Saddam Hussein of Iraq: Apolitical Psychology profile† New York: Pearson’s Education. Information on â€Å"The characteristics of Saddam Hussein† www. qrmapps. com Retrieved on 6th April 2009

Social Democracy: Healthcare in the UK

Social Democracy: Healthcare in the UK Social democracy is one of the political options within the ideological spectrum in Great Britain that aims to serve the citizenry and meet their social needs. T.H. Marshall (yr) suggested that citizens have legal, political and social rights and the human rights European Convention (1988), explains the need for social policy in Britain. Ants (year) as social creatures express the positive perspective of organisation in achieving objectives through collective intelligence. This algorithm complements government policy issues in identifying solutions to the challenges of the human race; expecting ideal outcomes toward better living, of which health care is relevant.. The outline of this essay on Social Democratic perspective aims to examine the historical development and changes, the general impact on the development of social policy and how it has affected Social Policy on health; health care provisions and hospital care focused on paediatrics. The socialist democracy is an ideology that advocates an egalitarian society mainly through welfare system by progressive taxation. The core of social democracy is redistribution of the wealth of the nation by making responsible provisions for the needs of the people especially the less privileged. This attitude originated from the Fabians beliefs in the period of as advocated by such writers as. An identification with the opinion that exploitation of the working class has made and contributed to their poor background and position relative to their services by way of labour, some classes had benefited from their situations and reasonably a relief of such plights would make for a fair society as argued by Titmuss (1974) and Crosland (1965). Expertise for administering such services through paternalistic and elitist ideas would be welcome; this delivered the welfare system re: Beveridge report (1942). Reformation was preferred to revolutionary approach of the radical Marxists to promot e peace and stability. Capitalism as practised by the New Right perhaps produced negative impact within the society of which inequality is one of such weaknesses and in order to stop its widening gap a socialist democratic government needed to intervene. The above underscores the elitist thinking in the 20th century and the bedrock to the influence and development of Social Democracy in Britain and subsequently to the works of Sir William Beveridge and John M.Keynes. Sir William Beveridge aruged in his report the aim and an objective of the Welfare System after the war, was to defeat the five giants which were the bane of the society; disease to be eradicated by the creation of the NHS, Squalor-housing scheme through local authority, idleness-creation of employment, ignorance-an educational system and want-provision of social security system. Funding was by compulsory national insurance contributions into a common purse and from which people social needs could be met. John Maynard Keynes an economist provi ded the economic theory that bankrolled the welfare system contrary opinion challenged his full employment reality and vision, which has never materialised. The first health system with three health care principles, firstly meeting every ones medical needs, free at point of service and based on need rather than ability to pay. Health care included; Hospital care-distinguished into; acute which covers full range of medical specialties and long stay which includes psychiatric care and nursing care whilst primary care covers hospital care which include basic medical treatment and non hospital care, also related medical professions like dentistry, optics and pharmacy the third aspect involves domiciliary health care (home nursing). Public health -includes preventive medicine and conventional health services like housing, water supply sewerage and food hygiene. The National Health Service Act 1946 legally created the NHS which took effect from 5th July, 1948 with Aneurin Bevan as the Hea lth Minister under Prime Minister Clement Attlee of the Labour party. ( this needs to come The Emergency Medical Services (EMS) employed doctors and nurses during the war to care and cater for the injured which encouraged building up of the national services but considerable opposition came from the British Medical Association (BMA) concerning GPs working for state health centres. The pretext, David Lloyd George introduced the national Insurance act in 1911 which catered for the medical care of the worker excluding his family members, an option favoured by the BMA for commercial gain. The church, community and the voluntary sector involvement had earlier through charity supported the disadvantaged and less privileged citizens in meeting medical care. The NHS developed under reforms when by 1956 the financial strain on the NHS started to show which facilitated charges for prescriptions and the growth and development demanded reforms and restructuring of the institution. Internal Markets and NHS Trusts encouraged competition. Further reformations saw the strengthening of the internal market introduced by Thatcher by the Blair government as a result of rising costs of medical technology and medicines in addition to the demand of an ageing population socially aware of the benefits of health care delivery and the impact on quality of life. Outsourcing of medical services, fund holding ,choose and book, governance, staff, budgeting and I.T. innovation(NPfIT) which is claimed to be the biggest single project and estimated for  £30billion is an overrun of both budget and time frame, these are just are few of ongoing plans and reforms within the mega -NHS. The neo-liberal economic approach of internal markets was unavoidable in view of the spiralling budget of the NHS but still maintain the social democratic values of sustaining the growth and development of the health care system. Most hospitals prior to 1948 had been damaged by the wars e. g .; St. George and Paddington hospitals were in a bad state of repairs and lacked diagnostic facilities, pathology and radiology and operating theatres. About 16000 were dying of rheumatic heart disease and 5000 new cases among children and adolescents yearly. Diagnosis, prognosis and treatment depended on availability of bed and were admitted at an advanced stage of their disease due also to inexperience and limited facilities. Mental hospitals could not cope with the number of the mentally ill and or handicapped. NHS birth assimilated 1143 voluntary hospitals with a total of 90000 beds and1545 municipal hospitals and 390000 beds. It became apparent to develop specialist services accessible by the populace that led to the establishment of 12 teaching hospitals and special hospitals like Great Ormond Street. Research and development became necessary and this had an impact on the work of the NHS and contributed significantl y to the success of treatments as aided by improved training of medical staff, Post Graduate Medical School at the Hammersmith Hospital influenced scientific research and a host of other pragmatic factors. In addition, investments were made for new infrastructures and hospital buildings to modernise the NHS. Great Ormond Street Children Hospital e.g. has experienced tremendous changes after 1948, one of which is the provision of specialist services as a national paediatric hospital. Social democracy has evolved in contending with contemporary issues of economy, equality, social justice, political economy and others that have shaped and revised its ideology in recent times especially the Labour Party which has shifted to centrist left and neo-liberalistic economic style. It redefined the relationship between the state and the people therefore, according to Althusser (1970); to structure the society and become a controlling symbol but critiques like Bailey and Brakes (1979) highlighted the need to challenge the oppression through community empowerment. Beveridge and Keynes reforms have been criticised as a smokescreen (masking) to the real obstacles of social functionalism, discrimination and racism prevalent in the society which required attention. Why health policy? Britain engaged in the Boer war of 1899 to 1902 which evidenced the state of health of the citizens as a third of the recruits were unfit and there was need for the state to intervene and improve the nations health. The paradox is represented by sending men to war exposed them to risks of death or casualty whereas, improving healthcare increases life span through better quality of life, presumably the art of governance requires painstaking decision- making striking a right logical-balance(this needs to be supported by a theory or empirical evidence). Because out of the debris and ruins of the world wars came the birth of the NHS, one of the most ambitious political and social human creations from cradle to grave in the words of G. Rivett . The post-war period raised the important policy issue of how to respond to the issues of health? The policies appropriate to the right physical and mental wellbeing that guarantees functionality of an individual and determines the quality of life they live as discussed in the functionalist approaches of Spencer (1897). Healthy life however is dependent on a number of factors amongst which is the standard of living besides genetic make-up. Chadwick believed in the 19th century poor health was traceable mainly to pauperism to which he responded by improving sanitation. Often there are major inequalities in access to health care relative to social-class, Tudor Hart (year) referred to as inverse case law; that people in the worst health receive the least services. The above identifies why there was need for a social health policy in Britain. The policy had a number of impacts during the last hundred years from the Beveridge report, the National Assistance Act 1947, 1950 Mental Health Act, 1970 Chronically Sick and Disabled Act up to the new right Freeman (1970) monetarist approach to the purchase of case in the emergence of the ; Mental Health Act 1983-which made changes in periods of admission and rights to challenge assessments and the way of community care. The Community Care Act 1990 affected changes that altered the arrangement between assessor and the purchaser referred to as care program approach and based on Hayek (1949) and Griffiths (1988) in introduced the notion of a cost effective approach to social democracy. Hospitals were decentralised and the market concept was introduced. Public services increased with provisions to access counselling and physiotherapy. The Community Care Act 1990 effected radical changes in social policy and health that altered arrangement between assessor and the purchaser referred to as Care Program Approach. The Care Program Approach of 1991 introduced the privitisatiion of state services with increases in taxes and a review of benefits and access to resources that relate to causes of mental illness. Research (by who) and improved diagnostic system assisted global cross ferlization of ideas. Development of information technology and infrastructures increased to meet medical demand as well as creation of employment for health related personnel which assisted career and education feeder programmes as introduced by the Griffiths Report of (1988) Partnership with private and voluntary organisations evolved and anti-smoking and smoking cessation policies were introduced as well as healthy living and obesity concerns. Presently as part of NHS, specialist services are provided to all without any charges apart from foreign patients. As part of emotional support for the parents of children hospitalised, free accommodations are offered as required. Services provided include heart surgery with a centre which was opened in 1950 and it is the largest cardiac centre and also the largest heart transplant centre for children in the world, this was impossible before 1948. Gene therapy is now available to treat immune related disorders and it is one of the three of such centres in the world. The Institute of child health which is a part of Great Ormond is a research centre for childhood illness besides the US. The vision of Dr Charles West became a reality with the opening of Great Ormond Street Hospital with just 10 beds with support from Charles Dickens, Lady Byron and Baroness Burdeff- Coutts (the richest woman in England, then) Queen Victoria was the first Patron and in 1989, Diana Princess of Wales became the President of the hospital. The variety Club was opened in 1994 funded by the Wishing Well appeal, by 2002, the hospital celebrated its 150th Anniversary .its motto being the child first. Its mission is to improve the health of children by being a leading centre of excellence in Europe for special paediatric services and research evaluation and education in child health. The Hospital is equipped with up-to-date diagnostic and treatment facilities and one of the very few Hospitals worldwide to provide a wide range of specialties on one site. It has about 31 departments with Harris International Patient Centre that caters for private patients whose treatments are funded by overseas governments and this is used to support the work of the NHS. Quality of service is of the highest standard, holistic with an undertone of compassion and human kindness, offering psychological and religious support where and when desired.Great Ormond is applying to become a Foundation Trust -this is a shift in policy that will give more freedom to develop its services while within the NHS but with more financial freedom and support of local people interested in its functions, progress and growth. The significance of the highlighted development is the importance the hospital is playing in the health care system of the nation, the values and the principles identify with the socialist democratic perspective and the laudable initiative of the NHS, had the BMA alternative of commercialised healthcare system been adopted, perhaps recent developments and growth would not have seen the light of day. The NHS concept has proved that collectivism has a humane approach and its union with the Keynesian economy of investment has a colossal capacity to meetin g the healthcare demand of the nation. In conclusion, collaboration not competition which is individualistic and exploitative symbol of neo-liberalism capitalist approach could have denied the experience of improved quality of life as well as the increased life span of this generation, not to mention the public awareness and the positive benefits of a free health care system, cannot be compared with any other in this generation our eureka. The Social Democratic perspective from which the Labour Party evolved has imbibed few neo-liberal approaches to compliment the many achievements the institution of the NHS has made despite its shortcomings. A threefold cord of ethical legacy created by democratic power, and being maintained by it (Banton,(1994) paraphrased).

The Psychology of Post-Conventional Morality and Martin Luther King Jr.

Introduction Morals, as defined by psychologist, are the attitudes and beliefs held by individuals that aid in the determination or what is right and what is wrong (Hock 142). It is believed that what is deemed moral is determined by our culture and the norms present in that culture. It is also believed that we are not born with an established set of morals; instead, we must gain this outline of what is moral throughout our childhood and adolescence and into adulthood. In order to properly analyze the extent Bandura social learning theory plays in the attainment of level three, stage six, of Kohlberg’s moral development theory the theories of Kohlberg and Bandura must be properly outlined. The application of these theories will then by applied to case of Martin Luther King, Jr. who observed, through texts, the non-violent protest methods of Mohandas Gandhi. Lawrence Kohlberg, focusing his research on Jean Piaget, gained in interest in child development. While at the University of Chicago, Kohlberg expounded upon the ideas set forth by Piaget and posed the question â€Å"how does the amoral infant become capable of moral reasoning† (Hock 143)? As a result of his research, Kohlberg created his moral development stage theory. His theory consists of three stages and each stage has two respective levels. In the first level, known as either pre-conventional morality or pre-moral, a person shows only self interest. In the first stage of this level a person will act morally simply because they are motivated by rewards or punishments. In stage two, the best interest of the person is the motivation for moral behavior. Conventional morality, the second level, is where a person’s relationship between others plays a larger role in moral beha... ...an be suggested that one can develop morally even in the absence of this direct model-observer interaction if all other conditions are met. These conditions being: attention, retention, motor reproduction, and motivation. This essay has attempted at asserting that history can have a direct impact on moral development and can act as the model when applied to situations that contain the combination of factors. Bibliography 1) Hock, Roger R. Forty Studies that Changed Psychology: Explorations into the History of Psychological Research. 5th. Upper Saddle River, NJ: Pearson Education, 2005. 142-50. Print. 2) Weber, Thomas Gandhi as Disciple and Mentor. Cambridge: Cambridge University Press, 2004. 3) Rudolf, Lloyd L., and Susanne Hoeber Rudolf. Post Modern Gandhi and other essays. New Delhi: Oxford University Press, 2006. 92-120. Print.

The Alamo Essay -- History Historical Mexican Essays

The Alamo The events that began on February 23, 1836 have roots that span as far back as 1808. This exploration into the events and carnage that took place before, during and after the Alamo will only go back to the events immediately leading up to the Alamo. Mainly the frame of mind the Mexican government had regarding the Texas settlers and the reasons leading to the confrontation at the Alamo.   Ã‚  Ã‚  Ã‚  Ã‚  In times before the confrontation at the Alamo, the Mexican government welcomed settlers into Texas. The motive behind Mexico’s act was to create a buffer zone between Mexican settlements and the Indians. Settlers were able to come to Texas as long as they promised to convert to Catholicism and become Mexican citizens among other stipulations. Moreover, Mexico had further problems, the most noticeable was Mexico’ s financial standing. The independence movement that freed Mexico from Spain also left Mexico â€Å"dead broke;† furthermore, they had no real way of watching or parenting the fledgling Texas. Hence, Texas became accustom to doing things without Mexico interfering. Soon after Mexico opened the door to Texas the population of settlers grew to make up 75 per cent of the whole population. This could be seen as a bad thing to the Mexican government because if Texas became entirely made up of settlers what was to stop Texas from breaking a way from Mexico for good. To add to the pressure pot the settlers were illegally trading, and engaging in illegal slavery, among other illegal acts. According to Walter Lord the American Settlers refused to pay any form of tax, in fact according to Lord’s figures only 1,665 pesos where collected from Texas in Two years.   Ã‚  Ã‚  Ã‚  Ã‚  These factors and many more including America herself showing interest in Texas, led Mexico to institute a restriction of the number of settlers allowed into Texas. In addition, â€Å"Mexico suspended all unfilled colonization contracts, and required passports issued by Mexican Consulate at their place of residence,† these policies alone angered the settlers who have been accustomed to a lazie fair approach. In addition troops were now being used to see that the laws were enforced and obeyed. As Myers points out: The North Americans had reason to protest. They had gone through the bad years when fields had to be chopped out of the woods and when an Indian raid was commoner that a square meal. An... ...nd bloody tiger to name a few. Many Americans had been opposed to the Texas cause, but no longer were they thinking about that, now they were thinking about revenge. Mexicans had slain American citizens and this had to be avenged in the mind of most Americans. The call to arms had now been rung, â€Å"Remember the Alamo.† The Alamo had been a total loss on the field of physical war fair, but on the playing ground of the mind the Alamo had seized the minds and hearts of every American and sympathizer alike, to rally to its call. So in the end I believe the Alamo was a total victory for the settlers cause. Works Cited General Antonio Lopez De Santa-Anna, D. Ramon Martinez Caro, General Vicente Filisola,   Ã‚  Ã‚  Ã‚  Ã‚  General Jose Urrea, and General Jose Maria Tornel; Translated by Carlos Castaneda.   Ã‚  Ã‚  Ã‚  Ã‚  The Mexican Side of the Texas Revolution. Dallas.: P.L. Turner Company,1956 General Miguel Sanchez Lamego; Translated by Consuelo Velasco. The Siege and Taking of The   Ã‚  Ã‚  Ã‚  Ã‚  Alamo. New Mexico.: Sunstone Press, 1968. Lord, Walter. A Time to Stand. Lincolon.: University of Nebraska Press.: 1978. Matovina, Timothy. The Alamo Remembered. Austin.: University of Texas Press.: 1995.

Cruelty of Society in Frankenstein, Master Harold, and An Enemy of the

Cruelty of Society in Frankenstein, Master Harold, and An Enemy of the People â€Å"Master Harold†Ã¢â‚¬ ¦and the Boys, St. Joan, and An Enemy of the People show that society shows hate and cruelty to people who are different or who do not share similar ideas as other people do. For example, in â€Å"Master Harold†Ã¢â‚¬ ¦and the Boys, Hally’s racist attitude toward Sam and Willie is a result of his experiences in society. In Frankenstein, society is cruel and hateful to the monster because he looks different than other people. In An Enemy of the People, society persecutes Dr. Stockman because he attempts to gain support for the repair of the Baths. The stories that are presented here illustrate the cruelty and hatefulness of society. In â€Å"Master Harold†Ã¢â‚¬ ¦and the Boys, the cruelty of society is depicted in the form of racism. The story takes place in South Africa, a place where racism is prevalent. Hally is a seventeen-year-old white person whose mother owns a restaurant. Their two employees, or â€Å"servants†, are uneducated black men. During the story, Hally acts as though he is superior to Sam...

Metabical: Communications Plan Essay

1. Introduction Metabical is a bran new revolutionary weight loss drug, developed by the Cambridge Science Pharmaceuticals, which expects the final approved by the FDA (US Food and Drug Administration). As soon, as the FDA approves it, the product is going to be launched. Metabical is clinically proven to be a very effective drug for the weight-loss in moderately overweight people with the BMI 25-30. 2. Background The statistics show, that not less than 70 % of participants of the Marketing Survey for the weight-loss products are unhappy with their current weight. 35 % of them are trying actively to lose weight via any means. 15 % of them do not mind the usage of the weight-loss products to help them in losing weight. 65 % of the adult population of the United States is considered as the overweight or obese. Many of the members of focus groups claim that they starve themselves with diets and suffer from the intensive exercising; however, they do not get the desired results as quick and easy as they want them to be. These facts show the need of the market for the weight-loss products. Overweight and obesity become global problems nowadays. Pharmaceutical companies try to find the solutions to these problems by creating weight-loss drugs. These are the pills, which have to be taken regularly for a period of time. They serve as an additional aid to the weight-loss program of a person. It is best to combine them with healthy diet and regular exercising. 3. The Situation Analysis Company Analysis Cambridge Science Pharmaceuticals (CSP) is a global pharmaceutical company based in Cambridge, US. In 2007, it had a remarkable sales record of $25 billion. Currently, it is ready to launch a very promising drug in the weight-loss field, which will greatly impact the company’s future. With correct positioning, it has all the chances of becoming a new market leader and a holder of the monopoly on the market. Competitor Analysis The weight-loss drug market is new to business society and it is still developing; however, it is highly competitive. Currently, the OTC product monopoly is held by a few competitive products: Alli, Xeniacal4 and Ephedra. The advantages of the Metabical product on its competitors are crucial. Metabical is the first weight-loss drug, which is potentially approved by the FDA in all the aspects – it is the safest weight-loss drug on the market. It means, that it does not have so many side effects, as the competitor’s products do. For example, there have been many cases of heart-death, caused by the regular usage of the Ephedra product, and a lot of liver damages cause by Xenical4. Out of all these drugs, Alli is the only one, which got approved by the FDA; so, one can say that it is the number one competitor for the Metabical product on the market. Even though it got approved, it is much less safe to consume than Metabical product. Alli causes a lot of side effects as the loose stools, abdominal pain, and increased defecation incontinence, when a person consumes it with too much fat. Another advantage of Metabical is the program itself. It is longer and better balanced than the Alli’s one. Unlike its competitors, it offers an individual exercise plan and a personal support component. The price tag of $3 – $5 for Metabical can be considered relatively inexpensive to the competitors’ products and with all the benefits it gives. It is also much easier to use than the competitors’ products (1 pill a day versus 1 pill per meal). The duration of the effect of the Metabical pill is also better than the one of the competitors’ products. The main difference of the Metabical product from all its potential competitors is its vision and philosophy. It focuses on the improvement of the product from the health perspective, making it safer to use for its consumers with the least amount of side effects, while the other companies try to strengthen the effects of their product, so, that the results will be noticed earlier. This is very important, because the customers of the weight-loss products do not want just to lose the weight, but become healthy in all of the aspects. Consumer Analysis Since the Metabical is a weight-loss drug, and it is already known that its target costumers have a Body Mass Index varying from 25 to 30 units, it is easy to determine and choose the segments of the potential consumers. Mostly, these are the average people, who are very concerned about the overweight and obesity issue. They may suffer from the exceed of weight and they are highly motivated in fighting with it. They attend the gym regularly, exercise a lot, and struggle with healthy diets; however, this is still not enough for them to lose the exceeding weight. Metabical is not a solution, but a great aid in fighting with their problem. Some overweight people do not care about or even do not notice their problem, so, Metabical do not see them as the primary costumers. The gender of the potential customers is most of the cases feminine. As studies show, women tend to care and put much more attention into their physical appearance, than men do. In addition, studies say that 75 % of overweight women are not happy with their weight and 60 % tried to fight with their exceed of weight with different methods but failed. The age of the potential Metabical consumers is also easy to determine. It is known, that most of the people become more and more concerned with their weight when they are getting older and older. When a person reaches his physical size and stops growing, his body changes – the calories gained per day do not go into the growth, but the fat. These fats are very hard to fight, and even the exceeding exercising at this age is not a solution. The fat usually becomes a problem at the age of 25-35. The Metabical drug is averagely priced; however, not everybody can afford it. It is never given out for free, since, the overweight is not considered an illness. The consumer has to have salary of funds, which can cover the full Metabical diet program. He also has to have an access to the gym and can afford to buy healthy products. The estimated income of the Metabical consumer is $40’000+ a year, so, this is a middle-class person. Also, the studies show, that the single people tend to care more about their physical appearance, than the married / in relationship ones, especially, the women. The relationship status of the Metabical customer can be identified as single / actively searching. Also, there are the sub-segments of the customers on the market – Metabical consumers can be divided in two kinds: some want to use the product to look good, others, who want to be healthier. The first type of the customers are usually younger (25+), the second type are older (35+). The first sub-segment is considered as the priority for the Metabical product. This is explained by the philosophy of the drug: it is made for the people, who want to be healthy and not just slim. CSP puts a lot of effort in making Metabical a safe product to use on the first place. As a conclusion, the target costumer of the Metabical product is usually an overweight woman (BMI 25-30), aged 25+, with the yearly income of $40’000+ (middle class). She usually has a college education. Her self-esteem is low and she is either worried that she does not look good or she wants to become healthier. She is a workingwoman or a housewife, usually single. She attends the gym regularly and stays on a strict healthy diet. She is very motivated and willing to fight with her problem via any means. Product Analysis Metabical is a prescription weight-loss drug developed by CSP. It is consumed in the form of pills one time a day. It costs $3 – $5 a day. The average duration of the Metabical treatment program is 12 weeks. The cost of the program varies from $252 to $420. The drug is prescribed to the overweight people with the BMI of 25 to 30, and is not as effective on the consumers with higher BMI. To achieve the maximum effectiveness of the drug, the individual diet and the exercise program have to be developed and followed during the usage of the Metabical. As any other weight-loss drug, Metabical has some side effects. They are similar to the ones of Alli (gastrointestinal discomfort) but much less noticeable. They may appear if a person combines the consumption of the Metabical drug with a lot of fatty foods. At this stage, it awaits the final approval of the FDA, and will be launched, as soon, as it gets the approval.

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