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

Customer Services

Unit 1 Assessment Assessment You should use this file to complete your Assessment. †¢ The first thing you need to do is save a copy of this document, either onto your computer or a USB drive †¢ Then work through your Assessment, remembering to save your work regularly †¢ When you’ve finished, print out a copy to keep for reference †¢ Then, go to www. vision2learn. com and send your completed Assessment to your tutor via your My Study area – make sure it is clearly marked with your name, the course title and the Unit and Assessment number.Please note that this Assessment document has 13 pages and is made up of 5 Sections. Name: Organisation: Which organisation(s) are you basing your answers to this assessment on? If you are currently working, you may wish to base it on the organisation which employs you. Can you provide a brief description of this organisation? (Please note you will not be marked on this; it is simply to provide your tutor with a brie f outline. ) Section 1 – Understand the factors that affect an organisation and the customer service role 1.Complete the table below with a description of the products and services for at least two commercial organisations, public organisations and third sector organisations. Please ensure you provide a description for each organisation, rather than a list. |Organisation type |Name of organisation |Description of products and services | |Commercial | |Their products are Italian fashion related, such as clothes, shoes | |organisation |Monaco Couture |and accessories.Friendly customer services and value for money | | |Retail |products. | | | | | |Commercial |Wilton Patisserie |Wilton is a Greek bakery that has a huge cake selection for every | |organisation | |occasion.They make fresh pastries, bread, cookies and other | | | |related savouries and sweets baked goods, you can also find | | | |sandwiches and hot or cold drinks.They are focused in providing | | | |value for money product and friendly customer services. | |Public |Police |Activity it applies at the level of national security. Their | |organisation | |activities are directly coordinated by the government.Their task | | | |is, however, not profit, but to provide the necessary services to | | | |the government and citizen | |Public |Fire brigades |Fire-fighters    are rescuers extensively trained in fire fighting, | |organisation | |primarily to extinguish hazardous fires that threaten property and | | | |civilian or natural populations and to rescue people from dangerous| | | |situations, such as collapsed or burning buildings. | | | | | |Third sector organisation |Charities |A charitable organization is a type of non-profit organization | | | |(NPO). It differs from other types of NPOs in that it centres on | | | |non-profit and philanthropic goals as well as social well-being | | | |(e. g. haritable, educational, religious, or other activities | | | |serving the public int erest or common good). | |Third sector organisation |Hospices |Hospice an institution working in palliative care within the health| | | |system. | 2. Complete the table below by describing the differences in customer service between commercial, public and third sector organisations. You should outline customer service roles in each organisation and highlight the differences in how customer service is carried out across these organisations. Organisation type |Description of customer service and | | |the differences between organisations | |Commercial | | |organisation | | | | | | | | | | | | | |Public | | |organisation | | | | | | | | | | | | | | |Third sector | | |organisation | | | | | | | | | | | | | | | | | 3. In relation to your current organisation (or one that you are familiar with), outline the part that customer service plays in this organisation and its industry as a whole. 4.Who are the major competitors to your current organisation (or one that you are familia r with)? 5. Identify at least two factors that could affect the reputation of your current organisation (or one that you are familiar with). Section 2 – Understand employee rights, responsibilities and organisational procedures 1. Use the table below to give details of employer and employee rights and responsibilities under employment law and the importance of having these (consider the importance to the organisation, employees and customers, where relevant). You should include at least two employer rights / responsibilities and at least two employee rights / responsibilities in your answer. Rights and responsibilities |Why are they important? | |1. Employer | | | | | | | | | | | |2.Employer | | | | | | | | | | | |1. Employee | | | | | | | | | | | |2.Employee | | | | | | | | | | | 2. Give details of employer and employee rights and responsibilities under the Health and Safety at Work Act. You should include at least two employer rights / responsibilities and at least two empl oyee rights / responsibilities in your answer. |Who? Rights / responsibilities under Health and Safety at Work Act | | | | |Employer | | | | | |Employer | | | | | |Employee | | | | | |Employee | | 3. In relation to your current organisation (or one that you are familiar with), describe the organisation’s procedures for health and safety and any relevant documentation that is used. If possible, provide relevant health and safety policies / documents from the organisation to support your answer. These documents should be annotated to highlight the relevant sections. 4. Outline how the Disability Discrimination Act relates to employment. 5.In addition to the information provided in the questions above, identify the other key legislation that specifically relates to your chosen organisation and its industry as a whole. 6. Describe the procedures followed by your chosen organisation in relation to equality and diversity. Your answer should include details of any monitoring that takes place and documentation used to support this monitoring. Section 3 – Understand career pathways within customer service 1. Describe at least two different types of career pathways that may be available within a customer service role. 2. Identify a range of sources where a person can find information and advice on the customer service industry, occupations and career progression. | | |Information relating to: |Source(s) | | | | |Customer service industry | | | | | |Occupation | | | | | |Career progression | | 3. In your current organisation (or one that you are familiar with), what methods of learning are available to help with career progression? 4.In your current organisation (or one that you are familiar with), what is the procedure for accessing formal learning programmes? What is the procedure if an application for access to learning is refused? If possible, provide relevant organisational procedures to support your answer. These documents should be annotated to highlight the relevant sections. 5. Explain how new customer service situations can help with self-development and career progression. Section 4 – Understand how employees are supported within the customer service role 1. Identify a range of sources where a person can find information and advice on employment rights and responsibilities.You should identify at least three sources of information in your answer. 2. Complete the table below, identifying the representative bodies related to your chosen organisation / industry. You should also include details of the main roles and responsibilities of these bodies and their relevance to the organisation / industry. |Representative body |Roles and responsibilities |Relevance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3. For a customer service role in your current organisation (or one that you are familiar with), use the table below to provide de tails of the support that is available in relation to the following issues: a) Equality b) Health and safety c) Career progression |Issue |Sources of support |Equality | | | | | | | | | | | | | | | | | | | | | | | |Health and safety | | | | | | | | | | | | | | | | | | | | | | | |Career progression | | | | | | | | | | | | | | | | | | | | | | Section 5 – Know the organisation’s policies and procedures Please answer all of the questions in this Section in relation to your current organisation (or one that you are familiar with). 1. Use the table below to describe the main principles, policies and procedures of your chosen organisation. You should also include details of documentation used to support these principles, policies and procedures. |Description |Supporting documentation | |Principles | | | | | | | | | | | | | | | | | | | | | | | | | | | |Policies | | | | | | | | | | | | | | | | | | | | | | | | | | |Procedures | | | | | | | | | | | | | | | | | | | | | | | 2. How are the organisation’s principles communicated to employees? Explain this below. 3. Outline the policies and codes of practice that are adopted by the organisation. How are employees made aware of these policies and codes of practice? 4. Explain how employees are involved with and consulted on changes to the principles, procedures and policies within the organisation. 5. Use the table below to identify issues of public concern relating to the industry and organisation, and describe how these issues are addressed / dealt with. Issues of public concern |How they are addressed / dealt with | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Once you have completed all 5 Sections of this Assessment, go to www. vision2learn. com and send your work to your tutor for marking.

Lufthansa: to Hedge or Not to Hedge

LUFTHANSA: TO HEDGE OR NOT TO HEDGE 1. If the DM/US$ exchange rate were 2. 4DM/US$ in January 1986, what would be the all in cost of the aircraft purchase under each alternative? What would be the all in cost of the aircraft purchase under each alternative if the exchange rate were 3. 4DM/US$? Consider both fully hedging the cost and hedging exactly one half of the cost (why may you only want to hedge part of the purchase price? ). 1. Do nothing and wait and see what the exchange rate is like in January 1986. 500,000,000 USD x 2. 4DM/USD = 1,200,000,000 DM The cost of the aircraft purchase will be 1200 million DM. 2. Cover the purchase price using forward contracts. If the company use forward contracts they have the obligation to perform, i. e. they have to buy the amount they have agreed upon in one year for the forward rate of 3. 20 DM/USD. If they fully hedging the cost the all in cost of the aircraft purchase will be: 500,000,000 USD x 3. 2DM/USD = 1,600,000,000 DM The cost of the aircraft purchase will be 1600 million DM. If they choose to hedging exactly one half of the cost the all in cost of the aircraft purchase will be: (250,000,000 USD x 2. DM/USD) + (250,000,000 USD x 3. 2DM/USD) = 1,400,000,000 DM The cost of the aircraft purchase will be 1400 million DM. 3. Cover the cost using foreign currency put options A put option gives Lufthansa the right to sell the DM at 3. 20 DM/USD in one year. Even if they don’t exercise the option they have to pay the 6 % premium. The DM has appreciated in relation to the USD and the pu t option is therefore out-of-the money and Lufthansa will not use the option. But they will have to pay for the premium. If they fully hedging the cost the all in cost of the aircraft purchase will be: 500,000,000 x 3. DM/USD x 0. 06 = 96,000,000 DM 500,000,000 USD x 2. 4DM/USD + 96,000,000 DM = 1,496,000,000 DM The cost of the aircraft purchase will be 1496 million DM. If they choose to hedging exactly one half of the cost the all in cost of the aircraft purchase will be: 250,000,000 x 3. 2DM/USD x 0. 06 = 48,000,000 DM 500,000,000 USD x 2. 4DM/USD + 48,000,000 DM =1,448,000,000 DM The cost of the aircraft purchase will be 1448 million DM 4. Borrow DM to buy USD dollars today and invest them for one year In this strategy Lufthansa lock in the price at today’s spot exchange rate. They could repay the loan using the funds to be available for the purchase in one year. In January 1985 the spot exchange rate was 3. 17 DM/USD, the Eurocurrency U. S. dollar one year interest rate was 9. 5625 percent and the Eurocurrency one year deutschmark interest rate was 6. 3125 percent. If they fully hedging the cost the all in cost of the aircraft purchase will be: Borrow DM to buy 500 million USD today and invest them for one year. 500,000,000 USD/1. 095625 ? 456,360,525 USD 456,360,525 USD x 3. 17 = 1,446,662,864 DM Interest rate on the money in the end of the year: 1,446,662,864 DM x 1. 63125 = 1,537,983,458 DM Total all in cost of the aircraft purchase 1,537,983,458 DM. If they choose to hedging exactly one half of the cost the all in cost of the aircraft purchase will be: Borrow DM to buy 250 million USD today and invest them for one year. 250,000,000 USD/1. 095625 ? 228,180,262 USD 228,180,262 USD x 3. 17 ? 723,331,431 DM Interest rate on the money in the end of the yea r: 723,331,431 DM x 1. 063125 = 768,991,728 DM Cost of the aircraft purchase: 250,000,000 USD x 2. 4 DM/USD + 768,991,728 = 1,368,991,728 DM Total all in cost of the aircraft purchase 1,368,991,728 DM. What would be the all in cost of the aircraft purchase under each alternative if the exchange rate were 3. 4DM/US$? Consider both fully hedging the cost and hedging exactly one half of the cost (why may you only want to hedge part of the purchase price? ) 1. Do nothing and wait and see what the exchange rate is like in January 1986. 500,000,000 USD x 3. 4DM/USD = 1,700,000,000 DM The cost of the aircraft purchase will be 1700 million DM. 2. Cover the purchase price using forward contracts. If the company use forward contracts they have the obligation to perform, i. e. hey have to buy the amount they have agreed upon in one year for the forward rate of 3. 20 DM/USD. If they fully hedging the cost the all in cost of the aircraft purchase will be: 500,000,000 USD x 3. 2DM/USD = 1,600,000,000 DM The cost of the aircraft purchase will be 1600 million DM. If they choose to hedging exactly one half of the cost the all in cost of the aircraft purchase will be: (250,000,000 USD x 3. 4DM/USD) + (250,000,000 USD x 3. 2DM/USD) = 1,650,000,000 DM The cost of the aircraft purchase will be 1650 million DM. 3. Cover the cost using foreign currency put options A put option gives Lufthansa the right to sell the DM at 3. 20 DM/USD in one year. Even if they don’t exercise the option they have to pay the 6 % premium. The DM has depreciated in relation to the USD and therefore the option is in-the-money and Lufthansa will use the option. If they fully hedging the cost the all in cost of the aircraft purchase will be: 500,000,000 USD x 3. 2 DM/USD x 1. 06 = 1696,000,000 DM The cost of the aircraft purchase will be 1696 million DM. If they choose to hedging exactly one half of the cost the all in cost of the aircraft purchase will be: (250,000,000 USD x 3. DM/USD) + (250,000,000 USD x 3. 2DM/USD x 1. 06) = 1,698,000,000 DM The cost of the aircraft purchase will be 1698 million DM. 4. Borrow DM to buy USD dollars today and invest them for one year In this strategy Lufthansa lock in the price at today’s spot exchange rate. They could repay the loan using the funds to be available for the purchase in one year. In January 1985 the spot exchange rate was 3. 17 DM/USD, the Eurocurrency U. S. dollar one year interest rate was 9. 5625 percent and the Eurocurrency one year deutschmark interest rate was 6. 3125 percent. If they fully hedging the cost the all in cost of the aircraft purchase will be: Borrow DM to buy 500 million USD today and invest them for one year. 500,000,000 USD/1. 095625 ? 456,360,525 USD 456,360,525 USD x 3. 17 = 1,446,662,864 DM Interest rate on the money in the end of the year: 1,446,662,864 DM x 1. 063125 = 1,537,983,458 DM Total all in cost of the aircraft purchase 1,537,983,458 DM. If they choose to hedging exactly one half of the cost the all in cost of the aircraft purchase will be: Borrow DM to buy 250 million USD today and invest them for one year. 250,000,000 USD/1. 095625 ? 228,180,262 USD 28,180,262 USD x 3. 17 ? 723,331,431 DM Interest rate on the money in the end of the year: 723,331,431 DM x 1. 063125 = 768,991,728 DM Cost of the aircraft purchase: 250,000,000 USD x 2. 4 DM/USD + 768,991,728 = 1,368,991,728 DM Total all in cost of the aircraft purchase 1,368,991,728 DM. 2. Which alternative would you choose and why? I would not choose the first alternative and l eave the amount unhedged since an appreciate of the USD against DM could change the all in cost rapidly and hence the profit. It is important to design the hedging policy based on the belief about future circumstances. If Lufthansa really believes that the exchange rate will move in a profitable they could profit by leaving the amount unhedged. But it can be hard to predict future exchange rates and that is why a lot of companies choose to drive safe by ensuring their future financial situation through hedging. If Lufthansa would hedge all its currency risk they also take a risk and that is why I would choose to hedge only a part of the currency risk. Another aspect is that creditors’ might not like that Lufthansa is unhedged and they might also receive better interest rates if they are hedged. But of this we do not know. Lufthansa can’t borrow any more money so we can start with excluding the forth option, i. e. the money market hedge. The put option provides the lowest all in cost if exercised but at the same it also provides the highest cost when not exercised. I know from a lecture that options were commonly used by airlines foremost to hedge against fuel prices but that they have become quiet expansive so that, at least Southwest Airlines, now days use collars instead. The money market hedge works exactly like a forward hedge and I think we have narrowed the alternatives down to the forward hedge.

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Multiple Topics to Choose - Essay Example In the story, she happened to host the Earl of Beresford, a passenger from Canada, who got caught in her beauty to the extent, that he proposed her. Despite being an average girl with nothing materialistic to take pride in, she would refuse the proposal of any lad accoutered with utmost richness and wealth just like a princess, though she had completely different and unique reasons for doing so. â€Å"No princess of the blood could have been more stalely, self-possessed and politely determined to keep one at a distance† (Stowe 123). Although she was a house girl and did not have interaction with strangers in her unmarried life, yet she was brave and bold enough to have argument with a stranger like the Earl of Beresford. She refused to marry the Earl of Beresford because she could not feel attracted to all the fantasies he attempted to make her realize being his wife. Her priorities in life were far from materialism. She believed in succeeding through struggle. She would not t ake success for granted. She was determined and consistent. That was why, she had complete confidence in George. Mary was portrayed by Stowe as a character that had no materialistic proof to have faith in George but her own confidence and determination. Moved by her encouragement and confidence in him, George struggled and ultimately became a minister. All credit went to her. She married him. Conversion of an ordinary man into an American Minister is indeed, an achievement. This tells how important role women play in building an educated, learned and civilized society. Harriet Beecher Stowe has portrayed woman as having equipped with extreme courage, bravery, boldness and determination that contrasts with her intrinsic beauty and delicacy. The fundamental cause of George’s success was Mary. This tells that a woman keeps all the potential to cause a big change in the society remaining within the premises

National Security, Energy Resource Scarcity and Climate Change in the Essay - 2

National Security, Energy Resource Scarcity and Climate Change in the upcoming decades - Essay Example The negative consequence associated with having a diverse group is group conflict which may take place due to difference in knowledge, experience, age and expertise. According to a study conducted on homogenous and diverse groups showed that both groups were performing exceptionally well but people from the diverse groups had lower satisfaction from their group members, lack of group consistency existed within the group and this group had higher level of conflicts as compared to the members of the group that contained homogenous individuals (Robbins, 2003, p.234). Similar studies even proved that if individuals of diverse groups are able to overcome the conflict that they experience during the early stages of group development, then diverse groups can perform in a much better manner (Sommers, 2006, p.610). A group consisting of members that have different educational backgrounds and cultural backgrounds is said to have the ability to come up with various ideas and opinions. Great importance is given to the identification of various solutions for a particular problem, this portion of the decision making process can be satisfied by having people from diverse backgrounds making decisions (Hansen, 2006). Hansen, Z. K., Owan, H., Pan, J., & National Bureau of Economic Research. (2006). The impact of group diversity on performance and knowledge spillover--an experiment in a college classroom. Cambridge, Mass: National Bureau of Economic Research. Phillips, K., Northcraft, G., & Neale, M. (January 01, 2006). Surface-Level Diversity and Decision-Making in Groups: When Does Deep-Level Similarity Help?. Group Processes & Intergroup Relations, 9, 4, 467-482. Sommers, S. R. (January 01, 2006). On racial diversity and group decision making: identifying multiple effects of racial composition on jury deliberations. Journal of Personality and Social Psychology, 90, 4,

Definition of Disability In Relation To Using Website or Computers Dissertation

Definition of Disability In Relation To Using Website or Computers - Dissertation Example They may not be able to see, hear, move, or may not be able to process some types of information easily or at all. They may have difficulty reading or comprehending text. They may not have or be able to use a keyboard or mouse. They may have a text-only screen, a small screen, or a slow Internet connection. They may not speak or understand fluently the language in which the document is written. They may be in a situation where their eyes, ears, or hands are busy or interfered with (e.g., driving to work, working in a loud environment, etc.). They may have an early version of a browser, a different browser entirely, a voice browser, or a different operating system. Content developers must consider these different situations during page design. While there are several situations to consider, each accessible design choice generally benefits several disability groups at once and the Web community as a whole. For example, by using style sheets to control font styles and eliminating the FONT element, HTML authors will have more control over their pages, make those pages more accessible to people with low vision, and by sharing the style sheets, will often shorten page download times for all users. Content developers should make content understandable and navigable. This includes not only making the language clear and simple, but also providing understandable mechanisms for navigating within and between pages. Providing navigation tools and orientation information in pages will maximize accessibility and usability. Not all users can make use of visual clues such as image maps, proportional scroll bars, side-by-side frames, or graphics that guide sighted users of graphical desktop browsers. Users also lose contextual information when... Content developers must consider these different situations during page design. While there are several situations to consider, each accessible design choice generally benefits several disability groups at once and the Web community as a whole. For example, by using style sheets to control font styles and eliminating the FONT element, HTML authors will have more control over their pages, make those pages more accessible to people with low vision, and by sharing the style sheets, will often shorten page download times for all users. Content developers should make content understandable and navigable. This includes not only making the language clear and simple but also providing understandable mechanisms for navigating within and between pages. Providing navigation tools and orientation information in pages will maximize accessibility and usability. Not all users can make use of visual clues such as image maps, proportional scroll bars, side-by-side frames, or graphics that guide sighted users of graphical desktop browsers. Users also lose contextual information when they can only view a portion of a page, either because they are accessing the page one word at a time, or one section at a time (small display, or a magnified display). Without orientation information, users may not be able to understand very large tables, lists, menus, etc. An accessible Internet (web) site is one that has been designed and built in such a way that anybody can get into it and make use of all its facilities, even if they live with a disability.

Business strategy in global environment Assignment

Business strategy in global environment - Assignment Example The competitors in this market are holding their ground; they are trying very hard to slice of some customers from Fastway’s customer base, but so far, no competitor has been successful in accomplishing this objective. Even though the current operations of the company are redundant, but still the company has been very successful in meeting its customers’ expectations with significant ease. Nevertheless, the company cannot keep operating like this for too long and it will have to take initiatives to improve its current processes. Moreover, the company needs to decide whether it would use its strong capital base to expand into new market or if it will continue to serve in its current market. In this regards a decisive action is needs from the company’s management. Introduction: Tough economic climate has made it imperative upon companies to improve their operation methods, restructure their cost structure and identify new market segments, which the company can serv e profitably. In this regards, if a company wants to ensure its survival, it should start its operations in the global arena. A company by initiating its operations in the international arena can expand its customer base and take advantage of the opportunities presented by globalization. To reap the benefits of globalization, the company needs to adopt a global strategy. ... Part 1: Strategic Choices and Options for the Company Strengths, Weakness, Opportunities and Threats (SWOT) Matrix: Strength: The company was formed in 1983 in New Zealand, and is now the world’s largest franchise courier service company. The company’s management is renowned for coming up with exceptional company policies. Company’s internal structure, comprising of policies, procedures and staff is perfectly tailored to fit the requirements and expectations of local market. The company has a very strong organisational culture in place, which is perfect for handling any unprecedented circumstances in the company’s external and internal environment. The company is offering a product mix that is highly suitable to meet the needs of the local market. The company has strong brand equity in its local market. The company has strong infrastructure and is highly technology oriented; the company firmly supports innovation in its existing company processes. The comp any has a strong positioning statement to differentiate it from competitors operating in the market. The company has operational processes which enables it to deliver a package in a very quick time. This further leads to its name being synonymous to quick and timely delivery. The company has a strong capital base which allows it to maintain a large fleet in the marketplace. The company has a strong network of hubs, airplanes and trucks which allow it to offer fast track services. The company holds 50% of the market share of the parcels in the shipping industry. The company is firmly customer oriented and this fact is professed by means of its customer service.

Information systerm assignment Essay Example | Topics and Well Written Essays - 2250 words

Information systerm assignment - Essay Example Though, geographically speaking, the world may actually be round and may consist of places thousands of miles apart but these distances have been bridged by the current prevalent technological advancements. This was exactly the basis of the thoughts expressed by renowned American columnist and writer Thomas Friedman who wrote a famous piece of work titles â€Å"It’s a flat world, After All†. Many a school of thoughts liked and appreciated the theories presented by Friedman and adhered to them but many other thought it wasn’t as practical as it posed itself to be. The present discussion is aimed at discussing the thoughts presented by Friedman and commenting upon them in line with some of the concepts we have gone through in our course of information systems. Generally speaking, since information systems have been the core theme of course being studied, the concept that has concretely been established is that information systems have assisted man since their incep tion in an irreplaceable manner. By taking raw data as input with respect to the organization’s requirements, information systems process it and produce the output required by the stakeholders of that organizational level. The perspective discussed by Friedman is narrated henceforth. Friedman emphasizes that the world of today is nothing but flat. How he comes to that conclusion is by his trip to India where he was amazed to find that local men knew so much the world out there that was not expected from a South Asian developing nation. He strongly advocates Globalization. He mentions that globalization has intermingled the world to such an enormous level that anything happening in one part of the world instantly gets transmitted across thousands of miles without anytime lapse. He accredits the advent of Netscape Navigator (First Internet Surfing Browser) as being a trigger in this age of globalization in which man lives today. Friedman got particularly enthralled when he saw that outsourcing was no more a problem due to the technological advancements. Designers and entrepreneurs from the western countries could easily interact with programmers in the south Asian countries at runtime via video conferencing and internet. This solved the relentless problem of outsourcing and that too at considerable rates without any compromises in quality. Along with outsourcing, Friedman mentioned Insourcing and Supply Chaining as two more of other factors that contributed to globalization. He was fascinated by the fact that as soon as an item would be sold in one of the U.S.A’s supermarkets like Wal-Mart their production setup thousands of miles away would instantly be told to produce another one of those units in order to replace that one that has just been sold. He termed this as supply chaining at its best. Friedman believed that it was long before the programmers in India and China would become the designers as well and there would be no preference to living in Boston to that over living in Bangalore, India. He makes a number of suggestions in his work as to what should companies and individuals do in order to cope up with the increasing rate of globalization. Overall it may be said that Friedman clearly brings out the benefit of globalization. With all the goodness narrated by Friedman with respect to the advancements in information and

Rappaccinis Daughter Essay Example | Topics and Well Written Essays - 1500 words

Rappaccinis Daughter - Essay Example Furthermore it is observed that generally women are physically weaker than men that has led to an imbalance in power throughout the history of mankind, this can also be seen in â€Å"Rappaccini’s Daughter† and the control of her father over her. As Homas and Zaitzow also state that, â€Å"men and women are socialized from birth into gender-specific roles based on social definitions of masculinity and femininity†¦women are expected to be weak, dependent, passive, emotional, noncompetitive and subservient† (184). A similar behavior is also observed towards Beatrice as well throughout the course of the story may it be in Beatrice’s relationship with her Giovanni or her father or her suffering because of Baglioni’s poison. Throughout the story Rappaccini treats her daughter as his property or better yet as a specimen for his experiments. Moreover according to Baglioni Rappaccini, Cares infinitely more for science than for mankind. His patients are interesting to him only as subjects for some new experiment. He would sacrifice human life, his own among the rest, or whatever else was dearest to him, for the sake of adding so much as a grain of mustard seed to the great heap of his accumulated knowledge (). These lines aptly illustrates Rappaccini’s obsession with his experiments and hints on the fact that her daughter might be a part of his experiments which is later confirmed in the story. If the reasons for such manipulation are delved deeper, then the readers infer that since no one could question him for his actions in those times because daughters were considered as the responsibility of their fathers hence that gave him the right to decide her fate and he got away with his machinations. This also explains Rappaccini’s actions of choosing Giovanni as his future son-in-law as well as a new experiment because he thought he was making the best decision for his daughter. As the girl states, â€Å"But my father,- -he has united us in this fearful sympathy† (). Then again it is also interesting to note the manner in which the women of those times were brought up i.e. they were taught to be docile and made the sacrificing souls for all times. As it is also apparent from the lines when she says, â€Å"Yes; spurn me, tread upon me, kill me! Oh, what is death after such words as thine† (). Although she realizes it was her father’s Machiavellian plotting that has poisoned Giovanni for life yet she asks for death rather than either confronting her father or letting Giovanni confront him. Moreover the title of the story also suggests the nameless existence of the daughter who is known as Rappaccini’s daughter rather than being given a name. This anonymity in the title also symbolizes the mind set of that society where women were properties who were owned rather than individuals. Moreover it is interesting to note that there is a constant power struggle going on between Rap paccini and Baglioni as well as Rappaccini and Giovanni while their pawn in this game of power struggle is Beatrice. As it is observed that in the former’s case Baglioni suggests to use the antidote to save Beatrice without her consent and although it is not actually stated in the story yet the readers can infer that one of the reasons that Baglioni interferes is that he wants to unveil Rappaccini’s practice and assure that his position as a professor is secure. As it is mentioned in the text that he says, â€Å"Rappaccini is said to have instructed her deeply in his science, and that, young and beautiful as fame reports her, she is already qualified to fill a professor's chair. Perchance her father destines her for mine!†

Feminism in Virginia Woolf Essay Example for Free

Feminism in Virginia Woolf Essay Virginia Woolf is regarded to be a modern literary figure. She was an English novelist and essayist who was a significant icon in London literary society. She was a member of the Bloomsbury group. Her famous novels are â€Å"Mrs. Dalloway†, â€Å"To The Lighthouse† and â€Å"Orlando† and the essay â€Å"A Room of One’s Own. † Contemporary feminists regard Woolf as an advocate of the movement. This paper will analyze Woolf’s background and some of her works to bring up points of her beliefs on the matter. Growing up in London, Woolf was influenced by a wide circle of Victorian society. Her father, Sir Leslie Stephen was an editor, critic and biographer. He had conections to numerous British writers including William Thackeray. Novelists such as George Elliot, Henry James, Julia Margaret Cameron, George Henry Lewes and James Russell Lowell often dropped by in their house. (Maze, 18, 1995) Woolf and her sister Vanessa were sexually abused by their half-brothers Gerald and George. According to modern scholars, this traumatizing experience triggered her nervous breakdowns. The deaths of her mother Julia Prinsep Stephen in 1895, her half-sister Stella in 1897 and her father in 1904 added salt to the wound. Woolf was institutionalized after her most alarming breakdown. (Maze, 20, 1995) Despite her mood swings, mental breakdowns and decline in social functioning, Woolf’s abilities to write remained. Biographers claim that Woolf’s marriage to Leonard Woolf was not consummated. According to them, she was a lesbian. Nonetheless, the couple had a tight relationship and often collaborated in the literature industry. Leonard Woolf was the publisher while Virginia Woolf was the writer. Hogarth Press published a majority of Woolf’s works. (Maze, 23, 1995) Woolf had a relationship with Vita Sackville West, an English poet and novelist. Their affair lasted for two years but thry remained friends. Other relationships with women were Madge Vaughn (the inspiration for â€Å"Mrs. Dalloway) and Violet Dickinson, a composer. There were also debates on whether Vanessa and Virginia also had an intimate and incestuous relationships or they were just close. (Maze, 24, 1995) Modern science explains Woolf’s disorder as a case of bipolar personality. On the verge of another nervous breakdown, Woolf commited suicide by drowning herself in the River Ouse. (Bowlby, 32, 1989) Students concentrating on Woolf and her works often analyze the lesbian and feminist themes in her novels, essays and short stories. For example, â€Å"A Room of One’s Own† discusses the difficulty female intellectuals and writers had to go through a time when men had more economic and legal power. What was instore for women in society and in education were unknown. This work exploited the obstacles, challenges and the anxieties of Woolf and other women writers during the 1930s. (Bowlby, 35, 1989) Women writers were afraid to write what they believed to be the â€Å"truth† because they were afraid that the academic world, which was made up by a majority of men, would disclaim their writings and describe it as mere opinions. A major problem of women writers in that decade was that tehyw ere not taken seriously. There was a disparity between male and female writers. The latter was said to be inferior. (Bowlby, 29, 1989). Woolf was a woman ahead of her time. One of the points she wanted to present was that a woman could be more than a housewife. She elaborated this by writing that women could perform the conventional duties in the household and have a career, in her case, an author, at the same time. She compared women who wait for the men to come home after work as objects, simply because they meet was was expected of them. (Lounsberry, 3, 1998) â€Å"Mrs. Dalloway† discussed themes on madness and feminism through two characters – Clarissa Dalloway and Septimus Warren Smith. Clarissa represents economic and sexual repression whereas Septimus is the remedy to depression and insanity. Septimus’ suicide was an allusion to Woolf’s constant struggle with manic depression. Like the character, Woolf also hallucinated that the birdes were singing Greek. There was also an instance when Woolf tried to throw herself out of the window, the exact same way she wrote Septimus’ death. â€Å"Mrs. Dalloway† also touched bisexuality through Sally Seton, Clarissa’s partner. (Lotz, 26, 2003) â€Å"To The Lighthouse† presented a new method on understanding thoughts. This is Woolf’s masterpiece and one of her best autobiographies. She suggested that by understanding thoughts, the writer must spend a good amount of time listening to her thoughts and studying how her words and her emotions affect her mind with what she saw. (Lotz, 27, 2003) In order to look into Woolf’s take on feminism and gender equality closer, scholars carefully analyze Woolf’s influential novel â€Å"Orlando. † This is a semi-biographical novel that was inspired by Woolf’s passionate relations with Sackville-West. It is the story of Orlando, a young English man who didn’t want to grow old. One day, he woke up and realized that he was turned into a woman. He still had the same intellect and same personality but he had a woman’s body. (Lotz, 28, 2003) Through this work, Woolf wrote a semi-autobiography that presented lesbian love to its readers. Because of the delicate subject matter, â€Å"Orlando† was banned in the United Kingdom. Also, â€Å"Orlando† started the trend of the non-fiction genre in literature. The novel is both transgender and transgenre. (Lotz, 29, 2003) Woolf is the first activist who vied for woman’s suffrage. Through her works, she changed the views and ideologies of women writers. Because of her, women were no longer annonymous. Most importantly, they were noticed and their works were regarded to be as the same level as those of male writers. (Lounsberry, 4, 1998) She set the groundwork for transformative social changes. Her beliefs which she wrote from 1920s to 1940 clearly indicated a movement that was heading toward the direction for women’s suffrage rights. Woolf’s writings on feminisms as indicated in her public letters and â€Å"A Society† assessed the development of the feminist subversion by male scholars. (Lounsberry, 5, 1998) â€Å"Three Guineas† is Woolf’s essay that has the most explicit and clear statement on feminism. It provides a meticulous and well-researched observation on the subject matter. Woolf also presented her relations with different women’s organizations which share her agenda. (Lotz, 30, 2003) This is Woolf’s feminist work that is uncompromising. She assaults the domination and privilege of men toward women. The details that are elaborated and sustained from beginning to end argue that women are still capable of maintaining a fervid argument which is relevant for feminism then and now. Woolf might have neglected class and sexuality in some of her feminist works because this was a problem during her time. However, she does her best to present to her readers her objectives on why she wrote her three guineas – which are democratization, education and public professional acivity. (Lotz, 31, 2003) By analyzing these three guineas and the possiblity of what can happen if a woman takes on the important roles that are associated to these, Woolf enriches the understanding of females everywhere. She takes into account the evolution and the development of feminism by combating the image that had been founded by males. (Lotz, 32, 2003) Woolf’s creations are long, scholarly and complex but when read with a feminist perspective, these are impressive and takes the reader into the author’s personality, convictions and beliefs. If she were alive now, she would prefer to be called a humanist than a feminist. Simply because she was not obsessed with women, she was merely hoping that women would have the same rights, honors and privileges as of men. By compassionately exploring Woolf’s feminism, literary scholars poke into her sexuality and psychology that surround and precede in all her works. She was once quoted saying that ‘the triumph of learning is that it leaves something done solidly forever. ’ She did exactly just that – with her works and her movement toward feminism. Works Cited Maze, John R, â€Å"Virginia Woolf: Feminism, Creativity and the Unconscious†, pp. 18 – 24, Free Inquiry, Vol 15, Spring 1995 Bowlby, Rachel, â€Å"Feminist Destinations†, pp 32 – 29, National Review, Vol 41, November 24, 1989 Lounsberry, Barbara, â€Å"The Tales We Tell†, pp 3 – 5, New Statesman, Vol 127, January 16, 1998 Lotz, Amanda D, â€Å"Communicating Third Wave Feminism and New Social Movements†, pp 26 – 32, Women and Language, , Vol 26. 2003,

Non-communicable diseases Diseases of Excess

Non-communicable diseases Diseases of Excess Non-Communicable diseases often referred to as Diseases of Excess or Diseases of Affluence are increasing in both rich and poor countries. What factors are contributing to this trend? What are the implications for public health policy? Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity (WHO, 1948) where as Disease is a condition where any deviation from or interruption of the normal structure or function of any body part, organ, or system that is manifested by a characteristic set of symptoms and signs and whose etiology, pathology, and prognosis may be known or unknown (Dorlands Medical Dictionary, 2007). Disease can be divided broadly into two categories as Communicable and Non Communicable Diseases (on the basis of its spread). Communicable disease is a disease which can spread from one individual to other through any carrier/organism (Malaria, HIV/AIDS, etc). It is also known as Infectious or Contagious disease. There are many factors responsible for the cause of communicable diseases like social, environmental, sanitation and education. Non Communicable disease is a disease which is not communicated from one individual from another (Hypertens ion, Cancer, etc). It is also known as Chronic diseases because these diseases takes lot of time to show the sign and symptoms within an individual. The major causes for NCDs are lifestyle, habits like smoking and alcohol, inadequate diet and physical inactivity. Communicable diseases was reported to be the major cause of death in earlier time where as Non Communicable diseases(NCDs) are of major threat in current era except in some countries like Africa where still people die out of infections. In some countries like USA, the leading cause of death in 1900s was tuberculosis and pneumonia where as these diseases are secondary nowadays and their places are acquired by the cardiovascular diseases on the top and cancer being the second. The main reason for the reduction in communicable diseases are the improvement in diagnosis, treatment, sanitation, nutrition, housing, working conditions, preventive measures such as immunization, evolution of life saving drugs like antibiotics and sulpha drugs. Non-Communicable diseases or Non-Infectious diseases are caused by factors mainly behavioural, lifestyle and heredity and which cannot be transmitted to other individual. It is also caused as the Disease of Affluence or the Disease of Excess as it is caused due to negligence or disturbance caused in the normal routine lifestyle which is mainly found in the upper class of the society where there is more chances of misbalance between diet and work can be seen. Few of the examples which come under non communicable diseases are Heart diseases, Stroke, Obesity, Diabetes, Cancer, etc. Acc. to WHOs statistics in 2008, Heart Stroke has become the leading cause of death globally leaving behind the infectious diseases like HIV/AIDS, TB, Malaria, etc. In 2003, there was an estimated 56 million death globally, out of which 60% death was supposed to be due to non-communicable diseases (WHO, 2003). Among NCDs, 16 million deaths resulted from cardiovascular disease (CVD), especially Coronary Heart Disease (CHD) and Stroke; 7 million from Cancer; 3 ·5 million from Chronic Respiratory Disease; and almost 1 million from Diabetes (Ibid). Apart from these, mental health problems are also the leading contributors to the burden of disease in many countries nowadays and play a major role in contributing to the severity and incidence of other NCDs. NCDs are now considered to be the major threat contributing 59% of death in 2000 and predicted to account for 73% by 2020 (WHO, 2002). NCDs are also termed as a Disease of Affluence due to incidence and prevalence mainly in the developed countries (Anand K et al, 2007). But according to them, this seems to be a misleading term as the NCD trend is increasing at a higher pace in middle and low income countries leaving them in a double burden of Communicable diseases as well as NCDs. It can more appropriately be labelled as Disease of Urbanisation (Ibid). Several studies done by them have proved that the NCDs and its risk factors are found in higher proportion among urban population than rural population. Their study shows that urban population has increased during past decade due to migration where as urban growth is stabilized at 3%. Contrary to it, the urban slum growth rate has doubled which has made the situation worse as these migrated poor people living in urban areas will adopt the NCD lifestyle but will not be in a condition to access the healthcare due to their poor purchasing ability. Study shows a high prevalence of NCDs risk factor in the urban slums of Haryana, India. The population residing in the slums is at high risk than the urban population due to poor access as well as no social and health support system for them. This requires an urgent intervention which can work at national, community as well as local level. A framework of the policy is required at national level which has tobacco and alcohol control measures, promotion of good diet and involvement of proper exercise. Simultaneously, reorientation and strengthening of the governments health system is needed to face the challenge of NCDs community level efforts to create an environment which promotes adoption of healthy behaviors. To overcome this situation, government has started the Integrated Disease Surveillance Programme (IDSP) which provides a rational basis for decision making and impl ementing public health interventions and also ensures involving the slums as well (Ibid). A survey was being conducted by Anand et al in urban areas slums of Faridabad District, Haryana, India, in February 2003 to June 2004 for checking out the prevalence of NCDs in urban poor people. Their study followed the STEPS approach of WHO where questions related to tobacco use, alcohol intake, diet, physical activity were included and history of treatment for hypertension, diabetes, physical values like height, weight, waist circumference and blood pressure were also measured. They surveyed 1260 men and 1304 women of age 15-64. The result came out of this survey was very alarming. The rate of smoking and alcohol drinkers were high among urban slums male population. Almost one third of the population had at least one risk factor. Alcohol consumption among younger population indicates gradually falling economy of the country in the coming future. The table 1 (Appendix) shows that NCDs are the leading cause for the death in both developed and developing countries except some countries like Africa where still today, there is more number of death due to communicable diseases than NCDs. In 2003, 2 ·8 million CVD deaths occur in China and 2 ·6 million in India. NCDs contributed substantially to adult mortality with central and eastern Europe having the highest rates (WHO, 2003). The Table 2 (Appendix) shows that the developed countries have seven NCDs out of ten leading risk factors which are contributing to the global burden of disease, where as six and three out of ten with low and high rates of mortality respectively, in the developing countries. These NCD risk factors are increasing at a higher rate in the developing countries and assumed to continue in the same manner for the next two decades. Chronic diseases attribute to the 46% of the global burden of the disease, Cardio Vascular Diseases (CVDs), in particular. Although some of the communicable diseases are still prominent in the some parts of the Africa, Asia and Latin America, deaths mainly due to chronic diseases were reported in five out of the six WHO regions (Africa, America, South east Asia, Eastern Mediterranean, Western Pacific and Europe). In developing countries also, 79% of the deaths are reported due to the chronic diseases. Incidence and prevalence of obesity, diabetes, cancers, respiratory diseases and other NCDs are increasing all over the world (Murray and Lopaz, 1996). Developing country like China has experienced an epidemiological transition shifting from the infectious to the chronic diseases in much shorter time than many other countries. The pace and spread of behavioral changes, including changing diets, decreased physical activity, high rates of male smoking, and other high risk behaviors, has accelerated to an unprecedented degree. As a result, the burden of chronic diseases, preventable morbidity and mortality, and associated health-care costs could now increase substantially. China already has 177 million adults with hypertension; furthermore, 303 million adults smoke, which is a third of the worlds total number of smokers, and 530 million people in China are passively exposed to second-hand smoke. The prevalence of overweight people and obesity is increasing in Chinese adults and children, because of dietary changes and reduced physical activity. Emergence of chronic diseases presents special challenges for Chinas ongoing reform of heal th care, given the large numbers who require curative treatment and the narrow window of opportunity for timely prevention of disease (Gonghuan Y et al, 2008). Common Non-Communicable Diseases Cardiovascular diseases include all the heart diseases like hypertension, stroke, atherosclerosis, etc. Annually, 17 million deaths are reported mainly due to the CVDs globally out of which 80% are reported in low and middle income countries with a continuous increasing trend (Reddy and Yusuf, 1998). Acc. to Lenfant, CVD will be the leading cause of the death by 2010 in the developing countries due to changes brought about by urbanization and industrialization. Due to costly and prolonged treatment cost of CVDs, developing countries are at greater prevalence for the risk factors, higher incidence of disease and higher mortality (Reddy, 2002). Diabetes is increase in blood sugar level in a person. International Diabetes Federation has released the statistics in 2003, according to which diabetes patients will going to increase from 194 million in 2003 to 330 million in 2030 and at that time every 3 out of 4 living person will be diabetic. The age of diabetic patients in developing countries is comparatively more than developed countries. The cases found in developing countries are above the age of retirement which may lead to conditions like blindness, amputations, kidney failure and heart diseases (Boutayeb and Twizell, 2004). Cancer and its type are increasing at an alarming rate worldwide. It is known to be the major cause for the mortality and morbidity. More than 10 million new cases and over 7 million deaths from cancer occurred in 2000 (Shibuya et al., 2002). Developing countries contributed by 53% in incidence and 56% in deaths. By 2020, there will be an increase of around 29% cases in developed countries and 73% in developing countries (Mathers et al., 1999). Lung, breast, stomach, colorectal and liver cancer are the most frequent in developing countries. Cancer and its related types can be treated on a preventative basis. Early detection and control of risk factors like tobacco and alcohol can be said to be the cornerstones in this process because it is estimated that over one third of the cancer types are preventable and around one third are potentially curable if they are detected early (Alwan, 1997). Other NCDs includes chronic respiratory diseases like asthma and chronic obstructive pulmonary diseases, mental and depressive disorders, osteoarthritis, hearing loss and disorder of vision (WHO, 2003). They all contribute mainly to the burden of disease in developing countries. Conditions such as obesity and high blood pressure also has a double impact, either as a disease or as a risk factor for other NCDs (WHO, 2004). Risk Factors The life expectancy at birth has increased since 1970 in all the high, middle and low income countries (UNDP, 2005). Due to this factor, longer life span has resulted in the predominance of the chronic diseases in the population. The epidemiological transition has resulted in the higher proportion of the adults population due to decline in fertility rates and the infant mortality rates. The behavioural risk factors like smoking and nutritional transition towards diet having high fat, high sugar with low carbohydrates and fruits along with the physical inactivity and increase in alcohol consumption have become the greatest health challenge in the 21st century (Magnusson, 2007). The environmental causes are also responsible for the emergence of NCD as an epidemic. These factors have brought up the nutrition transition by industrialisation of the food production, expansion of the market economies in the developing countries, the growth of the complex supply chain management at a global level, rapid growth of supermarket in the developing world and the growing concentration of global food manufacturers (Ibid). Some other key factors like rising incomes, production of cheap and low energy-dense foods, growing urbanisation and increase in growth in demand for pre-packed food are also the major risk factors for NCDs (Ibid). The evolution of NCDs has put up a double burden on low and middle income countries. Diabetes and lung cancer are also reflecting rise in the rate of smoking and obesity which are called to be the major risk factors for the NCDs (Leeder, 2004). In the year 2001, 17 million people died due to heart diseases where as 3 million people died due to AIDS (Ibid). During this year, heart disease and stroke were the leading cause of death in both high income and low-middle income countries, accounting for 27 and 21% population respectively. Out of all, 83% of death occurred in the developing countries (Ibid). Evidence has shown that CVD occurs at an early age in developing countries, consuming their productive years of life. Globally, obese people are also increasing at a higher pace with a far higher number overall in developing countries. Due to this, diabetic patients are also increasing with more number falling in the 45-65 age group (Ibid). Tobacco causes 4.8 million premature deaths in the year 2000, half of which were in the developing world (Ezzati and Lopez, 2003). Since 1975, cigarette consumption has decreased sharply in the developed countries, but it is continuously rising in developing countries due to the rapid increase in population. More than 1 billion smokers lives in the developing counties out of 1.3 billion smokers globally which indicates that forthcoming threat of tobacco related epidemic will impact the developing world. Even after non smoking awareness programme through out the world, there will be around 1.45 billion smokers in 2025 (Guindon and Boisclair, 2003). Tragically, half to two third of the chronic smokers will die out of their habit (Jamison et al, 2006). Peto and lopez has estimated that if this trend continues, 10 million people will die every year because of tobacco where 7 out of 10 will be from the developing countries resulting in around 150 million death till 2025. The ageing of populations, mainly due to falling fertility rates and increasing child survival, are an underlying determinant of non-communicable disease epidemics. Additionally, global trade and marketing developments are driving the nutrition transition towards diets with a high proportion of saturated fat and sugars. This diet, in combination with tobacco use and little physical activity, leads to population-wide atherosclerosis and the widespread distribution of non-communicable disease. Globally, many of the risk factors for heart disease, diabetes, cancer and pulmonary diseases are due to lifestyle and can be prevented. Physical inactivity, Western diet, alcohol and smoking are prominent causes for the NCDs and its risk factors. Tobacco is number one enemy of public health (WHO, 2000). It is the most important established cause of cancer but also responsible in CVDs and chronic respiratory disease. In the twentieth century, approximately 100 million people died worldwide from tobacco-associated diseases such as cancer, chronic lung disease, diabetes and CVDs. Half of the 5 million deaths attributed to smoking in 2000 occurred in developing countries where smoking prevalence among men is nearly 50%. Today, 80% of the 1.2 billion smokers in the world live in poorer countries and, while tobacco consumption is falling in most developed countries, it is increasing in developing countries by about 3.4% per annum. However, albeit these striking facts, the majority of developing countries which signed the Framework Convention on Tobacco Control (FCTC) (Joossens, 2000) remain passive about the control of smoking. Obesity and dietary habits represent potential risk factors for CVDs (Kenchaiah et al., 2002), type 2 diabetes (Drewnowski and Specter, 2004), and some types of cancer (Key, 2002), especially in absence of physical activity (Derouich and Boutayeb, 2002 and WHO, 2003b). Fish is considered to be a useful food intake to prevent CVDs and reduction of CVD associated deaths (Stampfer, 2000). Similarly, intake of an adequate quantity of fresh fruit and vegetables is recommended to help reduce the risk of coronary disease, stroke and high blood pressure (WHO, 2002). But, developing countries finds it more fruitful to export most of the quality fruits and vegetable production in exchange of the foreign currency. Alcohol causes more than 2 million deaths every year in the world. It is particularly associated with liver disease and esophageal cancer. The increase in alcohol consumption in developing countries will add other hazards caused by violence and road accidents to the burden of disease. Public health policy and its implications Lee, Fustukian and Buse provide a helpful framework for disentangling four dimensions of global health policy-making (Lee et al, 2002) as:- * Policy Actors They are the power (political) who can drive the policy and decision making at a global level. In case of NCDs, United Nations, WHO, FAO, WTO, World bank, Codex Alimentarius Commission, etc. * Policy Process Process through which policy is developed and implemented. Interactions and relationship between policy actors. * Policy Context For NCDs, its global. * Policy Content Effective strategy should address universal prevention , selective or primary prevention for high risk group and targeted or secondary prevention and treatment for those with existing conditions. It is pretty clear that NCDs has its roots in unhealthy lifestyles or adverse physical and social environments. Risk factors like unhealthy nutrition over a prolonged period, smoking, physical inactivity, excessive use of alcohol, and psychosocial stress are among the major lifestyle issues. Now to our understanding, it is known that what has to be done so we have to work more on how to do it (Aulikki et al, 2001). Well planned community programmes can be a successful step towards this process. Several factors like cultural, psychological, political and economical factors has created a gap between what needs to be done and day to day happening in the developing countries because of which major health challenges cannot be achieved. So, a community programme will help in bridging this gap and also helps in changing the NCD related lifestyles (Ibid). . The policies made at an international level also require global processes which can help to achieve a stable policy change at a country level, thus reducing the long term harm associated with it. International law is an example for this type of process. Multilateral agreements contain legally binding obligations, such as the WHOs Framework Convention on Tobacco Control (FCTC). FCTC includes hard law conventions. FCTC is an evidence-based treaty that identifies core areas of agreement over regulatory measures that involved countries are leally required to implement within their own domestic systems (WHO, 2005). Apart from FCTC, there are some soft law resolutions and declarations too, like United Millennium Declaration and WHOs Global Strategy on Diet, Physical Activity and Health (GSDPAH). WHO also worked in the area of chronic, lifestyle related diseases through Global Strategy on Diet, Physical Activity and Health (GSDPAH, 2004). It works on a strategy which builds on the role of t obacco, unhealthy diet and physical inactivity in the most NCDs. GSDPAH works in close relation with the UN agencies, the WTO, World Bank, other Development banks, Codex Airentarius Commission (WHO, 2004). One of the most significant health development programs within the United Nations system is the Millennium Development Goals (MDGs). The MDGs are a global partnership embracing ambitious goals to be achieved collectively within 15 years timeframe from 2000-2015 (Magnusson, 2007, p 6). The MDGs and FCTC serve as helpful models when considering ways of strengthening the global response to non-communicable diseases. The ideal step for developing countries to overcome the NCD epidemic and they have to plan and implement accordingly to control NCDs. Each community based prevention programmes require the same principles to be followed. As an example, The North Karelia Project in least developed areas of Finland which was based on low cost lifestyle modifications and community participation (Puska P et al, 1981). The reason to follow the general principle can be the collaboration between countries and different international organizations working on the similar fields and projects like WHOs countrywide Integrated Non Communicable Disease Intervention (CINDI, 1985). Even these sort of integrated programmes like CINDI were implemented in developed countries; they are now followed by the developing countries too. Many of these programmes are carried out in conjunction with the WHO integrated programmes, which was started in 1986. After the success of CINDI programme, American regional office had also l aunched CARMEN (AMRO) programme in 1990s. With the regional development experience, WHO has launched similar programme in Asian and African networks. In Latin America, Cuba is carrying out the NCD prevention programme from long time with the collaboration with the WHO activities where Havana and Cienfuegos as the main sites. Chile also participated in the Interhealth Programme CARMEN and was the first Latin American country to join this programme and many other countries followed it. Argentina has started PROPRIA heart health intervention as an active network at various demonstration sites (Aulikki, 2001). Africa has started community based CVD prevention programme long time back. Nigeria, Mauritius and united republic of Tanzania participated in Interhealth Programme and gained the positive responses. Mauritius intervention programme recorded considerable effect of nutrition policy and education interventions on diet and serum cholesterol levels, although rates of obesity and diabetes increased (Dowse G et al, 1995). Asias community-based initiatives have been initiated in Sri Lanka, Thailand, Singapore, India, Pakistan, Malaysia, Iran and other countries. Particularly active development has taken place in China, where the Interhealth Programme was involved in initiatives in Tianjin and Beijing (Tian et al, 1995) . The Tianjin project in China was one of the major project launched in 1984 in China. This project was also cooperating groups in Finland, China and USA for NCD control since 1989. This project focused on 4 leading NCDs of China, i.e. stroke, coronary heart disease, cancer and hypertension. The aim of this project was to reduce sodium intake in the population, decrease smoking especially among men and provide hypertension care by reorganizing the existing primary health care services. The result of this project shows a significant reduction in the sodium intake after three years and also reduction in number of patients of Obesity and hypertension among 45-65yrs old after five years of the intervention. Smoking cases were also reduced among men, especially those with the higher education (Aulikki et al, 2001). Health education and the media campaigns also play an important role in the community programmes. Media campaigning although leaves the less impact on the population, it is one of the effective measure in the comprehensive package. Health service intervention such as primary care centre in the long run can also be one of the most effective intervention tools. This strategy can more appropriately work where certain biological risk factors such as hypertension and high blood pressure are dealt with. Primary health care workers played an important role in both North Karelia project and Tianjin project (Ibid). The North Karelia project worked on a concept of Community organization where various sectors of the community were collaborated and involved. It involved many non governmental organizations (NGOs), such as Housewives` organizations. It is not easy to collaborate with the industries and businesses at a small community but a classic example for it is finlands cholesterol level, which reduces with the support and collaboration of the food industries, who supported the policy decisions (Puska P et al, 1986). Aulikki et al had made some recommendations for a successful NCD prevention program which must include the following factors. A good understanding of the community, close collaborations with the various community organisations and the involvement of the local population is important for any community intervention programme. It should combine well planned media and provide some communication messages in the community activities. It should involve different elements such as primary health care workers, food industries and supermarkets, voluntary organisations, schools work places, and local media for its success. It should be cost effective, mainly in the developing countries. For this reasonable outcome, effective dose intervention is a very important requirement (Aulikki et al, 2001). The increasing NCDs burden should be controlled by the developed and developing countries as a global health priority. International organisations with the national, regional and each individuals contribution can make these programme a success. Controlling of risk factors like smoking, alcohol, obesity, diet and inactivity, sexual and environmental factors are must and should be considered seriously and worked upon to treat it. The poverty and the high cost of prevention and treatment of chronic diseases causes burden on many countries and thus demands for international solidarity and public private partnership. The coordination of health decision makers, non-governmental organizations, research institutions, community groups and individuals is must for controlling the incidence of diseases, preventing the spread of epidemics and regulate the health management of human and material resources (Boutayeb, 2005). WHO is a political champion for coordinating global response. The developin g countries face problem in the implementation and enforcing the policies that are set up by the international legal standards which have a normative role and also these legal standards are not self executing, so compliance can be monitored by the NGOs and government. A global approach in a way like this could reduce health inequalities (Magnusson, 2007). REFERENCES  · Anand K, Shah B, Yadav K, Singh R, Mathur P, Paul E, Kapoor S K (2007), Are the urban poor vulnerable to non-communicable diseases? 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