Tuesday, May 26, 2020

The True Story About Persausive Essay Topics That the Experts Dont Want You to Know

The True Story About Persausive Essay Topics That the Experts Don't Want You to Know Identity theft is an enormous issue for elderly men and women. Voting ought to be made compulsory. Immigration ought to be limited. Students need to be careful about posting on social networking. The Birth of Persausive Essay Topics For some, you will locate comments to provide you tips on how to proceed with the topics for persuasive speech. Making your audience feel comfortable is the secret to giving a thriving speech. For one to have the ability to earn a fantastic persuasive speech, an individual must select a topic that the listeners can relate to. The issue is what topic to select for your speech. Top Persausive Essay Topics Secrets Schools should not have a thing to do with ads. Life is far better than it was 50 decades ago. Possessing excellent research abilities and selecting a superb topic is vital. Speaking about something you understand well makes it a lot easier and enjo yable! The Foolproof Persausive Essay Topics Strategy Lastly, having gathered all of the material necessary for the speech, the speaker should pick the structure of the speech. Furthermore, he has to ensure that they do not alienate the audience even as they present their genuine perspective on the subject. First, he must ensure that they present a balanced argument without undermining their point of view. Ultimately, he wants to persuade you to do something. Persuasive speech refers to a certain kind of speech where the speaker has the objective of persuading the audience to accept her or his perspective. Silent letters in words ought to be removed. On the opposite side, obtaining a list of good persuasive essay topics is insufficient. It is difficult to thwart myths if you have little knowledge of those. The significance of research in persuasive writing can't be overstated. A few of the topics also fall into other categories and we've posed the topics as questions so that they can be readily adapted into statements to fit your own viewpoint. The aim of brainstorming is to aid you in getting ideas. Your principal ideas should flow naturally and adhere to the topic. Feel free to pick a topic which you will delight in writing about and not just one which you think will please your professor. Qualities of a great persuasive essay topic The topic needs to be specific. Selecting a great topic for your essay is among the most sign ificant and frequently tricky parts for many students. Textbooks are obsolete and needs to be replaced by iPads. Persuasive essays are a fantastic approach to encourage the reader to check at a particular topic in a different light. They share a great deal of resemblance with argumentative essays. The Persausive Essay Topics Cover Up Children should have to read more. Parents must be at fault for providing a wholesome diet. They should talk to kids about drugs at a young age. They should talk to their children about drugs at a young age. The Benefits of Persausive Essay Topics Students ought to be permitted to pray in school. They have to complete a lot of writing assignments during college years. They should keep their mobile in silence so as to not disturb the class. They should be allowed to listen to music during prep time. School should happen in the evenings. Students are accustomed to the simple fact which their professors give them with the assignment's topic. All students need to have a year studying abroad. Students in sports teams should attain a specific grade point average so as to play. Persausive Essay Topics Secrets That No One Else Knows About It's also advisable to attempt to comprehend your audience's dominant perspective. Evidently, you shouldn't purposely choose a topic that will bore your audience. To begin with, if you're arranging a persuasive speech, you ought to think about a topic that could create mental pictures in the minds of your audience. The greatest persuasive speeches aren't written in a rush. It's best in the event you choose a topic in which you are in possession of a genuine interest in since you'll be doing a lot of research on it and if it's something which you take pleasure in the procedure will be significantly easier and more enjoyable. The issue, never theless, is that not all businesses can be relied upon in order to deliver quality essays on time so you need to be mindful in selecting one. It's good as they can easily find help and it may also stop them from doing something naughty. You may trust us to present expert assistance for many of your academic writing needs. Educated people ought to be asked to volunteer as literacy tutors. You may find there's a compelling argument for learning another language after all! Everyone on the planet should speak English. Every student should learn a minumum of one foreign language. Adoption needs to be encouraged. Topics that you're acquainted with will make it simpler to get ready for the speech. Domestic abuse awareness should be raised.

Friday, May 15, 2020

Study On The Return On Capital Employed Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 3008 Downloads: 9 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? Return on capital Employed  (ROCE) is a financial measure that measures the performance of a company as to how it generates cash flow relative to the capital it has invested in its business. It is defined as  net operating profit less adjusted taxes  divided by  invested capital  and is usually expressed as a  percentage. When the return on capital is greater than the  cost of capital  (usually measured as the  WACC), the company can create or destroy on its value terms. Don’t waste time! Our writers will create an original "Study On The Return On Capital Employed Finance Essay" essay for you Create order The ROCE for Iggle Plc is 35% and while for Piggle is 20% which means that the return on the capital employed is over 15% more for Iggle Inc and it is a healthy company to invest when compared for long term investment. Return on Equity : It is one of the most crucial profit indicator to the shareholders of the firm. It is the relation between Net Income / Average Equity, Net Income is the income after the Profit after Tax. Return on Equity for Iggle Plc is 20% and for Piggle Plc is 10% which says that iggle plc gives more return to the shareholder on the money employed by them when compared to piggle Plc. Iggle Plc is a better option for investment considering long term investment. Average Settlement period for debtors : The average settlement period or average time taken for debtors to pay the amount outstanding. For Iggle Plc the Average settlement period is 78 days and for Piggle it is 45 days. It means that the debtors take longer time to repay to Iggle than to Piggle. Means they have longer credit period and it also shows the soundness of Iggle Plc. Average Settlement period for creditors : The average settlement period or average time taken by the business to pay its creditors. Iggle Plc is 85 days and for Piggle Plc it is 45 days, which means the money lenders of Iggle Plc have provided more number of days for them to pay of their credit. It may be because of their goodwill or strong relationship with buyer. It shows a positive relationship of Iggle Plc with it suppliers. Gross Profit Margin : Gross Profit Margin ratio shows the profits relative to sales after deduction of direct production costs. It is the relation between Gross Profit / Net Sales, where Net Sales = Sales- Excise Duty. Gross Profit margin for Iggle Plc is 44% and for Piggle Plc is 27% which means that Iggle Plc is more efficient for production operation and the relation between production costs and selling price. Since calculation of Gross Profit shows the efficiency of Iggle Plc in production related activities making it more efficient. Fixed Asset Turnover Ratio : It is also known as Sales to Fixed Asset Ratio and it measure the efficiency and the profit earning capacity of the firm. Fixed Asset Ratio is relation between Cost of Sales / Net Fixed Assets. Fixed Asset Turnover Ratio for Iggle Plc is 15 times which means ratio is high. Higher the ratio, greater is the intensive utilization of fixed assets. While for Piggle it is just 3 times which means lower is the intensive utilisation of the fixed assets. Capital Gearing Ratio : It is related with the solvency ratio and is usually used to analyze the capital structure of the firm. It refers to the proportion of relationship between equity share capital and other funds bearing funds and loans. Capital Gearing Ratio sets relation between Equity Share Capital / Fixed Interest Bearing Funds. Capital Gearing Ratio for Iggle is 65% while for Piggle Plc is 15% which means that the capital structure of Iggle Plc is stronger when compared to Piggle. And Equity Share Capital holds much stronger than the other funds and loans. Current Ratio : It is the ability of the enterprise to meet its current obligations. It involves the relationship between current assets and current liabilities. In case of Iggle Plc, Current Ratio is 1.8 : 1 which means that the firm has current assets which are 1.8 times the current liabilities. While in case of Piggle Plc, current ratio is 2.9:1, which means that the firm has current assets which is 2.9 times its current liabilities . Since the Ideal Current .Ratio being 2.1, Piggle Plc has a better ability to meet its short term debts and is more healthy. Acid Test Ratio : It is also known as Quick Test Ratio. It also shows the relationship between the current assets and current liabilities deducting the inventories out of current assets. It is named as Quick test as it gives the abilities of the firm to pay its liabilities with relying on the sale and recovery of inventories. Iggle Plc, Acid Test Ratio 0.6 :1, after deducting the inventory out of the lot the firm has current assets just 0.6 times when compared to liabilities. Piggle Plce, Acid Test Ratio 2.9:1 which shows that piggle plc is more prominent in meeting out the current liabilities. Price Earning Ratio : It is calculated by taking the market price of the stock by dividing it by earning per share. If we consider that Iggle P/E ratio when compared with one share is 6/1 (60%) and while for Piggle Plc P/E Ratio is 10/1(100%), then we can conclude that the price earning capacity of Piggle Plc is more than Iggle. The P/E ratio method is useful as long as the firm is a viable business entity and its real value is reflected in its profits. Net Profit margin (PBT) It shows the earnings left for shareholders as a percentage of net sales. It tells the over all efficiency of the firm. It is the relationship between Net Profit and Net Sales. Net Profit Margin for Iggle Plc is 15% as compared to Piggle Plc which is 9%. Profit for Iggle is more in terms of Net Sales than Piggle which shows the efficiency of Iggle in production, administration, selling, pricing and tax management. Stock Holding Period Stock holding period states that for how long the inventory was lying in the stock. It is the relation between 365 / average inventory turnover. For Iggle plc Stock Holding period is 88 days while for Piggle it is 21 days. It means there is lack of demand for Iggle goods in the market when compared to Piggle Plc. Inference : Based on the above data in relation with the ratio analysis, I would like to advice all potential investors that Iggle Plc is stronger when compared in relation to Gross Profit Margin Ratio, Net Profit Margin, Average Settlement Period for both debtors and creditors, Return of Capital Employed and ROE, Capital Gearing Ratio as all these ratios where related to the long term investment decisions and showed the positivity toward the stakeholders. While Piggle Plc is better off meeting with the short term requirement with its Current and Acid Test ratio. Since both the companies are software companies it is much prone to market innovation and technology up grad ation. These ratios being a source of information states a stable position for Iggle Plc when compared to Piggle Plc. Part 2 Piggle Plc is making investment appraisals of two potential long-term projects namely A and B. Since the initial investment for both the projects are  £2m, so both the projects would be considered in terms of the profitability and long term returns. Capital expenditure decisions occupy a very important place in corporate finance like, these decisions once taken has far reaching effects which proceeds over a long term period and influences the risk taking complexion of the company. Moreover, it involves huge amount of money are capital decisions once taken are irreversible and also involves opportunity cost of various equivalent or much fruitful viable investment opportunities. Piggle Plc before taken up any decision regarding Project A or Project B should scrutinize the opportunity in terms of initial investment and returns considering the time v alue of money, Cost-Benefit Analysis. Evaluation Criteria Non Discounting Discounting Criteria Criteria (doesnt include time value of money) (includes time value) Pay back period ARR Net Present Value Internal Rate of Return Decisions based on the Payback Period Initial Investment being  £2m Payback Project A= 4 years Project B =5 years The Payback period measures the duration of time which is required to recover the initial investment involved in the project. It doesnt include the time value of money and is based on simple calculations. Project A = 4 years Project B = 5 years According to the Pay Back Period Project A should be accepted since the money of  £2m invested initial in the project is recovered in the first 4 years, while in Project B it would be recovered in 5 years being Rs.4,00,000 as net annual cash Flow for 5 years. However, it may even approve and go for Project B because since the Pay Back Period doesnt consider time value of money so The decisions based on the Pay Back Period are not wise decisions, coz it doesnt consider the time value of money. The basic conclusion drawn of the payback method is as quickly the cost of an  investment  can be recovered, the project is considered as more desirable. I would suggest Piggle Plc should not base their decisions of rejecting or accepting the Projects Pay Back Period as it may become riskier for them to revert back once they go ahead with approving the Projects. Decisions based on Accounting Rate of Return : Accounting Rate of Return is the method of estimating the  returns rate from an investment using a simple straight-line approach (doesnt consider time value of money). The rate of return is determined when profit is divided by the number of years invested, then by the investment cost. This method is simple and is used by major decision makers for project approvals. Accounting Rate of Return (ARR) = Average Profit After Tax Average Book Value of the Investment Project A ARR = 15% Project B ARR = 20% Considering the average capital invested the average profit for Project B is more than Project A. Since the Accounting Rate of Returns also considers the depreciation amount after lessoning that the average profit after depreciation is involves, which in itself shows the viability of the decision. Piggle Plc must move ahead with the decision of accepting Project B for Capital Budgeting Decisions. Unlike, if Piggle Plc considers the concept of rate of return familiar and easy to work with rather than absolute quantities it should move ahead with accepting Project B. Decision based on Net Present Value : The Net Present Value is equal to the present value of future cash flows and any immediate cash outflow. In the case of Piggle Plc, the immediate cash flow will be investment (cash outflow in terms of annual cash flow for the number of year) and the net present value will be therefore equal to the present value of the all the future cash inflow subtracted by initial investment. Decisions based on the NPV considers factors like Discounting rate, no. Of years, inflations, interest rate. The general criterion based on the Net Present Value is that if the Net Present Value comes as Positive after deducting from Initial Investment is accepted or else if it is negative it is rejected. In case of Piggle Plc the Initial Investment is  £2m And the Net Present Value for Project A 145 Project B 120 Since the NPV after considering the time value of money and future cash inflow is positive for both the projects. The NPV is a conceptually sound criterion of investment appraisal since time value is considers. Piggle Plc can go with approving both Project A and Project B based on the above statistics but it should go ahead with accepting Project B because capital decisions and Net Present Value represents the contribution to the wealth of the shareholders and stakeholders, maximising NPV is viable and correct stating the objective of investment decision making which is maximising shareholders wealth. Decisions based on Internal Rate of Return : Internal rate of return considers the time value of money. Internal Rate of Return is that rate of interest at which the Net Present Value of a Project is equal to zero, or it is the rate which equates the present value of cash outflows to the present value of cash inflows. Under the Net Present Value method of discounting rate is known (the firms cost of capital) under IRR this rate which makes NPV as zero has to be traced out. In case of Piggle Plc Internal Rate of Return Project A = 16% Internal Rate of Return Project B = 13% Both Project A and B can be approved based on the IRR because at different rate of 16% and 13% which is the IRR the projects are capable of nearing to the Initial Investment all factors being the same. Only external facts like technical and market appraisal decision would make me approve Project A since the IRR is 16%. Both the Projects are viable and difficult to choose between mutually exclusive projects that doesnt differ significantly in ter ms of outlays. Conclusion : If i have to choose between the two Projects summarising all the Investment Methods I would go ahead with Project B since the ARR is more of Project B and also supporting the time value of money with Net Present Value is positive and more for Project B. Part 3 The Main Sources of finance that are available for Piggle Plc to finance the chosen Project will majorly include : Sources for the Initial Investment or Cash Outflow Firms needs finance mainly for two purpose : To fund the long term decisions For meeting the working capital requirement Since these are long term decisions for Piggle Plc may decide the future decisions and setting up of the firm, expansion, diversification, consolidation and other major capital expenditure decisions. By the nature of the Project of Piggle Plc, long term sources of funds become the best suited means of funding. Factor to be considered here for an investment decision will be proper asset-liability management. Sources of finance available with Piggle Plc are: RAISING CAPITAL : Piggle can issue three types of capital equity, debenture and preference capital and can be distinguished on the basis of the risk, return and ownership pattern. Equity Capital : Majority of the capital ca n be raised through equity capital and hence they will become the owners of the company. They will get residual profits after having paid the preferential shareholders and others creditors. One of the added benefit which Piggle Plc would have with raising up of Equity Capital is that the issuing firm doesnt have fixed obligation for dividend payment but offers permanent capital with limited liability for repayment. Preference Capital : Can also raise a part of Capital by Preference capital. However this is similar to equity capital except few differences like preference dividend is not tax deductible. They earn a fixed rate of return for their dividend payment. If Piggle Plc is not able to pay the dividend in a particular year, preference shareholders get arrears in dividend for the cumulative period Cumulative or Non Cumulative Preference Shares Redeemable or Perpetual preference shares Convertible or non Convertible Preference Shares Debenture Capital : Piggle Plc c an go raising debenture capital as a marketable legal contract whereby Piggle Plc promises to pay its owner, a specified rate of interest for a defined period of time and to repay the principle amount at the maturity of the period. There are other types of debenture capital Non Convertible : Wherein after the maturity period the same wont be converted in equity shares and will be redeemed back with principle amount Fully Convertible : At the end of the maturity period the same will be converted into Equity Share Capital at once or in instalments Partly Convertible Debentures : At the end of the maturity period some part of the debentures would be redeemed back with the principle amount and partial will be converted into equity capital. The same being previously decided. PUBLIC ISSUES Companies issue securities to the public in primary market through IPOs and get them listed on stock exchanges. Stocks and securities are then traded in secondary market. TERM LOANS It is one of the major sources of debt finance and repayable in more than one year but less than 10 years involves a rate of interest. For approving through the Term Loan Piggle Plc has to first mortgage or by way of depositing title deeds of immovable properties. Advantage of this source of finance is its post-tax cost, which is lower when compared to equity and preference capital. PRIVATE PLACEMENT Private placement method of financing involves direct selling of securities to a limited number of institutional investors of high net worth investors. It involves low cost, access to funds faster, few procedural formalities. EURO ISSUES Piggle can float their stocks in foreign capital markets. Companies are going global and can issue Global Depository Receipts , Euro Convertible bonds which are issued abroad and listed and traded on a foreign exchange. Once converted to equity can be traded on domestic exchange. Part 3 (ii) Major Budgeting techniques which Piggle Plc should incorporate to support the running of the chosen Project Successfully are should involve Budgeting techniques : Pay Back Period : It is the cumulative time which is used to recover or recoup the initial investment in terms of years without considering the time value of money. Since this method is easy the initial decision of Piggle could be based on Pay Back Period Internal Rate of Returns : IRR is the discount rate that equates the present value of the future net cash flows from an investment project with the projects initial cash outflow. It considers the time value of money and will provide an exact idea for Piggle and it is the most used capital decision technique. Net Present Value : It is based on the time value of money. It is the present value of all the cash inflows deducted by the initial investment. Profitability Index : It is also known as Cost Benefit Ratio. It considers the Present Value of the Future Cash Flows to the Initial Investment. Piggle Plc can directly approve or disapprove a Project based on the Benefit Cost Ratio. If the BCR 1, accept the project, if the B CR 1, reject the project. These are the four techniques on which Piggle Plc should choose the project running.

Wednesday, May 6, 2020

Critiquing Qualitative and Quantitative Research - 1465 Words

Unit 6: Critiquing Qualitative and Quantitative Research Kaplan University July 16, 2013 Unit 6 Critiquing Qualitative and Quantitative Research The research conducted by Foster-Fitzpatrick, Ortiz, Sibilano, Marcantonio and Braun (1999) is a quantitative study of the significance of crossing the legs while blood pressure is being measured. The purpose of the research was to determine whether leg-crossing impacted the results of blood pressure measurements. The research conducted by Palese, Skrap, Fachin, Visioli and Zannini (2008) is a qualitative study of the subjective data collected from patients who experienced while-awake craniotomies. Identification of Design Quantitative Research Article Design The design chosen for this†¦show more content†¦167). This study meets the criteria for purposeful sampling. Critique of Sampling Methodology Quantitative Critique of Sampling Methodology The convenience sampling that was used in recruiting all male patients who were on blood pressure medications is a glaring bias in this study. There was no information provided addressing why the patients were presenting to the clinic. There are many interventions that can raise blood pressure. For example, the study conducted by Marshall, Anantharachagan, Choudhary, Chue and Kaurhis, (2002) investigated the effect of situational anxiety on blood pressure experienced in anticipation of a blood test. Marshall, et. al., (2002) found that anticipation of a blood test can raise blood pressure. Foster-Fitzpatrick, et. al., 1999 did not address the purpose of the patient’s visit to the clinic. The researchers addressed known influential factors verbally, but not all factors were controlled during the experiment. For example, time of day, the white coat effect along with respirations and heart rate were not addressed in the results. Qualitative Critique of Sampling Methodology Based upon information provided this study was appropriate conducted as a purposeful sampling but, this studyShow MoreRelatedCritiquing Quantitative, Qualitative, Or Mixed Methods1135 Words   |  5 Pages Critiquing Quantitative, Qualitative, or Mixed Methods Studies Paper Quantitative and qualitative research studies are both significant in nursing. In this paper, I will be critiquing two articles using both approaches. Using Walden’s database system, the articles will be located and compared to one another. After this assignment, I hope to gain a better understanding if critiquing research articles. 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The different strategies of sampling includes: 1. Probability sampling is typically used in quantitative research studies (Polit Beck, 2014). It involves a specific analytical process that requires the random selection of attributes from a population that is being studied, which establishes that there is an equal likelihood of each attribute in theRead MoreExamining Evidence Based Practice For Patients With Chest Pain899 Words   |  4 Pagesimportant arguments for the need to implement evidence-based practice (EBP) are that it leads to the highest quality of care and the best patient outcome (Melnyk Fineout-Overholt, 2011). It is the standard of practice for nurses to be able to use research skills for evidence-based knowledge that are relevant to their clinical practice. The purpose of this paper is to outline and compare the selected articles on how the study findings related to patients with chest pain, to determine the validity

Tuesday, May 5, 2020

Martin Luther King vs. Thoreau free essay sample

Written over 114 years after Henry David Thoreau’s essay â€Å"Civil Disobedience†, Martin Luther King wrote his most famous essay; â€Å"Letter from a Birmingham Jail. † In the times of Henry David Thoreau there was only one topic of politics in the United States, slavery. Many southerners wanted to keep slavery while many northerners were against it. Henry David Thoreau was a white northerner that was against slavery, and he was willing to go to jail for it. He proved that in writing his famous letter. In the letter Thoreau describes what it means to be civilly disobedient. In Thoreau’s terms, Civil Disobedience is standing up peacefully against laws you do not think are moral. He was civilly disobedient in not paying poll taxes for over six years because he knew the money was used to support slavery. Martin Luther King was a great civil rights leader that lived in the period of the Civil Rights Movement. We will write a custom essay sample on Martin Luther King vs. Thoreau or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page King went to jail for a peaceful march against racial hatred after he was specifically told not to march. He was put in a jail in Birmingham for eight days; this is when he wrote his famous letter in response to a letter from eight Alabama clergymen. He was arguing against racial hatred and used the effects of ethos, pathos, and logos to attain his argument. Although Thoreau is formal with his writing and uses plenty of logical reasoning to attain his point, King is more like likely t move the readers due to his ability to reach your emotional side, and his credibility as a leader of the Civil Rights Movement. Thoreau was not the best with pathos, but he did do some things well with his emotional appeal. At one point in the essay, he argues that people are more worried about money and their jobs than they care about humanity. Thoreau says, â€Å"Merchants and Farmers here, who are more interested in commerce and agriculture than they are in humanity†. This line effectively reaches the emotional side due to its speaking of humanity. Overall, Thoreau is not good at involving emotional appeal in his essay. King does a fantastic job at reaching the emotional side. King talks about his family and fellow brothers and sisters being treated with pure hatred. He states, â€Å"I doubt you would have so warmly commended the police force if you had seen its dogs sinking teeth in the unarmed, nonviolent Negroes†. He makes people realize that the police force they have been honoring may not be as good of people as most people presumed. It takes a lot of hatred for people to order attack dogs to attack a nonviolent, unarmed man, no matter what his skin tone may be; it is pure hate. King still did well in his essay with ethical appeal, but this was Thoreau’s forte. Thoreau uses ethical ideas and makes statements that really make the reader question their beliefs prior to reading his essay. â€Å"But Paley appears never to have contemplated those to which the rule of expediency does not apply, in which a people, as well as an individual must do justice, cost what it may. † This excerpt shows the need for justice no matter what the cost is, what the laws of the present time may be, but you need to do whatever is right. King uses ethical appeal well in a couple places of his essay. One of these places is where King says, â€Å"Even so I am sure that if I had lived in Germany at the time, I would have an idea†. King is proving that the hatred in the United States is so atrocious, that even if he lived in a place with equal rights among men such as Germany, the hatred would still be palpable from all the way across the world. King and Thoreau both wrote exquisite essays, but overall Kings ability to reach the emotional side wins in the end. Although Thoreau was very logical and had an outstanding ethical appeal, King reached all inner emotions altering peoples’ minds change from their hatred. In the end, both the issues of slavery and the issues of social hatred have been resolved for the most part. Slavery was the predecessor to the Civil Rights Movement, so in turn Martin Luther King could not have possibly done what he did without people like Henry David Thoreau. People like Thoreau gave slaves their freedom in the first place, which gave them the opportunity to fight for their rights; Martin Luther King heard that message loud and clear when he became the most prestigious member ever of the Civil Rights Movement.

Wednesday, April 15, 2020

Fund Flow Statement Essay Example

Fund Flow Statement Paper FUNDS FLOW STATEMENT Meaning The term â€Å"Flow† means change and therefore, the term â€Å"Flow of Funds† means â€Å"Change in Funds† or â€Å"Change in Working Capital â€Å". In other works, any increase or decrease in working capital means â€Å"Flow of Funds†. There are two concepts of working capital – gross concept and net concept. †¢ Gross working capital refers to the firm’s investment in current assets †¢ Net working capital means excess of current assets over current liabilities. In business several transactions take place. Some of these transactions increase the funds while others decrease the funds. Some may not make any change in the funds position. In case a transaction results in increase in funds, it will be termed as â€Å"source of funds†. Eg. 1. Issue of shares  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   inflow of funds  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   source of fund   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2. Purchase of assets   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   leads to outgo of funds  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   application of funds According to the International Accounting Standard 7, the term ‘Fund’ refers to cash, to cash and cash equivalent, or to working capital. The term ‘flow’ refers to change and therefore the term ‘Funds flow† refers to ‘change in funds’ or ‘change in working capital’. In other words, any increase or decrease in working capital means ‘flow of funds’. Working capital = Current Assets – Current Liabilities    |   | |CURRENT ASSETS |CURRENT LIABILITIES | | |   | |   |   | |Cash and bank balances |Accounts payable | |Inventory Sundry creditors | |Sundry Debtors |Bank overdraft | |Temporary investments |Unclaimed dividends | |Pre-paid expenses |Provision for taxation* | |Outstanding incomes |Proposed dividends* | |Accounts receivables |Short term loans | |Bills receivables |   | |   | | *Provision for Taxation: It can be treated in two ways: 1. Treated as current liability: when there is no income tax paid or additional provision made it is treated as current liability. We will write a custom essay sample on Fund Flow Statement specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Fund Flow Statement specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Fund Flow Statement specifically for you FOR ONLY $16.38 $13.9/page Hire Writer It can be taken to schedule of changes in working capital. No further treatment is required. 2. Treated as non-current liability: A ledger account (Provision for taxation a/c) is prepared. Sometimes we may have to arrive at income tax paid during the year from the given information. *Proposed Dividend: It can be treated in two ways: 1. Treated as current liability: Proposed dividend may be taken as Current liability since declaration of dividends by share holders is simply a formality. It is taken to schedule of changes in working capital with no further treatment. 2. Treated as non-current liability: Proposed dividend can be taken as an appropriation of profit. In such a case, proposed dividend for the current year will be added back to current year’s profit in order to find out funds from operations if such amount of dividend has already been charged to profit. Payment of dividend will be shown as an application of fund. NON CURRENT ASSETS AND NON CURRENT LIABILITIES |NON CURRENT LIABILITIES |NON CURRENT ASSETS | |Share capital |Fixed assets | |Long term loans |Fictitious assets like goodwill, patents, copyrights, | |Debentures |trademarks. |Share premium a/c |Long term investments | |Forfeited shares a/c |Profit and loss a/c (debit balance) | |Profit and loss a/c (credit bal) |Discount on issue of shares debentures | |Appropriation of profits |Deferred expenditures like preliminary expenses, advertising| |Provision for taxation |expenses. | |Provision for depreciation | | |Capital reserve | | |   | | Non fund Transaction: If the funds are Rs. 10000 and a fixed asset of Rs. 5000 is purchased by issuing shares of Rs. 000 the fund s position will not change and therefore this transaction will be taken as a non-fund transaction. BALANCE SHEET as on †¦Ã¢â‚¬ ¦. |Non-current liabilities: |   |Non-current Asset |   | |Share Capital: |   |Goodwill |50000 | |16% Redeemable Preference Shares of |   |Buildings |1,00,000 | |Rs. 10 each |   |Plant |1,00,000 | | |1,00,000 |Furniture |  Ã‚   50,000 | |Equity shares of Rs. 0 each |   |Long term Investment |   50,000 | | |1,00,000 | | | |Long term Loans: |   |   |   | |12%Debenture |1,00,000 | | | |Loan on Mortgage |  Ã‚   50,000 |   |   | |Reserves Surplus: |   |   |   | |General reserve |1,00,000 | | | |Profit Loss a/c |  Ã‚   50,000 | | | |Total non-current liabilities |   |Total Non-current Assets |   | | |5,00,000 | |3,50,000 | |Current liabilities: |   |Current Assets: |   | |Sundry creditors |   50,000 |Sundry Debtors |  Ã‚   80,000 | |Bills Payable |   50,000 |Bills receivable |  Ã‚   50,000 1,00,000| |Bank Overdraft |   25,000 |Inventories |  Ã‚   50,000 | |Outstanding expenses    25,000 |Pre-paid Expenses |  Ã‚   20,000 | | | |Cash balance | | |Total current liabilities |1,50,000 |Total current assets |3,00,000 | |Total liabilities |6,50,000 |Total assets |6,50,000 | Computation of Working capital: CURRENT ASSETS  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rs. 3,00,000 CURRENT LIABILITIES   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rs. 1,50,000 NET WORKING CAPITAL  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚   1,50,000 There will be flow of funds on account of change in working capital position. A few independent transactions are given below and the effect of each of the transaction on flow of funds is determined. 1. The company realizes Rs. 20,000 from its debtors. †¢ Debtors will reduce from Rs. 80,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      to   Rs. 60,000 †¢ Cash balance will increase from Rs. 20000 to   Rs. 40,000 CURRENT ASSETS  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rs. 3,00,000 CURRENT LIABILITIES   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rs. 1,50,000 ___________ NET WORKING CAPITAL  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   1,50,000 ___________ There will be flow of funds on account of change in working capital position. †¢ This transaction will not bring any change in the working capital because it is simply conversion of one current asset into another current asset. 2. The company pays to its creditors a sum of Rs. 10,000 out of the cash balance. †¢ Cash balance gets reduced from Rs. 20,000 to Rs. 10,000  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   †¢ Sundry creditors will stand reduced from Rs. 50,000   to Rs. 40,000 CURRENT ASSETS  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rs. 2,90,000 CURRENT LIABILITIES  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rs. 1,40,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   ________ WORKING CAPITAL  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚           Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚   1,50,000   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   ________ There will be no change in working capital position 3. The company purchases furniture of Rs. 10,000 by raising long-term loans of Rs. 10,000. This transaction will not have any effect on working capital position, since the transaction involves non-current asset and a non-current liability which are not the constituents of working capital. 4. The company redeems preference shares of Rs. 1,00,000 by issuing 12% debentures of Rs. 1,00,000. †¢ This transaction will not involve any change in the working capital since both the accounts involved are not the constituents of the working capital. 5. The company raises Rs. 50,000 in cash by issue of new shares. †¢ This transaction will increase the cash balance of the company from Rs. 20,000 to Rs. 70,000. The working capital position will be : Current Assets  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rs. 3,50,000 Current Liabilities  Ã ‚   Rs. 1,50,000 __________ Working capital  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2,00,000 ___________ This transaction will increase the W. C 6. The company sells its building having a book value of Rs. 50,000 for a sum of Rs. 60,000. †¢ This transaction will increase the cash balance with the company from Rs. 20,000 to Rs. 80,000. Current Assets  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rs. 3,60,000 Current Liabilities  Ã‚   Rs. 1,50,000 __________ Working capital  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2,10,000 ___________ This transaction will increase the W. C From the above, the following general rules can be formed: 1. There will be flow of funds if a transaction involves: †¢ Current assets and fixed assets, e. g. purchase of building for cash †¢ Current assets and capital, e. g. , issue of shares for cash †¢ Current assets and fixed liabilities, e. g. edemption of debentures in cash †¢ Current liabilities and fixed liabilities, e. g. Creditors paid off in debentures †¢ Current liabilities and capital, e. g. , creditors paid off in shares. †¢ Current liabilities and fixed assets, e. g. building tr ansferred to creditors in satisfaction of their claims 2. There will be no flow of funds if a transaction involves. †¢ Current assets and current liabilities, e. g. , payment made to creditors through cash †¢ Fixed assets and fixed liabilities, e. g. , building purchased and payments made in debentures. †¢ Fixed assets and capital, e. g. building purchased and payment made in shares Funds Flow Diagram CURRENT ASSETS CASH IN HAND AT BANK MARKETABLE INVESTMENTS RECEIVABLES STOCKS PREPAID EXPENSES FIXED ASSETS: GOOD WILL BUILDING PLANT AND MACHINERY FUTURE AND FIXTURES LONG TERM INVESTMENTS CURRENT LIABILITIES BANK OVERDRAFT OUTSTANDING EXPENSES ACCOUNTS PAYBLE NON-CURRENT LIABILITIES   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   SHARE CAPITAL RESERVES AND SURPLUS DEBENTURES LONG TERM LOANS Flow Funds  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   No Flow of Funds ISSUE OF SHARES LONG-TERM BORROWINGS OPERATIONAL PROFIT SALE OF FIXED ASSETS FUNDS PAYMENT OF TAX / DIVIDEND OPERATIONAL LOSS PAYMENT OF LONG-TERM LOANS PURCHASE OF FIXED ASSET REDEMPTION OF PREF. SHARES Sources Uses APPLICATIONS Rules for preparing the schedule of changes in working capital: †¢ Increase in a current asset, results in increase   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (+) in â€Å"working capital† †¢ Decrease in a current asset, results in decrease   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (-) in â€Å"working capital† †¢ Increase in a current liability, results in decrease   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (-) in â€Å"working capital† †¢ Decrease in a current liability, results increase   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (+) in â€Å"working capital†. Illustration: From the following balance sheets of X Ltd, on 31st December, 1985 and 1986, you are required to prepare. (a) A schedule of changes on working capital (b) A Funds Flow Statement |Liabilities |1985 |1986 |Asset |1985 |198 6 | | |Rs. |Rs. |Rs. |Rs. | |Share Capital |1,00,000 |1,00,000 |Goodwill |12,000 |12,000 | |General Reserve |14,000 |18,000 |Building |40,000 |36,000 | |Profit Loss A/c |16,000 |13,000 |Plant |37,000 |36,000 | |Sundry Creditors |8,000 |5,400 |Investments |10,000 |11,000 | |Bills Payable |1,200 |800 |Stock |30,000 |23,400 |Provision for Taxation |16,000 |18,000 |Bills Receivable |2,000 |3,200 | |Provision for Doubtful Debts |400 |600 |Debtors |18,000 |19,000 | |   |   |   |Cash at Bank |6,600 |15,200 | |Total |1,55,600 |1,55,800 |   |1,55,600 |1,55,800 | The following additional information has also been given: (i)  Ã‚   Depreciation charged on plant was Rs. 4,000 and on Building Rs. 4,000 (ii)  Ã‚   Provision for Taxation of Rs. 19,000 was made during the year 1986. (iii)   Interim Dividend of Rs. 8,000 was paid during the year 1986. Solution SCHEDULE OF CHANGES IN WORKING CAPITAL |Particulars |1985 |1986 |Increase (+) |Decrease (-) | | |Rs. |Rs. |Rs. |Rs. |Current As sets: |   |   |   |   | |Cash at Bank |6,600 |15,200 |8,600 |   | |Debtors |18,000 |19,000 |1,000 |   | |Bills Receivable |2,000 |3,200 |1,200 |   | |Stock |30,000 |23,400 |   |6,600 | |Current Liabilities : |   |   |   |   | |Provision for doubtful debts |400 |600 |   |200 | |Bill Payable |1,200 |800 |400 |   | |Sundry Creditors |8,000 |5,400 |2,600 |   | |Total |   |   |13,800 |6,800 | |Net Increase in Working Capital |   |   |7,000 |   | FUNDS FLOW STATEMENT |Particulars |Rs. |Sources : |   | |Funds from Operations   Ã‚  Ã‚  Ã‚  Ã‚   (See Note 1) |36,000 | |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      Total Sources |36,000 | |Applications: |   | |Purchase of Plant   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (See Note 2) |3,000 | |Tax paid   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (See Note 3) |17,000 | |Investments purchased   Ã‚  Ã‚  Ã‚  Ã‚   (See Note 4) |1,000 | |Interim Dividend paid |8,000 | |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Total Applications |29,000 | |Net Increase in Working Capital |7,000 | Working Notes 1. Funds from Operations: |Particulars |Rs. |Rs. | |  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚   Profit Loss account Balance on 31st Dec. , 1986 |   |13,000 | |Add : Items which do not decrease Funds from Operations: |à ‚   |   | |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Transfer to General Reserve |4,000 |   | |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Provision Tax |19. 00 |   | |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Depreciation : |   |   | |Plant |4,000 |   | |Building |4,000 |   | |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Interim Dividend P’ble [Prov] |8,000 |39,000 | |   |   |52,000 | |Less: Profit Loss A/c balance 31st Dec. , 1985 |   |16,000 | |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Funds from operations for the year |   |36,000 | 2. Purchase of plant. This has been found out by preparing the plant Account. PLANT ACCOUNT |Particulars |Rs. |Particulars |Rs. |To Balance b/d |37,000 |By Depreciation |4,000 | |To Bank (purchase of plant balancing figure) |3,000 |By Balance c/d |36,000 | |   |40,000 |   |40,000 | 3. Tax paid during the year has been found out by preparing a provision for Tax Account PROVISION FOR TAX ACCOUNT |Particulars |Rs. |Particulars |Rs. | |To Bank (bei ng tax paid – bal fig) |17,000 |By Op. Balance b/f |16,000 | |To Cl. Balance c/d |  Ã‚  Ã‚  Ã‚   18,000 |By Prov. P L. A/c |19,000 | |   |35,000 |   |35,000 | 4. Investments’ have been taken as a fixed asset presuming that they are long-term investment. Illustration: Balance Sheet of M/s Black and White as on 1-1-1988 and 31-12-1988 were as follows: BALANCE SHEET |Liability |1-1-88 |31-12-88 |Asset |1-1-88 |31-12-88 | | |Rs. |Rs. | |Rs. |Rs. | |Creditors |40,000 |44,000 |Cash |10,000 |7,000 | |Mr. White’s Loan |25,000 |- |Debtors |30,000 |50,000 | |Loan from P. N Bank |40,000 |50,000 |Stock |35,000 |25,000 | |Capital |1,25,000 |1,53,000 |Machinery |80,000 |55,000 | |   |   |   |Land |40,000 |50,000 | |   |   |   |Building |35,000 |60,000 | |   |2,30,000 |2,47,000 |   |2,30,000 |2,47,000 | During the year machine costing Rs. 10,000 (accumulated depreciation Rs. 3,000) was sold for Rs. 5,000. The Provision for Depreciation against machinery as on 1-1-1988 was Rs. 25,000 and on 31-12-1988 Rs. 40,000. Net Profit for the 1988 amounted to Rs. 45,000. You are required to prepare Funds (Working Capital) Flow Statement. Solution: Funds Flow Statement For the year ending 31. 12. 1988 Particulars |Rs | |Source |   | |Loan from P N Bank |10,000 | |Sale of P M  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   [See Working Notes] |5,000 | |Funds from Operations  Ã‚  Ã‚  Ã‚  Ã‚   [See Working Notes] |65,000 | |Total  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   |80,000 | |[1] | | |Application |   | |White’s Loan repaid |25,000 | |Partners’ Drawings  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   [See Working Notes] |17,000 | |Purchase of Land |10,000 | |Purchase of Building |25,000 | |Total  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   |77,000 | |[2] | | |Increase in Working Capital  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   [1 – 2] |3,000 | Schedule of Changes in Working Capital |Particulars |1. 1. 88 |31. 12. 8 |Increase |Decrease | |Current Assets |   |   |   |   | |Cash |10,000 |7,000 |   |3,000 | |Debtors |30,000 |50,000 |20,000 |   | |Stock |35,000 |25,000 |   |10,000 | |Current Liabilities |   |   |   |   | |Creditors |40,000 |44,000 |   |4,000 | |   |   |   |20,000 |17,000 | |Increase in Working Capital   |   |   |3,000 |   | Working Notes: Funds from Operations Net Profit made during the year |45,000 | |Add: Loss on Sale of Machine [Non-operating expense] |2,000 | |[BV (Cost – Depr’n) – Cash realized] = [(10000 – 3000) – 5000] | | |Add:Depreciation on Machinery [See Prov. for depr’n on P M A/c] |18,000 | |Funds from Operations for the year |65,000 | N. B: Details about Depreciation on Buildings not provided for in the exercise. Hence, depreciation on building is not considered for arriving at Funds from operations. Capital A/c |Particulars |Rs. |Particulars |Rs. | |To Drawings a/c [Bal. fig. ] |17,000 |By Balance b/d |1,25,000 | |To Balance c/d |1,53,000 |By P L a/c [Profit for the yr] |45,000 | |Total |1,70,000 |Total |1,70,000 | Machinery Account |Particulars |Rs. |Particulars |Rs. |To Balance b/d |1,05,000 |By Provision for Depreciation on Machinery |3,000 | | | |sold | | |   |   |By Bank – P M sold |5,000 | |   |   |By Loss on Machinery sold [Balancing |2,000 | | | |figure] | | |   |   |By Balance c/d |95,000 | |Total |1,05,000 |Total |1,05,000 | Provision for Depreciation on Machinery |Particulars |Rs. |Particulars |Rs. | |To Machinery a/c 3,000 |By Balance b/d |25,000 | |[Prov. on P M sold] | | | | |To Balance c/d |40,000 |By P L a/c [depreciation provided drg. |18,,000 | | | |the year [Balancing figure] | | |Total |43,000 |Total |43,000 | Illustration: The following are the sum marized Balance sheets of Vivek Ltd. as on 31. 12. 1990 and 31. 12. 1991. Liabilities |1990 |1991 | | |Rs |Rs | |Share Capital |12,00,000 |16,00,000 | |Debentures |4,00,000 |6,00,000 | |P L A/c |2,50,000 |5,00,000 | |Creditors |2,30,000 |1,80,000 | |Provisions for: |   |   | |Bad Doubtful debts |12,000 |6,000 | |Depreciation on Land Bldng. |40,000 |48,000 | |Depreciation on Plant Machinery |60,000 |70,000 | |Total |21,92,000 |30,04,000 | |Assets |1990 |1991 | | |Rs |Rs | |Plant Machinery [At cost]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   |12,90,000 | | |8,00,000 | | |Land Building [At cost] |6,00,000 |8,00,000 | |Stock |6,00,000 |7,00,000 | |Bank |40,000 |80,000 | |Preliminary Expenses |14,000 |12,000 | |Debtors |1,38,000 |1,22,000 | |Total |21,92,000 |30,04,000 | Additional Information: 1. During the year, a part of the machinery, costing Rs. 1,40,000 [accumulated depreciation thereon Rs. 4,000], was sold for Rs. 12,000. 2. Dividend of Rs. 1,00,000 was p aid during the year. Ascertain: 1. Change in Working capital for 1991. 2. Funds Flow statement for 1991. Solution: Particulars |Increase [+] |Decrease [-] | |Current Assets |   |   | |Stock |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   1,00,000 |   | |Bank |40,000 |   | |Debtors |   |16,000 | |Current Liabilities |   |   | |Creditors |50,000 |   | |Provision for Doubtful Debts |6,000 |   | |   |1,96,000 |16,000 | |Increase in Working capital |1,80,000 |   | Funds Flow Statement |Particulars |   |Rs. |Sources: |   |   | |Issue of Shares |   |4,00,000 | |Issue of Debentures |   |2,00,000 | |Sale of Machinery |Working Note : 2 |12,000 | |Funds from Operations |   |4,98,000 | |Total of Sources [A] |   |11,10,000 | Applications: |   |   | |Purchase of Plant Machinery |Working Note : 1 |6,30,000 | |Purchase of Land Building |   |2,00,000 | |Payment of Dividend |   |1,00,000 | |Total Uses [B] |   |9,30,000 | |Increase in Wor king Capital [A – B] | |1,80,000 | Working Notes: 1 Plant Machinery A/c |Particulars |Rs. |Particulars |Rs. | |To Balance B/d |8,00,000 |By Bank |12,000 | |To Bank [Purchase of P M – Balancing |6,30,000 |By P L a/c [loss on sale] |1,24,000 | |Fig. | | | | |   |   |By Provision for Dep. |4,000 | | | |[On Plant sold] | | |   |   |By balance C/d |12,90,000 | |Total |14,30,000 |Total |14,30,000 | Working Notes: 2 Provision for Depreciation on Plant Machinery A/c |Particulars |Rs. |Particulars |Rs. |To Plant Machinery [Depreciation on Plant |4,000 |By Balance B/d |60,000 | |sold] | | | | |To Balance C/d |70,000 |By P L a/c [Balancing Fig. ] |14,000 | |Total |74,000 |Total |74,000 | Working Notes: 3 Adjusted P L A/c |Particulars |Rs. |Particulars |Rs. | |To Dividend |1,00,000 |By Balance B/d |2,50,000 | |To Prov. for Depreciation: |   |By Funds from Operations [Balancing Fig. ]|4,98,000 | |- Land Bldng. 8,000 |   |   | |- Plant Machinery |14,000 |   |   | |To Loss on sale of    |1,24,000 |   |   | |  Ã‚  Ã‚  Ã‚   Machinery  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   | | | | |To Preliminary Exp’s written- |2,000 |   |   | |  Ã‚  Ã‚  Ã‚   Off | | | | |To Balance C/d |5,00,000 |   |   | |   |7,48,000 |   |7,48,000 | Illustration: From the following Balance Sheet prepare: 1. Statement of Changes in Working Capital and 2. Funds Flow Statement BALANCE SHEET Liability |1990 |1991 |Asset |1990 |1991 | | |Rs. |Rs. | |Rs. |Rs. | |Equity Share Capital |3,00,000 |3,50,000 |Fixed Assets [Net] |5,10,000 |6,20,000 | |9% Preference Share Capital |2,00,000 |1,00,000 |Investments |30,000 |80,000 | |Debentures |1,00,000 |2,00,000 |Current Assets |2,40,000 |3,75,000 | |P L A/c |1,10,000 |2,70,000 |Discount on Debentures |10,000 |5,000 | |Prov. or Doubtful debts |10,000 |15,000 |   |   |   | |Current Liabilities |70,000 |1,45 ,000 |   |   |   | |   |7,90,000 |10,80,000 |   |7,90,000 |10,80,000 | Additional Information: 1. Preference Shares were redeemed at a premium of 5% during the year 1991. 2. Dividend at 15% on Equity Share for the year 1190 and Preference dividend for 1990 were paid. 3. The Provision for Depreciation stood at Rs. 1,50,000 and Rs. 1,90,000 for the year 1990 and 1991 respectively. 4. A machine costing Rs. 70,000, depreciation written off Rs. 30,000 was disposed off for Rs. 25,000. Solution: Step 1: Schedule of changes in Working Capital Particulars |1990 |1991 |Increase [+] |Decrease [-] | |Current Assets |2,40,000 |3,75,000 |1,35,000 |   | |Total Current Assets |2,40,000 |3,75,000 |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   |   | |   |   |   |   |   | |Current Liabilities |70,000 |1,45,000 |   |75,000 | |Prov. or Doubtful debts |10,000 |15,000 |   |5,000 | |Total Current Liabilities |80,000 |1,60,000 |   |   | |Working Capital [A – B] |1,60,000 |2,15,000 |   |   | |Net Increase in Working capital |55,000 |   |   |55,000 | |Total |2,15,000 |2,15,000 |1,35,000 |1,35,000 | Step 2: Ledger Accounts for all Non-Current Assets and Liabilities Fixed Assets A/c |Particulars |Rs. |Particulars |Rs. | |To Op. Balance B/d |6,60,000 |By Depreciation A/c |30,000 | |[5,10,000 + 1,50,000] | | | | |To Cash A/c [Purchases] |2,20,000 |By Cah a/c [Sale] |25,000 | |[Trf. to Funds Flow Stnt. – Bal. Fig. ] | |[Trf. to Funds Flow Stnt. | | |   |   |By Adjusted P L A/c |15,000 | | | |[Loss on Sale] | | |   |   |By Cl. Balance C/d |8,10,000 | | | |[6,20,000 + 1,90,000] | | |   |8,80,000 |   |8,80,000 | Depreciation A/c |Particulars |Rs. |Particulars |Rs. |To Machinery |30,000 |By Op. Balance B/d |1,50,000 | |[5,10,000 + 1,50,000] | | | | |To Cl. Balance C/d |1,90,000 |By Adjusted P L A/c |70,000 | | | |[Depreciation for Current yr. ] | | |   |2,20,000 |   |2,20,000 | Discount on Debenture A/c Particulars |Rs. |Particulars |Rs. | |To Op. Balance B/d |10,000 |By Adjusted P L A/c |5,000 | | | |[Balancing Fig. ] | | |   |   |By Cl. Balance C/d |5,000 | |   |10,000 |   |10,000 | Equity Share Capital A/c Particulars |Rs. |Particulars |Rs. | |To Cl.. Balance C/d |3,50,000 |By Op. Balance B/d |3,00,000 | |   |   |By Cash A/c [Issue of Shares |50,000 | |   |3,50,000 |   |3,50,000 | Investments A/c |Particulars |Rs. |Particulars |Rs. | |To Op. Balance B/d |30,000 |By Cl. Balance C/d |80,000 | |To Cash A/c [addl. Investment made] [trf. to|50,000 |   |   | |Funds Flow Stnt. – Bal. Fig. ] | | | | |   |80,000 |   |80,000 | 8% Preference Share Capital A/c |Particulars |Rs. |Particulars |Rs. | |To Cash A/c [Redemption at 5% premium] |1,05,000 |By Op. Balance B/d |2,00,000 | |[1,00,000 + 5,000] | | | | |To Cl. Balance C/d |1,00,000 |By Adjusted P L A/c [Premium] |5,000 | |   |2,05,000 |   |2,05,000 | Debentures A/c |Particulars |Rs. |Particulars |Rs. | |To Cl. Balance C/d |2,00,000 |By Op. Balance B/d |1,00,000 | |   |   |By Cash A/c [Issued] [Trf to Funds Flow |1,00,000 | | |Stnt. ] | | |   |2,00,000 |   |2,00,000 | Step 3: Adjusted Profit and Loss A/c |Particulars |Rs. |Particulars |Rs. | |To Loss on Machinery |15,000 |By Balance C/d |1,10,000 | |To Depreciation A/c |70,000 |By Funds from Operation [Balancing Fig. ] |3,16,000 | |To Premium on redemption of Pref. Shares |5,000 |   |   | |To dividends on Equity Shares |45,000 |   |   | |To Dividends on Preference Shares |16,000 |   |   | |To Discount on Debentures |5,000 |   |   | |To Balance C/d |2,70,000 |   |   | |   |4,26,000 |   |4,26,000 | Step 4: Funds Flow Statement |Sources |Rs. |Applications |Rs. |Issue of Shares |50,000 |Redemption of Preference Shares |1,05,000 | |Issue of Debentures |1,00,000 |Purchase of Fixed Assets |2,20,000 | |Sale of Machinery |25,000 |Equity Shares Dividends |45,000 | |Funds from Operation |3,16,000 |Preference Shares Dividends |16,000 | |   |   |Investments |50,000 | |   |   |Increase in Working Capital [Balancing |55,000 | | | |Fig. | | |   |4,91,000 |   |4,91,000 | Illustration: Following are the Comparative Balance Sheets of Goodluck Ltd. as at 31st March: BALANCE SHEET |Liability |1997 |1998 |Asset |1997 |1998 | | |Rs. |Rs. | |Rs. |Rs. | |Share Capital |10,00,000 |11,00,000 |Goodwill |50,000 |40,000 | |Debentures |5,0 0,000 |3,00,000 |Land |4,20,000 |6,60,000 | |Gen. Reserves |2,00,000 |2,00,000 |Machinery |6,00,000 |8,00,000 | |P L A/c |1,10,000 |1,90,000 |Stock |2,50,000 |2,10,000 | |Prov. for Tax |40,000 |1,10,000 |Debtors [Good] |3,00,000 |2,40,000 | |Creditors |50,000 |40,000 |Preliminary Exp’s |30,000 |20,000 | |Bills Payable |20,000 |30,000 |Cash |3,00,000 |24,000 | |Prov. or Doubtful debts |30,000 |24,000 |   |   |   | | |19,50,000 |19,94,000 |   |19,50,000 |19,94,000 | Additional Information: 1. During the year 1998, a part of machine costing Rs. 7,500 [accumulated depreciation thereon being Rs. 2,500] was sold for Rs. 3,000. 2. Income tax of 1997 was paid in 1998 Rs. 40,000. This is to be disclosed in the Funds statement. 3. Depreciation on Machinery for 1998 was provided at Rs. 50,000 Prepare: 1. A Statement of changes in Working Capital. 2. A Funds Flow Statement. Solution: Step 1: Schedule of changes in Working Capital Particulars |1997 |1998 |Increase [+] |Decrease [-] | |Current Assets |   |   |   |   | |Sto ck |2,50,000 |2,10,000 |   |40,000 | |Debtors |3,00,000 |2,40,000 |   |60,000 | |Cash |3,00,000 |24,000 |   |2,76,000 | |A. Total Current Assets |8,50,000 |4,74,000 |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   |   | |   |   |   |   |   | |Current Liabilities |   |   |   |   | |Creditors |50,000 |40,000 |10,000 |   | |Bills Payable |20,000 |30,000 |   |10,000 | |Prov. for Doubtful debts |30,000 |24,000 |6,000 |   | |B. Total Current Liabilities |1,00,000 |94,000 |   |   | |Working Capital [A – B] |7,50,000 |3,80,000 |   |   | |Decrease in Working capital |   |3,70,000 |3,70,000 |   | |Total |7,50,000 |7,50,000 |3,86,000 |3,86,000 | Step 2: Ledger Accounts for all Non-Current Assets and Liabilities Goodwill A/c |Particulars |Rs. |Particulars |Rs. | |To Op. Balance B/d |50,000 |By Adjusted P L A/c |10,000 | | | |[Goodwill written-off] | | |   |   |By Cl. Balance C/d |40,000 | | | |[6,20,000 + 1,90,000] | | |   |50,000 |   |50,000 | Land A/c |Particulars |Rs. |Particulars |Rs. | |To Op. Balance B/d |4,20,000 |By Cl. Balance C/d |6,60,000 | |To Cash A/c [Purchases] [Trf. o Fund flow |2,40,000 |   | | |Stnt. – Bal. Fig. ] | | | | |   |6,60,000 |   |6,60,000 | Preliminary Expenses A/c |Particulars |Rs. |Particulars |Rs. | |To Op. Balance B/d |30,000 |By Adjusted P L A/c [Written off] |10,000 | |   |   |By Cl. Balance C/d |20,000 | |   |30,000 |   |30,000 | Share Capital A/c |Particulars |Rs. |Particulars |Rs. | |To Cl. Balance C/d |11,00,000 |By Op. Balance B/d |10,00,000 | |   |   |By Cash a/c [Issue of Shares] [Trf. to Fund|1,00,000 | | | |Flow    Stnt. – Balancing Fig. | | |   |11,00,000 |   |11,00,000 | Machinery A/c |Particulars |Rs. |Particulars |Rs. | |To Op. Balance B/d |6. 00,000 |By Cash A/c [Sale] [Transfer to Fund Flow |3,000 | | | |Stnt] | | |To Cash A/c [Purchases] [Trf. to Fund flow |2,57,500 |By Revised P L A/c [Depreciation] |50,000 | |Stnt. – Bal. Fig. | | | | |   |   |By Revised P L A/c [Depreciation] |2,500 | |   |   |By Adjusted P L A/c |2,000 | | | |[Loss on sale] | | |   |   |By Cl. Balance C/d |8,00,000 | |   |8,57,500 |   |8,57,500 | Debentures A/c |Particulars |Rs. |Particulars |Rs. |To Cash A/c [Redemption] |2,00,000 |By Op. Balance B/d |5,00,000 | |[Transfer to Fund Flow Stnt] | | | | |To Cl. Balance C/d |3,00,000 |   |   | |   |5,00,000 |   |5,00,000 | Provision for Tax A/c |Particulars |Rs. |Particulars |Rs. | |To Cash A/c [Income Tax Paid] |40,000 |By Op. Balance B/d |40,000 | |[Transfer to Fund Flow Stnt] | | | | |To Cl. Balance C/d |1,10,000 |By Adjusted P L A/c |1,10,000 | | | |[Prov. made Balancing Fig. ] | | |   |1,50,000 |   |1,50,000 | General Reserve A/c |Particulars |Rs. |Particulars |Rs. | |To Cl. Balance C/d |2,00,000 |By Op. Balance B/d |2,00000 | |   |2,00,000 |   |2,00,000 | Step 3: Adjusted Profit and Loss A/c |Particulars |Rs. |Particulars |Rs. | |To Provision for Tax |1,10,000 |By Balance C/d |1,10,000 | |To Preliminary Exp’s written-off |10,000 |By Funds from Operation [Balancing Fig. ] |2,64,500 | |To Depreciation on Machinery |50,000 |   |   | |To Depreciation on Machinery |2,500 |   |   | |To Loss on sale of Machinery |2,000 |   |   | |To Goodwill written-off |10,000 |   |   | |To Balance C/d |1,90,000 |   |   | |   |3,74,500 |   |3,74,500 | Step 4: Funds Flow Statement |Sources |Rs. |Applications |Rs. |Sale of Machinery |3,000 |Purchase of Land |2,40,000 | |Issue of Shares |1,00,000 |Purchase of Machinery |2,57,500 | |Funds from Operation |2,64,500 |Redemption of Debentures |2,00,000 | |Decrease in Working Capital [Balancing |3,70,000 |Income Tax paid |40,000 | |Fig. ] | | | | |   |7,37,500 |   |7,37,500 | Illustration: Following is the   Balance Sheet of Tayco as on December 31st, 1998 and 1999: BALANCE SHEET |Liability |1998 |1999 |Asset |1998 |1999 | | |Rs. |Rs. | |Rs. |Rs. |Share Capital |2,00,000 |2,50,000 |Land Bldng. |2,00,000 |1,90,000 | |Gen. Reserves |50,000 |60,000 |Machinery |1,50,000 |1,69,000 | |P L A/c |30,500 |30,600 |Stock |1,00,000 |74,000 | |Bank Loan |70,000 |- |Sdry. Debtors | 80,000 |64,200 | |Sundry Creditors |1,50,000 |1,35,200 |Cash |500 |600 | |Prov. or Taxation |30,000 |35,000 |Bank |- |8,000 | |   |   |   |Goodwill |   |5,000 | |   |   |   |   |   |   | |   |5,30,500 |5,10,800 |   |5,30,500 |5,10,800 | Additional Information: 1. During the year ended December 1999: a. Dividend of Rs,23,000 was paid and b. Asseets of another Company were purchased for a consideration of Rs. 50,000 payable in Shasres. 2. The following Assets were purchased: a. Stock Rs. 20,000. b. Machinery Rs. 25,000, additional purchase Rs. 8,000. c. Depreciation written-off on Machinery Rs. 12,000. d. Income tax paid during the year Rs. 33,000 e. Loss on sale of machine Rs. 200 was written-off to   General Reserve You are required to prepare the Statement of Fund Flow Solution: Step 1: Schedule of changes in Working Capital |Particulars |1997 |1998 |Increase [+] |Decrease [-] | |Current Assets |   |   |   |   | |Stock |1,00,000 |74,000 |   |26,000 | |Sdry. Debtors |80,000 |64,200 |   |15,800 | |Cash |500 |600 |100 |   | |Bank |- |8,000 |8,000 |   | |A. Total Current Assets |1,80,500 |1,46,800 |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   |   | |Current Liabilities |   |   |   |   | |Sdry

Thursday, March 12, 2020

A narrativerave of Brave New World by Aldous Huxley essays

A narrativerave of Brave New World by Aldous Huxley essays The novel Brave New World by Aldous Huxley is a narrative of the "new world order" of the future human society. The future, according to the novel, is a "perfect" human society wherein live birth, pregnancy, and human display of emotions are considered taboo, while perfectionism and rationalism devoid of any emotions is the social ideal of an individual. Brave New World contemplates the condition of human society if the conventional becomes unconventional, and vice versa. Take as an example the process of pro-creation among humans. Live birth is no longer the norm, and artificial birth is the preferred method in the society. In the process of artificial conception and birth, people are identified into various groups, wherein groupings are determined according to the individual's intelligence, skills, and talents. People generated from live and artificial births are also categorized: those who were born through artificial means are considered part of the society, while those who were born through live birth are discriminated against. The process of artificial births to produce "quality" humans that have superior skills, talents, and intelligence can be likened to the current method of assembly lines commonly applied by manufacturing companies. The assembly line concept is similar to Huxley's idea of segregation of humans through artificial conception and birth, since both processes (assembly line and artificial births) aim to produce "quality products" by assigning people to control and look over the process every step of the way. However, to compare the processes of conception and birth in Huxley's novel to the concept of assembly line is too simplistic and not applicable at all, since humans are not products that are made' in order to achieve perfection. Humans are created mainly for the purpose of pro- creationthat is, perpetuate human society...

Tuesday, February 25, 2020

The Actors's Nightmare and The 15 Minute Hamlet Essay

The Actors's Nightmare and The 15 Minute Hamlet - Essay Example ay, Christopher Ferdinand Durang is an American playwright, who is known for humor based works, which dealt with important and even controversial issues in an absurd as well as outrageous way. Although, he has been coming up with popular works from the 1980s, his works are achieving immense critical as well as commercial success from late 1990s into 2000s. Some of his best known works through the last three decades includes Sister Mary Ignatius Explains It All For You, Baby With the Bathwater, The Nature and Purpose of the Universe, Titanic, The Idiots Karamazov, Laughing Wild, Naomi in the Living Room, etc, etc. His latest play of Vanya and Sonia and Masha and Spike got the Tony Award for the Best Play for the year 2013. As mentioned above, his plays often dealt with sensitive as well as controversial issues like homosexuality, child abuse, religious activities, etc., in a critical way. As pointed out above, the play was written and performed in early 1980s, and it mainly reflected the experiences of the actors including Durang, particularly how they will react, if they forget their lines while performing on the stage. In 1980s, stage plays garnered sizable audience, more than the current times, and so the pressure was always on the actors to perform without miss every time. With Durang himself being an actor, who have also faced the ‘actors’ nightmare’ of forgetting the lines, this play reflected author’s personal experiences as well as the professional pressure faced by the actors in those times. In addition, with the issues like homosexuality and child abuse coming into the public domain in 1980s, more than the previous decades, Durang’s plays were maximally relevant to those times. â€Å"There was a time in the 1980s when Christopher Durangs absurdist dark comedies turned up on every stage in Central Florida, and audiences wer e used to his tales of dysfunctional parochial-school students and nuns with guns.† (Maupin). Durang’s take on these