Depreciation affects cash flow by reducing the amount of cash a business must pay in income taxes. 3. Calculate the current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company’s liquidity position in 2013? AS the current and quick ratios both went down over the past year, I am concerned that the company liabilities may be rising faster than assets and we may not be able to liquidate assets quickly enough to cover debt, if necessary.
The restatement results from the lack of payments received by certain Chinese customers for shipments already accounted for (Savitz, 2011). Previously, AMSC recognized revenues once customers received shipments not once payment was received. In the case of Chinese customer Sinovel Wind Group, AMSC stated that they should have used the cash-based method of accounting for shipments after September 30, 2010 (Fredette, 2011). This improper recognition of revenue by AMSC will negatively affect previously reported earnings. The adjustments for 2010, 3rd quarter earnings will reduce to $98 million, down from $101.5 million, and 4th quarter will be reduced to $43 million from $114.2 million (Savitz, 2011).
The Chinese had traditionally been at par with their European counterparts in terms of knowledge, skills and technology since the middle ages. In fact, China had more advanced technology and resources in the tenth century compared to Europe, which at that time had deteriorated after the demise of the Roman and Greek Empires. Landes therefore provides an argument as to why China, with its mighty population, expansive territorial dominion and wealth, failed to surge ahead of Europe and the West in terms of development. Landes argues that China had a chance not only to create a long-term, self-sufficient practice of technological and scientific progression based on its native cultural institutions, but also to discover new information from technology and science presented by the Europeans early in the sixteenth century. China failed to utilize these two potentially progressive and transformational avenues.
The One Child Policy Under the Chinese History In the early period after the founding of the People's Republic of China, Chairman Mao believed that a strong nation should have a large population. However, with the development of society, China suffered many problems causing from the large population. The one-child policy was adopted in 1979, in response to the growing population. In the essay “The Little Emperors”, Daniela Deane points out several negative effects of the one-child policy, such as the “millions of abortions, fewer girls and a generation of spoiled children”(65). However, Chinese history has effected people’s mind and habits, so the one-child policy is not the only reason that causes these problems; in other words, the one-child policy effectively reduce the Chinese population.
It also allows for assessment against the Asian average and World average and our own British culture as benchmarks. Hofstede Comparison: UK, Germany, China Asian Average and World Average [pic] Comparison of Germany and China [pic] Power Distance Index Germany 35 LOW China 80 HIGH Individualism Germany 67 HIGH China 66 LOW Masculinity Germany 66 HIGH China 66 HIGH Uncertainty Avoidance Germany 65 HIGH China 30 LOW Long Term Orientation Germany 31LOW China 118 HIGH Power Distance Index – PDI Power Distance measures equality of power in society and how much people are willing to allow or give in to superiority. Countries with high scores tend to operate with power being given to the top few, with little room for lower rank intervention. Low scoring countries either spread power through delegation or encourage input from more levels of society. Germany
The strength of the Aussie dollar impacts on exporting, metal prices effect profits, and a slowdown in the global economy will reduce the demand (particularly from China) for the metal produced in BH. The BH mine recently made 440 employees redundant which had a huge effect on the local economy and saw many families leave the region in search of employment Ageing Population: BH has an ageing population which in the short term has a positive effect through construction of aged
Additionally, the continuously increasing steel prices leading to higher production costs and impacting product’s margin. Other players initiated price war (price differential of 5 to 10 % of Fortis discounted prices) while Fortis refused to continuously cut its prices, which caused Fortis to lose market share to its competitors. Increasing price sensitiveness of Fortis customers, decreasing market share coupled with low production utilization (70%) is increasing more and more pressure on Fortis to lower prices. In addition to its standard “4-8-14” discount, Fortis can apply price-flex strategy in order to selectively meet lower competitor prices. Question 3) Fortis marketing strategy focuses on value-added service to customers.
How has Aurora Textile performed over the past four years? Be prepared to provide financial ratios that present a clear picture of Aurora’s financial condition. Exhibit 1 shows Income statement of Aurora Textile Company for the fiscal years 1999-2000. As mentioned in the introduction, Aurora had remained main efficient plants by reducing inefficient operations, but its sales show downward trend and in 2002, it decreased about 40% to compare performance in 1999. Due to the fact that Asian and other foreign textile manufacturers have been exported aggressively and consumer preferences are requiring higher-quality products with minimum defects, like other firms, Aurora tends to produce small amount of yarns produced with minimal period and provide to customized markets.
Since the 4.5 million is just an expected amount of fuel, J&L cannot achieve a perfect hedge in the future. They should estimate the accurate demand for fuel next year. 2. What are the pros and cons of using NYMEX contracts versus using the risk-management products offered by Continental Bank? Is the use of a monthly average price a net advantage or disadvantage to J & L?
• These all factors are affected by high inequality. • High inequality also reduces people accessibility towards resources even it threatens the political condition of the economy, discourages the behavior of people towards individuals or enterprises and this become the hinder towards economic growth. • If we talk about countries which have high growth but low living standard then I will prefer countries like India and China in both the countries there growth rate is rising but there standard of living is not that much high. • GNP is the value of product and services by a labor and property which is supplied by the people of that country and it is calculated in one year but it is not considered the way on which the wealth is distributed .in case of underdeveloped countries only one percent of the population is maybe controlling 80 percent wealth. • Economy may be expand and by this GNP increase at high rate but the people may not experience any of the change or rise in their living