Why Learning Essay Writing is So Boring Sometimes and How to Deal with It

Why Learning Essay Writing is So Boring Sometimes and How to Deal with It Why Learning Essay Writing is So Boring Sometimes and How to Deal with It? We consummately get it: some of the time learning exposition composing is only a wheeze fest. Each time you plunk down to investigate some data on the best way to compose either kind of paper, your one eye begins to flicker gradually. Also, when you get to searching for information on the given theme, that’s when all the â€Å"fun† comes out. However, why precisely does this occur? Learning should be intriguing, isn't that so? The most far reaching explanation behind article composing being exhausting is that the errands are confined from the real world. Forming a paper about the life of Abraham Lincoln? Please, what can be more â€Å"entertaining†. This article will find you a line of work in a high development startup! (or if nothing else at library). Yet, kidding aside, you can’t leave the circumstance like that in light of the fact that regardless of what you think, exposition composing aptitudes are significant for your future. Furthermore, we have a few thoughts on how it tends to be transformed into an energizing and testing task. Swim Against the Stream You don’t fundamentally need to adhere to the standard presentation body-determination structure showed by a burger. There is an explanation you read off blog articles or your preferred writers the greater part of your spare time †they utilize extraordinary procedures to connect with the peruser. For instance, bloggers apply snares to get the crowd intrigued while fiction scholars use anticipation, flawless portrayal, etc. Along these lines, discover progressively about these procedures and have a go at utilizing them in your composition! Include More of Yourself For what reason do you compose 3-4 posts day by day via web-based networking media however can’t cause yourself to make a 400-word article? Since they are associated with you, your inclinations and inclinations. Along these lines, make your scholastic papers individual as well. Portray your experience, undertakings or examinations, and it will be a lot simpler to spill everything out on the paper. Go Creative Find some new fascinating methodologies for yourself! Make a paper for your preferred film character emulating their style of discourse, or of somebody so bodacious like Kanye West. It won’t just make the entire procedure substantially more energizing, yet in addition will show that you are not a thoughtless machine that consequently creates a standard paper. You can get innovative! Envision That You Are at Oprahs You will be exceptionally astonished how this methodology can change the substance of your article. Create a paper on a given subject. At that point, envision yourself going to the Oprah’s and advising about it to show’s open. Would they be intrigued? All things considered, we question that and you do as well. Along these lines, figure how might you change your composition with the goal that this kind of crowd might want it. Do you have to include a few jokes? Feel free. Does your exposition need progressively inquisitive realities? Surf the Internet and incorporate them too. Do whatever is required for you to like this exposition as well. Its consistently essential to have a fabulous time while doing even such genuine undertakings as finishing scholarly composing assignments. In this way, ensure you don’t pass up that. This was you won’t feel exhausted by any means. At our administration we compose articles for cash without any preparation. We employed an ideal group of article essayists to deliver top-quality exceptionally composed papers.

An Alternative Theory of Economics Essay

Financial matters is typically characterized as the issue of how best to appropriate constrained assets, restricted on the grounds that needs are portrayed as boundless, yet presence of mind discloses to us that as opposed to constrained assets, there is a wealth of assets. The thing that matters is one of point of view and this is center to any elective comprehension of financial aspects. In the event that needs are the center, at that point obviously assets are constrained by definition, yet on the off chance that base needs or fundamentals are utilized as the establishment, at that point assets are believed to be copious. The thing that matters is between a depiction and a clarification. An emphasis on needs or wants portrays a market circumstance, while an attention on fundamentals or requirements permits a clarification of decisions to start. It is important to move the premise of monetary hypothesis away from presumptions of shortage and onto that of the truth of high creation if a sane clarification is to be found concerning why certain exercises are gainful and others, regardless of their attractive quality on social or good grounds, are definitely not. This starts with the understanding that a plenitude of assets implies that not all need to work gainfully and that some utilization a larger number of assets than others. Who will be the fortunate ones and how to keep the unfortunate calm is essential to the running of most economies. Wealth is consequently a monetary issue on the grounds that the decisions opened up by having a larger number of assets than is carefully expected to live presents a peril to those procedures of creation and the order that some have over assets that made the plenitude in any case. For what reason accomplishes such a great deal squander exists close by such a great amount of destitution on the planet? The conventional presumption of shortage has endure even the amazing degrees of excess of present day economies since this supposition suits the requirements of the individuals who order assets and who like to guarantee that the economy doesn't become democratized; that horrendous errands are finished by another person, that some success and many lose. An Economic hypothesis put together not with respect to shortage yet on wealth is a hypothesis that looks for not to portray conveyance however to clarify decisions. The improvement of such a hypothesis would undermine the strength of those happy with the present techniques for creation and authority over assets. It would do as such by uncovering the decisions made to confine the creation of basics and to occupy assets to the creation of extravagance and style merchandise. A circulation of assets at present named scarcity’.

Summary of Malcolm X Article Example | Topics and Well Written Essays - 250 words

Rundown of Malcolm X - Article Example He recalls that when he was hustling in the city, he was the most powerful speaker around. The difficult currently, is his solitary methods for speaking with the world outside the jail is through composition. So he chose to improve as an author. Malcolm X started by getting a duplicate of the word reference and a couple of clear tablets. He began to duplicate each page of the scratch pad until he had replicated the whole A segment. This activity showed him new words and kept him occupied so he didn't harp on being in jail. He likewise said that his penmanship improved extraordinarily while doing these activities. Because of this new instructive routine, Malcolm X was soon ready to be progressively eloquent in his composed language. This permitted him to compose with certainty. He currently had the option to compose similarly as intensely as he could talk. Malcolm X stated, â€Å"months went without my in any event, contemplating being detained. Truth be told, up to at that point, I never had been so really free in my life.† I like this statement since it shows how freeing training can

Proven Business Writing Services to Increase Your Income

Proven Business Writing Services to Increase Your IncomeThere are many opportunities to offer professional business writing services. Today, there are numerous businesses and organizations seeking for services of writing. People from all over the world are looking for business writing services. There are many reasons to offer business writing services.There are many reasons to offer professional business writing services. The main purpose is to publish creative, professional, and meaningful content. If you wish to be successful in your work, you need to be well-informed about your products and services. It is not advisable to hire low-priced and low-quality writers.Another reason to offer professional business writing services is that you should offer your clients quality content. Your clients should be satisfied and pleased with the work you have produced. Make sure that your clients are satisfied and happy.In order to increase your business, you need to have a well-written and form atted website or blog. Professional business writing services enable you to earn more money by writing well-quality content. It is essential to keep your content updated.If you are someone who wishes to increase your revenue, you should try offering professional writing services. You will be able to provide your clients with a better experience when they hire you to write articles or provide training materials. It is essential that you should set deadlines and write all materials within the given time. Make sure that you offer quality writing and effective content. You should also make sure that your content is attractive and professional.It is also important that you should develop a good reputation with clients in order to be successful in business writing services. Use the right keywords in your content. Research is a must in writing well-researched content. Ensure that your content is both professional and entertaining.When it comes to business writing services, it is important to offer quality content and efficient writing. Do not choose a poor-quality writer. You should consider hiring a professional. You should also pay attention to the deadlines that you have set for your writing.

Support Marijuana Legalization Now! Essay - 1676 Words

Alex, who lives in Oregon, is an 11-year-old boy with severe autism. Jeremy Echols, his father, said that his son Alex was diagnosed when he was 5 years old. When seizures are coming, he becomes a self-destructive boy by banging his head and body against the wall causing bruising. However, since after treatment with marijuana (also called cannabis), Alexs illness was significantly improved. His parents curb his seizures by giving him a liquid form of marijuana by mouth 3 times a week. For Alexs family, the benefits of marijuana are greater than the risks. For us, the long-term side effects that are unknown for something that cant kill him are a lot better than the long-term side effects of him beating himself bloody, his dad said†¦show more content†¦First, opponents of medical marijuana argue that the principal constituent of marijuana is tetrahydrocannabinol (THC), one with more than 60 active ingredients in marijuana, which can bind to cannabinoid receptors on nerve cells and influences them, which are interfering thinking, concentration, memory and cognitive abilities on the brain over time. Thus, marijuana should not be legalized for medical purposes. However, THC in marijuana has medical benefits. A recent study by University of Saskatchewan shows that â€Å"Most ‘drugs of abuse’ suppress neurogenesis. Only marijuana promotes neurogenesis.† The study has also proven that THC in marijuana can protect and promote the growth of new brain cells from inflammation and oxidative stress (Leaf Science, 2014). Also, the Center for Mental Health Research at Australian National University researched on nearly 2000 marijuana users in age 20 to 24. After 8 years, they found that there was a little negative long-term effect on cognition and the brain within marijuana users (Time magazine). In fact, compared to modern pharmaceuticals, marijuana is viewed as a medicinal potential that proved to be more an effective treatment since it is natura l and contains unique chemical compounds as THC. PrescribingShow MoreRelatedMarijuana Decriminalization and Legalization636 Words   |  3 PagesThe validity of marijuana decriminalization (and even legalization) is illustrated in the following analysis of the social, fiscal, political, and medical attributes and conceptions associated with the drug. Marijuana has been used for thousands of years, in 2008; archeologists discovered over two pounds of cannabis in a 2,700-year-old grave of a shaman found in Central Asia. (Armentano, 1) Should marijuana be legalized or at least decriminalized in America? The following information may give theRead MoreLegalization of Marijuana: A Review of the Literature1843 Words   |  7 PagesCalifornia was the first state to pass a marijuana law in 1913 followed by the rest of the states in the nation until the year of 1937, when marijuana became completely illegal at the federal level. (Guither) Before then, marijuana and specifically hemp had man y uses for colonists and farmers and was such a critical crop for a number of purposes, that the government even encouraged its growth. It was not until Henry J. Anslinger saw the Bureau of Narcotics as a fascinating career opportunity thatRead MoreThe Social Benefits of Legalization of Marijuana1459 Words   |  6 Pagesgive the definition of Marijuana that is important for my research. â€Å"Marijuana is a mixture of leaves, stems and flowering tops of the hemp plant.†(Marijuana, 317). Today in most countries soft narcotics and especially narcotics like marijuana are illegal. Marijuana is a misunderstood drug that is thought of as dangerous but it isn’t. Because of people’s ignorance and gullibility marijuana has become illegal for all the wrong reasons and should be re-examined for legalization. Society today cannotRead MoreShould Marijuana Be Legalized? Essay1372 Words   |  6 PagesLegalization of Weed Growing up, everyone is told that, â€Å"Drugs are bad for you,† time and time again. Now as a kid you don’t really understand the reasoning behind it, but you listen to your authority figure regardless. I remember being told this my entire life and even to this very day. But as I got older I realized that people would still use drugs even though it’s illegal. I could never understand why someone would go against the law and jeopardize their life just to use drugs? The drug thatRead MoreIt Is Time to Legalize Marijana1700 Words   |  7 Pagesagain. Now as a kid you don’t really understand the reasoning behind it, but you listen to your authority figure regardless. I remember being told this my entire life and even to this very day. But as I got older I realized that people would still use drugs even though it’’s illegal. I could never understand why someone would go against the law and jeopardize their life just to use drugs? The drug that I am talking about is marijuana, and surprisingly it is all around us. Marijuana is evenRead MoreThe Prohibition Of Marijuana Should Be Banned1693 Words   |  7 Pagesprohibition of Marijuana. Marijuana or Cannabis is a plant that is cultivated in large quantities and is either consumed, smoked, or inhaled to create a certain kind of altered mental and physical effect, which is referred to as a high. Though Marijuana may be considered a dangerous substance to most, it should be legalized because the economic, social, and political standpoints outweigh the negatives and is not as harmful to the United States as perceived. Throughout history, Marijuana was legal butRead MoreShould Marijuana Be Legalized?1449 Words   |  6 PagesSince the first efforts to legalize marijuana in the 1960s, Americans have become progressively more accepting of requests to liberalize laws restricting possession and use of marijuana, but the shift has not been a straight line. After 11 states decriminalized marijuana possession in the 1970s, recoil led by suburban parents led too much harsher implementation of drug laws. But since California legalized medical marijuana in 1996, outlooks toward the drug have relaxed significantly.(A Brief HistoryRead MoreThe Green Need For The Fight For Marijuana Reform1425 Words   |  6 Pagessizeable tax revenues from legalizing marijuana. The fight for marijuana reform has been an ongoing battle, and every time this matter is argued, those voting against marijuana have triumphed. A report on PBS.org titled â€Å"Busted – America’s war of Marijuana† states that sinc e 1937 attempts to criminalize marijuana began to emerge, starting with the Marihuana Tax Act of 1937. This act required an excise tax to be paid in order to have legal possession of marijuana. Eventually, this act was replaced byRead MoreLegalization of Marijuana: the financial, medical, social, and political benefits1349 Words   |  6 Pagesï » ¿Brandon Smith Professor Gregor ENGL 1102 21 April 2014 Legalization of Marijuana: the financial, social, medical, and political benefits. The legalization of marijuana has been a topic of debate for many years. This may be because of the cultural diversity that the United States of America is known for. Recently, bills were passed in Colorado and Washington to implement the legalization and regulation of recreational marijuana use. These events along with the ever growing popularity of theRead MoreLegalize Marijuana; Annotated Bibliography Essay1381 Words   |  6 PagesAnnotated Bibliography on the Legalization of Marijuana Marijuana is the most commonly used illegal substance in United States and in many other countries; this is a statement that seems to be in each article that is written about the legalization of marijuana. This is a subject that has been up for debate for quite a few years now. There are many people who support the legalization of this drug and are strongly convinced that marijuana is not a drug in which one should be punished for, but rather

Strange Grounds Of The Vietnam War - 1757 Words

Strange Grounds Americans in Vietnam 1945-1975 An Oral History This book is a collection of 67 first hand people of the Vietnam war by Americans who were involved. The book begins with an Oss mission to help Ho Chi Minh against the Japanese near the end of World War 2 and ends with the all of a sudden evacuation of Saigon in 1975. The range of people included is immense from grunts in the infantry to gung-ho generals, from anti-war activists visiting North Vietnam to the wives of State Department officials in Saigon. The outcome is a big sweeping sight of the United States involvement with Vietnam over thirty years, but at the same time one with the feeling of immediacy that only such personal accounts can offer. The only thing I didn†¦show more content†¦I really do wish there were some Vietnamese voices to, but this book is pretty big and comprehensive as it is, and probably a separate other book is needed to give enough space to a whole other country and culture. Still some awesome and enlightening point of views, and since it moves kind of quickly between all of these personal accounts, it s super gripping. I thought this was a well thought out selection of interviews with people who brought perspectives on Vietnam from lots of different points of view. This book excels by covering the experiences of other participants particularly the agriculture/education/medical volunteers and the diplomatic/intelligence people. Ameroso s story is inspiring in terms of how much grass roots good could be done with a practical approach to aid. Carter s story is maddening in terms of how bad things actually were in the embassy. I notice that another reviewer of this book takes the author to task for including an interview by a reported fraud. If you re only compiling interviews to construct a book, you owe it to the readers to at least do a little checking up on those you include. Still, there is enough excellent material in this book for me to give it highest marks. After you read a couple of books on the Vietnam War you begin to see the same information being stated over and over again. It gets kind of old after a while. This bookShow MoreRelatedHave You Ever Met A Very Influential Person That Everyone1704 Words   |  7 PagesHave you ever met a very influential person that everyone has a different opinion on? Robert Strange McNamara was the secretary of Defense under John F. Kennedy and Lyndon B. Johnson throughout the 1960s. This was the time period when the United States was involved in the Vietnam War as well and the Cold War against the Soviet Union. In addition, McNamara was hired by the head of the Ford automobile company to help revamp their company. In late 1960, McNamara became the president of the entire FordRead MoreHeterosexual Natural And Homosexual Aberrant Axiom1117 Words   |  5 Pagesheterosexual-natural/homosexual-aberrant axiom, by subjecting them to new and different interpretations. A new and different interpretation of the deconstructed sexual axiom in Vietnam allows white and black GIs to pursue sexual consolation indirectly with each other, where t hey otherwise would not pursue it in America. The new and different interpretations of the racial and sexual binaries also expose the primary violence that creates binaries and accommodates the human desire for transcendenceRead MoreTim OBrians How to Tell a True War Story of the Things They Carried889 Words   |  4 Pageswell-known fact that war changes people; there is an innocence that is forever lost. They go to war as young men and return from war as thirsty butchers. The sweetheart of the song Tra bong is not about the war or Mary Anne but it is about how Mary Anne embraced and adopted to her surrounding while everyone else ignored every single detail. Although Mary Anne felt at peace with herself and transformation, she was also disconnected from the real world. Mary Anne was smuggled into Vietnam by her boyfriendRead MoreFiction or Nonfiction, War Has the Same Effect Essays863 Words   |  4 PagesA true war story is not always true. Some would say a true war story is an experience from war. Others, who came from war, would say they make up stories to make war seem crazier than it really is. Tim O’Brian states that the story is fiction, but the moral is true. Tracy Kidder had written war stories based on his time in Vietnam, and his book is rated as nonfiction, even though he admits that some war stories are made up. Contained within The Things They Carried, is a story by a man named MitchellRead MoreThe Things They Carried By Tim O Brien1661 Words   |  7 Pageswith ways to respect and remember the dead. In foreign Vietnam, the soldiers deal with cultural differences and work to find a middle ground. In the book, Tim O’Brien illustrates how morality manages to survive amidst the gore of the Vietnam War. During the Vietnam War 25% of total forces were draftees (National Vietnam Veterans). While they were a quarter of total U.S. forces in Vietnam, they accounted for 30% of causalities (National Vietnam Veterans Foundation). In the book, kindness exists inRead MoreThe Discovery of a Time Capsule1640 Words   |  7 Pagespeople as well as their culture. It cannot be said for sure who buried the time capsule and for what purpose. The time capsule was safe enough to keep the records for historical records. The time capsule we found had some interesting and some strange items in it. It indicated about the social, political and technological situation of the country. ITEMS IN TIME CAPSULE Back in history, there were not electric portable devices to keep track of history. Only a few details could be saved in theRead MoreThe American Civil War And The Vietnam War1561 Words   |  7 Pagesnever, never believe any war will be smooth and easy, or that anyone who embarks on the strange voyage can measure the tides and hurricanes he will encounter. The statesman who yields to war fever must realize that once the signal is given, he is no longer the master of policy but the slave of unforeseeable and uncontrollable events.† - Sir Winston Churchill. Throughout history, men have fought battles to protect and serve for their country. Some men become injured at war and others don t get toRead MoreToo Much to Bear in The Things They Carried by Tim O’Brien1003 Words   |  4 Pagesbetter not to be loved, but to lead. The emotional obligation that the soldiers had to take responsibility for were augmented by their lack of experience and young age. It is hard to come to grips with the fact that most of the men who combated in Vietnam were in their late teen and early twenties. These men were college students, children, and young guys who had an insufficient perspective on how to come to terms with killing or death. When O’Brien describes a figurative burden the soldiers carryRead MoreMy Lack Of Knowledge On Vietnam1730 Words   |  7 PagesDue to my lack of knowledge on Vietnam I did not understand some the main ideas that Doung Thu Houng addresses in Paradise of the Blind, such as the importance of family. The interactive oral helped me understand the reasons why Que and Aunt Tam had altars to honor their ancestors. I found it strange that they had altars for their dead relatives, where they offered food to them. I found it odd because in the Ethiopian culture I was raised upon we do not have ancestral alters or worship our ancestorsRead More Comparing Joseph Conrads Heart of Darkness and Francis Ford Coppolas Apocalypse Now2104 Words   |  9 Pagesdisturbing film centered on the Vietnam War. Because it was based on Joseph Conrads novella Heart of Darkness, it is possible to draw some parallels between the two. Both can be interpreted as metaphors for a journey through the inner self, and each has its own singular message to convey. Apocalypse Now very perspicuously depicts the fact that men have hearts of darkness, and it explores the evils of war. At the same time, however, it seemingly glorifies some aspects. The anti-war sequences were often brutal

Financial Statement Analysis Solutions free essay sample

Horizontal analysis examines how a particular item on a financial statement such as sales or cost of goods sold behaves over time. Vertical analysis involves analysis of items on an income statement or balance sheet for a single period. In vertical analysis of the income statement, all items are typically stated as a percentage of sales. In vertical analysis of the balance sheet, all items are typically stated as a percentage of total assets. By looking at trends, an analyst hopes to get some idea of whether a situation is improving, remaining the same, or deteriorating. Such analyses can provide insight into what is likely to happen in the future. Rather than looking at trends, an analyst may compare one company to another or to industry averages using common-size financial statements. 16-3Price-earnings ratios reflect investors’ expectations concerning future earnings. The higher the price-earnings ratio, the greater the growth in earnings investors expect. For this reason, two companies might have the same current earnings and yet have quite different price-earnings ratios. By definition, a stock with current earnings of $4 and a price-earnings ratio of 20 would be selling for $80 per share. 16-4A rapidly growing tech company would probably have many opportunities to make investments at a rate of return higher than stockholders could earn in other investments. It would be better for the company to invest in such opportunities than to pay out dividends and thus one would expect the company to have a low dividend payout ratio. 16-5The dividend yield is the dividend per share divided by the market price per share. The other source of return on an investment in stock is increases in market value. Financial leverage results from borrowing funds at an interest rate that differs from the rate of return on assets acquired using those funds. If the rate of return on the assets is higher than the interest rate at which the funds were borrowed, financial leverage is positive and stockholders gain. If the return on the assets is lower than the interest rate, financial leverage is negative and the stockholders lose. 16-7If the company experiences big variations in net cash flows from operations, stockholders might be pleased that the company has no debt. In hard times, interest payments might be very difficult to meet. On the other hand, if investments within the company can earn a rate of return that exceeds the interest rate on debt, stockholders would get the benefits of positive leverage if the company took on debt. 16-8The market value of a share of common stock often exceeds the book value per share. Book value represents the cumulative effects on the balance sheet of past activities, evaluated using historical prices. The market value of the stock reflects investors’ expectations about the company’s future earnings. For most companies, market value exceeds book value because investors anticipate future earnings growth. 16-9A 2 to 1 current ratio might not be adequate for several reasons. First, the composition of the current assets may be heavily weighted toward slow-turning and difficult-to-liquidate inventory, or the inventory may contain large amounts of obsolete goods. Second, the receivables may be low quality, including large amounts of accounts that may be difficult to collect. Exercise 16-1 (15 minutes) 1. This Year Last Year Sales 100. 0 % 100. 0 % Cost of goods sold 62. 3 58. 6 Gross margin 37. 7 41. 4 Selling and administrative expenses: Selling expenses 18. 5 18. 2 Administrative expenses 8. 9 10. 3 Total selling and administrative expenses 27. 4 28. 5 Net operating income 10. 3 12. 9 Interest expense 1. 2 1. 4 Net income before taxes 9. 1 % 11. 5 % 2. The company’s major problem seems to be the increase in cost of goods sold, which increased from 58. 6% of sales last year to 62. 3% of sales this year. This suggests that the company is not passing the increases in costs of its products on to its customers. As a result, cost of goods sold as a percentage of sales has increased and gross margin has decreased. This change has been offset somewhat by reduction in administrative expenses as a percentage of sales. Note that administrative expenses decreased from 10. 3% to only 8. 9% of sales over the two years. However, this decrease was not enough to completely offset the increased cost of goods sold, so the company’s net income decreased as a percentage of sales this year. Exercise 16-2 (30 minutes) 1. Calculation of the gross margin percentage: 2. Calculation of the earnings per share: 3. Calculation of the price-earnings ratio: 4. Calculation of the dividend payout ratio: 5. Calculation of the dividend yield ratio: Exercise 16-2 (continued) 6. Calculation of the return on total assets: Beginning balance, total assets (a) $45,960 Ending balance, total assets (b) 50,280 Average total assets [(a) + (b)]/2 $48,120 7. Calculation of the return on common stockholders’ equity: Beginning balance, stockholders’ equity (a) $31,660 Ending balance, stockholders’ equity (b) 34,880 Average stockholders’ equity [(a) + (b)]/2 33,270 Average preferred stock 2,000 Average common stockholders’ equity $31,270 8. Calculation of the book value per share: Exercise 16-3 (30 minutes) 1. Calculation of working capital: Current assets $25,080 Current liabilities 10,400 Working capital $14,680 2. Calculation of the current ratio: 3. Calculation of the acid-test ratio: 4. Calculation of accounts receivable turnover: Beginning balance, accounts receivable (a) $ 9,100 Ending balance, accounts receivable (b) 12,300 Average accounts receivable balance [(a) + (b)]/2 $10,700 5. Calculation of the average collection period: Exercise 16-3 (continued) 6. Calculation of inventory turnover: Beginning balance, inventory (a) $8,200 Ending balance, inventory (b) 9,700 Average inventory balance [(a) + (b)]/2 $8,950 7. Calculation of the average sale period: Exercise 16-4 (15 minutes) 1. Calculation of the times interest earned ratio: 2. Calculation of the debt-to-equity ratio: Exercise 16-5 (15 minutes) 1. The trend percentages are: Year 5 Year 4 Year 3 Year 2 Year 1 Sales 125. 0 120. 0 115. 0 110. 0 100. 0 Current assets: Cash 60. 0 80. 0 96. 0 130. 0 100. 0 Accounts receivable 190. 0 170. 0 135. 0 115. 0 100. 0 Inventory 125. 0 120. 0 115. 0 110. 0 100. 0 Total current assets 142. 1 133. 7 120. 3 112. 6 100. 0 Current liabilities 160. 0 145. 0 130. 0 110. 0 100. 0 2. Sales: The sales are increasing at a steady and consistent rate. Assets: The most noticeable thing about the assets is that the accounts receivable have been increasing at a rapid rate—far outstripping the increase in sales. This disproportionate increase in receivables is probably the chief cause of the decrease in cash over the five-year period. The inventory seems to be growing at a well-balanced rate in comparison with sales. Liabilities: The current liabilities are growing more rapidly than the total current assets. The reason is probably traceable to the rapid buildup in receivables in that the company doesn’t have the cash needed to pay bills as they come due. Exercise 16-6 (20 minutes) 1. Return on total assets: 2. Return on common stockholders’ equity: Average stockholders’ equity: ($2,200,000 + $2,400,000)/2 $2,300,000 Average preferred stock 900,000 Average common stockholders’ equity (b) $1,400,000 3. Leverage is positive because the return on common stockholders’ equity (14. 9%) is greater than the return on total assets (9. 8%). This positive leverage arises from the long-term debt, which has an after-tax interest cost of only 8. 4% [12% interest rate ? (1 – 0. 30)], and the preferred stock, which carries a dividend rate of only 8%. Both of these rates of return are smaller than the return that the company is earning on its total assets; thus, the difference goes to the common stockholders. Exercise 16-7 (30 minutes) 1. Gross margin percentage: 2. Current ratio: 3. Acid-test ratio: 4. Debt-to-equity ratio: 5. Average collection period: Exercise 16-7 (continued) 6. Average sale period: 7. Times interest earned: 8. Book value per share: Exercise 16-8 (20 minutes) 1. Earnings per share: 2. Dividend payout ratio: 3. Dividend yield ratio: 4. Price-earnings ratio: Exercise 16-9 (20 minutes) 1. Return on total assets: 2. Return on common stockholders’ equity: 3. Financial leverage was positive because the rate of return to the common stockholders (12. 7%) was greater than the rate of return on total assets (9. 2%). This positive leverage is traceable in part to the company’s current liabilities, which may have no interest cost, and in part, to the bonds payable, which have an after-tax interest cost of only 7%. 10% interest rate ? (1 – 0. 30) = 7% Exercise 16-10 (15 minutes) 1. Current assets (Kr90,000 + Kr260,000 + Kr490,000 + Kr10,000) Kr850,000 Current liabilities (Kr850,000 ? 2. 5) 340,000 Working capital. Notes due in one year 30,000 Accrued liabilities 20,000 Total current liabilities (b) 200,000 Working capital (a) – (b) $300,000 b. Computation of the current ratio: c. Computation of the acid-test ratio: Problem 16-11 (continued) 2. The Effect on Working Current Acid-Test Transaction Capital Ratio Ratio (a) Issued capital stock for cash Increase Increase Increase (b) Sold inventory at a gain Increase Increase Increase (c) Wrote off uncollectible accounts None None None (d) Declared a cash dividend Decrease Decrease Decrease (e) Paid accounts payable None Increase Increase (f) Borrowed on a short-term note None Decrease Decrease (g) Sold inventory at a loss Decrease Decrease Increase (h) Purchased inventory on account None Decrease Decrease (i) Paid short-term notes None Increase Increase (j) Purchased equipment for cash Decrease Decrease Decrease (k) Sold marketable securities at a loss Decrease. Selling and administrative expenses 13. 1 12. 6 Net operating income 9. 4 8. 1 Interest expense 1. 4 1. 7 Net income before taxes 8. 0 6. 4 Income taxes 2. 4 1. 9 Net income 5. 6 % 4. 5 % 3. The following points can be made from the analytical work in parts (1) and (2) above: a. The company has improved its profit margin from last year. This is attributable primarily to an increase in gross margin, which is offset somewhat by a small increase in operating expenses. Overall, the company’s income statement looks very good. b. The company’s current position has deteriorated significantly since last year. Both the current ratio and the acid-test ratio are well below the industry average and are trending downward. At the present rate, it will soon be impossible for the company to pay its bills as they come due. c. The drain on the cash account seems to be a result mostly of a large buildup in accounts receivable and inventory. Notice that the average age of the receivables has increased by five days since last year, and now is 10 days over the industry average. Many of the company’s customers are not taking their discounts because the average collection period is 28 days and collections terms are 2/10, n/30. This suggests financial weakness on the part of these customers, or sales to customers who are poor credit risks. Problem 16-12 (continued) d. The inventory turned only five times this year as compared to over six times last year. It takes nearly two weeks longer for the company to turn its inventory than the average for the industry (73 days as compared to 60 days for the industry). This suggests that inventory stocks are higher than they need to be. e. In the authors’ opinion, the loan should be approved only if the company gets its accounts receivable and inventory back under control. If the accounts receivable collection period is reduced to about 20 days, and if the inventory is pared down enough to reduce the turnover time to about 60 days, enough funds could be released to substantially improve the company’s cash position. Then a loan might not even be needed. Problem 16-13 (60 minutes) This Year Last Year 1. a. Net income $280,000 $196,000 Less preferred dividends 20,000 20,000 Net income remaining for common (a) $260,000 $176,000 Average number of common shares (b) 50,000 50,000 Earnings per share (a) ? (b) $5. 20 $3. 52 b. Dividends per share (a) $1. 80 $1. 50 Market price per share (b) $40. 00 $36. 00 Dividend yield ratio (a) ? (b) 4. 5% 4. 2% c. Dividends per share (a) $1. 80 $1. 50 Earnings per share (b) $5. 20 $3. 52 Payout ratio (a) ? (b) 34. 6% 42. 6% d. Market price per share (a) $40. 00 $36. 00 Earnings per share (b) $5. 20 $3. 52 Price-earnings ratio (a) ? (b) 7. 7 10. 2 Investors regard Sabin Electronics less favorably than other companies in the industry. This is evidenced by the fact that they are willing to pay only 7. 7 times current earnings for a share of Sabin’s stock, as compared to 12 times current earnings for other companies in the industry. If investors were willing to pay 12 times current earnings for Sabin’s stock, it would be selling for about $62. 40 per share (12 ? $5. 20), rather than for only $40 per share. Problem 16-13 (continued) This Year Last Year e. Total stockholders’ equity $1,600,000 $1,430,000 Less preferred stock 250,000 250,000 Common stockholders’ equity (a) $1,350,000 $1,180,000 Number of common shares outstanding (b) 50,000 50,000 Book value per share (a) ? (b) $27. 00 $23. 60 The market value is above book value for both years. However, this does not necessarily indicate that the stock is overpriced. The stock’s downside risk seems small because it is now selling for only 7. 7 times earnings to 12 times earnings for other companies in the industry. In addition, its earnings are strong and trending upward, and its return on common equity (20. 6%) is extremely good. Its return on total assets (12. 1%) compares well with that of the industry. The risk, of course, is whether the company can get its cash problem under control. Conceivably, the cash problem could worsen, leading to an eventual reduction in profits through inability to operate, a discontinuance of dividends, and a precipitous drop in the market price of the company’s stock. This does not seem likely, however, because the company has borrowing capacity available, and can easily control its cash problem through more careful management of accounts receivable and inventory. The client must understand, of course, that there is risk in the purchase of any stock; the risk seems well justified in this case because the upward potential of the stock is great if the company gets its problems under control. Problem 16-14 (90 minutes) This Year Last Year 1. a. Net income $  Ã‚  Ã‚  Ã‚  Ã‚  840,000 $  Ã‚  Ã‚  Ã‚  504,000 Add after-tax cost of interest: $360,000 ? (1 – 0. 30) 252,000 $300,000 ? (1 – 0. 30) 210,000 Total (a) $  Ã‚  1,092,000 $  Ã‚  Ã‚  Ã‚  714,000 Average total assets (b) $15,990,000 $13,920,000 Return on total assets (a) ? (b) 6. 8% 5. 1% b. Net income $? 840,000 $  ? 504,000 Less preferred dividends 144,000 144,000 Net income remaining for common (a) $? 696,000 $  ? 360,000 Average total stockholders’ equity $  9,360,000 $  9,084,000 Less average preferred stock 1,800,000 1,800,000 Average common equity (b) $  7,560,000 $  7,284,000 Return on common stockholders’ equity (a) ? (b) 9. 2% 4. 9% c. Leverage is positive for this year because the return on common equity (9. 2%) is greater than the return on total assets (6. For last year, leverage is negative because the return on common equity (4. 9%) is less than the return on total assets (5. 1%). Problem 16-14 (continued) This Year Last Year 2. a. Net income remaining for common [see above] (a) $696,000 $360,000 Average number of common shares outstanding (b) 75,000 75,000 Earnings per share (a) ? (b) $9. 28 $4. 80 b. Dividends per share (a) $2. 88 $1. 44 Market price per share (b) $72. 00 $40. 00 Dividend yield ratio (a) ? (b) 4. 0% 3. 6% c. Dividends per share (a) $2. 88 $1. 44 Earnings per share (b) $9. 28 $4. 80 Dividend payout ratio (a) ? (b) 31. 0% 30. Market price per share (a) $72. 00 $40. 00 Earnings per share (b) $9. 28 $4. 80 Price-earnings ratio (a) ? (b) 7. 8 8. 3 Notice from the data given in the problem that the typical P/E ratio for companies in Lydex Company’s industry is 10. Since Lydex Company presently has a P/E ratio of only 7. 8, so investors appear to regard it less well than they do other companies in the industry. That is, investors are willing to pay only 7. 8 times current earnings for a share of Lydex Company’s stock, as compared to 10 times current earnings for a share of stock for the typical company in the industry. Stockholders’ equity $9,600,000 $9,120,000 Less preferred stock 1,800,000 1,800,000 Common stockholders’ equity (a) $7,800,000 $7,320,000 Number of common shares outstanding (b) 75,000 75,000 Book value per share (a) ? (b) $104. 00 $97. 60 Problem 16-14 (continued) Notice that market value of common stock is below its book value for both years. This does not necessarily indicate that the stock is selling at a bargain price. Market value reflects investors’ expectations concerning future earnings, whereas book value is a result of already completed transactions and is geared to the past. This Year Last Year Gross margin (a) $3,150,000 $2,580,000 Sales (b) $15,750,000 $12,480,000 Gross margin percentage (a) ? (b) 20. 0% 20. 7% This Year Last Year 3. a. Current assets $7,800,000 $5,940,000 Current liabilities 3,900,000 2,760,000 Working capital $3,900,000 $3,180,000 b. Current assets (a) $7,800,000 $5,940,000 Current liabilities (b) $3,900,000 $2,760,000 Current ratio (a) ? (b) 2. 0 2. 15 c. Quick assets (a) $3,660,000 $3,360,000 Current liabilities (b) $3,900,000 $2,760,000 Acid-test ratio (a) ? (b) 0. 94 1. 22 d. Sales on account (a) $15,750,000 $12,480,000 Average receivables (b) $2,250,000 $1,680,000 Accounts receivable turnover (a) ? (b) 7. 0 7. 4 Average collection period, 365 days ? turnover 52. 1 days 49. 3 days Problem 16-14 (continued) This Year Last Year e. Cost of goods sold (a) $12,600,000 $9,900,000 Average inventory balance (b) $3,150,000 $2,160,000 Inventory turnover ratio (a) ? (b) 4. 0 4. 6 Average sale period, 365 days ? Inventory turnover ratio 91. 3 days 79. 3 days f. Total liabilities (a) $7,500,000 $5,760,000 Stockholders’ equity (b) $9,600,000 $9,120,000 Debt-to-equity ratio (a) ? (b) 0. 78 0. 63 g. Net income before interest and income taxes (a) $1,560,000 $1,020,000 Interest expense (b) $360,000 $300,000 Times interest earned (a) ? (b) 4. 3 3. 4 4. Both net income and sales are up from last year. The return on total assets has improved from 5. 1% to 6. 8%, and the return on common equity is up from 4. 9% to 9. 2%. But this is the only bright spot. Virtually all other ratios are below what is typical of the industry, and, more important, they are trending downward. The deterioration in the gross margin percentage, while not large, is worrisome. Sales and inventories have increased substantially. Ordinarily, this should result in an improvement in the gross margin percentage due to fixed costs being spread over a greater number of units. However, the gross margin percentage has declined. Notice particularly that the average collection period has lengthened to 52 days—about three weeks over the industry average. One wonders if the increase in sales was obtained at least in part by extending credit to high-risk customers. Notice also that the debt-to-equity ratio is rising rapidly. If the $3,000,000 loan is granted, the ratio will rise further to 1. 09. What the company probably needs is more equity—not more debt. Therefore, the loan should not be approved. The company should be encouraged to issue more common stock to provide a broader equity base on which to operate. Problem 16-15 (30 minutes) 1. Lydex Company Comparative Balance Sheets This Year Last Year Current assets: Cash 5. 6 % 8. 5 % Marketable securities 0. 0 2. 0 Accounts receivable, net 15. 8 12. 1 Inventory 22. 8 16. 1 Prepaid expenses 1. 4 1. 2 Total current assets 45. 6 39. 9 Plant and equipment, net 54. 4 60. 1 Total assets 100. 0 % 100. 0 % Current liabilities 22. 8 % 18. 5 % Note payable, 10% 21. 1 20. 2 Total liabilities 43. 9 38. 7 Stockholders’ equity: Preferred stock, 8%, $30 par value 10. 5 12. 1 Common stock, $80 par value 35. 1 40. 3 Retained earnings 10. 5 8. 9 Total stockholders’ equity 56. 1 61. 3 Total liabilities and equity 100. 0 % 100. 0 % Problem 16-15 (continued) 2. Lydex Company Comparative Income Statements This Year Last Year Sales 100. 0 % 100. 0 % Cost of goods sold 80. 0 79. 3 Gross margin 20. 0 20. 7 Selling and administrative expenses 10. 1 12. 5 Net operating income 9. 9 8. 2 Interest expense 2. 3 2. 4 Net income before taxes 7. 6 5. 8 Income taxes (30%) 2. 3 1. 7 Net income 5. 3 % 4. 0 %* *Due to rounding, figures may not fully reconcile down a column. The company’s current position has declined substantially between the two years. Cash this year represents only 5. 6% of total assets, whereas it represented 10. 5% last year (cash + marketable securities). In addition, both accounts receivable and inventory are up from last year, which helps to explain the decrease in the cash account. The company is building inventories, but not collecting from customers. (See Problem 16-14 for a ratio analysis of the current assets. ) Apparently a part of the financing required to build inventories was supplied by short-term creditors, as evidenced by the increase in current liabilities. Looking at the income statement, as noted in the solution to the preceding problem there has been a slight deterioration in the gross margin percentage. Ordinarily, the increase in sales (and in inventories) should have resulted in an increase in the gross margin percentage because fixed manufacturing costs would be spread across more units. Note that the selling and administrative expenses are down as a percentage of sales—possibly because many of them are likely to be fixed. Problem 16-16 (45 minutes) Effect on Ratio Reason for Increase, Decrease, or No Effect 1. Decrease Declaring a cash dividend will increase current liabilities, but have no effect on current assets. Therefore, the current ratio will decrease. 2. Increase A sale of inventory on account will increase the quick assets (cash, accounts receivable, marketable securities) but have no effect on the current liabilities. For this reason, the acid-test ratio will increase. The same effect would result regardless of whether the inventory was sold at cost, at a profit, or at a loss. That is, the acid-test ratio would increase in all cases; the only difference would be the amount of the increase. 3. Increase The interest rate on the bonds is only 8%. Since the company’s assets earn at a rate of return of 10%, positive leverage would come into effect, increasing the return to the common stockholders. 4. Decrease A decrease in net income would mean less income available to cover interest payments. Therefore, the times-interest-earned ratio would decrease. 5. Increase Payment of a previously declared cash dividend will reduce both current assets and current liabilities by the same amount. An equal reduction in both current assets and current liabilities will always result in an increase in the current ratio, so long as the current assets exceed the current liabilities. No Effect The dividend payout ratio is a function of the dividends paid per share in relation to the earnings per share. Changes in the market price of a stock have no effect on this ratio. Problem 16-16 (continued) Effect on Ratio Reason for Increase, Decrease, or No Effect 7. Increase A write-off of inventory will reduce the inventory balance, thereby increasing the turnover in relation to a given level of sales. 8. Decrease Sale of inventory at a profit will increase the assets of a company. The increase in assets will be reflected in an increase in retained earnings, which is part of stockholders’ equity. An increase in stockholders’ equity will result in a decrease in the ratio of assets provided by creditors as compared to assets provided by owners. 9. Decrease Extended credit terms for customers means that customers on the average will be taking longer to pay their bills. As a result, the accounts receivable will â€Å"turn over,† or be collected, less frequently during a given year. 10. Decrease A common stock dividend will result in a greater number of shares outstanding, with no change in the underlying assets. The result will be a decrease in the book value per share. 11. No Effect Book value per share is dependent on historical costs of already completed transactions as reflected on a company’s balance sheet. It is not affected by current market prices for the company’s stock. 12. No Effect Payments on account reduce cash and accounts payable by equal amounts; thus, the net amount of working capital is not affected. 13. Decrease The stock dividend will increase the number of common shares outstanding, thereby reducing the earnings per share. Problem 16-16 (continued) Effect on Ratio Reason for Increase, Decrease, or No Effect 14. Decrease Payments to creditors will reduce the total liabilities of a company, thereby decreasing the ratio of total debt to total equity. 15. Decrease A purchase of inventory on account will increase current liabilities, but will not increase the quick assets (cash, accounts receivable, marketable securities). Therefore, the ratio of quick assets to current liabilities will decrease. 16. No Effect Write-off of an uncollectible account against the Allowance for Bad Debts will have no effect on total current assets. For this reason, the current ratio will remain unchanged. 17. Increase The price-earnings ratio is obtained by dividing the market price per share by the earnings per share. If the earnings per share remains unchanged, and the market price goes up, then the price-earnings ratio will increase. 18. Decrease The dividend yield ratio is obtained by dividing the dividend per share by the market price per share. If the dividend per share remains unchanged and the market price goes up, then the yield will decrease. Problem 16-17 (30 minutes) a. It is becoming more difficult for the company to pay its bills as they come due. Although the current ratio has improved over the three years, the acid-test ratio is down. Also notice that the accounts receivable and inventory are both turning more slowly, indicating that an increasing portion of the current assets is being made up of these items, from which bills cannot be paid. b. Customers are paying their bills more slowly in Year 3 than in Year 1. This is evidenced by the decline in accounts receivable turnover. c. The total of accounts receivable is increasing. This is evidenced both by a slowdown in turnover and in an increase in total sales. d. The level of inventory undoubtedly is increasing. Notice that the inventory turnover is decreasing. Even if sales (and cost of goods sold) just remained constant, this would be evidence of a larger average inventory on hand. However, sales are not constant, but rather are increasing. With sales increasing (and undoubtedly cost of goods sold also increasing), the average level of inventory must be increasing as well to service the larger volume of sales. e. The market price is going down. The dividends paid per share over the three-year period are unchanged, but the dividend yield is going up. Therefore, the market price per share of stock must be decreasing. f. The amount of earnings per share is increasing. Again, the dividends paid per share have remained constant. However, the dividend payout ratio is decreasing. In order for the dividend payout ratio to be decreasing, the earnings per share must be increasing. g. The price-earnings ratio is going down. If the market price of the stock is going down [see Part (e) above], and the earnings per share are going up [see Part (f) above], then the price-earnings ratio must be decreasing. h. In Year 1 and in Year 2 there was negative leverage because in both years the return on total assets exceeded the return on common equity. Because the quick assets (cash and accounts receivable) total $400,000 of this amount, the inventory must be $480,000. h. Therefore, the cost of goods sold for the year must be $2,730,000. i. Gross margin = $4,200,000 – $2,730,000 = $1,470,000. j. Problem 16-18 (continued) k. The interest expense for the year was $80,000 and the interest rate was 10%, the bonds payable must total $800,000. l. Total liabilities = $320,000 + $800,000 = $1,120,000 m.