Textbook Prices Annotated Bibliography Example | Topics and Well Written Essays - 1000 words

Textbook Prices - Annotated Bibliography Example Allen, Nicole. â€Å"A Cover to Cover Solution: How Open Textbooks are the Path to Textbook Affordability.† The Student PIRGs. Public Information Resource Group, Sep. 2010. Web. 10 July 2011. In this lengthy article, Allen details a study she conducted to determine if open textbooks are a logical way to make student textbooks more affordable. Considering â€Å"the average student spends $900 on textbooks annually,† she thinks â€Å"the need for solutions is increasingly urgent† (Allen 4). She goes into some detail around what she calls â€Å"market failure that hinders the economic checks and balances that naturally regulate costs† (6) as the reason publishers charge so much. Other reasons include issuing new editions every â€Å"3-4 years regardless of changes in the subject† (6) and bundling books with software or study guides most professors do not require students to use. She cites that the federal government is aware there is a problem with textbook costs and is doing several things to help students, including requiring publishers â€Å"disclose textbook prices to professors during the marketing process† (7). She introduces the idea of open source textbooks, which are â€Å"offered online under an open-source license that allows free digital access, low-cost print options and customization by instructors† (8) and says that over 1000 college professors are currently using this option (8). The remainder of the study looks at student preferences and finds that 75% of students still prefer printed copies over electronic copies (9) and 34 % would still rather buy at least some of their textbooks rather than rent them (10). In Allen’s final recommendations, she encourages the further development of open textbooks by publishers and their use by students (16). This article does a great job providing enormous detail to explain the costs each year to students of traditional textbooks versus the savings of open textbooks. It also shows that students are not yet ready to make the move to electronic, online books. It is also important to note that the group that funded the study, PIRG, has been involved in mu ltiple protests against textbook companies for what it claims are price gouging practices. 2. Bernard, Tara Siegel. â€Å"For Class, Book Deals.† New York Times 15 Jan. 2011 late edition: B5. Access World News. Web. 10 July 2011. Bernard’s article looks at ways students can save money by buying their books in places other than the campus bookstore by compiling suggestions from college students around the country. She points out that when it comes to buying textbooks â€Å"there are so many options, however, that the whole process can begin to feel like the semester’s first research project† (Bernard B5). Bernard lists several comparison sites, where students can enter a needed title on one site and it will automatically search several sites for a cost comparison of the exact book needed, but she also points out that the â€Å"condition of the books varies greatly† (5). Students may also find that international versions of books can be half the pric e of U.S. versions, but her source warns â€Å"some publishers have made small changes to the pagination or text to make it more difficult to use in the United States† (5). Overall, Bernard does a good job of quickly explaining options to students to help save money, but nothing in this article explains why textbooks are so expensive or gives an opinion on what colleges can do to help students with their high book bills. 3. Bruno, Laura. â€Å"College Books for Less.† USA Today 17 Aug. 2010 final edition: 6D. News Bank. Web. 10 July 2011. Bruno’s article looks at a rental solution to high textbook costs that over 1300 colleges have implemented across the U.S. with â€Å"potential savings up to 50% off the price of a new textbook† (Bruno 6D). The article also mentions the Higher Education Opportunity Act that â€Å"says colleges must list required course materials for students during registration,†

Marketing Analysis Assignment Example | Topics and Well Written Essays - 1000 words

Marketing Analysis - Assignment Example Nevertheless, the discussion of the assignment endeavours to identify the key elements of marketing mix approach by analysing these and provides effective recommendations in relation to the primary objective of commencing bicycle shop in the growing market of Oxford. The overview of the current bicycle shop business industry in the UK has long been witnessed to attain major growth since the preceding few decades. In relation to the emerging trends, the bicycle business industry in the UK has been apparently witnessed to accomplish 8.5% growth in the year 2012 (Reed Business Media, 2013). In the context of size, the cycling market of Oxford is noted to gain continuous development especially across the locations adjacent to the universities and other educational areas (Farrelly, 2014). According to the recent observation of the market, the size of the cycling market in Oxford is mainly covered by a wide range of demographics including the income level, gender along with current social status of the customers (Grous, 2011). Correspondingly, the emerging trend of using bicycle by the students and other customer groups in an immense manner is also noted to ensure a major opportunity for the marketers to successfully attain their desired commercial goals (Association of the European Two-Wheeler Parts’ Accessories’ Industry, 2012; Transport for London, 2010). It is worth mentioning that the aspects including strong social inclusion and greater focus on environmental protection related interests of the customers can be duly regarded as the major external environment factors leading to increase the demand of bicycle in Oxford (Nielsen, 2010). The recent trend regarding the use of bicycle in Oxford has been viewed to experience continuous development. In relation to an in-depth observation, it is evident that the city of Oxford along with its surrounding areas are experiencing continuous growth due to the usage of bicycles for different purposes. The

Critical apraisal Essay Example | Topics and Well Written Essays - 2000 words

Critical apraisal - Essay Example The article is pertinent as this particular segment of society faces lot of problems related to stress and depression resulting in health problems that adversely affects their work and employment scope. The article, ‘A randomized controlled trial of combined exercise and psycho-education for low-SES women: Short- and long-term outcomes in the reduction of stress and depressive symptoms’ by Waerden et al., is a study that was conducted on 161 Dutch low SES women with a moderately high stress level or depressive symptoms between September 2005 and May 2008. It helped evaluate the impact of interventions on their stress and depression. The group based program was divided into three categories: E or exercise only; EP or exercise with psycho education; and WLP or waiting list control condition where participants were randomly assigned. The study highlighted 8 weeks intervention with follow up after 2, 6 and 12 months respectively. It revealed that E and EP showed stress reduction in women with low education achievement. The findings are important as this group can be targeted for reducing stress and depressive symptoms. The study has a clear statement of goals and articulates its importance within the designated target group. The main objective of the research is to evaluate the ‘effects of multidisciplinary preventive intervention aimed at reducing stress and depressive symptoms among low-SES women’ (Waerden, et al. 85). The research is important because it addresses the gap of combining exercise with psycho social approaches for low SES women. It is highly relevant because low SES women often do not engage in preventive measures for stress or depression. Moreover, the studies so far have been accompanied by lot of questionnaires and feedbacks that required verbal skills and home assignments which have served as

Compare the structure and activities of a public sector or not for Assignment

Compare the structure and activities of a public sector or not for profit organisation with a similar organisation in the privat - Assignment Example INTRODUCTION Private sector and public sector organizations differ in the way they are managed and operated. The way they are structured helps to facilitate goal achievement. This report compares the Reserve Bank of Australia (RBA) with Westpac Banking Corporation (Westpac). Reserve Bank of Australia RBA is Australia’s central bank. The objectives of the Bank are set out in its policies – ensuring that the monetary and banking policies are advantageous to the people of Australia (Reserve Bank of Australia 3). In so doing the policies of the bank are designed to ensure stability of Australia’s currency, facilitate full employment; and contribute to economic prosperity and welfare of the Australian people. RBA has a Governor and Deputy Governor as well as a number of boards, committees, groups and departments. They all have their relevant functions which facilitate the proper management of the Bank. The structure of the organization is shown in the organization cha rt in Appendix 1. The Boards include the Reserve Bank Board and the Payments System Board. The Reserve Bank Board has responsibility for monetary and banking related polices while the Payments Systems Board is responsible for polices relating to the payments system. The Governor is the Chairman for both Boards with the Deputy Governor as Deputy Chairman for the Reserve Bank Board. The committees of RBA include the Executive Committee; the Audit Committee; the Remuneration Committee; and the Risk Management Committee. The forum for discussions among heads of functional departments and the Governor and Deputy Governor is provided by the executive committee. The audit committee is chaired by a non-executive board and this should help facilitate the level of independence that is required of members of this committee. The Remuneration Committee is also a committee of the Reserve Bank Board and is drawn from the non-executive members of that Board. The Risk Management Committee is chaired by the Deputy Governor and its responsibility is that of identifying and managing those risks that are not policy related, across the bank. The Groups consists of the Banking and Payments Group; the Corporate Services; the Currency; the Economic; the Financial Markets; and the Financial System Groups. All of these groups have one or more departments that fall under their remit. They provide a range of services for institution. The Banking and Payments Group consists of two departments – the Banking Department and the Payments Settlements Department. The function of the Banking Department includes the provision of a special range of banking and registry services to the departments of the Australian Government, overseas central banks and official institutions. The Payments and Settlements Department on the other hand has the responsibility of settling high valued payments and inter-bank obligations which result ‘from the conduct of Exchange Settlement Accounts andâ€℠¢ the RBA’s own trading activities. Other responsibilities of the Bank and Settlement Department include the operations of the Reserve Bank Information and Transfer System (RITS) which is Australia’s real time gross settlement (RTGS) system. RBA’s Corporate Services Group consists of the Facilities Management Department; the Financial Administration Department; and the Systems and Technology Department (Reserve Bank of

The Advantages Of Studying Abroad Education Essay

The Advantages Of Studying Abroad Education Essay The development of the society is going towards a globalised world where the social, cultural and traditional differences between people are becoming less distinguishable. One of the key factors which has largely influenced in the development of peoples way of understanding and analysing social and cultural values is education which has taken an important place in the new century. Education is an essential foundation for personal, social and economic success in a globalised economy (OECD 2008). International studies are becoming the new trend of young people as a way to expend their education beyond their traditional education style and their everyday world (Spiering and Ericson 2006). Johnson and Mulholland (2006) consider international education as an opportunity to increase the awareness of the people about the culture of the world which can contribute in creating individuals with a broader understanding of issues concerning todays society rather than limiting them in the scope of home educational system. In this point of view, studying abroad students gain the opportunity to learn more about world affairs and increase their acceptance of other countries regardless of the differences in culture or language. Moreover studying in a foreign directly benefits in learning a new language. Pellegrino (1997) argues that study abroad is one of the most effective ways of becoming proficient in a new language. Students who chose to spend a certain amount of time in a country the language they are willing to learn is spoken, have the opportunity to interact with native speakers a fact which would directly influence in the improvement of their linguistic and sociolinguistic skills to achieve real communicative goals, and to experience the tangible and visible manifestations of the culture of the country (Pellegrino 1997). Individuals who have studied abroad in foreign language often demonstrate cognitive development, creative thinking which surpass the abilities of individuals who have educational experiences of their home country only (Kinginger 2007). One of the reasons why studying abroad is becoming more important nowadays considering the effects of globalization, is the international job market. Qiang (2003) observes that there is a significant increase in the number of recruitments regarding the international workforce due to globalization process which has caused the education system, especially higher education, not to be strictly viewed in the national context. Mpinganjira (2009) analyses that the need of being competitive in the international job market has influenced many students to look to opportunities to enhance their career prospects through acquiring high quality education with qualifications that are recognised worldwide. OBJECTIVES The aim of this study is to analyse the advantages of studying abroad from the students point of view and to propose some new ways of thinking for students when evaluating the possibility of studying in a foreign country. The hypothesis to be studied is: students in the Southern and Eastern Europe think that high quality of studies can only be achieved through studying in a Western country. In addition the primary and secondary research will attempt to identify some of the factors that influence in the choice of students regarding their studies. Some of the major objectives of this study are: The guiding factors for young people toward choosing a university abroad rather than going in a local university How important is the financial situation in deciding to study in a foreign university What role plays the learning a new language in deciding in which university to go Identify the opinion of students about the influence that a period of studies would have in their personal life and future career MATERIALS AND METHODS The research process was divided into two major parts which contributed in the collection and analyze of the data. The first part included secondary data collection from different sources related to the subject of research. Some of this sources are used in the paper in order to explain different facts regarding to the topic. The second part consisted of primary data collection through a survey which was designed in accordance to the characteristics of the population it was intended for (see Appendices Survey). The survey was distributed to young people (high school and college students) in Korca, Albania by e-mail. It resulted in 25 respondents out of 50 actually delivered or 50% response rate. In order to increase the number of respondents the survey was redistributed to students in Perrotis College completing the intended number of respondents, 50. After the data were collected Microsoft Excel was used in order to organize the data in tables. Afterwards the data were imported to JMP 8 statistical software where the data were analyzed using tables, charts and other statistical analyses figures. RESULTS AND DISCUSSION Characteristics of the population From the analyse of the data using JMP 8 the characteristics of the population were identified. Table 1 contains the full characteristics of the population and the responses retrieved from the survey. No. of partecipants Gender Factors in deciding where to study Would you go to study abroad Why foreign university Advantages of foreign universities Western Universities offer quality 16 male Quality Quality More opportunities personal experience yes 17 male Quality Quality More opportunities quality of studies yes 18 male Quality Quality Excellent experience quality of studies most likely 19 male Quality Quality Couldnt study in my country Language proficiency yes 20 male Quality Quality Couldnt study in my country Language proficiency yes 21 male Quality Quality Couldnt study in my country personal experience yes 22 male Quality Quality Excellent experience quality of studies yes 23 male Quality Quality Excellent experience quality of studies yes 24 male Quality Quality Excellent experience quality of studies yes 25 male Quality Quality Excellent experience multicultural experience most likely 26 male Quality Quality More opportunities multicultural experience yes 27 male Quality Quality More opportunities personal experience most likely 28 male Quality Quality More opportunities multicultural experience most likely 29 male Quality Quality More opportunities quality of studies yes 30 male Cost Cost Excellent experience Language proficiency yes 31 male Cost Cost Excellent experience multicultural experience yes 32 female Location Location Excellent experience personal experience yes 33 female Location Location More opportunities quality of studies most likely 34 female Quality Quality More opportunities quality of studies yes 35 female Quality Quality Excellent experience quality of studies yes 36 female Quality Quality More opportunities multicultural experience yes 37 female Location Location Couldnt study in my country personal experience yes 38 female Quality Quality Excellent experience Language proficiency yes 39 female Quality Quality More opportunities multicultural experience most likely 40 female Cost Cost More opportunities multicultural experience most likely Distributions Age Age of Respondents Figure 1 Frequencies Level Count Prob 17 18 9 0.18000 18 20 11 0.22000 20 22 22 0.44000 22 24 5 0.10000 above 24 3 0.06000 Total 50 1.00000 N Missing 0 5 Levels Figure 1 illustrates the age characteristics of the sample involved in the survey. As it is shown the majority of the respondents belonged in the age group of 20 22 years old which corresponds to the first year of college for many countries. Gender Distribution of the sample by Gender Figure 2 Frequencies Level Count Prob female 19 0.38000 male 31 0.62000 Total 50 1.00000 N Missing 0 2 Levels From figure 2 gender characteristics can be understood. The research has been directed to 50 individuals where 62 % or 31 of the respondents were males while 38% or 19 respondents belonged to female gender. Factors in deciding where to study Important factors which influence the students when choosing where to study. Figure 3 Frequencies Level Count Prob Cost 11 0.22000 Location 3 0.06000 Quality 36 0.72000 Total 50 1.00000 N Missing 0 3 Levels The above figure summarises some of the most important factors which influence the young people by the most when making a decision about the university they are going to be attending. As shown the most important factor in students opinion, is the quality of studies that a university offers or the fame of the university. Would you go to study abroad The students willingness to study abroad Figure 4 Frequencies Level Count Prob I dont know 22 0.44000 No 2 0.04000 Yes 26 0.52000 Total 50 1.00000 N Missing 0 3 Levels When asked about their willingness to continue their studies in a foreign university 52% of the students answered that they would chose a university outside their home country for their studies while, 44% of them answered that their choice would depend on the characteristic of the universities they would go in their country. This part of the questioned sample would go for studies abroad only if the universities in their country would not offer the preferred characteristics for the students. Only 4% of the students answered that they are not considering at all the possibility of studying in a foreign country. Why foreign university Reasons for choosing a foreign university Figure 5 Frequencies Level Count Prob Couldns study in my country 11 0.22000 Exellent experience 18 0.36000 More opportunities 21 0.42000 Total 50 1.00000 N Missing 0 3 Levels The majority of the students think that foreign universities offer more opportunities for their future career, therefore, they would go to study abroad. The other part of the students consider studying abroad as an excellent experience in their lives. On the other hand, the minority of the questioned students would go in a foreign university only if they wouldnt be able to study in their preferred university in their countries. Advantages of foreign universities Advantages of studying abroad Figure 6 Frequencies Level Count Prob Linguage proficiency 5 0.10000 multicultural experience 18 0.36000 personal experience 11 0.22000 quality of studies 16 0.32000 Total 50 1.00000 N Missing 0 4 Levels Regarding to the advantages that the foreign universities offer compared with studying experiences in the home countries, students are approximately equally divided regarding to what they think are the advantages of studying abroad. 36% of the students consider the multicultural aspect of the studies as the most important factor on studying in a foreign university while 32% emphasise the quality of studies in other countries as the main aspect. Also the possibility of personal experiences and opportunity to know yourself better are very important in students evaluation for a university. While the opportunity of learning a new language proficiently is less important. Financial implications of studies Students opinion about the impact of costs associated with studying abroad Figure 7 Frequencies Level Count Prob Agree 14 0.28000 Dissagree 1 0.02000 Dont know 8 0.16000 Strongly agree 27 0.54000 Total 50 1.00000 N Missing 0 4 Levels The biggest part of the students strongly agreed that the cost of studying in a foreign university plays an important role in deciding to go for studies abroad or not. Western Universities offer quality Do western universities offer better quality? Figure 8 Frequencies Level Count Prob most likely 12 0.24000 yes 38 0.76000 Total 50 1.00000 N Missing 0 2 Levels When asked if they think that universities in the Western Europe offer a better quality compared with universities in their own countries, the majority of students, 76% agreed that the universities in the west offer more opportunities for a high quality of studies, while, 24% of them answered that they were not sure on this statement. There were no students to disagree. Contingency Analysis of Western Universities offer quality By Home Country Mosaic Plot Contingency Table Home Country By Western Universities offer quality Count Total % Col % Row % most likely yes Albania 6 12.00 50.00 19.35 25 50.00 65.79 80.65 31 62.00 Bulgaria 0 0.00 0.00 0.00 2 4.00 5.26 100.00 2 4.00 FYROM 3 6.00 25.00 50.00 3 6.00 7.89 50.00 6 12.00 Greece 1 2.00 8.33 12.50 7 14.00 18.42 87.50 8 16.00 Moldova 1 2.00 8.33 50.00 1 2.00 2.63 50.00 2 4.00 Turkey 1 2.00 8.33 100.00 0 0.00 0.00 0.00 1 2.00 12 24.00 38 76.00 50 Tests N DF -LogLike RSquare (U) 50 5 3.7635068 0.1366 Test ChiSquare Prob>ChiSq Likelihood Ratio 7.527 0.1843 Pearson 7.710 0.1730 Discussion In the table above can be observed that the model constraint by the hypothesis has a log-likelyhood of 3.763 while the ChiSquare has a non significant p-value of 0.1843. The hypothesis risen in the beginning that Student from Eastern and Southern Europe think that high quality of studies can only be achieved through studying in a Western country is supported by the values given form the contingency analysis. Therefore the hypothesis is accepted. CONCLUSION

Plastics and Our Environment Essays -- Environmental Impact Ecology Es

Plastics and Our Environment Works Cited Missing Plastics today play an important part in cutting-edge technologies such as the space program, bullet-proof vests and prosthetic limbs, as well as in everyday products such as beverage containers, medical devices and automobiles. Recycled plastics are used to make polymeric timbers for use in picnic tables, fences, and outdoor toys, thus saving natural lumber. Plastic from 2-liter bottles is even being spun into fiber for the production of carpet. They are such a valuable resource, that, as a society, we have become dependent on plastics. It is essential that we develop programs to assure this resource will always be available in the future. Plastics are being used in so many different ways. Whether you are aware of it or not, plastics play and important part in your life. Plastics' versatility allow it to be used in everything from car parts to doll parts, from soft drink bottles to the refrigerators they are stored in. From the car you drive to work in to the television you watch when you get home, plastics help make your life easier and better. So how is it that plastics have become so widely used? How did plastics become the material of choice for so many varied applications? The simple answer is that plastics are the material that can provide the things consumers want and need. Plastics have the unique capability to be manufactured to meet very specific functional needs for consumers. So maybe there's another q...

Case 9: Horniman Horticulture Essay

1. Strengths: – Profitability Ratios: Constant growth from 2002-05, particularly year 2004 and 2005 with impressive growth in revenue with12.5% and 15.5% respectively, much higher than the benchmark just -1.8%. Gross, operating and net profit margin were all performing better than the benchmarks. – Management: Co-owner Bob Brown has been brought up to value a strong work ethic, which he has obtained through his father since at young age by working for his father at the mill. After finishing his study, he returned to the mill and excelled at his job (supervisor) and was highly respected. Bob was a â€Å"people person†, his warm personality made beloved by all customers and employees. Weaknesses: – Activity Ratios: takes increasingly time to receive payments from sales – 51 days year 2005 (far exceeded the benchmark – 22 days). Days of inventory on hand (476 days) has been increased gradually much higher than the benchmark (386 days). Payables turnover (10 days) is too short compared with the benchmark (27 days) and slowly declined as years pass by. – Liquidity problems seen through cash on hand kept decreasing since 2002 and sharply reduced in 2005 probably resulted from the issue that quick payables and slow receivables happened simultaneously every year. Since 2005, they had not reach their target balance of 8% cash over total revenue (fell to 0.9% – 2005) 2. Free cash flow to the owners of the firm (FCFE) for 2005: FCFE = Operating Cash Flow – Change in Net Working Capital – Change in Investments |Operating profit | |100.0 | | − Taxes | |39.2 | | + Depreciation | |40.9 | |Operating cash flow |101.7 | | − Capital expenditure | | (4.5) | | − Increase in NWC | |(156.3) | | Increase in CA |803.3 – 642.9 = 160.4 | | |- Increase in CL |47.3 – 43.2 = (4.1) | | |Free cash flow | |(59.10) | Cash cycle of the business for 2005: CCC = Days Inventory Outstanding (DIO) + Days Sales Outstanding (DSO) – Days Payables Outstanding (DPO) = 476 + 51 – 10 = 517 (days) Using cash: Even though HH had rapidly increased gross profit, operating profit and net profit since 2002, the firm’s cash balance had massively declined from $120,100 (2002) to $9,400 (2005). Increasing in inventory as extending property by 12-acres, with an expected capital expenditure of $75,000 in 2006, HH has also increased their product range by 40%. Therefore cash has been used a lot in this period. The firm’s credit terms have been improved as HH offers longer payment periods for customer (DSO of 51 days), firm’s payment of purchases within 10 days (DPO) to receive a 2% discount, this shows that HH is making payments five times faster than receiving them. DIO is also a concern that HH has a hand in, HH is choosing to focus on more maturing plants, therefore its inventory will naturally be longer than the benchmark, in fact, HH’s lowest end was still 10% over the benchmark. 3. The growth trend would be expected to be stronger in 2006. However the cash deficit is still a significant issue due to both capital expenditure and working capital would be further increased in order to maintain the business expansion. Therefore, they need to work out some financial leverage to solve this problem. |Projected Horniman Horticulture Financial Summary (in thousands of dollars) | | | | | | | | | | |2002 |2003 |2004 |2005 |2006E |20% | |Profit and loss statement | | | | | | | |Revenue |788.50 |807.60 |908.20 |1048.80 |1258.56 | | | Cost of goods sold |402.90 |428.80 |437.70 |503.40 |630.49 | | | |51.10% |53.10% |48.19% |48.00% |50.10% |Percentage of Sales | |Gross profit |385.60 |378.80 |470.50 |545.40 |628.07 | | |SG&A expense |301.20 |302.00 |356.00 |404.50 |482.53 | | | |38.20% |37.39% |39.20% |38.57% |38.34% |Percentage of Sales | |Depreciation |34.20 |38.40 |36.30 |40.90 |37.45 |Average over 4 years | | Operating profit |50.20 |38.40 |78.20 |100.00 |108.09 | | |Taxes |17.60 |13.10 |26.20 |39.20 |42.37 | | | |35.06% |34.11% |33.50% |39.20% |39.20% |Similar as year 2005 | | Net profit |32.60 |25.30 |52.00 |60.80 |65.72 | | | | | | | | | | |Balance sheet | | | | | | | |Cash |120.10 |105.20 |66.80 |9.40 |13.43 | | |Accounts receivable |90.60 |99.50 |119.50 |146.40 |160.24 | | | |11.49% |12.32% |13.16% |13.96% |12.73% |Percentage of Sales | |Inventory |468.30 |507.60 |523.40 |656.90 |763.03 | | | |59.39% |62.85% |57.63% |62.63% |60.63% |Percentage of Sales | |Other current assets |20.90 |19.30 |22.60 |20.90 |20.93 |Average over 4 years | | Current assets |699.90 |731.60 |732.30 |833.60 |957.62 | | |Net fixed assets |332.10 |332.50 |384.30 |347.90 |300.10 | | | Total assets |1032.00 |1064.10 |1116.60 |1181.50 |1257.72 | | | | | | | | | | |Accounts payable |6.00 |5.30 |4.50 |5.00 |5.20 |Average over 4 years | |Wages payable |19.70 |22.00 |22.10 |24.40 |31.41 | | | |2.50% |2.72% |2.43% |2.33% |2.50% |Percentage of Sales | |Other payables |10.20 |15.40 |16.60 |17.90 |21.19 | | | |1.29% |1.91% |1.83% |1.71% |1.68% |Percentage of Sales | | Current liabilities |35.90 |42.70 |43.20 |47.30 |57.80 | | | Net worth |996.10 |1021.40 |1073.40 |1134.20 |1199.92 | | | | | | | | | | |Capital expendit ure |22.00 |38.80 |88.10 |4.50 |75.00 | | |Purchases |140.80 |145.20 |161.20 |185.10 |224.13 | | | |17.86% |17.98% |17.75% |17.65% |17.81% |Percentage of Sales | 4. The company’s accounts-payable policy: Currently the firm’s DSO was 10 days (in order to receive a 2% discount), approx. 2.7 times as fast as the benchmark of 27 days. This policy is not suitable as their current credit terms offered to customer up to 51 days, which is double the benchmark. The firm’s net profit margin was 5.8% (the benchmark is just 2.8% – 2005), so HH does not need to continuously make payment to suppliers early (adversely, HH should take advantage of the offered credit terms allowing firm 30 days to payback for purchased goods), and also HH will also reduce the credit terms even though the sales probably drops, which would leave more cash available for firm as well as the cash cycle will be shorter so that the business will avoid the insufficient liquidity of the cash. If HH does not change the policy, in the long run, the shortage of cash may adversely influence the purchasing power and operating capacity of the business and further business’s profitability. 5. What can the company do to solve its cash problem? – Offers discount payment terms (i.e. 2% discount if payments are received within 10 days): enable HH to collect cash immediately. – Takes advantage of the offered credit terms (allow firm 30 days to payback the purchased goods): keeps more cash for operating activities in long-term period. – Slows down the expansion pace to decrease the capital expenditure. Starts selling product ranges that are not â€Å"instant landscape† plants (as these take a long time to mature and also can eliminate some risks for keeping the plants for longer periods of time – feature of this industry: rely heavily on weather that is unpredictable) – Raising funds: starts financing through debt, also can receive the tax shield benefit on interest payments. Transforms business from sole proprietorship into partnership in effort of not only increasing cash available for business but also receiving contributions of property, labor and skills form partners. 6. Calculate the sustainable growth of the company in 2005: |Sustainable growth = ROA x Leverage x Retention | | |5.36% | |ROA (Net profit / Total assets) | | | |5.15% | |Leverage (Total Assets/Net Worth) | | | |1.04 | |Retention (1- Dividend Payout ratio) | | | |1.00 | |Economic profit = (ROA – Cost of capital) x Total Assets | |-57.35 | |Cost of capital | | | |10.00% | |Total Assets | | | |1181.50 | |Net Worth | | | |1134.20 | The negative economic profit shows that the firm does not earn a sufficient return on capital. The firm is facing their dismissing level of cash and as a result, the negative cash level in the forthcoming years will be clearly observed. As shown above, the majority of the firm’s cash expenditure is held up in inventory (with cash cycle being 517 days compared with the benchmark of 381 days) and account receivables (due to the collection policy). The trade-off that company has to face is an increase in their credit terms. Even though this may reduce the sales volume, the company will probably avoid the risk involved with having a more mature product range.