Financial Reporting Essay Example | Topics and Well Written Essays - 2500 words

Financial Reporting - Essay Example Table of Contents Table of Contents 3 Introduction 4 AASB 101 â€Å"Presentation of Financial Statements† 4 AASB 107 â€Å"Statement of Cash flows† 7 AASB 116 â€Å"Property Plant & Equipment† 8 AASB 138 â€Å"Intangible Assets† 9 AASB 136 â€Å"Impairment of Assets† 10 AASB 137 â€Å"Provisions, Contingent Liabilities and Contingent Assets† 10 AASB 112 â€Å"Income Taxes† 10 AASB 110 â€Å"Events after the Reporting date† 11 Overall evaluation and objectives of reporting 12 Introduction A fair and comprehensive disclosure of information requires that the entity adheres to certain accounting norms. The financial statements of a company must be prepared in conformance with the relevant accounting standards. There are accounting standards which prescribe the accounting treatment of intangible assets, contingent assets, contingent liabilities, presentation of statements etc. The adoption of these accounting standards in the case of Early Learning Services Limited has been reviewed as to whether the company has prepared its financial reports as per the accounting norms. AASB 101 â€Å"Presentation of Financial Statements† The accounting standards to be applied in Australia with effect from January 1, 2005 include International Financial Reporting Standards (IFRSs). International Accounting Standards Board (IASB) issues IFRSs. For reporting periods commencing on or after January 1, 2009 IASB made certain amendments to the IAS 1 ‘Presentation of Financial Statements’. In line with this AASB also made certain amendments to AASB 1 ‘Presentation of Financial Statements’ for enabling IFRS compliance of the reporting entities in Australia. The major changes to this standard as compared to AASB 101 issued in the year 2006 are discussed as under- Making the reporting comprehensive- The revised standard brings in a notion of ‘completeness’ in financial reporting. Previously this standard used the heads ‘balance sheet’ and ‘cash flow statement’ to refer to the two statements. On the other hand the revised standard uses ‘statement of financial position’ and ‘statement of cash flows’ to describe the above statements. As per the new rules an entity has to present comparative information with respect to the previous year. Disclosure relating to changes owners’ equity- Previously AASB 101 required items relating to expenses and income which are not shown as profit or loss to be reported in ‘statement of changes in equity’. The previous standard also required preparation of ‘statement of recognized income and expense’ comprising of profit or loss in the statement of changes in equity, any affects of accounting policy changes and any correction related error. The new amendments require â€Å"owner changes in equity† to be reported separately from â€Å"non-owner change s in equity†. The detail relating to comprehensive income is not permitted to be presented in the â€Å"statement of changes in equity†. The main aim of this is to integrate items with similar characteristics and separate items with varying characteristics to disseminate useful information. Changes relating to â€Å"Other comprehensive income†- As per the revised standard an entity has to make disclosure of income tax relating to each comprehensive income component. This was not required as per previous AASB 101 version. Dividend presentation- As per old AASB 101 the amount of ‘

Leadership approach and style in starbucks

Leadership approach and style in starbucks Q3.In publish statement, the CEO of Starbucks said if they had faith in me and my motives they wouldnt need a union (Seattle times 2.1.2007). What does this statement tell you about the CEOs view of leadership? Making reference to appropriate models and theories of leadership, provide a critical evaluation of the leadership approach and style in Starbucks. Introduction: Starbucks was started in early 70s by three friends and they introduced the beans coffee and its equipment to the market. Howard Schultz was a visionary person and he joined the company as a manger in Starbucks. Howard Schultz had the vision for the company and getting an idea of ready-to-drink coffee in a mug from Italy and introduced it in the Starbucks. He left the company in 1985 and started his own coffee shop with the name of Gironale. He always interested in Starbuck due to its inner capabilities. He bought the company in 1987 when previous owners decided to sell the company. Under Howards supervision and leadership, Starbucks grew rapidly. Schultz received an International Humanitarian Award in 1996. CEOs view of leadership: Many Scholars define leadership differently Leaders are individuals who establish direction for a working group of individuals who gain commitment form this group of members to this direction and who then motivate these members to achieve the directions outcomes (Conger, 1992). Chemers, M. M. (2002) Leadership is a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. CEO of Starbucks always admire people with talent and new ideas, he hired Howard Behar and Orin smith as financial and operational Managers. Starbucks achieved number of milestones under Schultz leadership and became the first private company in North America which provide benefits to part-timers and full-timers. According to the Starbucks CEOs statement If they had faith in me and my motives they wouldnt need a union reflects his powerful communication democratic skills as a leader. Exemplary leaders are devoted to building relationships based on mutual respect and caring (Watson, 1983). The mark of a successful leader is his ability to forecast the business trends and stay ahead of his competitors (Luthans, 1998). CEOs Motives: Howard believes in treating people with respect and dignity. He always cared about his employees and gave them the opportunities to come forward and show their abilities for the company. In 1999, Schultz stepped down from the post of CEO for Smith and continued as chairman and chief global strategist of company. According to Howards, treat people like family and they will be loyal and give their all and on his philosophy Starbucks created different benefit programs for employees including part timers. It consist of stock share plan, work life balance etc. Schultz played a major role in developing an employee ownership program at Starbucks shortly after he bought the company. He introduced Bean Stock plan in which all employees were eligible to get the shares of the company. Make them feel like an owner improved employees performance and to retain them. It boosted employee commitment and maintained low employee turnover (Long, 2002). Leadership Approach and style in Starbucks: For evaluating the approach and style in Starbucks I would like to take the help of some theories based on leadership approach and the style of leadership. According to Vechhio (2000) that Leadership might be based on function of personality or it can be seen as a behavioural category. Leadership is the act of influencing the performance of a prearranged set in its efforts toward goal scenery and goal attainment (Stogdill, 1950). Theories of Leadership Style and Approach: Charismatic leadership According to the researchers Charismatic leaders are those who persuade their followers because they have Unspoken capabilities in their communication or personality etc. researchers says that leaders communicate their ideas in such a way that they encourage their followers to achieve his vision (Jacobsen and House, 1999). According to Conger (1989) charismatic leadership approach is process of creating idea and persistent evaluation of the environment, corresponding vision by motivating and convincing arguments, structuring faith and commitment, attaining the vision by giving employees empowerment, using simple stories etc. Howard Schultz using this approaches provided them better work environment, involved them in decision making and also having a vision for rapid expansion which he communicated to his employees. Transformational Leadership Transformational leaders form a relationship of mutual stimulation and elevation that converts followers into leaders and may convert leaders into moral agents (Burns, 1978). The facts mentioned in case study about Howard Schultz shows that with different qualities of his leadership he was also a transformational leader. Schultz in early expansion of his business he transform a new strategy for the business and keep on introducing new things for the benefit of the company and for its employees. The transformational leaders motivate followers to do more than originally expected. Transformational leadership is consists of four basic components, Idealized influence, inspirational motivation, Intellectual stimulation and Individualized consideration (Bass, 1985). Howard Schultz being a tycoon for the employees, it is likely to attract and motivate workers. In a company people look for its leaders Vision, passion, Decision-making and team building qualities (Vogan, 2007). Understanding the way of leadership we can refer to these approaches: Traits approach: Leaders are born and consists of certain inherited characteristics or personalities traits. The functional approach: Leadership skills can be learned and developed. Leadership as behavioural category: the kind of behaviour of people in leadership and influence on group performance. Style approach: concerned with effects of leadership on those being led. Contingency models: deals with importance of situations. Interactions between the variables involved in leadership situation and behaviour. If we look at the case study we can determine that in Starbucks Howard Schultz approach is more towards functional and style approach as he offered his employees opportunities to become leader and give them learning and development environment to polish their skills to fulfil the goals for the company. Need of a Union: Trade unions are group of people agreed together to achieve shared interests. Union is a blend of the group of employee and the organization. Unions works for their members to defend them from exploitation, collective bargain for wages and work condition, and career development. There is always a need of a union in any trade to preserve the benefits for both company and the employees (Flanders, 1970). Conclusion: According to the case study, Schultz being a leader treats his partners well and provided them with bundles of benefits and helped them in all kinds of problems but on the other hand Schultz did not realise the need of a trade union in the company which can also be beneficial for the company. He sacked every one who tries to join a union it shows that he is also a democratic leader. References: Bass, B. M. (1985). Leadership and Performance Beyond Expectation. New York: Free Press. Bass, B.M. (1990). Bass and Stogdills handbook of leadership. New York: Free Press. Burns, J.M. (1978). Leadership. New York: Harper Row. Chemers, M. M. (2002). Cognitive, social, and emotional intelligence of transformational leadership: Efficacy and Effectiveness. In R. E. Riggio, S. E. Murphy, F. J. Pirozzolo (Eds.), Multiple Intelligences and Leadership. Conger, J. (1992). Learning to Lead. San Francisco: Jossey-Bass. Conger, J. (1989). The Charismatic Leader. San Francisco: Jossey-Bass. Long, R. J. (2002). Strategic Compensation in Canada. 2nd ed. Scarborough, Ontario: Thomson Learning. Flanders, A. (1970). Management and Unions, Faber Faber. Jacobsen, C. and House, R. J. (1999). The rise and decline of charismatic leadership http://leadership.wharton.upenn.edu/1_change/publications/House/Rise%20and20%Decline%20of%20Charismatic%20Leadership%20-%20House.doc. Last accessed 12th July 2009. Patty Vogan, (2007). Five Key Traits of Great Leadership. Stogdill, R. M. (The Ohio State University Columbus, 1950). Leadership, membership and organization. Psychological Bulletin 47, p3. Vecchio, R. P. Organizational Behavior: Core Concepts, Fourth edition, Dryden Press. Question 4: Motivated and committed human resources were the key to success. What strategies has Starbucks used in order to gain the motivation and commitment of its employees? With reference to appropriate theories and models, provide a reasoned discussion of how the company can ensure the levels of motivation and commitment that it needs to succeed in the future? Committed Motivated employee: A lot of present-day authors have defined the concept of motivation. They defined motivation as it is a mental process that gives behaviour purpose and direction (Kreitner, 1995), a propensity to act in a purposive way to attain specific, unmet desires (Buford et al, 1995), an internal drive to satisfy an unsatisfied need (Higgins, 1994) and the will to attain (Bedeian, 1993). Motivation is also stated as the inner strength that makes individuals to attain individual and organizational goals. Earlier employees were used as an extra input into the manufacture of commodities and facilities. However Hawthorne Studies may have changed the way of thinking about employees which was carried out by Elton Mayo from 1924 to 1932. This study shows that employees are not motivated by money only but also their behaviour is linked to their attitudes (Dickson, 1973). In this current age every company need motivated and committed employees to achieve there strategic goals so as the Starbucks. Motivation program in Starbucks: Case study shows that in Starbuck motivated and committed employee have a great importance. Therefore Starbucks always put an extra input to assure recruiting motivated employees and after attaining them. Starbucks offers an interactive structure that encourages employees to commit themselves into their job and achieve a new level of performance. Howard Schultz knew the importance of the benefits to retain the employee that is why he introduced such benefits perks which was highly beneficial of the staff. He gave those benefits for both part and full time employees. According to Pinder (1998), Work motivation is a set of energetic forces that originates both within as well as beyond an individuals being, to initiate work-related behaviour, and to determine its form, direction, intensity, and duration. Starbucks included paid vacation, sick leave, health benefits and stock options. It also offered flexibility in working hours for the workers and one-size fits all benefit for the employees, this benefit was also adopted by different service provider companies. Company also introduced Bean stock program for the employees. Starbucks applies different strategies to hire and attain their employees. Starbucks strategies to gain motivation commitment from its employees: After reviewing the case study, I identified some elements by using Starbucks achieve motivation and commitment from the employee. Selecting the right candidate for the job according to the criteria they have set. Investing on employee training and development and teaching them three main star skills enhance self esteem, listen and knowledge and ask for help. Empowering the employees by involving them in decision making. Giving employees flexible work hours to achieve work-life balance. Feed back system for the employees Equality in the status caption to show every one is equal. Giving them Owner ship by selling company shares to employee and labelling them as partners. As a result Starbucks kept growing in the market and expanded worldwide. Starbucks has low turnover, increase in sale and new openings of stores and good customer care. Theoretical Framework: To understand what motivated employees and how can they motivated was the centre of various researchers. There are five major theories which can make us understand about motivation which are Maslows hierarchy of need theory, Herzbergs two-factor theory, Vrooms expectancy theory, Adams equity theory, and Skinners reinforcement theory. I will discuss Maslows and Hezbergs Theory in context with Starbucks to understand the level of motivation of employees in Starbucks. Maslows Hierarchy of Need Theory If we understand Maslows theory then we come to know that he has discussed five levels of needs of an employee, physiological need, safety, social, ego and self actualisation (Maslow, 1943). According to the Maslow to motivate the employee, fulfil the lower need first and then proceed for the upper need in the hierarchy. Maslow also explained that man is a wanting animal, only an unsatisfied need can motivate its behaviour and the dominant need is the prime motivator of behaviour (Maslow, 1954). Hezbergs two factor theory According to the herzbergs there are two major factors in motivation of the employee: motivators and hygiene. They can also be known as intrinsic factor and extrinsic factor. In intrinsic such as independence, achievement in job and recognition of the work create motivation in employee, in extrinsic or hygiene factor consist on higher pay rate, promotion and penalties like disciplinary action or criticism that can create job dissatisfaction (Hezberg, 1957). In the light of these theories we can determine that Starbucks motivated its employees by empowerment, keeping their social need intact, equality in the company, investing heavily on training and development, rewarding highest pay in industry, giving them number of benefits which motivated employees intrinsically as well as extrinsically. On the other side researcher criticized that employees were not paid for work related injuries, increment was very little. Thus these kinds of factors may decrease the motivation of employees and their performance may reduce which may affect organisation negatively. According to the case study Hr policies are the best in the market and if we look at the employee turnover in Starbucks is far less than the other market turnover. In a survey Employee working in Starbucks more than 70% of the employees was satisfied by the policies in Starbucks. Howard Schultz says that You cant expect your employees to exceed the expectations of your customers if you dont exceed the employees expectations of management (www.starbucks.com) Conclusion: Fact mentioned in the case study shows that the policy of the Starbucks is well formed and beneficial for the company as well as for the employees even in the long run. Assuring the motivated employee is also well organised by the HR department in the company.

Human Cloning :: Essays Papers

Human Cloning Cloning is the reproduction of an organism created non-sexually through the genetic material of another organism (â€Å"Human Cloning†). Although human cloning has not yet happened, many people believe that it should be banned because of ethics and morals involving unnatural birth. Certain religious groups believe that cloning is unethical because it takes over God’s role of creation. Cloning is a new idea to society, and just as in the past, advances in technology and medicine have scared people because of the risks involved. This has made it easy for society to want to avoid what might happen after the process of cloning has started. However, many people do not realize how cloning can positively affect their lives. Cloning is a tremendous technological breakthrough for this century and it is an inevitable advancement for the future. One of the major benefits offered through cloning is towards couples that cannot naturally conceive a child. There are over twelve million Americans at childbearing age who are infertile, which is major problem not only in the United States, but also throughout the world (Hoon). These couples have wasted valuable time and gone through much pain with infertility treatments. Even these treatments are not very dependable and cannot guarantee positive results, so couples are still left without children (â€Å"Benefits†). Cloning embryos allows a couple not only to have a child, but also allows them to pass on their genes (Brown). This solution would provide positive results for all of the infertile couples. This is one of the problems that millions of Americans will have solved through human cloning. Aside from infertile couples, there are many other problems that human cloning will solve for people. Doctors will be able to produce the exact copy of a peoples organs and even their skin (â€Å"Benefits†). This will be a miraculous event for burn victims and those who need organ transplants. Burned victims would be able to replace their skin with artificially produced replacement tissues (Hoon). Cloning organs would save the lives of the millions of Americans waiting for liver and kidney transplants, as well.

Coors Case

Using the Consumer Questionnaire Results, 62. 1% of consumers surveyed has consumed Coors in the past; also 48. 8% liked or strongly liked Coors. We also learned in this questionnaire that 65. 2% bought their beer from supermarkets. From this consumer analysis, Larry could invest in Coors and make his main availability of product at supermarkets. According to the Retailer Questionnaire Results, Coors has the same taste as Miller and Miller Lite, but it is more expensive than the other brands of beer sold. B. Market Share: Using the Table C: The Market Share estimates for a five year span all stay at a constant 8. 7-8. 9%, with consideration there are only a select few brands that Coors is competing with this should not be a problem with growth in the future. C. Investment: Total investment would include the inventory, equipment, warehouse, and land is estimated at $800,000. Larry could also use his trust fund if needed, $500,000 to start an Owner’s Equity Account. D. Cost: (Fixed, Variable, Prices): Fixed Cost for Larry’s new adventure would be $240,000 that includes salaries, equipment depreciation, warehouse depreciation, utilities / telephone, insurance, maintenance / janitorial and miscellaneous expenses. Variable cost would depend on the production level. As for Prices, it is perceived that Coors is high priced but if they were to lower the price to the price of Michelob, there could be an increase of sales. E. Go or No Go: I would have to say Larry should go for Coors Distributorship.

Importance of Strategic Management Essay

1.Functions Of Strategic Management defines the strategies of the organization. The strategy definition is when the organization decides what its objectives are and goes a step further in achieving its goals. The top managers are the one who define the organization strategy, but the company workers put the effort to achieve the goals. 2.The other Functions Of Strategic Management is to develop or form the strategic plans of the firm. The strategic plans are attached to the departments of the organization and may be a certain thing the department may want to achieve for the benefit of the entire organization. For example a sale department may have plans to increase the sale with a certain percentage. To achieve the plan, the sales department may consider promoting the company products or developing a new product. 3.One of the major Functions Of Strategic Management is to instil change in the organization or what is called the strategic implementation. Strategic implementation in an organization is faced with many challenges such as workers refusing to have changes in the organization. At such time, it is difficult for an organization to achieve its goals. However, Functions Of Strategic Management help to come up with a strategy addressing the influential people such that they will be able to motivate other employees into accepting the change. 4.The last main Functions Of Strategic Management is to check or to monitor the success of the strategies already put. Monitoring involves checking if the strategies are performing in accordance to the expectation of the top manager. If the set strategies are not performing as expected, then the problems affecting the success can be addressed and necessary measures put to bring the strategy on track. 1.Strategic management takes into account the future and anticipates for it. 2.A strategy is made on rational and logical manner, thus its efficiency and its success are ensured. 3.Strategic management reduces frustration because it has been planned in such a way that it follows a procedure. 4.It brings growth in the organization because it seeks opportunities. 5.With strategic management organizations can avoid helter & skelter and they can work directionally. 6.Strategic management also adds to the reputation of the organization because of consistency that results from organizations success. 7.Often companies draw to a close because of lack of proper strategy to run it. With strategic management companies can foresee the events in future and that’s why they can remain stable in the market. 8.Strategic management looks at the threats present in the external environment and thus companies can either work to get rid of them or else neutralizes the threats in such a way that they become an opportunity for their success. 9.Strategic management focuses on proactive approach which enables organization to grasp every opportunity that is available in the market.

Pepsico Ethics and Compliance Essays

Pepsico Ethics and Compliance Essays Pepsico Ethics and Compliance Paper Pepsico Ethics and Compliance Paper PepsiCo Ethics and Compliance FIN/370 – Finance for Business PepsiCo Ethics and Compliance PepsiCo Inc. is a world leader in the beverage and snack food industry. Founded in 1965, the company has grown to become a household name. PepsiCo employs more than 285,000 employees worldwide, and has revenues of more than $60 billion (Our History, 2011). PepsiCo prides itself on social and environmental responsibility, and maintains a commitment to ethical business practices. Role of Ethics and Compliance in PepsiCo’s Financial Environment The management at PepsiCo realizes that reputation hinges on adherence to ethical policies as seen in the public eye. Because of this, PepsiCo has interwoven ethics throughout the company’s policies and procedures, its training practices, and its timely and accurate financial reporting. As evidence of such, in 2010 Ethisphere Magazine ranked PepsiCo one of the world’s most ethical companies. The magazine also placed PepsiCo in the top 25% for compliance performance among beverage industry competitors in the Dow Jones Sustainability World Index (Ethisphere, 2010, Sec. 0). PespiCo’s letter to the Shareholders (2010) states, â€Å"our actions- the actions of all our associates- are governed by our Worldwide Code of Conduct†¦the Code and our core values enable us to operate with integrity- both within the letter and the spirit of the law† (p. 102). The letter further states that Pepsi Co is â€Å"committed to providing timely, accurate, and understandable information to their investors† (p. 102). PepsiCo displays its ethical commitment by maintaining strong controls over financial reporting, exerting rigorous business oversight, and requiring strong and effective corporate governance from its board of directors. The company is committed to providing investors with financial results that are â€Å"complete, transparent, and understandable† (Annual Report, 2010, p. 102). To ensure adherence to these ethical principles, PepsiCo employs an independent registered public accounting firm to audit its financial statements and those of its subsidiaries. The firm also audits PepsiCo’s internal control over financial reporting according to the guidelines set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Audits are conducted in accordance with the Public Company Accounting Oversight Board (Annual Report, 2010). PepsiCo has some of the highest standards for maintaining corporate governance. PepsiCo shareholders elect members of its board of directors annually. Outside advisory firms help watch over the company and give advice to the board of directors. Some of the advisory firms include Institutional Shareholder Services and Governance Metrics International. PepsiCo maintains strict company standards and accountability, and holds all employees responsible for their actions. Ethics Training and Code of Conduct PepsiCo conducts regular code of conduct training to keep the company in harmony with legal and ethical compliance. The PepsiCo brand is recognized worldwide, and company leaders are very conscious about maintaining a strong ethical company. PepsiCo’s has translated its code of conduct training into 38 languages, and this tool helps the company maintain the highest ethical behavior worldwide. PepsiCo prides itself on reporting earnings to the shareholders through ethically sound financial statements. PepsiCo demonstrates to the business world a commitment to honesty and compliance with industry standards, along with the stiff regulations of the SEC, Security Exchange Commission. PepsiCo reports all financial dealings and strives to report correct statements to its shareholders (Silverblatt, 2010). Business Ethics Leadership alliance PepsiCo is a member of the Business Ethics Leadership alliance (BELA), an organization committed to raising public awareness of the importance of ethics in business. BELA promotes development of higher standards of corporate compliance and sharing best practices. Other members include Walmart, United Airlines, GE, and McDonald’s. Through BELA, PepsiCo and approximately 50 other companies demonstrate the importance of integrity over a bigger bottom line. To be a member of BELA, a company must be able to prove its dedication to stringent policies to weed out corruption, waste, and demonstrate procedures to lead its employees effectively. BELA’s goals are to affirm a public commitment to certain ethical principles and compliance practices, and to provide public resources for BELA members to uphold their commitment and other companies to follow their lead Ethisphere, 2011). PepsiCo is â€Å"strongly committed to delivering sustained growth through empowered people acting responsibly and building trust† (Worldwide Code of Conduct, 2011, para. 2). Pepsi seeks not only to be a dominant company in the food and beverage industry but also a leader in conducting ethical business behavior. PepsiCo Financial Analysis Financial stateme nts provide management and investors information on the financial health of the organization, and how its assets are financed. They must be clear, unbiased, and conform to generally accepted accounting principles. Ratio analysis of financial data gives insight into the liquidity, asset utilization, profitability, and leverage of an organization. This analysis can be used to compare an organization with its competitors and industry leaders (Mayo, 2007). Current ratio=Current assetsCurrent liabilities Period Ending| Dec 25, 2010| Dec 26, 2009| | | | Total Current Assets | 17,569,000| 12,571,000| Total Current Liabilities | 15,892,000| 8,756,000| Current Ratio | 1. 11| 1. 44| The current ratio in the year ending December 2010 was 23% lower than the previous year. This indicates a reduction of liquidity from the prior year. PepsiCo’s current ratio is lower than the industry average of 1. 2 and the SP 500 average of 1. 4 (Pepsico Inc (PEP. N), 2011). Debt Ratio= Total debtTotal assets Period Ending| Dec 25, 2010| Dec 26, 2009| Total Liabilities | 46,989,000| 23,044,000| Total Assets | 68,153,000| 39,848,000| Debt Ratio | 69%| 58%| The firm’s debt ratio increased 11% in the year ending December 2010 over the previous year. This means that PepsiCo financed more of its assets with debt in 2010. From a shareholders perspective, this can be a positive indicator. Because the firm has not added equity through stock sales, stockholders may expect a larger share of the profits returned as dividends. PepsiCo’s debt ratio is higher than the industry average and the SP 500 average (Pepsico Inc (PEP. N), 2011). Return on Equity ROE= Net incomeOwners equity Period Ending| Dec 25, 2010| Dec 26, 2009| Net Income | 6,320,000| 5,946,000| Total Stockholder Equity | 21,273,000| 16,908,000| Return on Equity | 29. 9%| 35. 4%| PepsiCo experienced a 17. % decline in their ROE from 2009 to 2010. This indicates a reduction in total returns paid to stockholders. Because the net income increased by $374 million and retained earnings increased by nearly $3. 3 billion during the same period, the decreased ROE is likely a result of the increased use of debt rather than equity to finance operations. PepsiCo’s ROE is lower than the industry average of 34. 7, but higher than the SP 500 aver age of 28. 2 (Pepsico Inc (PEP. N), 2011). AR Turns=Total RevenueNet Receivables Period Ending| Dec 25, 2010| Dec 26, 2009| Total Revenue | 57,838,000| 43,232,000| Net Receivables | 6,323,000| 4,624,000| AR Turnover| 9. 15| 9. 35| Days Receivable=365AR Turnover Days| 365| 365| AR Turnover| 9. 15| 9. 35| Days Receivable| 39. 9| 39. 0| | | | Days receivable increased slightly in 2010 to 39. 9. This means that it takes PepsiCo almost a full day longer to collect revenue other companies owe. If this trend were to continue, it could negatively affect PepsiCo’s cash flow. $6. 3 billion in net receivables represents 9% of the company’s total revenue. Compared with the industry average of 35. days, and the SP 500 average of 37. 5 days, PepsiCo could improve in this area (Pepsico Inc (PEP. N), 2011). Conclusion PepsiCo is recognized as an industry leader, and prides itself on making smart business decisions in an ethically sound way. The company has taken a top down approach to ethics, and is making every effort to instill this philosophy in its employees. Although PepsiCo’s current ratio is b elow the industry average, its debt ratio and receivable turns are higher. The decline in ROE also reflects somewhat negatively on PepsiCo’s current financial situation. None of these indicators alone is enough to raise concern; however, management must evaluate these trends and internal processes to ensure they make decisions that maintain profitability and continue to return profits to company shareholders. References 2010 Annual Report. (2010). Retrieved from PepsiCo, Inc. : pepsico. com/ Download/PepsiCo_Annual_Report_2010_Full_Annual_Report. pdf Ethisphere. (2011). Business ethics leadership alliance. Retrieved from ethisphere. com/bela/ Mayo, H. B. (2007). Basic finance: An introduction to financial institutions, investment, and management, 9th ed. Mason, OH: Thompson Higher Education. Our History. (2011). Retrieved from PepsiCo: pepsico. com/ Company/Our-History. html Pepsico Inc (PEP. N). (2011). Retrieved from Reuters: reuters. com/ finance/stocks/financialHighlights? symbol=PEP. N Silverblatt (2010). Investing in Ethics. Retrieved on Oct 23, 2011 from http://money. usnews. com/ money/blogs/Fund-Observer/2010/03/25/investing-in-ethics Worldwide Code of Conduct. (2011). Retrieved from PepsiCo, Inc. : pepsico. com/Company/Worldwide-Code-of-Conduct. html

How to Dry Nails Fast Using Science

How to Dry Nails Fast Using Science The internet is full of tips that supposedly dry your nails faster, but which ones actually work? Heres a look at some of the most common ideas and whether or not they will speed your drying time. Plunging Wet Nails into Ice Water This doesnt work! If it did, dont you think every nail tech out there would be doing it? Think about it... nail polish is a polymer, formed by a chemical reaction. Lowering the temperature lowers the rate of the chemical reaction, plus it slows the evaporation of the solvents in the polish. Yes, the icy water may thicken the polish so it seems to dry more quickly, but the only way to get a hard coat of polish is to let it dry. The cold water wont hurt anything, but it wont speed things up  unless you dry your hands under an air dryer afterward. If you think this works, consider how much time you spend with your hands in ice water and compare it against normal drying. Or, conduct your own science experiment and put one hand in the ice water and leave one to dry on its own. Putting Hands in the Freezer This is not the most economical method, but its unlikely to hurt anything other than your electric bill. The cold can thicken the polish while the circulating air evaporates the solvent. Using a Blow Dryer or Fan This speeds the set of the film former (usually nitrocellulose). Just be sure you dont use so much force that you blow ripples into your polish (unless that is the desired effect). Apply a Quick-Dry Product These contain solvents that evaporate quickly, pulling the liquid in the polish along with them. Apply Cooking Spray Whether or not this works depends on the product. If you simply pressurize oil, youre not going to see much of an effect aside from moisturized hands. On the other hand (hah), if the spray contains a propellant, it will evaporate quickly, acting like a quick-dry product. Spray Nails with Canned Air Again, this works much like a quick-dry product. Canned air is a little expensive, so you might want to blow keyboard chow out of your laptop and opt for an inexpensive quick-drying top coat instead. What works and what doesnt? Quick drying polish is effective, plus it matters whats in the product.