Ragging Student and Experience Dear Friends - Free Essay Example

Sample details Pages: 2 Words: 723 Downloads: 6 Date added: 2017/09/13 Category Advertising Essay Tags: Life Experience Essay Did you like this example? Does rag develop friendship? Answers: It does, upto a limit. But rag should not get serious, like you should not cause bodily twinge to the person getting ragged. I ahve felt this. Most of the most friendly seniors I own at college are the ones who ragged me. Source(s): Experience Dear Friends. Ragging  in school,colleges or any where else should be stopped Completely, Because of the Following reasons: 1. It De motivates our Juniors. 2. We can not build relationship with others, a bit it breaks the Relationship and friendship. 3. There would not unity. Please remember one thing, Unity is Great Strength. And so on. So, Lets STOP RAGGING. It can also be the building block of a relationship lol! Me and my friends rag on each other constantly, its a good method to pass the time! I will have to say yes! As long as you maintain it civil, as civil as it can be anyway with ragging lol. may be or may be not depends upon how u do ragging 3) After 3 years of college life and entering in the 4th year as the super senior in the college, it is indeed a moment of pride and happiness for me. But it is accompanied with a sense of responsibility. Don’t waste time! Our writers will create an original "Ragging: Student and Experience Dear Friends" essay for you Create order Now, we are the senior most of all and this means that we have no one to look out for us but ourselves and also we have to look out for all the juniors as well. But then, when everything is as crystal clear as that, where lies the damn problem? Let me show it to you. In common parlance it is known as ‘Ragging’ but I call it ‘Attitude Adjustment’. Yes, the same old ‘devil’, which hashaunted the  colleges for years and will haunt them in future as well. The Government, with the help of judicial system and college management has tried to curb this menace and is successful to a large extent. Now, after this decision that anybody found indulged in any form of ragging will be suspended from the college for life, and he/she will not get  admission  in any other college/university throughout the country, this ‘djinn’ is some how contained in its bottle. But, as they say, there are two sides of every coin and this one is no exception. People only saw the one side of the coin and passed their judgement on the basis of that. I think, by stopping this ‘evil’ to the level of extent that a senior student is scared even to ask the name and background of a junior student in college premises is absurd. He is afraid he might be booked under the severe norms of ragging. The spirit of healthy interaction amongst students with different financial and social backgrounds is completely vanished. Now, no senior student is curious to know how many freshers came from his city this year. And not only is it social interaction, which is affected. The feeling of brotherhood is hampered to this extent that both seniors and juniors see the other guy with suspicion and do not want to be seen together. The frequent visits to the seniors’ rooms for help during the exams and project submissions do not happen any more as the ‘bonding period’ during which juniors came to know about the seniors has been banned. The honour and respect which the juniors used to give their seniors is no longer seen and which in the long run reflect in the lives of students, when they come out of the colleges in to the corporate world, and they are not used to give such respect to their bosses there. This could be a problem very well known as ‘Attitude Problem’. The bottom line is, as I see it, that physical or mental ragging in any form is not justified at all, and should be dealt with seriously. But social interaction and getting to know each other, to spread the word of friendship, brotherhood and love should not be prevented in order to curb ragging. There should be some border line to which it should be allowed. Otherwise, we will be developing a society of dumb people who will not be fit to work in a society with people different from themselves. Read more:  https://pratyushgarg. instablogs. com/entry/ragging-a-necessary-evil/#ixzz0zhP4PeWc 3)

Review for six companies (brief description specific examples for

Essays on Review for six companies (brief description specific examples for fixed cost, variable costs and mixed costs) Admission/Application Essay Company Operations and Related Costs The production costs of different companies exhibit different behaviors in relation to production levels. Because of these different behaviors exhibited, the costs are divided into three; fixed, variable and mixed. Fixed costs do not vary within relevant range of production, meaning they are incurred even in absence of production activity. Variable costs changes directly proportional to the production activity levels whereas mixed costs exhibit both fixed and variable cost behaviors (Albrecht, 1062). This paper examines costs of six different companies. Costco This company was established in the year 1976 under the name Price Club, in San Diego. Small businesses were the target at start. However, it expanded its operations to non-business members. It opened its first warehouse in Seattle in 1983. It made a record growth of 0- $3billion in less than 6 years. The organization operates as a membership warehouse club, providing its members best price on a variety of merchandise. Fixed costs of the organization include directors’ remuneration and depreciation. This is because whether operations continue or not, the directors will be paid and the vehicles used in distribution and delivery depreciated. Variable costs comprise fuel cost and purchases of merchandise. Fuel cost depends on the number of delivery or distribution trips made while purchases depend on the merchandise bought for resale. The possible mixed costs of this company are distribution costs and delivery cost since they involve vehicle depreciation and fuel costs. Deckers’ Outdoor Corporation This corporation was started by a student from University of California, Otto Doug, by making and selling sandals along the west coast. Currently it is accompany operating globally providing six different brands namely Ahnu, Sanuk, Mozo, Tsubo, Australia and UGG. It was ranked number 9th best small company in 2007 by Forbes. Company’s possible fixed costs include supervisors’ salary and plant depreciation. These two will be incurred regardless the state of operations. Variable costs are direct materials cost and direct labor. The raw materials bought dictate the direct material costs whereas number of labor hours completed determine the direct labor costs. For example, if overtime is clocked, the cost will increase. Mixed costs will include communication expenses and electricity cost. Communication cost cannot be classified as fixed or variable because it has no base whereas electricity cost involves that fixed portion utilized by offices and variable part depended on the machine hours. Ircon International Limited (IRCON) Ircon deals with construction services specializing in MRTS, EHP and Railway and Highway. It was incorporated as a government company in 1976 by India’s ministry of railways. It currently operates globally. The fixed costs are definitely the depreciation of the trucks and machines used for the construction and the company’s permanent employees. Fuel used by the construction machines will constitute variable costs together with wages to casual workers employed. On the side of mixed costs, communication costs and electricity usage on construction sites will count. Gulf Craft Inc It is concerned with making of yachts, a business it has carried for over 30 years. Four of its yards are located in Emirates while one is in Maldives. It provides four kinds of services spare parts (for damaged yachts), trailers (for moving boats from one location to another) and services centers (for serving customers with faulty products). Fixed costs include top managements remuneration and insurance. This is because the insurance amount is for a certain period. Variable costs include cost of direct material components used for yacht manufacturing and expenses such as sales commission to its representatives in foreign countries. Mixed costs possibly comprise electricity consumption at the yards, partly used by offices and machine hours. Biolea This company is based in the Crete. It produces organic olive oil through stone milling and cold pressing. All of the company’s organic olive oil production operations and processes are undertaken in the small village of Astrikas on Astrikas Estate. The Biolea Company was founded by Dimitriadis George in the year 1994. From a strong scientific base, the company adheres to innovation and self reliance principles. It promotes and preserves traditional farming techniques. Also, it supports sustainable agriculture. The company’s fixed costs are research and advertisement costs. This is because to uphold innovation, the company has to undertake research. To boost the sales volume, advertisements must be made to attract customers’ awareness. Theses two costs are independent of production levels, thus classified as fixed costs. Variable costs include cost of packaging, dependent on the amount produced and packaged, and labor costs, dependent on the hours worked. The mixed costs include water and electricity bills. This is because such costs comprise of a fixed amount plus a variable amount depended on the units used. Evian The company deals with two product lines, drinking water and facial spray. It bottles natural mineral water from the French Alps. To ensure serving most customers, it bottles the water in different bottles suitable for different purposes such as sports, leisure and for office. The fixed costs include the administrative overheads and advertisement costs. Whether the quantity of water bottled increases, decreases or remains the same, the costs relating to advertisement and administration remain the same. Cost of the bottles and fuel used in the operations constitute variable costs because they are dependent on quantity of water bottled and vehicles activity completed respectively. The cost of power used and telephone communication make up mixed costs, because they have a fixed amount and a variable amount dependent on the quantity used. Works cited Albrecht, W S. Accounting, Concepts Applications: What, Why, How of Accounting. Mason, OH: South-Western/Cengage Learning, 2011. Print.

Real Vampires Free Essays

string(234) " the image of the vampire was spawned from the story of Dracula written by Bram Stoker that is certainly not the case, the story of the vampire started thousands of years ago and span the globe, and continue to engross society today\." Vampires Stories Started Thousands of Years Ago in Myths Today They Are Very Real and Among Us ? Abstract Vampires have been a part of human culture for thousands of years. There have been stories of vampire like creatures in Mesopotamia, Greece, China, and Europe. These stories have spanned the globe and time. We will write a custom essay sample on Real Vampires or any similar topic only for you Order Now The vampire has evolved overtime based on the current trends and beliefs and culture of the time. Today when the word vampire is said many visualize Dracula from the stories by Bram Stoker or handsome alluring creatures that are ready to drain you of your blood. For most vampires only live in stories, the truth is that vampires are very real. There is a subculture of real vampires emerging out of the darkness all over the world they are very real and among us. Vampires Stories Started Thousands of Years Ago in Myths Today They Are Very Real and Among Us When the word vampire is said it evokes Hollywood images of handsome men and beautiful women, seductive creatures with fangs that lure in their prey with their hypnotic stare along with their good looks, wit and charm. Once the prey is seduced the vampire goes straight for the throat, biting down and draining their blood and ultimately their life. More recently the images may be of the sexy Vampire who is trying to pass as human in some high school setting that is amazingly fast, and strong, yet trying to be sensitive. Some sparkle in the sun and others must avoid it altogether, while still others wear some enchanted ring or jewelry in order to walk in sunlight. Oh yes, and let’s not forget their ability to go on living forever because one of the most incredible qualities is a vampire’s immortality, unless they have a wood or silver stake driven through their heart, or end up decapitated and burned, which would swiftly end there immortal reign. Whichever version of vampire you envision will depend on the most recent book, movie, or television series you are intrigued by. These images are the glorified Hollywood images that are spoon fed to us daily, but these are not the true definitions or characteristics of a real vampire. As much as most people believe that the image of the vampire was spawned from the story of Dracula written by Bram Stoker that is certainly not the case, the story of the vampire started thousands of years ago and span the globe, and continue to engross society today. You read "Real Vampires" in category "Papers" Every culture has their own story and origination point and these stories have spawned a growing fascination with vampires. It is important to look back and see where it all began in order to uncover the truth of real vampires today. One of the first stories comes from Mesopotamia; it goes back at least 4,000 years. It starts with Lamastu, the daughter of the sky God Anu. She was a demon goddess who preyed on humans. At night she would creep into people’s homes and steel their baby’s or worse, she would kill them while they were in their crib or even while in their mother’s womb. It is also said she would suck the blood from young men; this would bring sickness, disease, and sterility to the people. When you see images of Lamastu she is seen to have talons or claw like hands, as well as wings. This is very similar to another vampire like goddess from history, Lilith. (Harris, 2001: Lamastu, 2011) Lilith is a vampire like demon goddess as well, along with the wings and talons; she is sometimes shown to be in the form of an owl or a mix of woman owl type creature. There are a variety of stories that surround Lilith. The most prominent one seems to be the one coming from Jewish origins where it is said that Lilith was the first wife of Adam. In this story the trouble started when Lilith did not want to be in a submissive position to Adam during sexual intercourse. She believed since God fashioned them of the same dirt and was said to be an equal to Adam, she wished to be his partner and equal, not to be beneath him. She was banished from Adam and the Garden of Eden into darkness where she was then perceived as a Demon and in the darkness she began giving birth to her own children. These children were said to be demons like their Mother. God sent three Angels after her and they asked her to return to the garden but not as Adam’s equal. Lilith refused and for her punishment God killed a hundred of her children daily. In retaliation Lilith began to take her vengeance out on God’s children by killing human babies. Along with killing human children Lilith had seductive quality’s and would seduce men and come to them at night as a succubus. (Harris, 2001: Lilith, 2001) There are many other stories of similar creatures like Lamastu and Lilith all over the world, such as, the Empisai she came from Greek stories, she was the beautiful daughter of Hecate and would rise out of the ground at night and seduce the Sheppard’s in the fields and then devour them. In Chinese folk lore there were creatures that had glowing red eyes, they were covered in fur and they would bite their prey with sharp fangs, these creatures were called Kuang-shi. (Harris, 2001) As time went on people traveled from place to place and with them the stories of the vampire like creatures were spread. The stories morphed and changed with the current beliefs and knowledge of the time. There is a plethora of stories out there that blanket cultures and over time have developed a variety of versions and interpretations and created are current knowledge base of what a vampire is. As much as most people believe that the image of the vampire was spawned from the story of Dracula written by Bram Stoker you can see this is not the case and the story of the vampire started thousands of years ago, many of the beliefs, traditions and rituals real vampires have today are based on these ancient stories. So what is a real vampire? At first glance it can be hard to define, but when you delve in you will start to see categories. The first, most broad category falls under the term, vampire community, and this term is the broadest wording used to describe the vampire culture. Vampires refer to the vampire community in a similar manner as gay people speak about the gay community and African American’s speak about the black community. (TheoFantastique, 2009) The vampire community is not an organized structure according to Joseph Laycock, Author of Vampires Today: The Truth about Modern Vampirism and graduate of the Harvard Divinity School, he refers to it as an identity group. (Laycock, 2009) Within that identity group you can find the terms life style vampire and real vampire. Real and lifestyle vampire are phrase’s used within the vampire culture to distinguish between the two groups. Life style vampires or lifestylers, as some would say, are the ones that are fans of vampire fiction such as Bram Stoker, Anne Rice, and Stephanie Meyer. They enjoy dressing up as the undead and participating in role playing games such as Vampire the Masquerade. Some have prosthetic fangs and sleep in coffins. They love everything vampire and embrace all the stereo types. Ms Saige who is a lifestyle vampire has this to say about it,† I live the lifestyle but I am not a real vampire, nobody can live forever. † She goes on to say there is about 1,000 lifestyle vampires in New York and thousands more worldwide. There’s a clan in Europe, one in California and a huge clan in Texas. We all know each other. †(Mittelbach Crewdson, 2000) To be more definitive on the differences Joseph Laycock says the main difference between the two is lifestyle vampires choose their vampiric identity and real vampires see their vampire identity as unchangeable and something that is a part of them. (Laycock, 2009) Real vampires are, â€Å"individuals who feel a need to consume blood or feed on the subtle energy of other people in order to sustain their physical, mental, and spiritual health,† according to Joseph Laycock. Laycock, 2010) This is not to say that the murderers you here of in the news that consume blood and are labeled as vampire are the real vampire’s that are being spoken of here. Those people have been labeled vampire by the media. Real vampire is an identity group and is taken on freely by people. The Atlanta Vampire Alliance expands on the definition of a real vampire and goes on to say that if vampires do not feed off the blood or energy of other humans they will become tired, sickly, depressed, and can go through physical suffering or discomfort. A vampire can also have a variety of psychic abilities and be very psychically aware; such as, sense people’s emotions, see people’s auras and be highly empathetic. The term real vampire can be broken down into three more groups from there, based on their feeding techniques. (AVA, 2005-2011) The first are the Sanguine or Sang for short, vampires who actually consume blood from humans or animals. The amount of blood and the frequency of consumption can vary from vampire to vampire. It can be as little as a drop and can be as frequently as daily and in frequently as monthly. Blood that is consumed from a human source is always consensual and there is a written or verbal agreement between the donor, the person giving blood, and the vampire. These Sanguine Vampires need to drink human or animal blood to maintain their health and well being. (AVA, 2005-2011)It is not simply done because it arouses them sexually or they like the way it makes them feel or the taste of it. There is a genuine need for it to maintain their health. Though the act of feeding can evoke sexual desires and be a very enjoyable experience that is just an out come on the purpose of drinking blood. The second type is the Psychic or Psi Vampire they feed on the life force energy of other humans. This life force has been described in other cultures as chi in china, prana in India, or the soul in western religions. Vampires have the ability to draw the subtle energy or life force from other people by using a number of techniques. (AVA, 2005-2011) A vampire by the name of Linda Rabinowitz says, she is a psychic vampire and if you maintain eye contact with her for too long she may be tempted to start taking in your subtle energy. She goes on to say that she would never actually do that without a person’s permission, as good vampires operate under what is called The Black Veil. This is a code or ethic that states vampires must have the permission of their donors before they will feed off of them. (Monica, 2008 : Laycock, 2010) According to sanguinarius. org, a website dedicated to providing information and resources to real vampire’s, psi vampires can be broken down into further categories based on the type of energy they feed off of. Some of the examples are; empathic vampires who feed on the emotions of people, sexual vampires who feed on the energies generated during sexual intercourse, elemental vampires who feed off the energies of the elements of earth, wind, fire, and water. Astral feeding is another term and this refers to vampires that travel in the astral plane a feed off the life force of creatures living within the astral plane, dream scape vampires can enter into people’s dreams and feed of the life force within the dream, and last on the list is magical vampires they are able to feed on and manipulate magical energies. This list is not all inclusive or set in stone one thing that is apparent within the vampire culture is that views on feeding techniques and their validity are ever changing and all the techniques are not accepted as valid by all. The third type is a hybrid vampire which is the combination of a sanguine vampire and a psychic vampire. These hybrid vampires both drink blood as well as feed off the life force energy. They have the ability to choose which source to feed from as they wish. (AVA 2005-2011) Hybrids have the ability to choose their technique or combine a couple. For instance a vampire may drink the blood of their donor while in the midst of a sexual act thus creating a situation where they are simultaneously feeding off the sexual energy. You can see an example of this in the story given to Katherine Ramsland in her book Piercing the Darkness Undercover with Vampires in America Today. The vampire described an account with a young man that spanned a short period of time. They had an initial encounter and the vampire continued to stalk the individual eventually it led up to an evening of exchanging blood and sexual contact. The vampire describes his desire by saying, â€Å"The mingling of blood and semen represents my hunger at the core of my being. It’s about me, who I am as a male with a great need for another’s life force, blood cell to blood cell. The very sight of blood stirs my loins. (Ramsland, 1998, p. 16) Vampires also can be broken down into categories by their beliefs. Vampirism in and of itself is not a religion but within the vampire community there is an array of belief systems. Just like with in main stream society you have Christians, Jews, Buddhist, and Atheist you too have this in the vampire community. There is also within the community groups of vampires that see their vampirism as a spiritual practice. There are different groups that have different beliefs just like any other religion. Father Sebastian, who is a fang smith, author, and founder of the clan Saber Tooth and the order of Strigoii said, during an interview in the documentary Vampyres, â€Å"his group follows the path of the Strigoii which means living vampire in Romanian. It is an older tradition that they have resurrected. It follows what he refers to as a left hand path, vampires are an emerging culture and that humanity is entering the fifth eon of man. Anton Lavey described it as the age of satin. He goes on to say that within the left hand path tradition people stand out as individuals because within the tradition the majority of people do not believe in such a thing as a god, there is no god except yourself, and that we are a projection of our higher self. † (Courau, 2007) The vampire community is vast and full of many verities of beliefs and ways of thinking. Though there is great difference in what they believe to be true of a real vampire there are some things they all agree that are not true. Along with the things that are true of real vampires there are many things that have been skewed and morphed from the current pop-culture trends, many of the Real Vampires of today would love to put an end to the many common beliefs about themselves, their activities, and culture. For starters real vampires do not need to sleep in coffins or the dirt from their hometown, they do not have aversions to the sun, although some claim a sensitivity to it but it borders more on an annoyance than the fire burning effects that the media shows just before they are turned to ash. They also know that they are on the world for a finite amount of time and do not live forever. They die just like you and me from anything that we as humans can die from. They do not go around stalking people and draining them of all their blood leaving them dead. Many of them love garlic and prefer to wear silver jewelry over gold. Holy water and crosses will not repel them, because many of them are Christian, or catholic or any of the many religions that are in the world. Last but not least they can come into your house uninvited but like most people they have manners and would not just invite themselves in. Vampires are living all over the world and are very much among us. Though it may be disappointing, the vampires of today are very much human and have no wild and fantastical ability’s to pass onto their victims through their bite or blood. Just because they are not the vampires we read about or seen on the big screen does not make them any less real. As with anything, Hollywood, and pop culture have become very good at taking the ordinary and making it bigger than it really is or more fantastical which can be with how witches, robots, and housewives are portrayed. Hopefully one day we will be able to separate the fantasy from the reality and see them for what they really are; people like you and me, going to work each day, living life a day at a time. They could be your doctor, friend, teacher or even your neighbor. People fear what they don’t understand, therefore if you look for the truth you will understand that the Real Vampires of today are not to be feared, they just have different energetic needs than the rest of us. References Atlanta Vampire Alliance [AVA] (2005-2011). Atlanta Vampire Alliance [AVA]. Retrieved October 16, 2011, from http://www. atlantavampirealliance. com/educational. html Courau, L. (Director). (2007). Vampyres [Documentary]. Harris, T. HowStuffWorks â€Å"How Vampires Work†. HowStuffWorks â€Å"Science†. Retrieved October 3, 2011, from http://science. howstuffworks. com/science-vs-myth/strange-creatures/vampire. htm Lamashtu (Mesopotamian demon) — Britannica Online Encyclopedia. Encyclopedia – Britannica Online Encyclopedia. Retrieved October 16, 2011, from http://www. britannica. com/EBchecked/topic/328457/Lamashtu Laycock, J. (2010). Real vampires as an identity group: analyzing causes and effects of an introspective survey by the vampire community. Nova religio, 14(1), 4-23. Retrieved from EBSCOhost. Lilith. Encyclopedia of Occultism and Parapsychology. 2001. Retrieved October 09, 2011 from Encyclopedia. com: http://www. encyclopedia. com/doc/1G2-3403802788. html Mittlebach, M. , Crewdson, M. (2000, November 24). To Die For: Painting the Town Red, and the Capes and Nails Black – New York Times. NY Times Advertisement. Retrieved October 16, 2011, from http://www. nytimes. com/2000/11/24/movies/to-die-for-painting-the-town-red-and-the-capes-and-nails-black. tml? scp=1sq=ms. %20saigest=cse Monica, H. (2008). A Vampire’s Life? It’s Really Draining. The Washington Post. Retrieved from EBSCOhost. Ramsland, K. M. (1998). Piercing the darkness: undercover with vampires in America today. New York: Harperprism. TheoFantastique | A meeting place for myth, imagination, and mystery in pop culture. (2009 , August 25). TheoFantastique | A meeting place for myth, imagination, and mystery in pop culture. Retrieved October 16, 2011, from http://www. theofantastique. com/2009/08/25/joseph-laycock-vampires-today/ How to cite Real Vampires, Papers

Financial Feasibility of the Business †Click to get a Free Solution

Question: Discuss about the Financial Feasibility of the Business. Answer: Introduction Mrs. Fanny who lives in Chicago has recently taken retirement and has received a sum of $475000 for 30 years of work with the pharmaceutical company. She has decided to start a new venture with the amount in hand. Mrs. Fanny wants to sell gourmet chocolates imported from France in the US markets. She will be purchasing the gourmet chocolates from Choc-O-LaySA an established company in France which is known for its fine chocolates with unusual and innovative flavors. Choc-O-LaySA will provide Mrs. Fanny exclusive rights to sell their products in USA. Mrs. Fanny will have to provide an upfront payment for the exclusive rights and the rights will be for 5 years. Her husband has decided to support her with her new business idea and has suggested to develop a financial plan for the feasibility of the business. Mrs. Fanny has conducted a market study in the USA to understand the demand of the gourmet chocolate and the price people will be willing to pay for the gourmet chocolate from France. The market survey by Mrs. Fanny revealed that the demand for the gourmet chocolate will be 750kg a month. But initially the demand will be only 75kg and gradually grow to its full potential and Mrs. Fanny will be able to sell 750kg a month by the end of the first year. The cost of the market study was $6500. Also it was found that the demand for the gourmet chocolate was price elastic i.e. the demand for the gourmet chocolate could be double if Mrs. Fanny reduced the price by 10%. Mrs. Fanny has decide to sell the gourmet chocolate directly to the customers via internet only and for this purpose has got in touch with a website developer who can make a website for her at $3500. She will require a refrigerator which will cost her $5250. The other expenses which Mrs. Fanny will have to incur are the packag ing and shipping cost of the gourmet chocolate to the customers which is at $2 per kg, credit card interest cost by the credit card company at 1% of the sales, rent of the office from where Mrs. Fanny will operate is $420 with a 3 month deposit to be paid and the cost of the employee who will help Mrs. Fanny with the business which will cost her $2650 per month. Apart from the internet sales, Mrs. Fanny will also be able to sell her gourmet chocolate t her friend Mrs. Mitch. Mrs. Mitch runs a small chain of delicatessens in Chicago. She is interested in Mrs. Fannys venture and has promised to purchase gourmet chocolate from her. However, she wants her to pack the gourmet chocolate in tin boxes with each tin box containing 550g of chocolates. She said if Mrs. Fanny could provide the same she will be purchasing 100 such boxes per month. The cost of purchasing such tin boxes is $1.75 per box and selling price would be $62. The assistant who can help Mrs. Fanny with processing such boxes will charge $750 per month. Mrs. Fanny will have to pay tax at 30% of the total profit generated every year. She can also request a loan of $50000 at 8% p.a. Mrs. Fanny wants to understand the financial implications of her business so that she can decide whether she should go ahead with this business or not. Breakeven Analysis Breakeven Analysis is a method to find the revenue a business must generate such that the total revenue is equal to the total cost of the business. i.e. at Breakeven point there is no profit and loss. It is given by Break even analysis = (Gallo, 2014) Cost of import of gourmet chocolates = 68.875 / kg = $76.45 [ 1 = $1.11] Transportation cost from France to USA = 18/ kg = $19.98 Shipping cost = $2/ kg Revenue = $120/ kg Credit Card cost = 1% of revenue = $12 Unit margin = 120 76.45 19.98 2 - 12 = $9.57 Refrigerator cost = $5250 Market study cost = $6500 Website design cost = $3500 Salary cost = $ 31800 Rent = $5040 Fixed costs = $5250 + 6500 +3500 + 40800 + 5040 = 61090 Thus breakeven point = 61090/ 9.57 = 5443.05 kg Thus Mrs. Fanny should sell more than 5443.05 kg of gourmet chocolate to earn profit. If the number of chocolates sold through internet is less than 5443kg then she will not be able to cover the fixed cost of $61090 she will incur. The net income of each month is given below. The company will be able to breakeven in 12 months. Month 0 1 2 3 4 5 6 7 8 9 10 11 12 Net income -24312 -11456 -3644 -2566 -1420 -275 871 2017 3163 4308 5454 6600 87458 Cumulative -24312 -35768 -39412 -41979 -43399 -43674 -42803 -40786 -37623 -33315 -27861 -21261 66197 Profit and loss statement ITEMS ITEM BREAKUP FIRST YR. Operating Revenue Sale from Internet 627750.00 Other Revenue Sales to Mitch 74400.00 Total Revenue 702150.00 Cost of Goods sold chocolate imported from France 557013.80 Operating Expenses Salary Assistant and Employee 40800.00 Rent 5040.00 Market Study 6500.00 Credit card 1% of the revenue 7021.50 Shipping cost Due to sales on internet 10462.50 Depreciation Assuming Straight line for 5 years 1050.00 EBIT Revenue minus expenses 74262.00 Net Interest Expense No loan taken 0.00 PreTax Profit revenue minus operating and interest expenses 74262 Tax Expense 30%on earned income 22278.66 Net Profit after Tax total revenue minus tax expenses 51983.54 The Profit and loss statement is a financial statement which helps in summarizing the revenues, expenses and recording profit for a specific period (usually a year). This statement is useful for the investors and owners to understand the revenues generated by the company and if the business is able to generate profits for the shareholders. (Investopedia) The Profit and loss statement can be divided into Operating revenue, Other revenue, Operating expenses, EBIT and Profit. Operating revenue The Operating revenue of the company is the revenue generated by the company from daily sales. Thus it is the main source of income of the business. In this case, the sale of gourmet chocolate to the customers via internet is the primary source of revenue and hence the operating revenue. The company was able to sell 5231.25 kg via internet at $120 per kg and hence the operating revenue = $627750. Other revenue The Other revenue of the company is the revenue generated by the company from sources other than daily sales. Thus it is secondary source of income of the business. In this case, the sale of gourmet chocolate to Mrs. Keith was the secondary source of income of the business and hence the other revenue. The company was able to sell 1200 units to Mrs. Keith at $62 per box. Hence the other revenue = $74400. Thus the total revenue of the company = 627750 + 74400 = $702150. Operating expense: The Operating expense of the company is the expense incurred by the company to complete it sales. In this case, the Operating expenses include cost of import goods sold, rent of office, salary to the employees, credit card cost, market study cost, depreciation and shipping cost. Thus total operating expense = 557013.80 + 5040 + 40800 + 7021.50 + 6500 + 1050 + 10462.50 = 627887.80 Assuming the life of the refrigerator to be 5 year and applying straight line depreciation on the refrigerator we get depreciation = 5250/ 5 = 1050. EBIT: EBIT is earnings before interest and taxes. It is the earning of the company by reducing all the expenses from the revenue earned by the company to get the earnings of the company before it pays interest on loan (if any) and taxes . For the business EBIT is calculate by subtracting the operating expense from the operating revenue. Thus EBIT = 702150 557013.80 = $74262.20 Interest expense It is the amount of money to be paid by the business as interest over the loan taken by the company. This amount is deducted from the EBIT before tax is implemented on the earnings as no tax is implemented on the interest. Mrs. Fanny has not taken any loan for the business. Hence the interest expense = 0 Net Profit The Net Profit of the company is the amount of profit generated by the company by doing business after paying taxes and can be given to the investors in the form of dividend or reused in the business in form of retained earnings. Net Profit = Profit Before Tax taxes = 74262.20 22278.66 = $51983.54. Taxes = 30% of 74262.20 = 0.3* 74262.20 = 22278.66 Conclusion Thus from the Profit and loss statement of the given business it can be said that the business will be able to generate profit in the first year and it will be equal to $51983.54. The revenue generated from sales was 702150 and the operating expenses were 627887.80. The net profit generated by the business is quite high and Mrs. Fanny will be able to easily expand her business and pay royalty to Choc. The overall financial health of the company looks good from the Profit and loss statement. Thus Mrs. Fanny should go ahead with this venture as the business will be able to generate profits in a year. Balance Sheet The Balance Sheet of a company is the financial statement which summarizes the total assets, liabilities and equity of the company at a given point in time. The Balance Sheet has three important parts: Assets, Liabilities and Shareholders Equity For any Balance Sheet, Assets = Liabilities + Shareholders Equity. (Averkamp, 2015) The following is the balance sheet for Mrs. Fanny ITEMS ITEMS Breakup FIRST YR CA Cash Generated from sales 68597.45 CA Receivables credit sales to customers 96200.00 CA Rent Deposit three month deposit 1260.00 CA Inventories Chocolate and tin inventory 76703.26 Total Current Assets 242760.70 NCA Equipment Refrigerator 5250.00 Accumulated Depreciation Life = 5 years and straight line 1050.00 NCA Investments website 3500.00 Total NCA 7700.00 Total Assets CA+NCA 250460.71 CL - Account Payable suppliers, wages, yearly rent 159688.51 Total Curr. Liabilities 159688.51 Total NCL 0 Total Liabilities 159688.50 Equity 38788.66 Retained Earnings 519683.54 Total Equity 90772.20 The balance sheet can be broken into Assets which consist of Current Assets and Non Current Assets, Liabilities which consist of Current Liabilities and Non Current Liabilities and equity which has shareholders equity and retained earnings. CA or Currents Assets The Currents Assets includes all the cash and cash equivalent of the company which can be easily converted to cash. Eg Cash, securities, advance payment, accounts receivables, inventory, etc. In this case Current assets of the company = $242760.71. NCA or Non Currents Assets The Non Currents Assets of the company are assets which take longer to convert to cash (more than one year). Eg Equipment, Investment in Website etc. In this case Non Current assets of the company = $7700. Thus the total assets of the company = 242760.71 + 7700 = 250460.71. CL or Currents Liabilities The Currents Liabilities are all the liabilities the company needs to pay to its account holders in a short span of time (less than one year). Eg Salary, rent, accounts payable, etc. In this case Current Liabilities of the company = $159688.51. NCL or Non Currents Liabilities The Non Currents Liabilities of the company are liabilities which the company needs to pay back in a longer period of time (more than one year).. In this case Non Current assets of the company = $0. Thus the total liabilities of the company = 159688.51 + 0 = 159688.51. Shareholders Equity: The Shareholders Equity consists of two parts: equity and retained earnings. Equity is the amount invested by the owners in the company to run the business. Retained earnings is the amount generated by the business as profit and which is reinvested in the business to help the business grow rather than sharing it with the shareholders. In this case Equity = 38788.66 and retained earnings = 51983.54. Thus Shareholders Equity = 38788.66 + 51983.54 = 90772.20 Cash Flow Statement The cash Flow Statement of a company tells in detail about the cash transactions of the company and helps in determining the cash present with the firm at any given point in time. In a business, the cash is used for operating activities (day to day operations of the business), investing activities (investment in long term assets like plant, property, machinery, etc.) and financing activities (purchase of shares, securities etc.) Cash Flow statement Month 1 Operating Activities Total revenue 0.00 Cogs 7232.44 Net income -7232.44 Rent -420.00 Credit card 0.00 Salary -3400.00 Cash used in operating activities -11052.44 Investment Activities Refrigerator -5250.00 Website design -3500.00 Rent advance Deposit -1260.00 Prepaid tax -22278.66 Market Study -6500.00 Cash used in investing activities -38788.66 Financing activities Equity 38788.66 The operating activities of the 1st month are: Revenue, Cost of goods sold, rent, salary, credit card cost. In the 1st month, the amount of gourmet chocolate sold will be received in the next month by the credit card company. Thus Revenue = 0. The Cost of goods sold is the amount paid for the purchase of the gourmet chocolate and shipping them to USA. COGS = $7232.44 Rent for the month = $420 Salary to the employees = 2650 + 750 = $3400 Since No revenue received this month, the cost of credit card = 0 Thus total cash flow in the operating activities = - (7232.44 + 420 + 3400 + 0) = - 11052.44 The amount is spent hence the cash flow is negative. The investment activities in the first month are purchase of Refrigerator, website design, market study, rent advance deposit and prepaid tax. Cost of refrigerator = 5250 Website design = 3500 Market study = 6500 Rent advance = 1260 Prepaid tax = 22278.66 Thus total cash flow in the investing activities = - (5250 + 3500 + 6500 +1260 + 22278.66) = - $38788.66 The financing activities in the first month is the amount invested by the Mrs. Fanny which is = $38788.66. Conclusion: The net cash flow value in the 1st month is negative. i.e. the cash outflow is more than the cash inflows. The revenue for this month will be realized in the next month so the income is zero but the expenditure for the month takes place hence net operating cash flow is negative. In the investment activities the cash outflow takes place due to purchase of assets and hence net investing cash flow is negative. In the financing activities, the cash inflow takes place due to investment from the equity. Annual Cash Flow Statement Cash Flow statement Year 1 Operating Activities Total revenue 702150.00 Cogs -504455.98 Net income 197694.02 Rent -5040.00 Credit card -7021.50 Salary -40800.00 Shipping cost -10462.50 Cash used in operating activities 134370.02 Investment Activities Refrigerator -5250.00 Website design -3500.00 Deposit -1260.00 Prepaid tax -22278.66 Market Study -6500.00 Cash used in investing activities -38788.66 Financing activities Equity 38788.66 Net cash 51983.54 The annual cash flow statement tells about the cash that goes in and out of the business. It helps in understanding where the cash was used and which the sources of revenue were for the company. The investors are interested in cash flow statement as it helps in determining whether the business will help them make profits and helps in understanding the viability of the business. In this case the net cash from the operating, investing and the financing activities is positive i.e. by doing the business the company will be generating more cash. Conclusion: The net cash flow is positive i.e. the company is able to generate cash by doing the business. Thus Mrs. Fanny should invest in the business as the business is profitable at the end of the first year. Discounted Cash Flow Analysis The discounted cash flow method is used for the valuation of the project by taking time value of money into consideration. In Discounted Cash Flow Analysis, the cash flow all the future years of the project is estimated and the these cash flows are discounted to their present value using the discount rate. If the sum of the discounted cash flow is less than the initial investment by the company, the company should not go ahead with the project but if the sum of the discounted cash flow is more than the initial investment by the company then the company should take the project as it will be profitable for the company. (Stockopedia, 2012) PV = present value = FV/ (1+r)n Where r is the discount rate and n is the number of years before the cash flow occurs, FV = future value of the cash flow. In this case, assuming straight line depreciation of the refrigerator with salvage value = 0 and life = 5 year, depreciation is calculated. Depreciation = (5250 - 0)/ 5 = 1050 Thus the Income statement for the next 5 years, assuming Mrs. Fanny is able to sell 750kg of gourmet chocolate each month is given below. Income Statement 5 years Year 1 2 3 4 5 kg of chocolates sold 5231.25 9000.00 9000.00 9000.00 9000.00 Sales 627750.00 1080000.00 1080000.00 1080000.00 1080000.00 Revenue from sales to Mitch 74400.00 74400.00 74400.00 74400.00 74400.00 Total revenue 702150.00 1154400.00 1154400.00 1154400.00 1154400.00 Expenses Rent 5040.00 5040.00 5040.00 5040.00 5040.00 Import of chocolate 504455.98 867881.25 867881.25 867881.25 867881.25 Shipping cost 10462.50 18000.00 18000.00 18000.00 18000.00 Credit card 7021.50 11544.00 11544.00 11544.00 11544.00 Employee salary 40800.00 40800.00 40800.00 40800.00 40800.00 Cost due to sales to Mitch 52557.83 52557.83 52557.83 52557.83 52557.83 Market Study 6500.00 0.00 0.00 0.00 0.00 Depreciation 1050 1050 1050 1050 1050 Total Expenditure 627887.80 996873.08 996873.08 996873.08 996873.08 Profit before Tax 74262.20 157526.93 157526.93 157526.93 157526.93 Tax 22278.66 47258.08 47258.08 47258.08 47258.08 PAT 51983.54 110268.85 110268.85 110268.85 110268.85 The discount rate is given as 4%. Hence calculating the DCF for the 5 years we get Discount rate @4% 1 2 3 4 5 Discounted cash flow 37131.10 56259.62 40185.44 28703.89 20502.78 Initial investment = 38788.66 Thus the net value of the project = -38788.66 + 37131.10 + 56259.62 + 40185.44 + 28703.89 + 20502.78 = $166272.82 Conclusion: Thus the net value of the project has been calculated and was found to be 166272.82. Thus by taking up the project Mrs. Fanny will earn $166272.82. Also the royalty she needs to pay to Choc-O-LaySA should be less than 166272.82 if she wants to earn a profit from the business. Sensitivity Analysis Sensitivity Analysis helps in finding how the change in an input value will affect the other dependent variables while the other assumptions are kept constant. (Investopedia, 2015). In this case the decrease in selling price by 10% will increase the demand by 2 times. Thus the company will be able to sell 150kg in the 1st month and the year-end monthly demand will increase to 1500 kg. Thus the new monthly cash flow statement will Month 0 1 2 3 4 5 6 7 8 9 10 11 12 kg of chocolate sold 150 375 487.5 600 712.5 825 937.5 1050 1162.5 1275 1387.5 1500 Sales 16200 40500 52650 64800 76950 89100 101250 113400 125550 137700 149850 162000 Revenue from sales to Keith 6200 6200 6200 6200 6200 6200 6200 6200 6200 6200 6200 6200 Total revenue 22400 46700 58850 71000 83150 95300 107450 119600 131750 143900 156050 168200 Expenses Initial Investment 16510 Rent 420 420 420 420 420 420 420 420 420 420 420 420 Import of chocolate 14465 36162 47010 57859 68707 79556 90404 101253 112101 122950 133798 144647 Shipping cost 300 750 975 1200 1425 1650 1875 2100 2325 2550 2775 3000 Credit card 224 467 588.5 710 831.5 953 1074.5 1196 1317.5 1439 1560.5 1682 Employee salary 3400 3400 3400 3400 3400 3400 3400 3400 3400 3400 3400 3400 Cost due to sales to Mitch 4380 4380 4380 4380 4380 4380 4380 4380 4380 4380 4380 4380 Total Expenditure 31275 45336 56652 67847 79042 90237 101432 112627 123822 135017 146212 157407 9882 Tax Prepaid 16957 Cash Flow each month -48231 -45336 -34252 -21147 -20192 -19237 -18282 -17327 -16372 -15417 -14462 -13507 146168 Thus it can be seen that the company will be able to recover the initial investment in 12 months and the profits will be much more than the profits earned at the current selling price. Hence the company should reduce the price. Conclusion Thus from the financial analysis I think Mrs. Fanny should go ahead with the venture as the business can breakeven in a year and generate profits for her and think that she should reduce her price by 10% so that profits are increased. Recommendations The following recommendations which I think can help Mrs. Fanny to run the business in a better way 1. In my view, the company should hedge the currency so that the fluctuations in dollar euro conversion rate will not affect the business 2. I would suggest Mrs. Fanny to choose suitable method of depreciation of assets to reduce the tax burden on the company. 3. I would recommend Mrs. Fanny to buy rights from Choc-O-LaySA at a price less than to earn profits in the business. 4. I think the company can reduce the shipping cost and bring efficiency in the distribution process to save on the spending. 5. In my view, investment in advertisement can help to increase the demand for the gourmet chocolate and hence the profitability of the business be increased. References Gallo,A. (2014). A Quick Guide to Breakeven Analysis. Retrieved on August 5, 2016 from https://hbr.org/2014/07/a-quick-guide-to-breakeven-analysis Averkamp, H. (2015). Introduction to Balance Sheet. Retrieved on August 5, 2016 from https://www.accountingcoach.com/balance-sheet/explanation Investopedia. (n.d.). Income Statement. Retrieved on August 5, 2016 https://www.investopedia.com/terms/i/incomestatement.asp Investopedia. (2015). Sensitivity Analysis. Retrieved on August 5, 2016 https://www.investopedia.com/terms/s/sensitivityanalysis.asp Stockopedia. (2012). What is a DCF Valuation? Retrieved on August 5, 2016 https://www.stockopedia.com/content/valuation-101-how-to-do-a-discounted-cashflow-analysis-63489/