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What else can I help you with?
How many business days in the year 2008 in Canada?
days a year = 365 (add 1 for a leap year) weekends = 104 Ontario Statury holidays = 9 ------------------------------------- Week days = 365 - 104 = 261 Payed days = 261 - 9 = 252 Vacation ie. 10 business days Work days 252 - 10 = 242 ------------------------------------- work hours ie 8 then 242*8=1936h/y
Is the economic cost to society each year from crashes and injuries on us highways is about 242 billion dollars true or false?
True. The economic cost to society from crashes and injuries on U.S. highways is estimated to be around $242 billion annually. This figure encompasses various factors, including medical expenses, lost productivity, legal costs, and property damage. Such substantial costs highlight the significant impact of traffic accidents on the economy and public health.
Who can fire the chairman of the federal reserve board?
The president does have the power to remove a member of the Board of Governors, but only for cause. Cause in this case would mean something like the chairman got the keys to the vault and was found stuffing his pockets with bullion.
Do you agree that disinvestment in public sector undertakings lead to self-reliance PSUs?
The public sector has played a pivotal role in the planned economic and industrial development of the country. For the purpose of planning and national accounting, public sector in India includes all activities funded out of Governments budget. The objectives of the industrial policy were derived from the Directive Principles of State Policy in the Constitution of India. It states that the objective of the State was to promote the welfare of the people by the creation of a social order based on social, economic and political justice. One of the fundamental decisions that Jawaharlal Nehru took after he became the Prime Minister was structuring the economy on a mixed pattern in which both the public and private sectors participated and had their roles demarcated. The Public Sector Undertakings (PSUs) evolved in India after the attainment of Independence in 1947. The Railways, the Post and Telegraph Department, the Port Trusts, the Ordnance and Aircraft Factories and a few State managed undertakings, like the government salt factories, quinine factories, etc., were some of the public sector undertakings. At the time of independence, India had an agrarian economy with a weak industrial base, low level of saving and investment and near absence of infrastructure facilities. Towards this endeavor, nationalization of some of the industrial, banking and insurance units was undertaken. The expansion of the public sector was undertaken as an integral part of the industrial policy in 1956. The Industrial Policy Resolution stated that the State will progressively assume predominance and direct responsibility for setting up new industrial undertakings and for developing transport facilities. The essential characteristics of development are social justice with a view to eradicate poverty and reduce income inequalities, self-reliance to avoid the dictates of the developed countries, planned utilization of the limited resources of the country, and a mechanism to carry out the plans, irrespective of profit considerations. To ensure this, in March 1950, the Planning Commission was set up by the Government to formulate a plan for the most effective and balanced utilization of the country's resources. The Second Five- Year Plan envisaged the adoption of the socialistic pattern of society as the national objective, as well as the need for planned and rapid development, requiring that all industries of basic and strategic importance, or in the nature of public utility services, should be in the public sector. Other industries which are essential and require investment on a large scale which only the State, in present circumstances, could provide also have to be in the public sector. There has been an appreciable growth in investment in the public sector over the years. In 1951, total investment in five Central Public Sector Enterprises was Rs. 290 million. This increased to 2,74,1140 million in 242 enterprises as on 31 March, 2001. The contribution of Public sector enterprises during 2000-01 in the country's total production of lignite was 100 per cent, in coal about 97 per cent, in petroleum about 81 per cent and in non-ferrous metals about 80 per cent. The PSUs intended to bring about an end to the semi-feudal class division in India. They intended to protect the workers from exploitation by the private monopolists. They were also set up to stimulate exports, substitute imports and promote self-reliance. The objective of the public sector is to accelerate the economic growth and industrialization by creating the necessary infrastructure. The public sector has contributed to the goal of self-reliance both by impressive import substitution and export promotion. However, establishment of large units without matching growth of small scale and ancillary units results in lopsided6 growth. Public sector enterprises review, from time to time, their production programs with a view to vacating such areas which can be left to the small scale sector. In the PSUs, the Government, through the concerned minister, decides the price policy while the managers of the respective PSU decide the price structure within the general framework of the price policy of the Government. Besides providing direct employment to about two million people, the PSUs incurred gross expenditure amounting to Rs 37940 million on township maintenance, administration and social overheads. In 1997, the Government had identified 11 PSEs as Navratnas and decided to give enhanced powers to the Board of Directors of these PSUs to facilitate their becoming global players. These enterprises are BHEL, BPCL, GAIL, HPCL, IOC, IPCL, MTNL, NTPC, ONGC, SAIL and VSNL. IPCL and VSNL were privatized and only 9 Navratnas were there as in August, 2002. The Government recognized as Mini ratnas, the other profit making enterprises and granted them a package of financial, operation and managerial autonomy. As on 31 March, 2002, 41 enterprises have been categorized as Mini ratnas. One of the major initiatives towards public sector as outlined in the new industrial policy of July, 1991 was to bring all public sector enterprises under the system of Memorandum of Understanding. During the year 2000-01, SO PSEs were rated as excellent, 28 PSEs as very good, 9 PSEs as good, 14 PSEs as fair and 5 PSEs as poor. There has been on impressive improvement in the financial performance of the Memorandum of Understanding signing PSEs, which is reflected in their improved Gross Margin. The government has drawn up a plan for disinvestment of various PSUs as part of its privatization program. A five-member Disinvestment Commission was set up in August, 1996. It had to prepare a long-term disinvestment program to determine the extent of disinvestment in each PSU and to monitor the process. The Commission under the chairmanship of G.V. Ramakrishna proposed to empower the board of directors of a PSU to hive off a portion of its assets, either as an independent subsidiary or as a joint venture entity without being dependent on the Government's decision making process. It felt that no permission should be required for a PSU to form a joint venture with Indian or foreign companies, in which the partner holds less than or equal stakes. It is now being increasingly realized that privatization is not the panacea for all ills. The PSU privatization has received a set back as the Supreme Court stayed the sale of the oil companies, BPCL and HPCL. The big public sector companies have made news because of their recent performance. Their huge profits have boosted the stock markets and their shares have surged. They recorded 10.5 per cent growth in their sales during the quarter ending March 2003 while the private sector's sales increased by only 4 per cent. Public sector still remains the biggest employer in the organized sector and has a better track record in smooth industrial relations than the private sector. When the private sector takes over public enterprises, the main fear is loss of jobs. New owners often resort to retrenchment without any sensitivity to the social costs and try to turn such enterprises into profit-making ones by trimming the payroll. Often the public sector offers avenues through which people from ordinary backgrounds can get jobs with good career prospects. For India to reach 8 per cent GDP growth, both public and private sectors have to grow together. The public sector enterprises that perform well should be encouraged. This would help to increase public sector savings which can be invested for infrastructural development. On an optimistic note it can be said that sincere efforts of the Government will in long run lead to better state of affairs in the public sector.
How can a goal congruence for managers and shareholders be achieved?
goals of managers with the goals of shareholders 40 Business Finance Lecture 8 Review of the Previous Lecture 􀂄 Cash Flow Statement 􀂄 Financial Statements Analysis 􀂄 Significance 􀂄 Common Size Analysis Topics under Discussion 􀂄 Financial Statements Analysis 􀂄 Common Size Analysis (Cont.) 􀂄 Ratio Analysis 􀂄 Short-term solvency, or liquidity, ratios 􀂃 Current Ratio 􀂃 Acid Test (Quick) ratio 􀂃 Cash ratio Common-Size Statements 􀂄 One very common and useful way of standardized comparison is to work with percentages instead of dollars. 􀂄 So, a standardized financial statement presenting all items in percentages is called a commonsize statement. 􀂄 Balance sheet items are shown as a percentage of total assets and income statement items as a percentage of sales. A2Z Inc., Balance Sheet A2Z Inc. Balance Sheet as of December 31 ($ in millions) Assets 20X1 20X2 Current Assets Cash $ 84 $ 98 Accounts receivable 165 188 Inventory 393 422 Total $ 642 $708 Fixed assets Net plant and equipment 2,731 2,880 Total assets $3,373 $3,588 A2Z Inc., Balance Sheet Liabilities and equity 20X1 20X2 Current liabilities Accounts payable $ 312 $ 344 Notes payable 231 196 Total $ 543 $ 540 41 Long-term debt 531 457 Stockholders' equity Common stock and paid-in surplus 500 550 Retained earnings 1,799 2,041 Total $2,299 $2,591 Total liabilities and equity $3,373 $3,588 A2Z Inc., Common-Size Balance Sheet Assets 20X1 20X2 Current Assets Cash 2.5% 2.7% Accounts receivable 4.9 5.2 Inventory 11.7 11.8 Total 19.1% 19.7% Fixed assets Net plant and equipment 80.9% 80.3% Total assets 100.0% 100.0% A2Z Inc., Common-Size Balance Sheet Liabilities and equity 20X1 20X2 Current liabilities Accounts payable 9.2% 9.6% Notes payable 6.8 5.5 Total 16.0% 15.1% Long-term debt 15.7% 12.7% Stockholders' equity Common stock and paid-in surplus 14.8% 15.3% Retained earnings 53.3 56.9 Total 68.1 72.2 Total liabilities and equity 100.0% 100.0% A2Z Inc., Common-Size Balance Sheet More on Standardized Statements Suppose we ask: "What happened to A2Z's net plant and equipment (NP&E) over the period?" 􀂄 Based on the 20X1 and 20X2 B/S, NP&E rose from $2,731 to $2,880, so NP&E rose by $149. 􀂄 Did the firm's NP&E go up or down? Obviously, it went up, but so did total assets. In fact, looking at the standardized statements, NP&E went from 80.9% of total assets to 80.3% of total assets. A2Z Inc., Common-Size Balance Sheet More on Standardized Statements 􀂄 If we standardized the 20X2 numbers by dividing each by the 20X1 number, we get a common base year statement. In this case, $2,880 / $2,731 = 1.0545, so NP&E rose by 5.45% over this period. 42 􀂄 If we standardized the 20X2 common size numbers by dividing each by the 20X1 common size number, we get a combined common size, common base year statement. In this case, 80.3%/ 80.9% = 99.26%, so NP&E almost remained the same as a percentage of assets. (. .) In absolute terms, NP&E is up by $149 or 5.45%, but relative to total assets, NP&E fell by 2.6%. A2Z Inc., Common-Size Balance Sheet More on Standardized Statements 􀂄 Current assets rose from 19.1% in 20X1 to 19.7% in 20X2 􀂄 Current liabilities declined from 16.0% to 15.1% of total liabilities and equity over the same time. 􀂄 Total equity rose from 68.1% of total liabilities and equity to 72.2%. 􀂄 Overall, A2Z's liquidity as measured by current assets compared to current liabilities, increased over the year. Also, A2Z's indebtness diminished as a percentage of total assets. 􀂄 So we may conclude that balance sheet as grown stronger A2Z Inc., Income Statement For the Year 20X2 ($ in millions) Net sales $2,311 Cost of goods sold 1,344 Depreciation 276 Earnings before interest and taxes $ 691 Interest 141 Taxable income 550 Taxes 187 Net income $ 363 Dividends $121 Retained earnings 242 A2Z Inc., Common-Size Income Statement Net sales 100.0 % Cost of goods sold 58.2 Depreciation 11.9 Earnings before interest and taxes 29.9 Interest 6.1 Taxable income 23.8 Taxes 8.1 Net income 15.7 % Dividends 5.2% Retained earnings 10.5 A2Z Inc., Common-Size Income Statement 􀂄 This statement tells us what happened to each dollar in sales. 􀂄 For A2Z interest expense eats up 6.1% of sales, while taxes take another 8.1% of sales figure. 􀂄 Following this, 15.7% of revenues from sales flow down to bottom as net income; one-third of which is paid in dividends and remainder two-thirds is taken as retained earnings for busniess. 􀂄 As far as cost is concerned, 58.2% of revenues are spent on the goods sold 43 Standardized Financial Statements 􀂄 Although an organization's common-size statements provide a better analytical insight into the it's strength and standing, yet it's performance and efficiency can be better judged by comparing these with those of the firm's competitors. Ratio Analysis 􀂄 Another way of avoiding the problems involved in comparing companies of different sizes, is to calculate and compare financial ratios. 􀂄 One problem with ratios is that different people and different sources frequently don't compute them in exactly the same way. 􀂄 While using ratios as a tool for analysis, you should be careful to document how you calculate each one, and, if you are comparing your numbers to those of another source, be sure you know how their numbers are computed. Ratio Analysis 􀂄 For each of the ratios we discuss, several questions come to mind: 􀂄 How is it computed? 􀂄 What is it intended to measure, and why might we be interested? 􀂄 What is the unit of measurement? 􀂄 What might a high or low value be telling? How might such values be misleading? 􀂄 How could this measure be improved? Ratio Analysis 􀂄 Financial ratios are traditionally grouped into the following categories: 􀂄 Short-term solvency, or liquidity, ratios 􀂄 Ability to pay bills in the short-run 􀂄 Long-term solvency, or financial leverage, ratios 􀂄 Ability to meet long-term obligations 􀂄 Asset management, or turnover, ratios 􀂄 Intensity and efficiency of asset use 􀂄 Profitability ratios 􀂄 Ability to control expenses 􀂄 Market value ratios 􀂄 Going beyond financial statements Short-Term Solvency, or Liquidity Measures 􀂄 The primary concern to which these ratios relate, is the firm's ability to pay its bills over the short run without undue stress. So these ratios focus on current assets and current liabilities. 􀂄 Liquidity ratios are particularly interesting to short-term creditors. Since financial managers are constantly working with banks and other short-term lenders, an understanding of these ratios is essential 44 Short-Term Solvency, or Liquidity Measures 􀂄 Current assets and liabilities 􀂄 Their book values and market values are likely to be similar. 􀂄 They can and do change fairly rapidly, hence unpredictable Current Ratio Current Assets Current Ratio= ------------------------ Current Liabilities 􀂄 Because current assets and liabilities are converted into cash over the following 12 months, the current ratio is a measure of short run liquidity. 􀂄 The unit of measurement is either dollars or times. Current Ratio 􀂄 For A2Z Corporation, the 20X2 current ratio is $708 Current Ratio= ---------- = 1.31 times $540 􀂄 We can say that 􀂄 A2Z has a $1.31 in current assets for every $1 in current liabilities OR 􀂄 A2Z has its current liabilities covered 1.31 times over. Current Ratio 􀂄 To a creditor (particularly a short-term creditor like supplier), the higher the current ratio, the better 􀂄 To firm, high current ratio indicates liquidity, but it may also indicate an inefficient use of cash and other short-term assets. 􀂄 We would expect to see a current ratio of at least 1, because a current ratio of less than 1 would mean that net working capital is negative Current Ratio 􀂄 Like any other ratio, current ratio is effected by various transactions. 􀂄 If a firm borrows over long-term, 􀂄 The short run effect would be an increase in cash as well as in long term liabilities. 􀂄 Current liabilities would not be affected, so the current ratio would rise. 􀂄 An apparently low current ratio may not be a bad sign for a company with a large reserve of unlimited borrowing power. 45 Current Ratio Current Events 􀂄 A firm wants to payoff some of its suppliers and creditors. What would happen to current ratio? 􀂄 Current ratio moves away from 1. if it is greater than 1 it will get bigger. But if it is less than 1, it will get smaller. 􀂄 Suppose a firm has $4 in current assets and $2 in current liabilities for a current ratio of 2. and uses $1 in cash to reduce current liabilities, then new current ratio is ($4-2) / ($2-1) = 3 􀂄 Reversing the situation to $2 in current assets and $4 in current liabilities, the change will cause current ratio to fall to 1/3 from 1/2 Current Ratio Current Events 􀂄 Suppose a firm buys some inventory. What would happen in this case? 􀂄 Nothing happens to current ratio. Because in this scenario, one current asset (cash) goes down while another current asset (inventory) goes up. Total current assets are unaffected. Current Ratio Current Events 􀂄 What happens if a firm sells some merchandise? 􀂄 Current ratio would usually rise because inventory is shown at cost and sale would normally be at something greater than cost (difference is markup). 􀂄 So, the increase in either cash or receivables is greater than the decrease in inventory. 􀂄 This increases current assets and current ratio rises. Quick (or Acid-Test) Ratio 􀂄 Inventory is often the least liquid current asset. And its book values are least reliable as measures of market value since the quality of inventory isn't considered. Some of the inventory may turn out to be damaged, obsolete or lost. 􀂄 Relatively large inventories are often a sign of short-term trouble. 􀂄 The firm may have overestimated sales and overbought or overproduced as a result, hence tied up a substantial portion of its liquidity in slow moving inventory Quick (or Acid-Test) Ratio 􀂄 It is computed just like current ratio, except inventory is omitted. Current Assets - Inventory Quick Ratio= ------------------------------------ Current Liabilities 􀂄 For A2Z, this ratio in 20X2 was $708 - 422 Quick Ratio= ----------------- = 0.53 times $540 46 Quick (or Acid-Test) Ratio 􀂄 The quick ratio here tells a somewhat different story than the current ratio, because inventory accounts for more than half of A2Z's current assets 􀂄 If the same figure is for an aircraft manufacturing corporation, then this would certainly be a cause for a BIG concern. Cash Ratio 􀂄 A very short-term creditor may be interested in the cash ratio Cash Cash Ratio= ----------------------- Current Liabilities 􀂄 Current ratio for A2Z in 20X2 was 0.18 Summary 􀂄 Financial Statements Analysis 􀂄 Common Size Analysis (Cont.) 􀂄 Ratio Analysis 􀂄 Short-term solvency, or liquidity, ratios 􀂃 Current Ratio 􀂃 Acid Test (Quick) ratio 􀂃 Cash ratio Upcoming topics 􀂄 Ratio Analysis (cont.) 􀂄 Long Term Solvency, or Liquidity ratios 􀂄 Asset management, or turnover, ratios 􀂄 Profitability ratios 􀂄 Market value ratios
How much is 242 lbs?
242 lbs is the same as 242 pounds.
242 pounds into stone?
242 pounds equals 17.3 stones. One stone is 14 pounds.
How much does an average Montgomery ward chest freezer weight?
242 pounds
How much does Jan weigh?
NBA player Jan Vesely weighs 242 pounds.
What percent is 10 pounds of 242 pounds?
4.13%
How much does J.J. Hickson weigh?
NBA player J.J. Hickson weighs 242 pounds.
How much does Jan Vesely weigh?
NBA player Jan Vesely weighs 242 pounds.
How much does Mirza Teletovic weigh?
NBA player Mirza Teletovic weighs 242 pounds.
How much does Jose Fernandez weigh?
MLB player Jose Fernandez weighs 242 pounds.
How much does Jose Veras weigh?
MLB player Jose Veras weighs 242 pounds.
How much does NFL player Dante Rosario weigh?
NFL player Dante Rosario weighs 242 pounds.
How much does NFL player D.J. Williams weigh?
NFL player D.J. Williams weighs 242 pounds.
