Premium Essay

Paer Story

In: Business and Management

Submitted By bjsherrod
Words 5923
Pages 24
Chapter 4
Cash Flow and Financial Planning

( Instructor’s Resources

Overview

This chapter introduces the student to the financial planning process, with the emphasis on short-term (operating) financial planning and its two key components: cash planning and profit planning. Cash planning requires preparation of the cash budget, while profit planning involves preparation of a pro forma income statement and balance sheet. The text illustrates through example how these budgets and statements are developed. The weaknesses of the simplified approaches (judgmental and percent-of-sales methods) of pro forma statement preparation are outlined. The distinction between operating cash flow and free cash flow is presented and discussed. Current tax law regarding the depreciation of assets and the effect on cash flow are also described. The firm’s cash flow is analyzed through classification of sources and uses of cash. The student is guided in a step-by-step preparation of the statement of cash flows and the interpretation of this statement. This chapter ties in every person’s need to set goals, estimate income, and budget expenditures to the firm’s need to effectively engage in these activities.

( Answers to Review Questions

1. The first four classes of property specified by the MACRS system categorized by the length of the depreciation (recovery) period are called 3-, 5-, 7-, and 10-years property:

|Recovery Period |Definition |
|3 years |Research and experiment equipment and certain special tools |
|5 years |Computers, printers, copiers, duplicating equipment, cars, light-duty trucks, qualified |
| |technological equipment, and similar assets…...

Similar Documents

Premium Essay

Story

...the message in the story. The waiting room can be a symbol of purgatory for some. “The doctor’s waiting room, which was very small was almost full when the Turpins entered and Mrs.Turpin, who was very large in her presence” (revelation 191) If O’connor would not have put in the story wouldn’t have as much meaning “it takes every word in the story to say what the meaning is.” (O’Connor 334) This critic being O’connor herself, implies it takes everything necessary to establish the meaning in the story. Without the waiting room Mrs.Turpin revelation would not have been a reality. The key to the waiting room is when Mary Grace throws the book at Mrs.Turpin, another example of symbolism. “The book struck her directly over her left eye.”(206) It is with this act that helps Mrs. Turpin achieve her revelation. The throwing of the book is seen as symbolism because that violent act opens the eyes of Mrs.Turpin. “the short story requires more drastic procedures then the novel because more has to be accomplished in less space.”(333) This critic feels this act of symbolism must be drastic enough because it will be the only thing capable of showing the error of her ways. It was essential that the book was thrown, Mrs.Turnpin being how full of herself as she was, because the violence was the only way it would be the only way to get her revelation. What Mrs.Turpin dialogue is key, without her smug talk there would be no story. She degrades many people in the story, and she......

Words: 400 - Pages: 2

Premium Essay

Reflection Paer

...generate the earnings (net income) in the calculation. Two companies could generate the same EPS number, but one could do so with less equity (investment) - that company would be more efficient at using its capital to generate income and, all other things being equal, would be a "better" company. Investors also need to be aware of earnings manipulation that will affect the quality of the earnings number. It is important not to rely on any one financial measure, but to use it in conjunction with statement analysis and other measures Price-Earnings Ratio In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story by itself. It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company's own historical P/E. It would not be useful for investors using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has much different growth prospects. The P/E is sometimes referred to as the "multiple", because it shows how much investors are willing to pay per dollar of earnings. If a company were currently trading at a multiple (P/E) of 20, the interpretation is that an investor is willing to pay $20 for $1 of current earnings. It is important that investors note an......

Words: 2581 - Pages: 11

Premium Essay

Story

...Story of a father and a little boy who had a bad temper There once was a little boy who had a bad temper. His father gave him a bag of nails and told him that every time he lost his temper, he must hammer a nail into the fence. The first day the boy had driven 37 nails into the fence. Over the next few weeks as he learned to control his anger, the number of nails hammered daily, gradually dwindled down. He discovered it was easier to hold his temper than to drive those nails into the fence. Finally the day came when the boy didn’t lose his temper at all. He told his father about it and the father suggested that the boy now pull out one nail for each day that he was able to hold his temper. The days passed and the young boy was finally able to tell his father that all the nails were gone. The father took his son by the hand and led him to the fence. He said “you have done well, my son, but look at the holes in the fence. The fence will never be the same. When you say things in anger, they leave a scar just like this one.” You can put a knife in a man and draw it out. It won’t matter how many times you say I’m sorry, the wound is still there. Moral for the story: Make sure you control your temper the next time you are tempted to say something you will regret later....

Words: 264 - Pages: 2

Free Essay

Stories

...HAPPY PRINCE by Oscar Wilde The prince in the story is no living prince. He is the statue of a dead prince decorated with gold leaves and precious stones. He is known as the Happy Prince because there is a smile on his lips. But the smile gradually gives way to tears. The Happy Prince cannot help crying over the scenes of misery in the houses of the poor. He decides to help them with his gold leaves and costly stones. The little swallow acts as his messenger, and he gives away all his wealth. The Swallow was on his way back to his homeland when the prince had detained him to help the poor. He still wished to go back but now it was too late. The intense cold killed him. Thus the little swallow lost his life in helping the poor. His death broke the prince’s heart. So the swallow and the prince perished for a noble cause. But their death was not the end. It made them immortal. That is why the angel selected the dead swallow and the lifeless heart of the prince as the noblest things on earth. Haircut by Ring Lardner The narrator of the story is the town barber, who talks about a man by the name of Jim Kendall. Jim was a man who played cruel pranks on children and adults. Jim goes hunting with a 10-year old mentally handicapped child. When it is discovered that Jim was shot, many people in the town believed that it was an accident, although the author of the story indicates that the shooting was planned by the child, who had been tormented by Jim and wanted to get revenge...

Words: 924 - Pages: 4

Free Essay

Story

...workers and consumers) have to stand together. For example, Chavez quotes “what we do know absolutely is that human lives are worth more than grapes and that innocent looking grapes on the table may disguise poisonous residues hidden deep inside where washing cannot reach.” (par. 6) Consumers are now not the only ones getting poisoned, but consumers are paying money to eat poison. Chavez connecting the audience through pathos allows both consumers and immigrants to be one; both are dying from this poison. Chavez shares personal stories that he witnesses because of the pesticides. He shared the story of Amalia Larios who will not walk because while her mother was pregnant she was exposed to pesticides while working in the fields harvesting the grapes. He continued with Adrian Espinoza a 7 year old, who is dying of cancer along will 8 other children because their only source of water was polluted with pesticides. He continues with several stories of the lives lost or ruined so farmers can used the pesticides. Our government full aware of the use of the poisonous chemicals and does nothing about it. He tells the consumers he has fought before and won. He asking for consumers and farm workers to all come together as a whole to put an end to all dangerous pesticides. Chavez speech was full of facts and truth. He was able to justify the protest of removing pesticides. The author used a good mixture of logos (facts), ethos (credibility) and pathos (emotion). Chavez......

Words: 1530 - Pages: 7

Premium Essay

Story

...Alvaro Saldana Professor Coroniti Writing and Communication July 25, 2014 Cinema Paradiso Cinema Paradiso is a movie to be felt. The film portrays the story of a boy named Salvatore “ToTo” di Vita, and the way he grows up with the story of the cinema from a town called Giancaldo in the province of Sicily. The boy bonds with a man named Alfredo who worked at the local theater, Alfredo teaches everything he knows to Salvatore until one day Alfredo has an accident and goes blind. Salvatore later fall’s in love with Elena and soon has to leave his town in order to follow his career. He returns to Giancaldo 30 years later in order to learn the lesson of letting go. The score is very beautiful and very touching throughout the film and it depicts the emotions going on very accurately. It was played during the shooting of the film, which I think makes all the difference for the actors in really feeling every scene. There was a lot of inspiration and artistry during the making of this film. From the beginning of the movie, we get to know and fall for little Salvatore and that reminds us of how we were when we were little kids. From then on we start to feel related to him and how he grows up. There are lots of emotions all throughout the film because he goes through every stage of life with the cinema at his side and how the cinema also changes. It shows you how at first even kisses were......

Words: 612 - Pages: 3

Free Essay

Story

...ashes into their ashtray, but then he gives the interloper a look and the interloper moves a few feet away. It’s only when his friend describes being in a foreign country and drunk all the time that the interloper speaks again, “You sound like a lot of fun.” Then he retreats back into the bar. They sit in the mild night a bit longer before the bartender comes out to smoke a cigarette. At this point he, the he of the story, not the bartender, is telling his friend a story. The bartender interjects, “I couldn’t help but overhear, but that’s awesome.” It was a story about smoking. Smokers love each other- they’re a dying breed. Then the bartender tells them that the patio is closed, but if that they want to stay outside for a bit that’s fine- they’re not loud. He remembers that that’s exactly what another bartender had told him and his date back then. He lights a cigarette. Once he’s done smoking they move inside. They get another round and chat some more. About dating. She’s currently in a relationship that sounds as messy as they tend to be. He hams up a story about a recent date, after the recent love, not mentioning that his heart is in the process of breaking. Then her friend calls- who just got broken up with tonight. She takes the call, telling her friend how much better she is than her now ex. In his mind, he can’t help but go right back to work- he’s revising all the words of his old friend in order to squeeze another inch of effectiveness out of them. “Don’t say......

Words: 702 - Pages: 3

Premium Essay

Story

...the pitcher. “Four, five, six…” Plop, plip, plop. The water rose some more. Soon the crow could reach the water. “Now, I can drink!” said the crow. “Ah! It’s cold and good!” Discussion Questions: 1. At the beginning of the story, what did the thirsty crow do? 2. Where did he find water? 3. Could he drink right away? Why not? 4. How do you think the crow felt when he could not drink? 5. What did the crow do then? 6. If you were the crow, what would you do? 7. What happened when he dropped stones into the pitcher? 8. How did the crow feel in the end? Why? 9. Do you think he is a smart crow? Why? 10. In what way can you be smart like the crow? First Quarter Week 2 Belling the Cat Adapted from Aesop by Roderick Aguirre A long time ago, there were three mice that lived in a big house. They had an enemy- Pat the Cat. Now, Pat the Cat was a watchful cat. She watched the house so closely that the three mice could hardly go out from their small hole. They could not look for tasty food to eat. (Stop here and ask): · Who was the enemy of the three mice? · What kind of cat was Pat? · Why was Pat the Cat their enemy? · What was the mice’s problem? · What do you think the three mice will do to solve the problem? Listen to the next part of the story to find out. So First Mouse called for a meeting to solve the problem. “We need to fool Pat the Cat,” said First Mouse. “Yes, or we will be so hungry, we will die,” agreed Second Mouse. “What should we do to fool......

Words: 3710 - Pages: 15

Free Essay

Story

...circumstances which in one way or another affected the philosophy of both of the writers. Lord of the Flies is an English novel written by William Golding in 1954. The book was written after the World War II, however, the events tell the story of English boys evacuated by a plane to safety after threats of an atomic bomb during the war. The crisis in the novel begins when this group of boys find themselves all alone on a deserted island after their plane crashes with no adults to take care of them. The boys, who supposedly, come from a sophisticated background try at first to manage their lives on the island by setting rules. They even choose a leader by voting, which is a sign of democracy. But after a while, the rebellious nature of some of the boys leads the whole group to drop their civilised nature and instead adopt savagery behaviors in order to survive. The savage behaviors develop from killing pigs to killing each other without any feeling of guilt. The novel, as mentioned before, highlights the evil nature in human beings that needs only the right chance to surface and overwhelm the mask of civilisation. The second novel is Blindness. This book was written by the Protégées writer Jose Saramgo and was published in 1995. The novel tells the story of a city that is hit by a sudden epidemic of white blindness. Blindness does not affect everyone at the same time. It rather creeps slowly targeting people one by one. As a result, the Government of the city isolates the......

Words: 1458 - Pages: 6

Premium Essay

Story

...A STORY OF HONESTY   A successful business man was growing old and knew it was time to choose a successor to take over the business. Instead of choosing one of his directors or his children, he decided to do something different. He called all the young executives in his company together. “It is time for me to step down and choose the next CEO,” he said.”I have decided to choose one of you.” The young executives were shocked, but the boss continued. “I am going to give each one of you a seed today – a very special seed. I want you plant the seed, water it, and come back here one year from today with what you have grown from the seed I have given you. I will then judge the plants that you bring, and the one I choose will be the next CEO.”   One man, named Jim, was there that day and he, like the others, received a seed. He went home and excitedly, told his wife the story. She helped him get a pot, soil and compost and he planted the seed.Every day, he would water it and watch to see if it had grown.After about three weeks, some of the other executives began to talk about their seeds and the plants  that were beginning to grow. Jim kept checking his seed, but nothing ever grew.Three weeks, four weeks, five weeks went by, still nothing. By now,others were talking about their plants, but Jim didn’t have a plant and he felt like a failure.Six months went by – still nothing in Jim’s pot. He just knew he had killed his seed. Everyone else had trees and tall plants, but he had......

Words: 765 - Pages: 4

Free Essay

Discussion Paer #1 Sociology

...true in my Italian family. Every morning we drink coffee together. My family is also Christian, and we attend church every Sunday. After church on Sundays we have a nice, huge sit down dinner. We pray before every meal together. My parents are originally from New York, and they have brought their traditions from New York to California. They grew up with a lot of Jewish friends and so they carry on some Jewish traditions even though we are Christians. We play the Dreidel game and eat Jewish food. My family eats fish every Christmas Eve to carry on my father’s tradition in his Italian family back in New York. Also on Christmas Eve my family reads the story in the New Testament of Jesus Christ’s birth, and then we each open one present. We celebrate all American holidays like Valentine’s Day, Easter (the fun egg search and the Christian story), Halloween, Thanksgiving, Christmas (Santa Claus and the birth of Jesus). My culture is my way of life and the reason I am the way I am. Now if I imagined I had an identical twin and we were separated at birth and she grew up in China, she would be entirely different than me. First of all she would most likely speak Chinese, and look different than me in the way she dressed and did her makeup. According to Alina Bradford on Livescience.com, her religion would be either “Buddhism, Taoism, Islam, Catholicism, or Protestantism”. Also her cuisine would be different in that Chinese people usually eat a lot of “fried dishes, and Szechuan,......

Words: 915 - Pages: 4

Premium Essay

Stories

...1. The Gift of the Magi "The Gift of the Magi" is a short story written by O. Henry (a pen name for William Sydney Porter), about a young married couple and how they deal with the challenge of buying secret Christmas gifts for each other with very little money. As a sentimental story with a moral lesson about gift-giving, it has been a popular one for adaptation, especially for presentation during the Christmas season. The plot and its "twist ending" are well-known, and the ending is generally considered an example of situational irony. It was allegedly written at Pete's Tavern[2][3] on Irving Place in New York City. Plot Mr. James Dillingham Young ("Jim") and his wife, Della, are a couple living in a modest flat. They each have one possession in which they take pride: Della's beautiful long, flowing hair and Jim's gold watch, which had belonged to his father and grandfather. On Christmas Eve, with only $1.87 in hand, and desperate to find a gift for Jim, Della sells her hair for $20, and eventually finds a platinum fob chain for Jim's watch for $21. Happy to have found the perfect gift at last, she runs home and begins to prepare dinner. When Jim comes home, he looks at Della with an expression “that she could not read, and it terrified her.” Della then admits to Jim that she sold her hair to buy him his present. Jim gives Della her present — an array of expensive combs for her hair (referred to as “The Combs”). Della then shows Jim the chain she bought for him,......

Words: 2601 - Pages: 11

Free Essay

Story

...good in glasses.  He had more dates than me and all the girls loved him!  Boy, sometimes I was jealous.  Today was one of those days.  I could see that he was nervous about his speech.  So, I smacked him on the back and said, "Hey, big guy, you'll be great!" He looked at me with one of those looks (the really grateful one) and smiled. "Thanks," he said. As he started his speech, he cleared his throat, and began  "Graduation is a time to thank those who helped you make it through those tough years. Your parents, your teachers, your siblings, maybe a coach... but mostly your friends.  I am here to tell all of you that being a friend to someone is the best gift you can give them.  I am going to tell you a story." I just looked at my friend with disbelief as he told the story of the first day we met. He had planned to kill himself over the weekend.  He talked of how he had cleaned out his locker so his Mom wouldn't have to do it later and was carrying his stuff home.  He looked hard at me and gave me a little smile.  "Thankfully, I was saved.  My friend saved me from doing the unspeakable." I heard the gasp go through the crowd as this handsome, popular boy told us all about his weakest moment.  I saw his mom and dad looking at me and smiling that same grateful smile.  Not until that moment did I realize it's depth. Never underestimate the power of your actions.  With one small gesture you can change a person's life.  For better or for worse.  God puts us all in each......

Words: 833 - Pages: 4

Free Essay

Story

...short stories, 250 words long look up, look to the sides, just don’t look at the reflection in the bar mirror She’s a red dress and thick rimmed glasses and all sorts of wit and intelligence in conversation. Next to her is a man that’s just a little more dim witted and a flannel shirt that was pressed just slightly too recently. And all around them are duplicates; replicants- people that are acquaintances or soon to be fair weather friends. All around them are life paths that they were one butterfly away from taking. The woman in the red dress is yawning now- opening her mouth so wide people near her can see the fills in her molars- but she doesn’t yawn consciously. She is uncouth without even giving a thought to it. She is feeling tired. More importantly, she’s feeling hungry- trying to eat in all the air that is around to prove to herself that her heart still beats and it’s not all just a dream. Among all of the people by the bar there is color- various colors- some bright, some subdued and pastel. The coloring of their clothing tell stories that are alike in their uniqueness. She lays one hand on the bar and shakes her head. He looks at her, concerned, and asks what’s wrong. “Nothing,” she lies. “Are you sure?” he asks. “Yes. Let’s dance.” She takes his hand out of his pocket, lifts him away from the bar, and they sway back and forth, back and forth, until all the notes blend into one beat. Until she can create the......

Words: 292 - Pages: 2

Premium Essay

Community Corrections Fnial Paer

...the birth by God’s angels. They thought Jesus (God saves) their savior. (Associated content) When Jesus was young around twelve year old he when to Jerusalem with his earthly parents for Passover, he was lost in a crowd as soon as they have found him he was in a temple talking about the torah with the rabbis. His knowledge was not like an ordinary twelve year old child it was beyond that as they were leaving the temple he made an comment to his earthly parents Did you not know that I would be in my father’s house? Jesus made that comment to his parents to show is close connection with God. The connection he had with God were later showed, in his life (Associated content) There is no written history of Jesus young adulthood. The story we have heard is when Jesus was thirty years of age, at this age he asked john the Baptist to baptize him in the Jordan River, john the Baptist feels that he was not wordy to Baptist the savior but Jesus demand john the Baptist to baptize him this was Jesus way of committing himself to God. Jesus did many miracles as he traveled through the land spreading the teaching of love (Associated content) Upon his journey about 200 miles away from his home, but that day was quite a lot of walking was Jesus and his disciples transportation Jesus tired to keep low over4 his three years of journey, it was hard because his reputation spread nationwide, Roman governors and rules of Israel took note of him (Jesus central) Jesus ......

Words: 1547 - Pages: 7