Meaning of Education

The Key to Success â€Å"Yep, that’s the last of it† my dad yelled as he slammed the trunk shut. Totes were piled up high and filled with clothes, shoes, and lots of old memories. After getting all settled in my new apartment my family and I said our goodbyes. This next chapter in my life was finally here. I was now a college student entering the real world. We all have our purposes for taking the next step in life and going to college. My purpose for attending college is to take a leap towards creating success and meaning in my life.My family has been a giant influence on attending college. The day my older brother went off to college it was no surprise. It seems that moving on to college was the natural thing to do. For instance, graduating kindergarten and moving to the 1st grade is similar to graduating from high school and moving on to college. It’s just a chapter in life that our parents brought us up expecting to reach and we’ve been taught that it would be the right choice since elementary school. It’s what we grew up knowing we were supposed to do when we got to that point in life.Ultimately, we were taught that this step would lead us to the success to building a more meaningful life. All in all, education is the key to success. Having an education opens many doors to amazing opportunities. Why waste time stuck in a slump when one can go out into the world and be someone, make a difference in this world, and have the pride to say that â€Å"I am successful†. With a college education, the amount of freedom is endless. There are many more careers to choose from and the ability to stand out from others increases your career success.An education helps one develop a more meaningful life, that’s what I want to achieve. I want to make a difference in this world by not only my art but my everyday life. My goals are to one day be very well off financially, enabling me to support my future family and enjoy all th e accomplishments and great opportunities life has to offer. Just on a walk to school, I get a glance of the harsh reality by seeing all the unfortunate civilians struggling to survive each day. For instance, an old man and his dog, hungry as can be, asking for money on the corner of the street.This makes me realize that I am very grateful for what I have and that an education is what I must pursue to accomplish my goals and dreams. With all the love and support of my family and friends I have a great positive outlook on a college education. Having moved on to this next step in my life, I already feel as if I’m that much closer to reaching my goals. I can see how proud my family is as they watch me better my life and future. With all my past experiences, I now have a strong mentality to finish with pride and follow all my dreams. Overall, an education is the way to success and the key to many great opportunities.

Good And Evil: “How to Kill A Mockingbird” Harper Lee Essay

Good and evil go hand in hand. The relationship between good and evil can be seen in the Bible, through the stories of Adam and Eve and Cain and Abel. The correlation between good and evil is seen throughout history, through medians such as literature and the media. Neither good nor evil can exist without the other. The coexistence of good and evil is portrayed in Harper Lee’s â€Å"To Kill A Mockingbird† when the characters of Jem, Dill and Scout come across good and evil through Maycomb society. Jem is placed in situations where he is exposed to both good and evil in Maycomb. This is shown when Jem encounters good and evil through the closing of the knothole, the jury’s unjust verdict, and Mrs. Dubose. Jem is portrayed as a more mature character in this book but there are many instances in which he shows his ignorance to the evil in Maycomb. Jem is exposed to evil when Nathan Radley plugs the knothole with cement. Jem feels that, in a way, Nathan Radley is breaking the only connection between Boo and the children. The reader can see that the cementing of the knothole really affects Jem in the following quote, â€Å"When [the children] went in the house [Scout] had seen [that] [Jem] had been crying† (Lee pg.63). The closing of the knothole is perhaps the first time Jem realizes that Maycomb is not the perfect town he has always perceived it as, because it has both good and bad. Jem starts to understand that there is a lot more going on in Maycomb than what is seen on the outside. Another example of Jem’s exposure to the good and evil in Maycomb society is seen when the jury convicts Tom Robinson. Jem’s reaction reveals his emotions, as seen in the following passage: â€Å"[Scout] peeked at Jem: his hands were white from gripping the balcony rail, and [Jem’s] shoulders jerked as if each â€Å"guilty† was a separate stab between them† (Lee pg.211). Jem’s body language shows the thoughts and the feelings he has towards the jury’s verdict. Jem put a lot of faith into the jury, thinking that they would produce a fair verdict but he was let down when they all said â€Å"guilty†, even the Cunningham who had at first opposed the rest of the jury. This is another encounter Jem has that reveals both the good and evil in Maycomb. Finally, Jem faces both good and evil in the form of Mrs. Dubose. His initial reaction to her rudeness is anger, which is described in the quote, â€Å"‘Not only a Finch waiting on tables but one in the courthouse lawing for niggers! ‘† Jem stiffened. Mrs. Dubose’s shot had gone home and she knew it†¦. Jem was scarlet† (Lee pg. 101-102). All Jem can see in Mrs. Dubose is an evil old woman. The only time he sees something more than evil is when Atticus reveals to him that Mrs. Dubose was an ex-morphine addict. This changes his view of Mrs. Dubose. Jem sees a new side of Mrs. Dubose that he had never seen before. Jem starts to see that although she was grumpy and crude, she possessed courage, and in her own way, was good. Through the knothole incident, the verdict, and Mrs. Dubose, Jem starts to see the relationship between both good and evil and he understands that nothing is ever all good or all evil. Another character that has to face the reality of the coexistence of good and evil is Dill. Dill is still young and innocent. Through encounters with both good and evil in society, Dill gains experience and grows mentally and emotionally. Dill finds good and evil in the trial, the way his parents treat him, and Mr. Dolphus Raymond. Dill compares the roles that Atticus and Mr. Gilmer play in the trial. He becomes sensitive to the good of Atticus and the bad of Mr. Gilmer, the prosecutor. When Mr. Gilmer is cross-examining Tom Robinson, Dill feels that Mr. Gilmer is treating Tom Robinson unfairly. Unlike Atticus, Mr. Gilmer shows no respect for Tom and Dill empathizes with Tom. Dill’s feeling towards the unfairness is seen in the following passage: â€Å"‘That old Mr. Gilmer doin’ [Tom] thataway, talking so hateful to [Tom]'† (Lee pg. 198). Dill feels that it is wrong for Mr. Gilmer to treat Tom like he is inferior just because he is black. In seeing the comparison of Atticus and Mr. Gilmer in the way they carry themselves in the trial, Dill is starting to see the coexistence of good and evil. Dill feels that his parents are sometimes good and sometime bad. Dill feels that in many ways his parents are evil because all they do is ignore him. We see that he feels unwanted when he says â€Å"‘The thing is what I’m tryin’ to say is – they do get on a lot better without me†¦. They buy me everything I want but it’s now-you’ve-got-it-go-play-with-it'† (Lee pg. 145). Dill explains why he ran away from home and in his description of the way his parents treat him, there is a connection between good and evil. It can be classified as good that Dill’s parents buy him everything he wants. On an emotional level Dill feels detached and unimportant to his parents because once they buy him his toy, they leave him by himself. In his relationship with his parents, Dill feels that there is both good and evil. Lastly, Dill encounters both good and evil when he meets Mr. Dolphus Raymond. Mr. Dolphus Raymond shows his â€Å"evil† side to the community in Maycomb but shows his humanity when taking care of Dill during the trial. This is seen in the quote, â€Å"†Cry about the simple hell people give other people – without even thinking† (Lee pg. 201) Through Mr. Dolphus Raymond, Dill sees that there is always more than what is seen on the surface. Though Maycomb society sees Mr. Dolphus Raymond as a drunk, and therefore â€Å"evil†, Dill and Scout witness the good in him. In a way, Mr. Dolphus Raymond has more good than most people in Maycomb because he understands the way things should be. This influences Dill because he realizes that even though Mr. Dolphus Raymond is thought of as evil, he is actually good. Through Dill’s experiences with the trial, his parents, and Mr. Dolphus Raymond, Dill is exposed to the coinciding of good and evil. In this book, the person most exposed to the good and evil in society is Scout. In the course of the story, Scout is exposed to good and evil through the mob, the fire, and Boo Radley. Scout finds out that all people have good and bad sides, When Scout sees Atticus confronted by the mob, she at first feels that they are ready to hurt him, and in her eyes, the gang must be bad. Scout tries to stop the confrontation and in doing so, wakes up the good in Mr. Cunningham, the supposed mob leader. The reader sees that Scout changed something within Mr. Cunningham in the next quote: â€Å"Then he straightened up and waved a big paw. ‘Let’s clear out,’ he called† (Lee pg. 154). Mr. Cunningham acts humanely, unlike the way he acted within the mob. It is as if the mob as a whole is bad but each individual is good. Scout brings out the individual in the mob, bringing out the good from the bad. Another example of Scout’s encounter with good and evil is during the fire. In Maycomb County, there are a lot of stereotypical and prejudiced views. Scout is exposed to Atticus’ way of thinking of all people as equals, and to Scout this is good and the prejudice in Maycomb citizens is bad. During the fire, Scout sees that although there are people in Maycomb whose views are wrong, they were still at the fire, helping, proven in the following quote: â€Å"The men of Maycomb, in all degrees of dress and undress, took furniture from Miss Maudie’s house† (Lee pg.69). Maycomb society shows solidarity during the fire, which is good, though sometimes that very solidarity used for good is turned into a prejudiced view shared by most of the citizens of Maycomb, which is bad. Through the fire scene, Scout sees that although sometimes Maycomb is evil because of its racism and chauvinism, the community shows goodness when coming together to help Miss Maudie. Finally, Scout sees good in Boo Radley even though society portrays him as evil. When Bob Ewell tries to kill Jem and Scout, Boo saves them by killing Bob Ewell. Although murdering Bob was bad, Boo was doing good because he was protecting the children. The following quote shows that Scout knows Boo was trying to protect her: â€Å"‘Mr. Tate was right’ †¦ ‘Well, it’d sort of be like shootin’ a mockingbird, wouldn’t it? ‘† (Lee pg. 276). Scout understands that sometimes there is good even in the evilest of actions. Scout finally realizes that Boo Radley is indeed human and although he has always been portrayed as a monster, there is good in him. Through the mob, the fire and Boo Radley, Scout learns that there is always good where there is evil and vice versa. The theme of the coexistence of good and evil is emphasized in Harper Lee’s To Kill A Mockingbird. Throughout the novel the reader sees the different events that characters are exposed to, thus affecting the way they perceive good and evil. One must start to realize that nothing is ever all good or all evil. The coexistence of good and evil can be seen everyday, out on the streets, in our schools, and in our homes.

Ethical issues in work Essay

In group work, pressure on the individuals involved is inevitable. However, there are distinctions between therapeutic pressure as well as undue pressure. Therapeutic pressure results in adaptive anxiety. The mere presence of others will put pressure on each of the individuals in the group to behave in a certain way during each session. This is acceptable. Pressure is said to be therapeutic when it contributes to that individual’s resolution of what issues he or she wanted to be resolved. However, undue pressure enters a group session when the individual is no longer able to utilize his or her right to refuse certain aspects of the therapy or to stop at particular points of a task designated to him or her. (Corey et al, 2007) There might not be outright revocation of this right but rather a subtle coercion as a result of undue pressure on the said participant of the group therapy. Thus ethical boundaries are overlooked and the situation is no longer adaptive to the individual’s welfare and needs. In the case study (Herlihy & Corey, 2006), Ryan was unethical in the way he had two members of the group explore their feelings through role playing. Personally, I believe he was overstepping his boundaries as the group leader. Also, he was acting without thinking of what would be best for both individuals. I found it highly questionable that he asked Kevin, one of the participants, to role play by telling his intimate feelings about a member of the opposite sex. This task of disclosure without prior consent was a clear example, in my point of view, of how a group leader can sometimes abuse his moral ascendancy over the other members of the group. Also, the added task of having Kevin ask Linda on a real date and then telling him personal opinions about his girlfriend was very much out of line. As a group leader he should have acted more appropriately and thought of other tasks that would have been less demanding and less coercive in nature. The group leader, in this case, was most certainly acting unethically. He was asking Kevin to change by having him ask Linda out and by telling him speculations about his girlfriend. Kevin should have the decision on who he wants to ask out and on what he wants to conclude about his girlfriend. Especially with the task of the assignment, Kevin should have first been informed of the details before he was asked to agree to it. However, undue pressure made Kevin agree immediately and might thus have caused damage or trauma which the group leader was supposed to protect him from. Having Kevin confess his fantasies about Linda in front of the group may have also caused Linda trauma and psychological harm. Ryan should have considered what things Linda would find complimentary. Thrusting her in a situation might have caused her discomfort. Ryan’s assessment only of how Kevin felt afterwards was inconsiderate of the other member of the group involved in the activity, Linda. (Herlihy & Corey, 2006). If I were the co leader of the group, I would have intervened when Ryan asked Kevin to role play with Linda and again when he gave him an assignment. As a leader, one should always take into consideration the effect one has on the others in the group. The pressure one puts with such requests as role playing and assignments, should always be considered. Also, I would remind Ryan to consider the diversity of those in the group and to consider first that what he thinks would help Linda’s self-image might not be what she would consider to be helpful herself. I would most certainly have intervened and reminded Ryan that he was responsible for the psychological well-being and the lessening of the discomfort of these individuals as they exposed themselves to the activities of the group. They should not be placed in inappropriate positions wherein they are forced to divulge more about themselves than they are willing to. The members must always be clearly shown that they have an option to refuse or to cut off any activity they have been asked to perform. (Corey et al, 2007)

Faith Term Paper Example | Topics and Well Written Essays - 1250 words

Faith - Term Paper Example For years, the healthcare profession in the United States was ultimately predicated upon an understanding that almost each and every patient that they would come in contact with would necessarily be of a Christian background war faith. However, in recent years, a deluge of immigration and demographic changes around the globe have elicited a situation in which such an expectation can no longer be relied upon. Instead, the healthcare provider must be thoroughly aware of the fact that a variety of different worldviews, religious beliefs, and approaches necessarily exist within the environment and could be reflected during the course of any normal day. Because of this, the following analysis will seek to engage the reader in a further understanding of how three distinct and rather unknown faiths engage with the issue of healthcare. Such an analysis will hopefully be beneficial in providing an overview of how the healthcare provider can seek to address key needs and issues to individuals that do not ascribe to major worldviews and religious beliefs. In terms of Buddhism and the provision of care, it should be understood that this particular religion is the one that perhaps most closely mirrors Christianity; at least with respect to the application and focus on the Golden Rule and the need to not harm another individual. By means of contrast and comparison to the Christian faith, Buddhism necessarily places a high level of focus on the importance of respect towards Buddha and his teaching; as compared to the Christian belief that Christ served as the exemplification of how they should be understood and represented (Wei-Chen, 2010). Likewise, in comparison to the other religions that have been analyzed within this particular analysis, Buddhism necessarily places an additional level of focus on the importance of personal mindset and the need to justify one’s own life and existence with the outside

Case analysis Essay Example | Topics and Well Written Essays - 750 words - 3

Case analysis - Essay Example on the increase due to shortage of water sources and the high rate of population growth hence little water and its sources should be conserved and managed carefully. Water is quite and essential, scarce and consumable resource; it should be managed at all cost. Water management processes are multi objected in that there are many reasons for conserving water; domestic use, agriculture, hydro power generation, recreation and recycling. Many water conflict management projects have been aimed at economic developments, protecting the environment and other strategic interests of the stakeholders (Ines, 2007). Communication is quite important when it comes to solving of any conflict or dispute. In the contemporary society, conflicts and disputes are a normal occurrence due to the social, political, economical and cultural differences between people. Water is quite a unique and vital resource that has no substitute. However, in many parts of the world the quality and quantity of water is decreasing due to exploitation by humans through their various activities. This has posed many problems to many as most depend on water (Aaron, 2007). As a result of water shortage, conflicts have risen between different societies, communities and even states over the existing natural water sources. Although water based wars have never occurred, tension still lies over water catchment areas as to who should control the water. According to Dabelko (2010), managing of water helps in resolving conflicts which are brought about by different reasons. Management of water can be used as a medium for settling conflicts in different perspectives. Firstly, good water management practices enhance good neighborliness. Through water conservation, different communities or people co-operate thus enhancing harmony between them. Water related harmony plays a vital role in solving of conflicts. All living beings rely on water for survival and so in order for people to live they will have conserved their

Compare the causes of European, African, and Asian emigrations to Essay

Compare the causes of European, African, and Asian emigrations to North America - Essay Example Pulling factors include job opportunities, religious and political reference. The essay will try to discuss the causes of different races to North America and the reasons for immigrations. â€Å"Migration is not always voluntary† (Dahlman and Renwick 235). For instance, Africa America migration to the North America was due to conflict in South America. African Americans migration was suffering under the Jim Crow laws that segregated blacks from the white. After the civil war, cotton prices depreciated in the South as the weevils destroyed most of the crop that highly affected the economy causing African America to migrate to the North. Some countries got rid of unwanted prisoners by taking them to other countries, the prisoners however settled in these areas, as they could not go back to their countries. Millions of people left Europe during the time of empire and colonies and settled in North America. â€Å"This emigration was driven by the rapid growth of the European population during its demographic transition† (Dahlman and Renwick 241). Harsh living conditions in their original homes contributed to the migration. There was unending famine in some parts of Europe due to harsh weather conditions and this highly contributed to the migration. Asian birthrate and poor economic growth pushed more people to North America where the economic was booming. Most Asians relocated to North America looking for peace because of the World War 1. North America changed rapidly due to the migration. â€Å"European exploration and settlement had a devastating effect on the indigenous peoples, meaning native populations† (Dahlman and Renwick 244). For instance, they natives had a low immunity to diseases carried by the immigrants, which cause a high death rate in the first century. The immigration causes intolerance attitude from the natives and this caused immigrant is put in smaller reservations. Many native intermarried with the immigrants,

Company Analysis Research Paper Example | Topics and Well Written Essays - 1250 words

Company Analysis - Research Paper Example The company’s core and associated brands include Ford, Mercury, Land Rover, Lincoln, Aston Martin, Volvo and Mazda (Ford Motor Company, â€Å"About Ford Motor Company†). Vision and Mission Company’s mission statement is reminiscent of a reflection of its core principle, identity, and values. Ford Motor Company operates its business throughout the world and endows with ‘personal mobility’ for the communities. The company is committed to serve the people with enthusiasm. Mission statement of Ford Motors is as following: â€Å"We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world† (Missionstatements, â€Å"Mission Statement†). Ford Motors offers values for all its stakeholders. Ford Motors focuses on ‘one team’ consisting of all stakeholders such as customers, employees, suppliers, dealers and investors among others. Vision statement shows the future pers pective of the company. The vision statement reads, â€Å"One Ford: One Team, One Plan and One Goal† (Ford Motor company, â€Å"One Ford Mission and Vision†). Strategic Objectives Organizations set up several strategies to operate business efficiently in international market. Ford Motor Company witnessed lots of strategic challenges during recession in the US. In the recent past, Ford Motors has redesigned a coherent business strategy. Ford emphasizes on ‘One Ford’ philosophy. Strategies implemented by Ford Motors Source: (Ford Motor Company, â€Å"Annual Report 2010†). Ford Motor Company focuses on meeting the customers’ requirements by providing them quality products. It enhances the efficiency of its plants and processes by adopting advanced technologies. Their strategies are chiefly based on ‘One Ford’ approach. Ford offers high-quality vehicles with global appeal such as ‘fuel-efficient cars’, competent utility vehicles, and ‘fun-to-drive’. They ensure continuous improvement driven by their strong product line. Ford Motors highlights on overall profitability. Ford Motors’ loyalties to excellent fuel economy, stunning style as well as customer-focused technology are demonstrated throughout its product line. Lincoln, one of the associated brands, is under focus to be established as a luxury brand to attain opportunities in the developing markets. Excellent quality, laser-sharp spotlight on client safety and fuel efficiency continue to make Ford Motors a market leader with the US consumers. Ford Motors looks forward to 70% of its development in the next few years to originate from its market segment of Asia Pacific and Africa. Ford Motors also expects to witness sustainable growth in emerging markets of India, Brazil and China (Ford Motor Company, â€Å"Annual Report 2010†). Financial Objectives The remarkable decline in automotive industry sales that came together with stiff credit markets along with the expenses associated with the changing business mode put major difficulty on automotive liquidity. Ford Motors witnessed record losses in 2008 during recession. They developed a feasible financial plan to sustain. The basic challenge of Ford Motors to be concentrated upon has been its failure to produce small vehicles in the US that can be put up for sale to generate more profit. Ford Motors informed net earnings of $6.6 billion in the year 2010, an increase of $3.8 billion from the year of 2009. Ford Motors’

Understanding of Augustine Essay Example | Topics and Well Written Essays - 250 words

Understanding of Augustine - Essay Example The natural evil has no distinction with the human evil in the God’s treatment of evil. Human blames God partly for the prevailing evil due to the degree of freedom bestowed upon men by God. Rubenstein points out that its God’s failure to allow for the rise of evil especially during the holocaust in Europe. The philosophical argument about the design of the world and the maker of the world and due to the prevailing evils, it points out that there is flaw in both the design of the world and its designer, who is god. It expounds on the controversy of the existence of a holy, caring and righteous God in which evil also exist. It’s difficult to comprehend the existence of a benevolent, omnipotent, omnipresent and omniscient God together with the evils on the cosmos (Abel, 72). Evil therefore presents many problems to the world. It’s both difficult to argue and understand further the co-existence of God’s majesty with evil on the same cosmos. Also, the evil has presented serious mystery in its relationship to the designer and design of

Dividend Policy decisions and Capital Structure decisions in relation Essay

Dividend Policy decisions and Capital Structure decisions in relation to Signaling THeory - Essay Example Usually the principal will offer a higher price than if she/he would not have received the signal. The assumptions underlying information asymmetry are that managers are better informed in relation to investors and will act to the best interest of current shareholders. The signaling theory assumes that managers and investors have same information but managers usually having better information. Thus, the managers would sell stock if overvalued and bonds if stock is undervalued. The investors clearly understand this and, therefore, view new stock sales as a negative signal. From the fact that information asymmetry is well known to all, how a company raises capital becomes a signal. The major implications of information asymmetry are: when the company’s prospects are poor the there is overvaluation of stock as nobody knows except the insiders, everything is financed with stock thus the company can raise more money at a lower cost; and when the company’s prospects are good then there is undervaluation of stock thus the company uses debt to finance. Overvaluation of stock assumes that once the stock falls, sharing of losses is by old and new stockholders favoring the old stockholders whereas undervaluation assumption is when the stock pri ces goes high only the old stockholders will benefit from the gains. This may be simply represented as follows: The signaling view in relation to dividend policy argues that changes in dividend amounts are signals of paramount importance to the investors about management’s changes expectation of future earnings (Duke,edu para 1). It is the belief of many that the amount per share companies’ pay as dividends is a clear indication of the management’s belief about future earnings. A decline in the dividend amount from a previous high amount is an indication that the management anticipates a decline in future earnings. It is a practice by most

Pollution Essay Example for Free

Pollution Essay Pollution happens absolutely everywhere, every single second of the day, everywhere on earth. You can find pollution in cars, home electronics, personal hygiene products, natural disasters, and even your own home. Pollution is when fossil fuel is burnt and let into the atmosphere. The three types of pollution is land pollution , air pollution and water pollution. Pollution is related to the amount of people in the world because if we have too much people on earth , then their is going to be too much pollution. What is land pollution? Land pollution is the wearing down of earth’s land caused by human activities. Land pollution can affect people , especially children because they can step on a broken bottle or a rusty piece of discarded metal. Medical and sanitary wastes are biohazards that can make people sick. The cause of land pollution is littering. What is air pollution? Air pollution is releasing gas particles to the air. Some causes of air pollution is factories. Because of air pollution living things have been having birth defects. Animals that are at the top of the food chain end up with the largest concentrations of toxins in their bodies. What is water pollution? Water pollution is the contamination of water bodies. Some causes of water pollution is trash and sewage waste dumped into the ocean , smoke , chemicals dumped into the water , oil leaks , and gunks. Because of water pollution , this caused death of aquatic animals , disruption of food chains , diseases and etc . Water pollution is coming back to hurt humans in many ways. What can be done to stop pollution from ruining our environment? To help stop pollution , we can stop littering , throw the garbage into trash-cans instead of onto the sidewalk or the side of the road. We can also carry around small bags and if we see a piece of litter on the ground while we’re walking , we can pick it up and toss it out in a trashcan. And if there isn’t enough garbage cans on the street , then we can send a letter to the local government , asking them to put more trash-cans in order to help stop pollution. I would write a letter to the local government if I see a big issue about littering. From this essay I learned the 3 types of pollution ( air pollution, land pollution and water pollution) . I also learned the causes of pollution. I will try to inform others about pollution by telling them the causes of pollution.

Constitutional and administrative laws

Constitutional and administrative laws Constitutional and administrative laws are collectively termed as public law. Public law has a direct impact on each individuals. For example during the passage of a new legislation piece or when an individuals civil rights are abused, the public law gives the legal structure within which the administration functions and the government operates. The laws play a very vital role in regulating the governments structure and its administration in reference to its nationals. It also defines the responsibilities of government workers and the intergovernmental relations. This presents it as a very vital component in the day to day running of the government. Constitutional law entails the study, interpretation, practice and administration of laws which are set by the constitution of a country. The sections contained in constitutional law sets out specific provisions which provides for civil and human rights as well as government entities. It is part of the consumer law which deals with issues relating to producers and consumers in the business world. Issues relating to discrimination and diversity are also underpinned in these laws. In the United States, the constitution acts as the foundation of all constitutional laws. Basically, constitutional laws deal with any legal issue revolving around constitutional rights or their violation. All cases involving constitutional law are dealt with by the Supreme Court of the United States. These cases may involve violation of the constitution or the need to amend or change the existing constitutional law in cases where they seem to conflict with the view of the nation. Judicial review is also a ve ry important subject in constitutional law where the state has to continually review the action of the legislative and executive branches. Administrative law on the other hand incorporates numerous areas of law. These include government agencies regulations and procedures, administrative rules, agency authoritys scope, agencies enforcement power and individual privacy. Basically, administrative law covers laws and legal doctrines which govern the regulation and administration of government bodies and agencies. These may include both state and federal. The Congress delegates power to these agencies prompting them to act as agents. These agencies are formed to protect the interests of the public rather than to protect private rights. The actions of a government agency ma include adjudication, rule making or implementing a particular regulatory agenda. One of the purposes of constitutional law is to ensure that each and every individual living within the borders of the country is protected. This is ensured by the section of the laws which uphold individuals civil rights. These rights are found in definite provisions in the constitution on which the constitutional law is founded. The provisions protect an individuals right from being interfered with by the state and the federal governments. In the constitution the first 8 amendments basically protects the basic civil rights of an individual. A good example is the 1st amendment which protects free speech, assembly and press fundamental rights. Other amendments just add to the scope of protection granted to an individual in regards to his basic rights. Another good example is 14th Amendment which bars a state from violating the immunities and rights of an individual without due process of law. The fair criminal justice system is also advocated for in the Fifth Amendment where it guara ntees a grand jury. The other purpose of constitutional law is protection of individuals property. Constitutional laws also very vital I ensuring that power is not concentrated I one arm. This is ensured through the doctrine of separation of powers which is part of the constitutional laws. According to this doctrine, power is divided among three arms; these are executive, legislature and judicial. The executive is responsible for implementing laws which are made by the legislature. The judiciary plays the all important role of interpreting the law. In this line of thinking, constitutional laws plays a vital role in preventing absolutism which characterizes dictatorship and monarchies. The laws are also very important in ensuring that the individuals rights are protected and checking the use of power. They also ensure that the rule of law prevails in the country by ensuring that individuals live without fear of losing their life arbitrarily or even losing their property. The constitutional laws are very significant because they instill confidence among the people in believing that their representatives will not abuse power. Most importantly, constitutional laws are a major check to laws which officials elected can impose. Administrative law on the other hand has a different approach compared to constitutional law. This is because they do not often relate to everyday life. Administrative law is mainly concerned with ensuring that there is fairness in the public decision making. The decisions must be guided by administrative discretion. This emerges as an advantage to both the government and its citizens. To the government, its status quo will be raised and it will also be able to perpetuate itself. Besides regulating relationship between the state and the citizen, administrative law also enables one of the governments arms to challenge another on the issues of legality of its actions (Stott). The law acts as a weapon used by power holders to ensure that every center of power does not exceed the legal limits of the warranted authority. By virtue of dealing with agencies, the laws made are diverse and dealing with equally diverse issues like workplace safety, environmental protection and environmental protection. Regulatory perspectives also fall in this docket of the law. The administrative laws also make decisions which affect vital aspects of an individuals life like deportation and decisions on healthcare coverage. These decisions are made by federal agencies. Fundamentally, administrative law affects an individual in real life. Its the law which determines how a government functions (good administration). The functioning of the government in this case may involve provision of certain public goods or services. The law plays a very vital role in controlling public utilities, banking, insurance, industry, finance, health and morals, finance, the professions and the response of the government to the whims of the modern society. This has addressed issues like service delivery, the role of technology, research, and economic, social economic and administrative factors. This may require the government to create an agency as stipulated by administrative law. However, it may opt to charter a non profit organization to provide such goods or services instead of creating an agency. This is considering the fact that government institutions cant be considered as government agencies. An administrative action may also be taken through a judicial review to ensure that public decision makers act within the jurisdiction of the law. Administrative law is very significant in addressing legal disputes especially those considered minor by the Supreme Court. Typical disputes involving issues like environmental protection, day to day business operations, administrative and corporate social responsibility, and policy rule and regulation are dealt with at the agency level. This is because they are equipped to deal with every day details of governing. A good example is an issue on environmental protection where a court may lack the needed expertise to decide the exact equipment needed in coal plants to avoid air pollution. However, administrative agencies are better suited to address such an issue amicably. This is because the agencies created via administrative law are able to obtain sufficient details of regulation and they also have the ability to develop expertise in a particular section requiring regulation. This also creates time for the higher courts to deal with other matters prompting attention at that level. One of the limitations of constitutional and administrative laws is their pluralistic conception. This has always put them under heavy criticism from varying directions. Consequently, there is a need for non-delegation doctrine revival to ensure great specifity in articulation the congressional standards. Administrative law is also limited I terms of scope especially because the administrative authorities are inferior to the bodies given the mandate to interpret and execute such laws. This means that administrative law has constitutional limitation.

The send off / Ducle et Decorum est - Compare these two poems by Essay

The send off / Ducle et Decorum est - Compare these two poems by Wilfred Owen which is both about the horrors of war. In any way you like. The send off/ Ducle et Decorum est. Compare these two poems by Wilfred Owen which is both about the horrors of war. In any way you like. Wilfred Owen is trying to tell people the way soldiers were sent off battle and who was there to show them support in of their need. Also he is showing people who were pressured into going to war and they know that they have a 5% chance or not returning back let alone in tacked with an arm missing. Death seems to be mentioned a lot in Wilfred Owen's poems for example the title of "Dulce et decorum est." in an English translation means "It is sweet and fitting to die for ones country. Throughout the poem more pictures are painted of death and funerals e.g. Dulce et Decorum est is an unglamours shocking picture at the front line. It is really making fun of the title I think that there might be a bit of irony in it. The two poems are first hand accounts of the war. Wilfred Owen is trying to tell everyone "don't go to war unless it is absolutely necessary". The two poems are showing the bitterness about war also there is a sense of shame in both of how people where sent off to die and not really care about them because it was their choice and they wanted to die for their country and in the way that the soldiers never returned the same person as when they arrived. Both of the poems are immensely sad by the way that they portrayed things like in Dulce et Decorum est. 'Bent doubles like old beggars under sacks' it is sad what war does to soldiers you don't associate soldiers like old beggars. Also in the send off 'Down the close... ...nt tongues, -- My friend, you would not tell with such high zest To children ardent for some desperate glory, The old Lie: Dulce et decorum est Pro patria mori. All Wilfred Owens's poems seem to rhyme. The ends of the alternate lines rhyme in most all of his poems for example in "The send off" The 1st line ends in way and the 3rd in gay. This is repeated with other rhyming words all through the poem. On the 7th and 9th lines the rhyme is tramp and camp. In "Dulce et decorum est" we can see the same format of rhyming. The end of each alternate line rhymes i.e. the ends of the 1st and 3rd lines in this case sacks and backs, and the end of the 9th and 10th lines fumbling and stumbling. Do what Owen did. The pain of this piece of writing is its truth. This is something we believe the poet saw and actually experienced. Your experiences can be just as vital.

Free Essays on Homers Odyssey: Book 5 :: Homer Odyssey Essays

Odyssey   Book 5 The beginning of the Odyssey portrays the chaos in Ithaca and the uncertainty and turmoil of Odysseus family as they have longingly awaited his return. Book 5 finally introduces Odysseus and his captor Calypso. The beginning of the novel illustrates how Odysseus is torn between the charm and will of Calypso and the love and loyalty to the family he has left behind. Calypso is described as beautiful; her island as a virtual Eden and her home a magnificent palace that awes even the gods themselves. Before Hermes delivers the order to release Odysseus he gazes in wonder of Calypso’s abode. Calypso offers Odysseus immortality, to live the life of a god for all eternity in paradise with her. Along with the offer Calypso questions Odysseus on how his family could ever compare to her and immortality. Odysseus refuses Calypso because he is loyal to his wife and son and feels that there is nothing greater than to see them again. Odysseus gives up Utopia and divinity for the loyalty to his home and family, Even though he has no idea whether anyone he knows is still alive or whether or not his wife and son have waited for him. Both Penelope and Odysseus demonstrate such trust in each other that they wait ten years for each other not knowing what has happened to the other. The beginning of the book continues to reinforce the idea that Calypso island is a Utopia through vivid illustrations of a place of beauty and perfection to thoroughly demonstrate that Odysseus will overcome any obstacle or give anything to reach home.    Book 5 ends foreshadowing what trouble may lie ahead for Odysseus as Poseidon intends to thwart every attempt that Odysseus makes at trying to get home.    The role of judgment and reason in books 5-8 of the Odyssey In Books 5-8 of the Odyssey there is a central theme involving importance of the reason and how it pertains to judgment and moral behavior and the essence of someone’s character. The theme is shown in every action of the characters, especially Odysseus.   The first books of the Odyssey begin by introducing the suitors as unruly and animalistic because of their lack of sound judgment. The suitors’ actions demonstrate the result of the absence of reason and rather the attention only to pleasure. The suitors actions lead to the despair of Odysseus family and Ithaca as well as the slow destruction of Odysseus home.

A Personal Experience in the United States Socializing Function :: Free Essays Online

A Personal Experience in the United States' Socializing Function My junior/senior high school was public. It served the surrounding four towns with a total student population of about seven hundred. In rural Vermont we were set aside and sheltered from the pain and suffering of the city's ghetto, as well as trained to ignore the poverty right before our eyes; next door. Classes started at eight, and ended at two fifteen. Our windows were tinted black so we would be sure not to ever have a glimpse of the outside world. Here our attention must be focused on the school work; learning what the institution deemed important. My U.S. history class is a perfect example of this; we learned what the teacher taught, and what the textbook covered, but what of all the information not included? It would be impossible for us to learn all the history of the United States, but who gets to decide what history we need to know? We learned about the evil Nazi's concentration camps extensively, but only touched upon our own equivalent imprisonment of the Japanese-Americans briefly. We learned of the fight against communism in Vietnam and Korea, but nothing of the mass slaughter of the common people in those countries that our country took part in. What is even more discouraging than this distortion of history, is that no one cared. Jonathan Kozol writes on page 37 of The Night Is Dark and I Am Far from Home; "Nationalistic education is a special brand of such bamboozlement; patriotic mindlessness is the product being sold. Most children buy it, unresistingly." The teacher did not want to teach anything that was not requ ired, because if it was not required by the government then it must not be important enough information. The government would not dream of having such evil things in our history be required to be taught because it shows the student a weakness of the all powerful ruling class. And the students did not, and certainly were not encouraged to, want more than what our school was giving them already. But who has the right to pick and choose what information shall be given out , and what information shall remain obscure? In looking back on my six long years committed to this high school I can recall numerous instances in which I found myself confronting the institution, yet never pushing enough.

Irony in Macbeth Essay

Irony: †¦ an event or result that is the opposite of what is expected. Many situations in Macbeth have unexpected results that are deemed as ironic. Lady Macbeth, the one who originally was labeled as evil becomes frail and weak, and succumbs to the madness that she is driven to by her guilty conscience. Macbeth the one who was so hesitant is now ruled by his greedy, murderous, impulsiveness. Macbeth was once a loyal, valiant soldier who appreciated the King. He then turns his trust and fate into the hands of the supernatural and starts increasingly putting his need for guidance of what he should do, and what will become of him, into the hands of three witches. He starts committing evil acts of murder out of what he feels is his best interest but also out of irrational impulsiveness. Lady Macbeth, initially, makes herself out to be evil â€Å"Lady Macbeth: †¦Come, you spirits/ That tend on mortal thoughts, unsex me here, / And fill me, from the crown to the toe top-full/ Of direst cruelty!† (William Shakespeare I.v.43-46). She then backs down with many excuses when it comes down to performing the task of murdering Duncan. Lady Macbeth who was once strong, and believed she could tolerate her guilt falls into a state of insanity that eventually leads to her demise. Ironic changes occur in people when greed, dominance, and irrationality replace moral conscience, and social values. One realizes Macbeth is loyal to the king and in turn is respected by the king when Duncan presents the title Thane of Cawdor to Macbeth. In the quote â€Å"No more that thane of Cawdor shall deceive/ †¦And with his former title greet Macbeth† (I.ii.73-75) one can see the trust and respect Duncan has for Macbeth. Duncan believes Macbeth to be such a valiant soldier that he awards his loyalty to Scotland with allowing him the honor of being chosen to be the Thane of Cawdor, because the previous thane of Cawdor was executed for being a traitor. After receiving the prophecies, and then finding out he has been given the title Thane of Cawdor Macbeth thinks about how to make the third prophecy, of him becoming king, true. The thought of killing Duncan crosses his mind but immediately he rejects it, and is filled with guilt for having such horrid thoughts. His wife, Lady Macbeth, coaxes Macbeth into planning, and performing Duncan’s murder. Macbeth refuses, at first, to even consider the thought of killing Duncan. He is especially hesitant because Duncan has been so kind to him, and has never wronged him in any way. Lady Macbeth continually insults her husband’s manhood and convinces him that her plan of how to murder Duncan is fool proof. He gives in, he still believes it is wrong but comes to the conclusion it is the only way he will be able to attain the position of king. After the deed, of killing Duncan, is done he experiences and immense feeling of guilt. The irony of Macbeth killing Duncan, the King of Scotland, can be looked at in two views, of how the old thane of Cawdor was a traitor, and Macbeth has now turned into a traitor, also because Macbeth was a General in the Kings army and risked his life during wars to protect not only his country but the King. Macbeth was given the title thane of Cawdor when it was believed that the old thane of Cawdor was a traitor. Macbeth himself assumes the position of being a traitor, as he killed Duncan for his own personal gain and went against the social values of his country, that he once fought to keep, in addition to fighting for the values of his country he also was fighting to keep his country under the reining of Duncan as King. Macbeth lost his passiveness, decided to put trust into the prophecies of the witches by taking fate into his own hands. Lady Macbeth feels that she is able to be brave, and strong in order to accomplish the gruesome task, of murdering Duncan, herself if need be. Lady Macbeth calls to the supernatural to take her feminine character and replace it with evil. One can see Lady Macbeth’s desperation to become all that is not considered to be womanly weaknesses in the quote † †¦Come, you spirits/ That tend on mortal thoughts, unsex me here,/ And fill me, from the crown to the toe, top-full/ Of direst cruelty!† (I.v.43-46), here it is seen that she is calling on the supernatural to make her evil. She also states, while progressing with getting the soldiers drunk, â€Å"That which hath made them drunk hath/ made me bold; †¦Ã¢â‚¬  (II.ii.1-2), the alcohol has given her a sense of newfound bravery and strength. Lady Macbeth makes excuses, to Macbeth, as to why she was unable to bring herself to murder Duncan. Lady Macbeth, on the arrival of Macbeth to the court, immediately starts to talk about what she has done to help the murder go as planned but makes excuses as to why she could not kill Duncan â€Å"†¦Had he not resembled/ My father as he slept, I had done’t.† (II.ii.16-17) Lady Macbeth expects her husband to do something that not even she was able to bring herself to accomplish. Lady Macbeth was constantly reminding Macbeth that she could do the deed herself if she was given the chance, but in the end she backed out and made excuses and put her husband in the position of having to murder Duncan himself. Although Lady Macbeth bravery seemed legitimate, we saw that when it came time to do the unsightly task she was unable to bring herself to it, and even though she found it to be too awful of a feat for her to complete she still expected Macbeth to finish the hanest murder if for no other reason than obligation to her. Lady Macbeth complained that her husband was incapable of hiding his emotions and his inability to accept committing a senseless crime for personal gain. Lady Macbeth is telling Macbeth how to hide his guilt in this quote † †¦look like the innocent flower,/ But be the serpent under it†¦Ã¢â‚¬  (I.v.72-72). Here it is noted that she wants her husband to act and appear like nothing is wrong, and nothing out of the ordinary is going on, but to also be ready and waiting to strike when the time is right. Lady Macbeth is trying to encourage Macbeth that the assassination of Duncan is the only path that will take him to the role of King, that even though killing Duncan is a rather evil thing to do it must be done, and once Macbeth is king he will see that it was worth it. Macbeth is transformed into an impulsive, irrational fiend, who is willing to take any steps necessary to remove anyone who may get in the way of his rein as King. Whereas Lady Macbeth’s guilty conscience is slowly destroying her vitality, and she begins to drown herself in a guilt stricken state of madness. Macbeth no longer relies on his wife to give him support, courage, and insight within his evil deeds. He continually visits the witches’ advice of how to prolong his rein of king, and who not to trust. He begins to kill, with a guiltless conscience, for vengeance. Lady Macbeth falls deeper, and deeper into a state of neurosis that the guilt of her conscience has forced her into, she is now weak and unable to sleep, her nights are filled with constant bouts of sleepwalking trying to wash the blood off her hands. Their roles have been reversed Macbeth is evil and strong; Lady Macbeth is becoming more and more fragile. No longer is Macbeth the worried one who is constantly horrified by his own actions, he is the strong one who seemingly now has no social conscience and acts solely on the animal instinct of his Id. Lady Macbeth has fallen victim to her own sins, she was the one who once said â€Å"†¦ A little water clears us of this deed:†¦Ã¢â‚¬  (II.ii.85) Now she spends sleepless nights attempting to wash the imaginary blood away. Lady Macbeth who seemed powerful in the beginning let her life be shattered by haste and greed, as the once seemingly weaker Macbeth rose into a monster. Irony takes many forms through out the play, not only to create dramatic effect, but also to show the uprising of Macbeth through his newfound evilness, and the downfall of Lady Macbeth as she descends further and further into the insanity brought on by her eagerness for Macbeth to become King by any means necessary. Once a loyal, well liked Nobleman, Macbeth, in a simple run in with the supernatural turned into a hated, unworthy, King. Lady Macbeth’s external bravery in planning the murder is then proved to be an act when faced with the real situation and not just the scenario. Evil can be easily transferred, and as it progresses it is easy to see who has enough strength to be able to deal with the torture of the guilt. Through the irony of the changes in Macbeth, one is able to relate to how easy it can be to be engulfed in horror yet be blinded by the desire of wanting, and needing more for no other reason than personal gain.

Custom Snowboards Essay

Custom Snowboards, Inc. is interested in securing funding to expand into the European market. Financial statistics have been provided within this report to discuss the feasibility of this expansion. To fund the project, Custom Snowboards wishes to secure capital debt of $1,000,000. Custom Snowboards has seen considerable growth in the percentage of sales and substantial increase in revenue. They expect future sales to continue to rise, which would be beneficial to the lender and Custom Snowboards. A horizontal analysis will be reviewed and will reveal the Custom Snowboards financial position over a three-year period. This will help in the actual approval process. The review will look at key points and will help to confirm Custom Snowboards ability to successfully expand into Europe. Profitability The financial health of a company reviews sales, total assets and net worth in relation to how profit was earned (Hunt, 2013). Thus, income statements from a threeyear period will be reviewed and this will help develop a picture of Custom Snowboard’s financial health. Net Sales Net sales increased 32,200 or 0.49% from year 12 to year 13. This indicates strength within Custom Snowboards, even though the increase was minimal. Year 13 to year 14 net sales dropped by 3.4% or $225,400. This does not bode well for Custom Snowboards and could cause a concern regarding the ability to repay the debt. The CUSTOM SNOWBOARDS Company’s corrective action plan should be reviewed to see if the changes implemented worked. Cost of Goods Sold The cost of goods sold in year 12 and 13 increased by 0.49% or $22,400. This  is considered strength. It makes since that net sales increased that the demand for goods sold increased as well. However, when net sales decreased in year 13 and 14 so did the demand for goods sold. This decrease is equal to a decrease in sales of 3.4%. There was no over spending during this time frame and is determined by the cost of goods sold and net sales percentages were exactly the same. Gross Profit Year 12 and 13 saw gross profit increase by $9,800. Again, sales were increased, so gross profit was increased by 0.049%. The gross profit was above $2,000,000 during year 12 and 13. Gross profit by year 14 had dropped 3.4% or $1,950,200. This is a concern for Custom Snowboards, since it represents a reduction in revenue and viability. Operating Income Operating income for year 12 and 13 dropped by $63,000 or 23.56%. The operating income continued to drop during year 13 and 14. By year 14, the operating income had fallen $109,000 or 53%. This is a concern for Custom Snowboards and they may have trouble paying all their liabilities. Custom Snowboards finance team plans to implement protocols to correct deficiencies in operating income. Earnings before income taxes Earnings before income taxes dropped by $57,800 or 30% in year 12 and year 13. This continues to drop 82.74% during year 13 and year 14. However, Custom CUSTOM SNOWBOARDS Snowboards lost $106,000 on earnings before income taxes. Earnings before income taxes help establish a measurement of profitability, but do not really represent cash earnings (Investopedia, 2013). To decide on credibility, other factors have to be considered along with this item. However, Custom Snowboards wants to ensure transparency and accuracy in trying to secure this debt. Net Income Net Income was down $43,350 or 30% during year 12 and year 13. This drop continued into year 13 and year 14 by continuing to drop 82.74% or $80,175. This is a concern for Custom Snowboards. This indicates potential problems exist, such as workflow, production, and pay. Furthermore, the financial picture of the company is not a healthy one. Liquidity Trading activity within Custom Snowboards liquidity is characterized as high. The horizontal analysis will determine how quickly cash can be converted into use. Also, the horizontal analysis will help determine the company’s liquidity and the ability to meet obligations. Cash and Cash Equivalents Shares and bonds that can be easily converted into cash are considered cash and cash equivalents. This converted cash is then immediately available for use. Custom Snowboards had a cash and cash equivalent of 83.8% during year 12 and year 13, but that dropped to 7.2% in year 13 and year 14 since sales dropped during that period of time. This would be a concern for Custom Snowboards and indicates they may not have the CUSTOM SNOWBOARDS 5 assets available to keep immediate cash flow available, especially if sales are not as expected in Europe. Total Current Assets $142,260 or 19.3% represents the total current assets of Custom Snowboards during year 12 and year 13. However, in year 13 and year 14 total current assets fell 16%. This is a concern for Custom Snowboards since the company must have enough assets to fund operations and pay expenses. Continued low sales and limited assets is a concern for lenders and poses the question if Custom Snowboards would be able to meet its financial short-term obligations. Solvency Custom Snowboards appears to be financially solvent from the review of the income statement and balance sheet. Custom Snowboards has reduced liabilities and maintained consistent repayments to reduce long-term financial obligations. This is strength for Custom Snowboards since they saw sales drop. Long-term Liabilities Year 12 and Year 13 saw long-term liabilities drop 6.4% and then drop another 6.8% in year 13 and year 14. This is strength for Custom Snowboards and shows a determination in reducing these liabilities. Custom Snowboards is attempting to demonstrate they are committed to expansion and growth. They anticipate the European expansion will help generate sales and earnings that will help them meet their long-term liabilities. CUSTOM SNOWBOARDS 6 Total Liabilities Custom Snowboards posted total liabilities of $54,640 in year 12 and year 13, which is down 5.5%. Total liabilities continued to show a decrease during year 13 and year 14 of 6.2% or $57,520. This is strength for Custom Snowboards and shows a determination to reduce debt. Custom Snowboard has provided transparency of its financial records to provide an understanding of the mission of the company and to help with the approval process in securing the $1,000,000 debt. A2. Risks Profitability is important in any business. To ensure profitability, cost-saving measures must be considered and initiated to reduce financial risks (Hunt, 2013). This will help Custom Snowboards continue to grow and see sales grow. Net Sales Net sales dropped $225,400 or 3.4% in year 13 and year 14. Merkgraf (2013) believes the way to increase net sales is to hold staff accountable after the implementation of specific sales strategies and the setting the bar high. To accomplish this, the focus will need to be on repeat sales. This can be accomplished through marketing and thus the marketing budget will need to be addressed and have additional funds. Marketing and public relations can help increase the drop in sales and to inform consumers Custom Snowboards is planning expansion into the European market. A realistic goal to strive for is a 20% increase in sales each year for the next five years to help recover from the loss in sales and revenue. This will make the company more profitable and increase the net operating income. Marketing must focus on repeat customers and initiating creative promotional  incentives that will bring in customer interest. Sales staff must also find CUSTOM SNOWBOARDS These incentives beneficial so they are able to be resourceful when utilizing sales tactics and to turn potential customers into actual customers. The actual plan must implement methods that are cost effective and do not increase cost during production. The goal is to reduce spending and costs and increases sales. Gross Profit Gross profit was recorded at $1,950,200 or a decrease of 3.4% at the end of year 14. This is a concern since the goal of all business is to increase gross profit to make the company more valuable. The company must increase sales to keep gross profit up. Operating Income Year 12 and year 13 saw operating income drop $63,000 or 23.56%. Operating income continued to decline in year 13 and year 14 to $109,000 or 53%. Again, sales must increase for an increase in operating income to be seen. A possible strategy to increase sales is to offer personalized snowboards. These snowboards can be priced less than other snowboards, thus making them more attractive to the customer. Also, it gives the customer a chance to obtain a product different from others and cheaper than others, which can increase the interest to purchase the product. Earnings Before Income Taxes Year 12 and year 13 earnings before income taxes dropped $57,800 or 30%. This decline continued into year 13 and year 14 with a drop of $106,000 or 82.74%. This is not a good sign for Custom Snowboards. Costs need to be cut and management will need to determine where the areas that can be trimmed exist. The goal of any business is profitability and growth. The company will need to demonstrate they are capable of CUSTOM SNOWBOARDS 8 meeting financial obligations when expansion into the European market is well underway. Net Income Net income dropped 30% or $43,350 in year 12 and year 13. This drop continued into year 13 and year 14 with a total drop seen of $80,175 or 82.74%. This indicates a poor financial picture and position for Custom Snowboards. There may be production or workflow problems that may become apparent and be concerning to lenders. This drop in net income affects everyone within the company. To increase net income, sales must be increased. Thus, the minimal advertising budget must have additional funds allocated to increase sales and public relations. This is especially important during expansion to let customers know Custom Snowboards will be involved within the European market. Cash and Cash Equivalents Cash and cash equivalents were recorded at 7.2% in year 13 and year 14. This is a substantial drop from previous recordings. To avoid liquidity concerns, Custom Snowboards must increase the balance in cash and cash equivalents. Root causes for the decline must be determined and corrective plans must be implemented. An increase in marketing and public relations to increase product awareness is one example that could be implemented that would help generate sales. Total Current Assets Assets are important in the business arena and profitability needs to rise for a company to be successful. Total current assets dropped 16% in year 13 and year 14 for Custom Snowboards. This is a concern and companies that see assets drop are not profitable and over time lose money (Hammel, 2013). Total current assets need to be CUSTOM SNOWBOARDS 9 raised and to do so debt needs to be paid off or even down. However, Custom Snowboards needs to redirect some monies to be utilized during the expansion process. A3. Ratio Analysis The solvency of Custom Snowboards will be reviewed and confirmed by the ratio analysis. Custom Snowboards is seeking a loan for $1,000,000 and has great potential for growth in the snowboard market. The snowboard market has seen a demand for the product and an increase in sales. Income statements and balance sheet from two years of financial information will be reviewed and presented. Profitability Gross Profit Margin Custom Snowboards financial health is determined by the gross profit margin. Year 13 Custom Snowboards gross profit margin was 30.4. This means Custom Snowboards retained $0.30 out of every $1.00 earned. Year 14 saw no change in the gross profit margin. A gross profit margin of only 30.4 is not a strong margin ratio and indicates a weakness for Custom Snowboards, especially when the industry average was 32.1%. Custom Snowboards experienced a reduction in sales and was able to maintain the $0.30 per dollar in revenue, which indicates strength within the company. It goes without saying that profitability will be low when gross profit ratio is low (Horngren, 2009). Custom Snowboards plan to help the expansion project by eliminating expensive liabilities. Net Profit Margin Custom Snowboards net profit ratio was 1.5% in year 13 and with a downturn in sales in year 14 the ratio had dropped to 0.3%. This was well below the industry average CUSTOM SNOWBOARDS of 5.1% recorded by Winter Sports. This is a concern for Custom Snowboards since the business sustainability is in question if profit drops or is absent. Custom Snowboards needs to increase sales and show an increase in profits to ease any concerns lenders may have regarding the company’s efficiency to reverse the unforeseen decrease. Return on Total Assets Custom Snowboards return on total assets was recorded at 5.4% in returns in year 13, which is considered a strong performance. The profitability and sales were strong as well. However, Custom Snowboards return on total assets had dropped to 1.0% by the end of year 14 due to poor sales and profitability. A major competitor, Winter Sports, recorded a more profitable year at 4.8% return on total assets. This demonstrates the competitor was able to control overhead better than Custom Snowboards. Return on Common Equity Return on common equity demonstrates how equity is effectively used to create  more profits and is a significant ratio for the company. The return on common equity for year 13 was 11.4% and is seen as strength for Custom Snowboards. It figures to $11 return on every $100 earned by the company. However, by year 14 the return on common equity had dropped to $2 on every $100 earned. This was subpar and below the industry average. A major competitor, Winter Sports, recorded 8.1% return on common equity ratio. Liquidity Current Ratio Problems with liquidity can be found within a common financial ratio. This will give an idea of what the working capital position is like for that company. Furthermore, CUSTOM SNOWBOARDS it will be a good indicator to determine if a company will be able to repay a debt within a 12-month time frame. A company with a high current ratio often has cash or inventory necessary to pay for short-term debts. The current ratio for Custom Snowboards during year 13 was 6.82. This is an acceptable number, as 2 often is the indicator that determines whether a company is able to pay for short-term liabilities. Again, year 14 saw a decrease in numbers and lost almost one full point in the current ratio dropping to 5.84. This is not a cause for concern, but demonstrates strength for Custom Snowboards and their position to meet short-term liabilities. This ratio is better than a major competitor, Winter Sports, who recorded a current ratio of 4.20. Acid-Test Ratio Investopedia (2013) defines an acid-test ratio as one that determines whether inventory needs to be sold to cover immediate liabilities or if a company has enough short-term assets to do so. Along with a current ratio, the acid-test ratio should have a higher number to be in a better financial position. Year 13 recorded the acid-test ratio at 6.82 and year 14 at 3.64. Year 13 and year 14 are seen as strengths, since an acid test ratio should have a 1 or higher to be considered able to meet current liabilities. Year 14 saw Custom Snowboards lose sales in a struggling economy yet maintain a higher acidtest ratio than the industry average of 3.40. Again, this is seen as strength for Custom Snowboards and the ability to meet short-term obligations. Solvency Debt Ratio A debt ratio is reviewed to see the financial ability of a company to repay its debts and the ability to have a â€Å"cushion† to fall back upon should the need arise. Custom CUSTOM SNOWBOARDS Snowboards has stringently worked to accumulate large cash and cash equivalent balances to help in case of an economic downturn and prevent a cash crisis. The debt ratio was 52.5% in year 13 and 50.4% in year 14. This reduction demonstrates company strength, since Custom Snowboards was able to continue to reduce debt while facing a decline in profits and sales. However, Winter Sports were able to record a lower debt ratio of 38%. Custom Snowboards must develop a strategic plan to increase sales, reduce costs, and reduce current debts so they are able to reduce the risks for insolvency. Time Interest Earned A higher time interest earned ratio is indicative on how well a company can make payments on interest owed for debts. To find this ratio, you must know the total earnings before interest and taxes of a company then divide by the total amount of interest due on the debt. Custom Snowboards recorded a 2.58 time interest earned in year 13 and 1.29 time interested earned in year 14. A time interest earned ratio of 1.5 is indicative of the company’s ability to make payments on the debt. Thus year 13 is strength for Custom Snowboards and was generating enough money to meet the interest payments owed. However, year 14 saw a decrease and a weakened financial position. This was due to a decline in sales and difficulty generating revenue. Winter Sports had a much stronger financial position and recorded a time interest earned ratio of 5.10. B1. Historical Analysis The past and present performance information of Custom Snowboards liability and equity will be reviewed utilizing a horizontal analysis for year 12, year 13, and year 14. The balance sheet and income statement will be reviewed and compared to measure CUSTOM SNOWBOARDS 13 growth and reduction. The review will also look for insolvency so corrective actions may be implemented. Net Profit Net sales and growth in profit is important for company existence. Net sales for Custom Snowboards were recorded at $6,601,00 in year 12 and increased by $32,200 or 0.49% in year 13. Year 14 saw a decrease in net sales and recorded a drop of 3.40% and net sales of $6,407,800. Net sales, when up, indicate strength for a company and are indicative of a thriving business, but when down there is an effect on profit that everyone notices. Cost of Goods Sold The cost of goods sold in year 12 and year 13 increased 0.49% and recorded expenditures of $32,000 more in year 13 on cost of goods sold. This actually amounted to the same as net sales during the same time period. Year 13 and year 14 saw costs of goods sold drop and net sales drop to 3.40%. These can be seen as strengths for Custom Snowboards since they are meeting the demand for their product and demonstrating a relationship between profit and cost of goods sold (Kennon, 2013). Gross Profit Custom Snowboards recorded an increase in gross profits of 0.49% in year 12 to year 13. This is not surprising since net sales and cost of goods sold were recording an increase at this time. This is considered strength for Custom Snowboards because gross profits increased when sales increased. Year 13 to year 14 gross profits saw a dramatic drop of 3.40% or $600,000 due to the decline in sales from the economic downturn and the possibility of competitors selling similar products at reduced costs. CUSTOM SNOWBOARDS 14 Operating Expenses Operating expenses for Custom Snowboards increased 4.21% or $733,000 in year 12 and year 13. This trend continued into year 14 and increased another 2.23% or 40,400 to a total of $1,853,200. Custom Snowboards must find a way to determine how operating expenses can be reduced without raising product prices yet increasing sales. General and Admin Expenses Custom Snowboards increased administrative salaries 4.76% in year 12 and year 13 when sales were increased as well. Salaries also increased during this  time period 13.63%. This makes sense because sales were increased, so production would need to be increased as well. Administrative compensation is a concern upon review and rose from $210,000 in year 12 to $250,000 in year 14. Year 14 saw sales drop and gross profits drop. The demand for products has been reduced and this is not feasible that compensation should continue to increase more than 13%. Executive Salaries Custom Snowboards increased executive salaries 2.63% in year 12 and year 13. The company proceeded to increase executive salaries again in year 13 and year 14 10.26%. This is not feasible and a concern for Custom Snowboards. The company needs to be cutting operating costs and compensation of executive salaries since a loss of sales and demand for products has happened. Custom Snowboards needs to standardize production practices for maximum efficiency, reduce staff hours to compensate for the decrease in production demand, and reduce costs while the demand remains low. CUSTOM SNOWBOARDS 15 Utilities Custom Snowboards recorded increased utility costs of 7.14% or $17,000 in year 12 and year 13 and then a continued increase of 1.96% or $5,000 increase for year 13 and year 14. The increase in year 12 and year 13 is not surprising because the demand for products was higher and sales were increased. The cost for utilities and energy consumption should then have decreased when production demand waned. The utility budget for Custom Snowboards was not realistic, since sales increased 0.49% or $32,200 and that is less than half of what monies are provided within the utility budget. Current Assets Changes in percentages on multiple accounts can affect profitability. Custom Snowboards recorded current assets that changed period to period by increasing and then decreasing. Cash and Cash Equivalents Custom Snowboards recorded an 83.8% increase in cash and cash equivalents in year 12 and year 13. This gave the company a large cash balance and the  ability to meet short-term obligations without problems. A 7.2% reduction in cash and cash equivalents in year 14 was recorded when sales declined. The higher the cash and cash equivalents the more availability the company has to liquidate assets to cover short-term obligations. Accounts Receivables Custom Snowboards recorded a minimal increase of 0.5% in accounts receivable during year 12 and year 13. To have an increase in accounts receivable is a concern for the company since it’s indicative that customers are often having trouble making payments for products purchased. Accounts receivable was improved in year 13 and year CUSTOM SNOWBOARDS 16 14 when a decrease of 3.4% was recorded. This would be strength for the company and indicate the customer has paid for products purchased and revenue is moving in the right direction. Raw Materials Inventory Raw materials inventory increased 0.5% in year 12 and year 13, but decreased 3.4% in year 13 and year 14. To have limited raw materials inventory for production is strength for Custom Snowboards. This limited inventory is easy to store when sales decline and easily accessible when sales rebound and production increases. Liabilities Liabilities are obligations owed on short-term and long-term debts. Custom Snowboards decreased liabilities 5.5% in year 12 and year 13. The company was further able to reduce liabilities 6.2% in year 13 and year 14. This is strength for Custom Snowboards and is indicative of positive financial repayments. Accounts and Notes Payable Custom Snowboards accounts and notes payable increased 0.5% in year 12 and year 13, but decreased 3.4% in year 13 and year 14. This is considered strength for Custom Snowboards and is indicative of positive financial repayments. Total Current Liabilities Custom Snowboards total current liabilities increased for year 12 and year 13 0.3%, but year 13 and year 14 recorded a decrease of 3.4%. This is strength for the company and again shows a positive repayment history that exhibits creditworthiness. This should tell lenders that Custom Snowboards is committed to repaying liabilities even when a decline in sales happens. CUSTOM SNOWBOARDS 17 B1a. Future Performance A trend analysis will be conducted to view financial changes that have transpired over the multiple years within Custom Snowboards. These changes will then be calculated, evaluated and used for comparison to the base year to help develop a plan of action and provide direction for which Custom Snowboards will head financially. The base year is year 12 with $6,601,000 in net sales at 100%. Net sales recorded minimal growth in year 13 at 0.5% over base or 100.5%. Monetarily net sales recorded a $33,200 growth in year 13, which is not seen as a strong growth, especially since the demand for the product was decreasing. Year 14 recorded a drop in net sales to 97.1% from baseline in year 12 and 96.6% in comparison to year 13. This is a concern for Custom Snowboards since sales could not be maintained. Procedures may need to be reviewed to check for inconsistency and inefficiency in production and sales so this may be corrected and sales can be boosted. Pricing adjustments can be made and the product may become more appealing to potential and existing customers. Custom Snowboards forecasts a recovery of 3% in year 15 on the trend analysis, which will help strengthen their financial picture. Management envisions growth and net sales will occur and increase consistently as the economy improves. The forecast for year 16 is not as favorable as year 15 and net sales drop 1% or $100,000. The prices on products will be adjusted to remain competitive within the industry. Management believes the economy will recover then net sales and revenue will improve. Year 17 is forecasted to improve 3.7% over base line or total earnings of $6,647,452. This trend analysis shows the management of Custom Snowboards believes the company can recover and become prosperous and grow. CUSTOM SNOWBOARDS 18 B2. Improvement Revision Line items in use will be reviewed in the overhead analysis to see what is profitable, cost effective and best practice for personalizing snowboards. The goal for Custom Snowboards is to increase net sales and revenue and limit liabilities, while making everyone happy. The company must maintain prices that can be competitive within the industry and European market yet maintain profit margins that are reasonable to succeed. A traditional costing method is currently implemented at Custom Snowboards. The company currently has two product lines, regular snowboards and customized snowboards. The individual type of snowboard and the inventory ordered for each determines the cost of each snowboard. The assumption is the manufacturing cost drives the price of the product. The concern with this type of cost driver is it does not take into consideration all the underlying costs that affect the overall product price (Johnson, 2013). Custom Snowboards must be more accurate in production costs to have increased profits without rising product pricing and remain competitive in the industry. Activity based costing could be something Custom Snowboards wants to implement to help obtain a more accurate picture of production costs. This method allows a company to see the overhead in manufacturing and what each activity actually costs in the production process. It is more accurate and adjustments can be made with specific activities to reduce the amount of money spent. Custom Snowboards produces regular and personalized snowboards. Activity based costing can compare these manufacturing processes and see where the overhead costs are in each step of the production process for each product. The material and labor CUSTOM SNOWBOARDS Costs for both traditional and activity based costing is $3,375,143 for the regular snowboard. The personalized snowboard material and labor costs is $1,177,344 utilizing both the traditional and activity base costing methods. Custom Snowboards has a lump sum overhead charge for manufacturing using the traditional costing method. Regular snowboards sum is $1,068,982, while the personalized snowboards sum is $334,048. Utilizing the traditional costing method the total production cost is $4,444,125 for the regular snowboard and $1,511,392 for the personalized snowboard. Activity based costing distributes costs among the activities it takes for manufacturing to help determine accurate product pricing. Some activities included in activity based costing consideration are product development, quality control, package assembly and shipping, and miscellaneous items. Regular snowboards have a manufacturing cost of $546,863 utilizing the activity based costing method. Personalized snowboards activity based cost for manufacturing is $856,167. Thus, total cost for production for regular snowboards is $3,922,006 and personalized snowboards is $2,033,511. The activity based costing method reveals Custom Snowboards has overspent during the manufacturing and production process while utilizing the traditional costing method. The new personalized snowboards have a greater factory setup cost, but should decrease over time as the product is sold. One improvement identified is packaging and shipping of both products. There is a significant difference between the cost with regular snowboard packaging and shipping costing $266,072 and personalized snowboards packaging and shipping cost of $66,516. This is quite a dramatic difference, especially CUSTOM SNOWBOARDS Since regular snowboards comprise on 20% of sales while the personalized snowboard sells 80% of the sales output. The activity based costing method can help trim costs and overspending while being able to forecast more accurate pricing and sales to ensure a better return on investment. Custom Snowboards could utilize the just in time costing method that follows the principle materials do not sit in the warehouse, but are â€Å"pulled† when the demand is there for the product. This is not an ideal costing method for some businesses, since it leaves no wiggle room when forecasting the future. The just in time method does minimize costs and production time, since these things take place when there is a demand for the product and no excess inventory is left sitting around. This leaves more cash for the company to re-invest and improve costs. For just in time costing to work requires the company to forecast sales and evaluate excess inventory and materials. Custom Snowboards had $143,136 in excess inventory in year 14. This will continue to increase by 0.1% annually if no adjustments are made to production. Custom Snowboards has previously had excess inventory and materials left over annually. Utilizing the just in time costing method can help increase income for the company and help save time, costs, and resources during the production demands. B3. Internal and External Risks Risks that can be controlled by the company are internal risks. Risks that happen outside of the company and the company cannot control are external risks. External risks often happen without warning and this is why companies must have the forethought to be prepared for many things. Some external risks include environmental issues, currency CUSTOM SNOWBOARDS Exchange rates, economic factors, and legal issues both domestic and internal. Internal risks may include production staffing, language barriers, and management structure. Management Structure and Staffing Staffing and management structure would be considered an internal risk since Custom Snowboards will have to make changes in the management structure with expansion into Europe. The company will have business operations in two countries and the goal will generally need to remain the same at both locations. The leaders will need to be both effective and efficient to guide the company to a successful transition. Staffing will play a major role, since multiple positions will have multiple people working in that role in both facilities. The leadership of the company will have to evaluate these positions to maximize efficiency to work towards increased revenue and profits. Loss of Focus Expansion may often cause a shift of business focus to change and move away from important issue like quality assurance, production efficiency, and production deadlines. Leadership must ensure the company has a strong core to stay focused on the business goals for current and future project successes. Language and Cultural Barriers Expansion into Europe is bound to cause language and cultural barriers. A new country and market can cause interactions to be strained if language and cultural barriers cannot be breached. Language is important in business to ensure communication is effective the company must have leaders that know the language in the new country and are sensitive to the cultural differences for a successful expansion. It would be CUSTOM SNOWBOARDS Deferential to offend potential customers, thus ruining company relations. The business goal is to prosper. Currency Exchange Rates The expansion into the European market will require Custom Snowboards to deal with foreign currency. The foreign currency rates change frequently and Custom Snowboards will have to convert this into US Dollars. The company will have to ensure they are not losing money on their products and they are not overspending on production costs. The company cannot control this external risk factor, but they do need to try and prepare for any eventually that may affect the company. The US economy may be strong, but a variety of things can cause this to crash and the same goes for the European economy. Foreign economy can lead to large fluctuations and for great revenue gains, but it also means it can cause big losses as well. International Legal Risks International and US legal risks are similar in nature and can cause several problems. Custom Snowboards must understand the tax laws and operations as it expands into the European market. The company must understand the legal standards of the business operations in the market. The company must ensure they have met all the obligations of the law within the countries they will be providing services to and to defray any problems that may arise. Also, by understanding these laws Custom Snowboards can eliminate costly legal fees and fines. Environmental Risk An external risk beyond Custom Snowboards control is an environmental risk. Snowboards require snow and winter. Environmental factors can severely affect sales of CUSTOM SNOWBOARDS Snowboards. Dry, warm climates are less likely to need a snowboard. Marketing is important in this aspect and should focus on areas that have winter seasons and snow. European areas vary in climate and marketing should focus on areas that are prime for skiing. Weather patterns may also play a role in environmental risk. El Nino and La Nina can affect the winter season and how much snow and how cold the area actually gets. Complete Customer Service Customer service is important with any business. The goal is to help resolve any issues a customer may have to reduce the dissatisfaction. Custom Snowboards will have a large area to cover within the European market and must be cogzignant of a wide variety of languages and customs to be aware of. Customer support should be convenient for all consumers. A positive customer service experience will lead to good reviews and word-of-mouth sales, which boost revenues. Poor customer service travels fast and would hurt Custom Snowboards and reduce sales and revenue. Reputable Suppliers Custom Snowboards must be able to get products to the European plant to produce the snowboards. Communication skills are key to dealing with business partners to reduce any potential obstacles. Business practices must be clarified to avoid any complications. Product quality must be written contractually to avoid any possible confusion. Individuals with good communication skills must be placed in the positions to help secure these suppliers to keep product quality the best and available for production. CUSTOM SNOWBOARDS B3a. Recommendation Management Structure and Staffing A management and staff model must be developed and utilized to mitigate risks. The plan must outline the company’s organizational chart and who reports to whom. The organizational chart will outline each department of the company and the staff that are identified within each department. The company will then develop specific job descriptions for each position to  clarify the role and expectations. Custom Snowboards management team will then be able to identify what positions are exactly needed and where cuts can be made. This will help ensure the strongest staff is in place for the expansion to deal with issues as they arise. A plan in place will ensure the company can ensure smooth transitions for future expansions. Loss of Focus Loss of focus in current business practices requires a business plan to keep the company trained on the goal. The business plan will actually outline the goals Custom Snowboards has and where they want them to lead to. The company will implement the staffing plan into the business plan to mitigate risk. A taskforce will be formed that will focus solely on the management of the US plant, but will receive updates on the planned European expansion. Language and Cultural Barriers Language and cultural issues require training and education to reduce risk. Employees who are educated on languages and cultures are more likely to be comfortable and less likely to offend the customer. Custom Snowboards can hire interrupters’ to help staff until all are comfortable within new positions and skills have been attained. The CUSTOM SNOWBOARDS 25 company should also consider hiring staff from all different cultures to strengthen the moral and company. Custom Snowboards should hold training seminars frequently to reinforce cultural identities served, especially when employees will be traveling to a new area. Currency Exchange Rates Currency exchange rates are external risks, but Custom Snowboards are preparing to reduce any damage that affects the company. The exchange rates change frequently. The company will want to compare products with competitors to understanding pricing concerns prior to the expansion. The cost for production should carefully considered reducing all necessary overhead to increase revenue. The European financial market trends must be evaluated and then trend projections can be created. The financial market is not totally predictable so it not able to mitigate risk completely. International Legal Risks A legal team that is well versed with international law is key to reduce risk. Also, a management team that is aware of potential pitfalls and risks associated with international is key to have in charge during expansion. The company must comply with all laws and ensure they understand all the laws of the countries that they will be doing business with. The company should educate staff on what laws are pertinent to their respective departments and keep them abreast of changes. Custom Snowboards should ensure they have enough cash available to survive, should issues arise. Environmental Risks Custom Snowboards has absolutely no control over the environment. They can ensure plants and warehouses are up-to-date and in stable condition to be able to weather CUSTOM SNOWBOARDS Any type of weather they may encounter. Production needs to take place in multiple areas, so should something happen to one area they can continue production without further losses. Custom Snowboards can review and analyze annual weather reports to help forecast trends and be prepared for the unexpected. An environmental risk can take many forms and is hard to predict and control. The company must have multiple contingency plans in place for this reason. Customer Service Customers are essential to a business. The profitability of a business relies greatly on how satisfied a customer is, repeat business and potential new customers because of word of mouth advertising. A toll free call center will allow customers to call in with any questions or concerns regarding the products purchased. Custom Snowboards staff will be able to address these concerns and questions, but only after undergoing an educational training session and establishing a process standard of communication. The company will develop a communication and relationship curriculum to help focus on long-term relationships (Joseph, 2013). Reputable Suppliers Custom Snowboards must research suppliers available within the area of the  European expansion to ensure a reputable supplier is found that is both reliable and has quality products. The business terms and contractual details must be attended to minimize the chance of fraud. The contract must be written in terms that both parties understand to ensure no misunderstandings take place. It would be helpful for Custom Snowboards to employee area natives to help interpret when needed. CUSTOM SNOWBOARDS B4. Potential Returns Custom Snowboards is planning to expand into the European market. They will expand their customer base, increase revenue and experience a growth rate. Projected annual sales are expected to increase for year15 to year 19. Year 15 annual sales of $1,271,720 are projected and expected to increase to $2,390,085 at year-end of 19. Also projected to increase is net cash flow especially as this has a direct relationship with the cost of goods sold. The forecast net income peaks at $256,703 in year 19 up from $98,550 in year 15. The European expansion is projected to build a strong financial future for Custom Snowboards. The Net Present Value and Internal Rate of Return are reviewed when looking at the capital budget of a business. The future value and present value of a company is indicated based on cash flows under the net present value. Custom Snowboards is ready to invest $1,000,000 into an expansion project in Europe. This is based on cash flows over five years and the present total value of the company with a market change factored in or $1,028,437. This means the company will be profitable in the European market and see a return on their initial investment. The internal rate of return looks at the rate the project grows at. Custom Snowboards looks at to return 10.8% over 5 years based on the initial $1,000,000 investment. The minimum rate of return or hurdle rate is set at 10%. This means the company will make a profit in the future on the initial investment. The net present value and internal rate of return are beneficial to companies when predicting future growth on investment. Companies tha t have a strong net present value and internal rate of return are able to secure loans and expand. This is important for the future CUSTOM SNOWBOARDS 28 successes of companies. Custom Snowboards is predicting returns on their initial investment with the European expansion and increases in revenue. Custom Snowboards must evaluate their fiscal responsibility to determine if leasing or buying is in the best interest of the company. The company will need to put a $50,000 down payment from working capital and $800,000 to either buy or lease a facility. Analysis determines purchasing a facility would be in the best interest of the company. The present value outflow to lease is $653,355 and $597,723 to purchase a building. The tax deductions available would provide a benefit to the company as well. Custom Snowboards should consider obtaining borrowing money for a long-term debt from an outside source. The optimal capital structure that would provide the best return is to fund the project in Europe over five years. This would allow for 1.547 earning per share to accrue even though the debt will require a 6% interest rate on return. This will also help preserve cash flow since a constant repayment is easier to budget and earnings can continue to grow. Custom Snowboards is reliable and creditworthy. This will be easier for them to obtain the long-term debt. Debt financing can provide a benefit to Custom Snowboards since they would be able to deduct interest on the business taxes at the end of the year (Daniels, 2013). Having an outstanding debt can be a downfall for a company as well. The company is under the obligation to make payments to the lender in a timely manner and if the projected revenue is not as expected this will be detrimental to the company and capital structure. The budgeting process will help Custom Snowboards decide to expand into the European market. The management team must look at all the capital budgeting CUSTOM SNOWBOARDS 29 techniques to understand the total viability of the project. The decision will not be an easy one, but will require careful review of the entire financial picture. B5. Summary Custom Snowboards has demonstrated that European expansion is an idea that is viable for the company. The company must now decide if they wish to build, merge, or acquire within the European market. This will not be an easy decision, but meticulously made after analyzing the capital structure and  corporate strategies. Custom Snowboards has the option to build a new plant within the European market. They would need to determine where the plant would be located and acquiring the necessary land and permits. The company would be required to start from scratch to get started. The plant would be built to the company’s specifications and could be economical, but would require a large amount of money for start-up initially. Buying a building is another option available to Custom Snowboards, but ties the company to the area. This would be the smartest move based on the financial data available. It would be cost effective and allow the company to move in after the building is adapted to the needs of the company. However, leasing a facility would give Custom Snowboards the opportunity to leave the area if the forecasted expectations are not attained and things are not as viable as hoped. Custom Snowboards has the option to merge with SnowFun, Inc. This would provide the expansion into the European market that Custom Snowboards desires. The merger would provide the opportunity to increase profits, earnings per share from $0.98 to $1.18, have less competition, and expect a strong return on investment. SnowFun stockholders will benefit more from the merger than Custom Snowboards in regards to CUSTOM SNOWBOARDS 30 earnings per share, since SnowFun will see earnings per share will go from $0.26 to $1.18. Custom Snowboards would have 200,000 market shares pre-merger and 500,000 after the merger has taken place. Custom Snowboards can buy shares back to reduce the amount available to the public and the stockholders will increase the earnings per share. This would be beneficial to the stockholders, but is not always available immediately after a merger has taken place. Custom Snowboards would also see increased company worth if a merger took place. They would gain invaluable contacts from SnowFun and gain insight on the European snowboard market that they would not otherwise have. However, a merger would leave the company with excess employees. This can lead to disgruntled employees and low staff moral. Customers may be aware of this and shy away from purchasing products from this newly merged company. Custom  Snowboards will need to ensure everyone feels valued and is happy. It would be beneficial to find displaced employees another position, but that is not always possible. This would go along ways to reassure customers as well, as it shows the company is willing to make concessions to keep the customer happy and taken care of. Finally, Custom Snowboards could acquire SnowFun, Inc. Custom Snowboards would then have to buy out SnowFun and acquire full ownership of the products, materials, and debts they have. SnowFun is requesting $720,000 from Custom Snowboards to acquire full rights to the company. The net present value of SnowFun is $732,522. An increase of $12,522 would be seen for Custom Snowboards over a fiveyear period. This option would increase the earnings per share to $2.40. CUSTOM SNOWBOARDS As mentioned with the merger option, Custom Snowboards would gain invaluable contacts from SnowFun and gain insight on the European snowboard market that they would not otherwise have. The company would increase earnings per share for stockholders. They would have factory and production equipment readily available to start production right away without delay. They would gain product development knowledge from what SnowFun had previously completed and this could lead to refined processes of current products. However, a merger would leave the company with excess employees. This can lead to disgruntled employees and low staff moral. Customers may be aware of this and shy away from purchasing products from this newly merged company. Custom Snowboards will need to ensure everyone feels valued and is happy. It would be beneficial to find displaced employees another position, but that is not always possible. This would go along ways to reassure customers as well, as it shows the company is willing to make concessions to keep the customer happy and taken care of. Also, it is hard to integrate two companies and acquire the debt from SnowFun. This could harm the company if they do not budget for this newly acquired debt. Custom Snowboards best option is to decline the offer to acquire SnowFun, but to merge the companies. The costs to start a new company would be limited and there would be a readily accessible building, contacts, product knowledge, market  knowledge, and increased earnings per s hare. Not all employees will be able to retain their job, however the employees that remain will be the most knowledgeable regarding the product to boost sales and revenue. This will help the company attain the success it hopes to achieve. CUSTOM SNOWBOARDS 32 B6. Presentation The recommendation was made to initiate a merger between Custom Snowboards and SnowFun, Inc. The financial information reviewed shows the companies will produce an increase in capital from net sales and reduce production costs. This will provide the stockholders with a higher return on investment due to growth after the merger has taken place. Merging will not require Custom Snowboards to acquire a large amount of funding or long-term debt since a stock exchange will take place. The earnings per share for Custom Snowboards will increase $0.92 and SnowFun $0.20. A total of 500,000 shares will be available after the merger. SnowFun will receive 3 shares to every 1 share that Custom Snowboards receives. There are four structures to review: Long term debt, 30% long term debt and 70% common stock, 80% long-term debt and 20% common stock, and no long-term debt (common stock only). Custom Snowboards hopes to obtain $1,000,000 through one of these types of structure. The earnings per share for each year based on earnings before interest and taxes from the European forecasts for year 15 through year 19. Earnings Per Share Year 15 Year 16 Year 17 Year 18 Year 18 Year 19 Long-Term Debt 0.034 0.203 0.407 0.589 0.720 1.953 30% Long- Term/70% Stock 0.068 0.130 0.204 0.270 0.318 0.99 80% Log- Term/20% Stock 0.052 0.165 0.300 0.422 0.509 1.448 No Long- Term Debt (Stock Only) 0.072 0.121 0.179 0.231 0.268 0.87 CUSTOM SNOWBOARDS 33 The long-term debt option would be the second choice for expansion for Custom Snowboards should they not want to merge. The total earnings per share in year 19 would be $1.953 and higher than any other option. The long-term debt would also have consistent payments monthly that would be easier to budget and to forecast sales against. Custom Snowboards is a viable company that is growing and making advances. Areas of improvement do need to be made to continue this progressive growth, but they are in a position to expand into Europe. Thanks to financial responsibility they are in the position to take on debt if necessary to make this expansion happen. A merger with SnowFun, Inc. would provide virility to the company and provide a positive base for continued growth. CUSTOM SNOWBOARDS 34 References Hunt, J. 2013. What determines a Company’s Profitability? Retrieved on May 11, 2014 from http://smallbusiness.chron.com. Investopedia. 2013. Activity-Based Costing – ABC. Retrieved on May 2, 2014 from www.investopedia.org. Investopedia. 2013. Operating Income. Retrieved on April 30, 2014 from www.investopedia.com. Johnson, R. 2013. Traditional Costing Vs. Activity-Based Costing. Retrieved on May 3, 2014 from http://smallbusiness.chron.com. Joseph, C. 2013. Advantages & Disadvantages of Customer Service Jobs. Retrieved on May 11, 2014 from http://work.chron.com. Kennon, Joshua. 2013. Cost of Goods Sold – COGS. Retrieved on May 11, 2014 from http://beginnersinvest.about.com. Markgraf, B. 2013. How to Increase the Net Operating Income Without Increasing Sales Retrieved on May 7, 2014 from http://smallbusiness.chron.com. Stone, R. 2013. 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