Importance Of Profit And Loss Account Accounting Essay

Importance Of Profit And Loss Account Accounting Essay The Profit and Loss Account is a Financial Statement which summarizes a companys revenue and expenditure for a specific period of time, usually prepared annually or quarterly. These statements provide information that shows the ability of a company to generate profits by increasing its revenues and reducing costs. The Profit and Loss Account is also known as a Statement of Profit and Loss, an Income Statement or an Income and Expense Statement. IMPORTANCE OF PROFIT AND LOSS ACCOUNT : Profit and Loss Account represents a companys ability to generate income through their business operations. Many times businesses will need financing to help create the facilities for their operations. Smaller companies usually obtain bank loans that are based on the amount of income a company has earned from past operations. Solid Profit and Loss history is essential for getting the best loan terms. Profit and loss statements are important also because many companies are required by law or association membership to complete them. Apart from this, a profit and loss statement will help the company to understand their net income, which may be helpful in decision-making processes. That is, it gives one the information needed to grow or expand his business. KEY ITEMS OF THE PROFIT AND LOSS ACCOUNT : Income from Sales Cost Of Goods Sold Gross Profit Operating Expenses Net Profit from Operations Other Income Other Expenses Net Profit STANDARD STRUCTURE OF A CORPORATE PROFIT AND LOSS ACCOUNT: Profit and Loss Account for the year endedà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ Particulars Rs. Particulars Rs. To Gross Loss à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. By Gross Profit à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Salaries à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. By Interest Received à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Rent à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. By Commission Received à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Rent and Rates à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. By Other Receipts à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Discount Allowed à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. By Etc., Etc. à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Commission Allowed à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. By Net Loss (Transferred to Capital Account of the Trader) xxxx To Insurance à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Bank Charges à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Legal Charges à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Repairs à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Advertising à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Trade Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Office Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Bad Debts à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Travelling Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Etc., Etc. à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. To Net Profit (Transferred to Capital Account of the Trader) xxxx Profit and Loss Account for the year endedà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦(Statement Form) Particulars Rs. Rs. Rs. Income From Sales: Sales à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Less: Sales Returns à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Sales Discount à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Net Sales à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Cost Of Goods Sold: Stock as on 1stJanuary à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Purchases à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Less: Purchase Returns à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Net Purchase à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Cost Of Goods available for sale à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Less: Stock as on 31stDecember à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. COGS (Cost Of Goods Sold) à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Gross Profit xxxxxx Operating Expenses: Selling Expenses:- Sales Salary à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Advertising Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Insurance Expenses selling à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. Store Supplies Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Sundry Selling Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Total Selling Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. General Expenses: Office Salaries à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Taxes à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Insurance Expenses general à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Office Supplies Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Sundry General Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Total General Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Total Operating Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Net Profit from Operations xxxxxx Other Income: Rent Income à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Other Expenses: Interest Expenses à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. NET PROFIT xxxxxx GIVEN BELOW IS THE PROFIT AND LOSS ACCOUNT OF TATA STEEL LIMITED :- (This will help us understand the purpose of a Profit and Loss Account and also enable us to understand how a Profit and Loss statement is made.) Profit Loss Tata Steel Ltd Mar12 Mar11 Mar10 Mar09 12 Months 12 Months 12 Months 12 Months INCOME: Sales Turnover 37,005.71 31,901.94 26,757.60 26,843.53 Excise Duty 3,167.20 2,594.59 1,816.95 2,495.21 NET SALES 33,838.51 29,307.35 24,940.65 24,348.32 Other Income 0.00 0.00 0.00 0.00 TOTAL INCOME 34,389.27 29,635.26 25,272.24 24,653.68 EXPENDITURE: Manufacturing Expenses 5,608.38 4,463.65 3,803.33 3,349.96 Material Consumed 9,696.65 9,222.27 8,491.42 8,279.44 Personal Expenses 3,047.26 2,618.27 2,361.48 2,305.81 Selling Expenses 1,832.40 109.36 82.17 61.49 Administrative Expenses 2,119.56 1,922.33 1,622.77 1,518.83 Expenses Capitalised -478.23 -198.78 -326.11 -343.65 Provisions Made 0.00 0.00 0.00 0.00 TOTAL EXPENDITURE 21,826.02 18,137.10 16,035.06 15,171.88 Operating Profit 12,012.49 11,170.25 8,905.59 9,176.44 EBITDA 12,563.25 11,498.16 9,237.18 9,481.80 Depreciation 1,151.44 1,146.19 1,083.18 973.40 Other Write-offs 0.00 0.00 0.00 0.00 EBIT 11,411.81 10,351.97 8,154.00 8,508.40 Interest 1,925.42 1,686.27 1,848.19 1,489.50 EBT 9,486.39 8,665.70 6,305.81 7,018.90 Taxes 3,162.63 2,912.44 2,168.50 2,114.87 Profit and Loss for the Year 6,323.76 5,753.26 4,137.31 4,904.03 Non Recurring Items 372.66 1,107.89 909.49 297.71 Other Non Cash Adjustments 0.00 0.00 0.00 0.00 Other Adjustments 0.00 4.54 0.00 0.00 REPORTED PAT 6,696.42 6,865.69 5,046.80 5,201.74 KEY ITEMS Preference Dividend 0.00 0.00 45.88 109.45 Equity Dividend 1,165.46 1,151.06 709.77 1,168.95 Equity Dividend (%) 119.97 119.97 79.98 159.95 Shares in Issue (Lakhs) 9,712.14 9,592.14 8,872.14 7,305.92 EPS Annualised (Rs) 68.95 71.58 56.88 71.20 [The portion highlighted by a black box shows the Profit earned by Tata Steel Limited from 2008 -2012] HOW THE PROFIT AND LOSS ACCOUNT HELPS THE CORPORATE DECISION MAKERS TO SHAPE THEIR DECISIONS? A Profit and Loss account provides a collection of operating data that can be used by corporate decision makers to improve corporate operations. Regular review of this statement can help the entrepreneur to adjust the strategic paths of the company based on the prevailing economic conditions. A Profit and Loss statement also helps outside investors to measure a firms economic viability in the long run. Also; Analyzing a statement of profit and loss gives corporate leaders the tools necessary to measure competitors progress in the market, hence improve their market share. The Profit and Loss account gives a clear view of all the expenses and incomes of the firm, hence a regular analysis of these statements help firms cut down their expenses. Creating a forum through which business unit leaders discuss and help top leaders set performing segments apart from activities that generate less than mediocre revenue. By reviewing the firms revenues and expenses, management can decide which segment to sell. A profit-and-loss report indicates to the rest of the world the corporate segments that are thriving, emphasizing products that positively affect the corporate bottom line.

Free Trade Agreement and Its Affect on Canadian Business Essay

Free Trade Agreement and Its Affect on Canadian Business With the coming of the Free Trade Agreement (FTA) there have been very serious implications for Canadian business and for that matter, Canada as a whole. Many aspects of the previous economic climate have changed such as the reduction or eliminatation of tariffs and the restrictions on subsidies to name only a few. There has been much heated debate on the pros and cons of this deal: whether Canada will prosper or become the 51st. American state. This paper will not take this approach to the issue of whether or not it is a wise agreement, but will look at what business can do to better itself with the existing FTA. If Canadian business is to survive and prosper in this radically changed North American and Global atmosphere of easier trading, then it must adapt. Some of the main areas that will have to be addressed is the need for more productive and efficient operations, a new focus by business on the new trading reality, and a change in policies by Government to enable Canada to function better with the FTA. The FTA stands to alter Canadian business which has grown rather relaxed and inefficient behind walls of tarrifs. While these may have initially spurred industry, they have after time encouraged complacency. With these rapidly disappearing walls, business will have to become "lean and mean" in order to compete in a very competitive global market. Looking at the present state of affairs our status in research and development (R&D), labour costs and expansion, there is much that must be done. Compared to the other industrialized western nations we lag far behind in nearly all areas. Take for example R&D. In 1990 Canada spe... ... Cameron, Duncan. The Free Trade Papers. James Lorimor & Company, Publishers, Toronto, 1986 The Canada and US FTA (Complete Doccument), External affairs Canada, Ottawa Laxer, James. Leap of Faith: Free Rade and the Future of Canada. Hurtig Publishers, Edmonton, 1986 The Case Against the Critics of Free Trade. John Miora. Finanical Post, Feb. 8, 1986 Brave New World. Marc Tait. Maclean's, Jan. 9, 1989 Firms going continental. Jennifer Sachsa. Globe and Mail, June 12, 1990 Roundtable: The Canada-US FTA. Fred Swift. Globe and Mail. August 12, 1988 End Notes 1 Firms going continental. Jennifer Sachsa. Globe and Mail, June 12, 1990 2 Brave New World. Marc Tait. Maclean's, Jan. 9, 1989 3 Firms going continental. Jenniger Sachsa. Globe and Mail, June 12, 1990 4 Roundtable: The Canada-US FTA. Fred Swift. Globe and Mail. August 12, 1988

Sunset Boulevard

Yes, Norma Is That Crazy Sunset Boulevard constantly and persistently advances the theme that Hollywood creates movie stars that become engrossed with their own fame and then abandons them, leaving behind only their outlandish and outdated fantasies. The case of Norma Desmond is no different. Her out-of-touch relationship with reality is given form through her desire to make her â€Å"greatest picture yet. † The segment of Sunset Boulevard that will be analyzed in this essay is significant because, through the use and interplay of cinematography, editing, elements of Mise-en-Scene, and the dialogue, Norma’s delusions are highlighted and magnified.The first few moments of part one of the segment use specific elements of Mise-en-Scene and the dialogue to begin the reinforcement of Norma’s delusions. As her lavish and fanciful car pulls up to the studio door, Norma asks Joe if he would like to accompany her into the studio to meet with Cecil B. DeMille, but Joe refu ses. Joe is dressed fairly normally whereas Norma is wearing a fancy coat and hat to match her equally fancy car. This use of the costumes and makeup suggest that Norma is somehow out of place or out of time because her clothes do not match the occasion.When Joe declines to join Norma in the studio, he explicitly states, â€Å"It’s your script, it’s your show. † This part of the dialogue seems to suggest a separation between Norma and Joe. Norma is excited to meet with DeMille and discuss her movie whereas Joe is content to wait outside with Max and the car – Norma is alone. The next few moments of part one also contain some key lines of dialogue that seem to emphasize the anachronism of Norma Desmond and her fantasies. As she is hugged and greeted by DeMille, she recalls the last time the two had been together.She describes the time as â€Å"very gay,† suggesting that it is a very happy memory. She also remembers waving to DeMille and dancing on a table. It would seem that Norma still associates her relationship with DeMille, and consequently her career as a movie star, with fantastic memories of the past. DeMille mentions that many other people were dancing on tables as well, since Charles Lindbergh had just landed in Paris. This seems to suggest that Norma’s experience (and consequently, her past) is not s special and unique as she would like to believe, but Norma seems ignorant to this subtle suggestion because she is still engrossed by that memory. In the next section of part one, the dialogue between and the behavior of Norma and DeMille heightens the disparity of understanding between the two Hollywood greats. Norma behaves like classic Norma – pretentious with an inflated sense of self-importance. DeMille seems to be walking a line between careful respect and impatience.When Norma asks if he has read her script, DeMille waits for her to break eye contact before looking down and admitting in a rather exas perated and annoyed tone, â€Å"Yes, I did. † DeMille’s facial expression as he says this is key to understanding the distance between him and Norma. He is somewhere between anger, impatience, and confusion, whereas Norma is looking off-screen, seeming quite pleased with herself. DeMille leaves Norma in his director’s chair as he tells one of his assistants to get him on the phone with Gordon Cole, whose calls lead to Norma’s arrival at the studio.The difference between DeMille’s and Norma’s facial expressions and tone reinforce the idea that Norma is living in a fantasy and is separated from reality. The next section of part one uses costumes, lighting, and specific shot angles to reinforce Norma’s delusions about her current importance. A high angle shot of Norma in DeMille’s director’s chair is combined with the use of a spotlight to further Norma’s fantasies about her current importance. When the lighting man puts the spotlight on Norma and exclaims that it’s Norma Desmond for everyone in the studio to hear, the people in the studio surround Norma.Most are dressed for the picture that is being made by DeMille, but there are also a few policemen and normal people as well. The crowd around Norma that is showering her with affection is almost entirely comprised of people in strange clothes. This would seem to suggest that Norma’s sense of self-importance isn’t based in reality. Rather, it is a product of the fantasy world she lives in. In the final moments of part one, non-diegetic music is combined with the dialogue to show that Norma has no idea why she was being called by Gordon Cole.While DeMille is on the telephone with Cole, non-diegetic music is used to heighten the tension and suggest that a revelation is about to be made about the true purpose of the calls to Norma. When Gordon reveals that he was only interested in renting Norma’s luxurious car for a pi cture that is being made, a sudden burst of non-diegetic music is inserted. This music accentuates the difference between Norma Desmond’s reality and actual reality. DeMille pops the fantasy bubble Norma is in by breaking up the crowd of her fans around her and getting the spotlight taken off her.Norma’s fantasy is contrasted with DeMille’s reality when he tries to explain the mix up. She begins weeping out of gratitude for her fans whereas DeMille is trying to let her down as easily as possible. He highlights how detached Norma is when he says that pictures have changed quite a bit since she had been a star. The first half of part two uses cinematography to contrast the Norma’s past and the present. As Max tells Joe about Norma’s old dressing rooms, the camera remains on the car. Joe doesn’t look up at the offices. He doesn’t even seem all that interested in Max’s story.Only when Joe notices Betty does the shot cut away from t he car. Max is still talking but Joe is much more interested in Betty. This use of shot control seems to suggest that Norma and Max’s past is irrelevant to Joe – all he cares about is Betty. The second half of part two uses dialogue to reveal to Max the true nature of the Paramount visit, which shows just how deluded Norma is. Two studio workers walk up to the car as Max is waiting for Joe and Norma to return and ask if they can take a look at the â€Å"funny old car Gordon Cole was talking about. † Max defensively asks what is so funny about the car.He cannot seem to notice how very out-of-place and out-of-time the car is, just as Norma is. The first section of part three uses lighting to contrast with part one. In part one, the inside of the studio is very dark, whereas part three is lighted very well. Betty’s office is well-lit through the open windows and doors, which seems to suggest an air of new life and positivity. DeMille’s studio is quite dark while Norma is present. This contrast seems to highlight the difference between reality and fantasy. Joe and Betty are living in reality – their lives are healthy and growing towards the future, hereas Norma is still living in her past fantasy. Throughout part three, the cinematography and editing, the choice between reality with Betty and fantasy with Norma for Joe is highlighted. Whenever there is a significant portion of Betty’s window visible in the shot, Norma’s car is also visible through the window. As Betty and Joe discuss how to fix up Betty’s script, we can still see the studio workers walking around the car, examining it. Part three also makes significant use of diegetic sound and dialogue to contrast fantasy with reality.As Betty asks Joe to meet with her to work on the script, a car horn begins to honk, calling Joe back to Norma’s fantasy world. Joe takes heed and tries to wrap up the meeting with Betty as soon as possible. Betty , however, is quite insistent and pesters Joe to meet with her. The longer she keeps Joe waiting, the longer and louder the car horn honking becomes. This seems to suggest that Norma’s fantasy world is calling Joe back, keeping him from fully engaging with the present reality. Part four mostly uses non-diegetic sound and music to finish the contrast between reality and Norma’s fantasy.After Max explains to Joe the true reason for the Paramount calls, the camera immediately cuts to Norma and DeMille exiting the studio through the same door they entered earlier in the segment. As Norma insists she isn’t worried about anything and DeMille tries to ship her off without indicating his knowledge of the situation, dark and mysterious music plays. Everyone knows except Norma – not that she cares. Norma is stuck in her fantasy world, convinced that it will become reality. She never picks up on the subtle clues that DeMille gives throughout their interaction that h e has no intention of making a movie with her again.Sunset Boulevard’s theme that Hollywood creates movie stars that become engrossed with their own fame and then abandons them, leaving behind only their outlandish and outdated fantasies, is excellently exemplified through Norma Desmond. Her out-of-touch relationship with reality is given form through her desire to make her â€Å"greatest picture yet. † This segment of Sunset Boulevard is significant because, through the use and interplay of cinematography, editing, elements of Mise-en-Scene, and the dialogue, Norma’s delusions are highlighted and magnified.

Linear Technology Essay

1. Describe Linear Technologies payout policy. Linear Technology announced its first dividend on October 13, 1992 in order to portray Linear Technology as a less risky firm than other technology companies that did not pay dividends and to gain access to new investors interested in earning income in addition to investing in growth. Linear Technology initially planned to begin with a relatively low dividend of $0.05 per share which amounted to a 15% earnings payout ratio – mindful of the fact that investors abhorred firms that reduced or stopped their dividend payment schedule. Beginning more conservatively than their original estimates, Linear Technology began with a $0.00625 dividend per share. Linear Technology has steadily increased it’s dividend per share increasing the payout approximately every four quarters by $0.00125. This pattern was maintained from Q2 1993 to Q3 2000. Beginning in Q4 2000, Linear Technology began increasing its dividend per share by a new pattern of $0.01 increases per four quarters. The current dividend per share is $0.05 during Q3 2003. Its current dividend yield of 1% is relatively higher than the average dividend yield rate for Information Technology firms in the S&P 500, around 0.3%. 2. What are Linear’s financing needs? Should Linear return cash to tis shareholders? What are the tax consequences of keeping cash inside the firm? Linear Technology’s financing needs are to optimize its cash flow, investments, and cash balances in order to maximize its shareholder values. Linear’s cash balance in March 2003 stood at around $1.5 billion, which was being conservatively invested in short-term debt securities. The cash flow from these investments, the interest income, was around $52 million. Due to the tax cuts implemented by the Bush administration, the tax rate on dividends and capital gains were greatly reduced. The dividend tax rate dropped from an approximate 38% and the capital gains tax dropped from an approximate 20%. More important that the magnitude of the tax cuts, however, is that the capital gains tax was equalized with the dividends tax. When the dividends tax is higher than the capital gains tax, the optimal dividend  policy is to pay no dividends. In this situation, the firm will use share repurchases instead in order to take advantage of tax savings. Before the tax cuts, the firm has less incentive to raise funds for dividend payouts due to the higher tax rate on dividends and the negative effect on shareholders. However, with the equalized tax rate of 15%, the firm is no longer discouraged from raising dividends. 3. IF Linear were to pay out its entire cash balance as a special dividend, what would be the effect on value? On the share price? On earnings? On earnings per share? What if Linear repurchased shares instead? Assume a 3% rate of interest. 4. Why do firms pay dividends? Why has the rate of dividend initiations changed over time? Firms pay dividends for several reasons despite the MM proposition that characterizes dividend policy as irrelevant. One main reason for dividend policy is based on the manager’s belief that investors prefer stable dividends with sustained growth. This kind of dividend signals to the investor the firm has reached a steady state growth i.e. a mature market position. A company usually only begins to consider releasing dividends once it has established regular and predictable operations cash flows. However, dividends can also act as a negative signal telling investors that the firm’s growth rate is slowing. Increasing the dividend can, on one hand, signal the manager’s perspective for future growth and optimism over future cash flows; on the other hand, increasing the dividend can also signal a lack of investment opportunities. The use of dividend payouts has steadily decreased over the last 30 years. This trend is in part related to the changes in dividend tax rate , however, I believe the majority of this trend or trends can be attributed to changes in investor preferences. The dividend payout decision is ultimately chosen by a manager, whose main objective is to satisfy shareholder preferences.

Employment Law Essay

The main issue under consideration in this case is whether a claim under the Age Discrimination in Employment Act of 1967 (ADEA) can be subjected to compulsory arbitration pursuant to an arbitration agreement in a securities registration application. Gilmer contends that it is not. Among the arguments raised by Gilmer are: a) the compulsory arbitration of claims under the ADEA pursuant to arbitration agreement is inconsistent with the purpose of the Federal Arbitration Agreement; b) the compulsory arbitration of claims will undermine the role of the EEOC in enforcing the ADEA; c) compulsory arbitration will deprive the claimant of the judicial forum provided for by the ADEA; d) compulsory arbitration should not be countenanced because of the inherent inequality in the bargaining power between the employers and the employees. The Supreme Court affirmed the judgment of the United States Court of Appeals for the Fourth Circuit holding that an ADEA claim may be subjected to compulsory arbitration. The Supreme Court ruled that it does not see any inconsistency between the purpose of FAA and the enforcement of agreements to arbitrate under age discrimination claims. The Sherman Act, the Securities Exchange Act of 1934, RICO, and the Securities Act of 1933 all are designed to advance important public policies but claims under these statutes may still be subjected to compulsory arbitration. Also, it is incorrect to argue that compulsory arbitration will undermine the role of EEOC in enforcing the ADEA because a claimant subject to arbitration agreement is still free to file a charge with the EEOC. Further, compulsory arbitration agreements will not deprive the claimants of their right to seek judicial recourse under ADEA rather it even broadens the right of the claimants as they now have the right to select the forum for resolving their disputes whether judicial or otherwise. Mere inequality in the bargaining power between the employer and the employee is not sufficient to hold that arbitration agreements should not be enforceable as it is precisely the purpose of FAA to place arbitration agreements in the same footing as other contracts. In effect, the Gilmer case required claimants who are under compulsory arbitration agreements to comply with the said agreements before they seek judicial recourse even if it involves a claim under the ADEA. In the dissenting opinion of Justice Stevens, he argued that arbitration clauses contained in employment agreements are specifically exempt from coverage of the FAA thus respondent corporation cannot compel petitioner to submit his claims arising under the Age Discrimination in Employment Act of 1967 (ADEA) to compulsory arbitration. One of the arguments raised is that the requirement of compulsory arbitration between the petitioner and the respondent is not embodied in the contract of employment. In fact it was admitted by both parties that there was no contract of employment between them. Instead, the Compulsory Arbitration clause was embodied only in Gilmer’s application for registration before the NYSE. Moreover even if there was a contract of employment, the FAA should be not held to apply to employment-related disputes between employees and employers. It would be contrary to the spirit of the FAA to allow the same people who have practiced discrimination against an employee to bargain with them for the purpose of settling their disputes. I agree with the majority opinion. In the first place, the injured party in discrimination suits is the employee. As the injured party, they have the freedom to seek judicial recourse for the purpose of obtaining relief for the damage done to them. However, they also have the freedom to opt for other alternatives. In an effort to settle their dispute with their employers, they may choose to enter into arbitration. Indeed, it would be more in keeping with the laissez faire doctrine to allow both the employers and the employees to settle their dispute among themselves.

Accounting, write a memo about Sony company Essay

Accounting, write a memo about Sony company - Essay Example Interesting content from proxy statement: â€Å"In a case where the outside director is reelected as an outside director of the corporation and reassumes his/her office as an outside director of the corporation, this agreement should continue to be effective after reelection and re-assumption without any action or formality.† This implies that in reelection of outside directors no formality is followed but the contract with the corporation is automatically renewed. In such instances the directorship is suppose to be formally executed like other directors by the use of the signature and company stamp but here it is no done. Positive Aspect: The annual report is viable and reasonable in that they require further tests to be conducted. While the primary objective of the report was to look at the effectiveness of the project in ensuring costs saving and operational efficiency, the project also looked at other information in a cursory manner as well (Simplified Acquisition Procedures for Federal Purchases, 2004). The report also suggests that independent study must be conducted to ensure that the prices of items being offered via the simplified acquisition procedures are at least at par with their market equivalents. Concerning Aspect: The first and the most concerning issue is that of carrying cost. The organization may carry excessive amounts, however the organization will have to bear excessive carrying costs to ensure that the products are kept in usable conditions and that they are not damaged due to prolonged periods of storage. These costs are not insignificant and in case of sensitive equipment, the equipment maintenance costs are a major portion of the organization is operating overheads. Overall: the annual report and proxy statement enables one to understand and the strategy of the company. It also enables one to comprehend the strategic direction as it

Import and Export Markets in the United Kingdom Essay

Import and Export Markets in the United Kingdom - Essay Example The UK exports most of its goods to Brazil, India, Russia, and China while most of the imports come from china. The use of higher technology manufactured goods has caused a dramatic increase in both exports and imports. However, the recent financial crisis experienced around the world has led to a decline in imports and exports (Reuvid and Sherlock, 2011). In 2009, UK imports and exports totaled to $1,256 billion, which was equivalent to 4.3 of the world trade. The financial crisis has caused a rise in exchange rates of sterling pound, which has caused an 8.6% decrease in exports and 9.1% decrease in imports (Great Britain, 2009). Over the past ten years, the UK has been a net oil exporter, but production has been decreasing consistently over the past years. The oil industry has recorded an average decrease of 5.3% per year in exports. This has converted the UK from an oil export to an oil import land. Oil production in the region is less than demand, which calls for supplements thro ugh increased imports. Imports of other energy sources such as coal, electricity, and gas have increased over the past five years. In 2010, the importation of liquefied natural gas increased to account for 35% of total gas imports, while gas exports have decreased slightly over the same period. Gas has also been increasingly used for electricity supply with the amount required increasing by 47% (Great Britain, 2010). Changes in the financial sector affect business sentiments and investment decisions, which are linked to global trade. Data service exports at the start of 2007 were about 30 billion pounds while imports were about 33 billion pounds. Mid 2008 recorded the peak imports and exports at 40 billion and 34 billion pounds respectively. The rate of imports and exports of data services decreased consistently since 2008 reaching a low of 32 billion in imports and 29 billion in exports in mid 2009. However, an increase was recorded towards the end of 2010 with imports and exports reaching 41 and 35 billion respectively. The deep drop can be attributed to financial crisis experienced during this period. The dramatic drop experienced in 2009 can be attributed to the collapse of Lehman Brothers Company. Global insurance company AIG received below average ratings and mortgage lender Bradford & Bingley was nationalized. These changes caused the drop experienced in 2009. The UK has recorded an increase in intermediate goods trade, with a 40% increase in 2008 for non-fuel products. Production processes are divided between different countries, which have increased the flow of unfinished goods into and out of the UK. Most manufacturing countries have production firms in countries with low labor costs. Products manufactured in these countries are imported as finished or semi-finished goods. The sterling pound experienced strong depreciation between 2007 and 2008. Reports by the Bank of England (2010) suggest that goods and services exports responded differently to the weakening of sterling. Export of goods has been supported by the weakening because export performance is influenced by price. The service industry reported a decrease in exports due to a reduction in global demand. The fall of financial companies reduced the rate of financial service exports, which caused the reduced export services. According to the World Bank (BCC, 2011), trade in professional and technical services has been more resilient than trade in goods during the financial crisis. Most