The Fundamentals of Working Capital Management - Free Essay Example

Sample details Pages: 1 Words: 350 Downloads: 2 Date added: 2017/09/12 Category Advertising Essay Did you like this example? The Fundamentals of Working Capital Management Working Capital refers to the company’s current or short-lived assets. This includes cash, marketable securities, notes receivable, account receivable, inventories and other current assets. Non-current assets are referred to as capital assets. These are long-term assets and are mostly depreciable in nature. In evaluating an investment in capital assets, the future cash flows, the risk of those cash flows as well as the opportunity cost of the funds invested must be taken into consideration. Working capital provides the resources to put up a capital asset in operation while the capital asset in turn is expected to generate future cash flows to become future working capital. Factors that affect the level of investments in working capital †¢ Type of business/product †¢ Length of the operating cycle †¢ Degree of uncertainty of the business †¢ Practices and traditions Aggressive vs. Conservative Working Capital Management Aggressive |Conservative | |Preference for minimum level of working capital |Maintains maximum level of working capital | |Advantages |Disadvantages |Advantages |Disadvantages | |Saves on carrying costs |Losses due to stock outs |Avoids risk of losses due to |High carrying costs | | | |stock outs | | |Maintains active relationship |Bad credit reputation |Good credit reputation |Lost opportunities when funds | |with bankers | | |are tied up in non-earning | | | | |working capital assets | Measuring Working Capital Effectiveness Liquidity : the ability of a firm to turn around resources to fund current requirements, invest excess capital and avoid costly borrowings. Ratios associated with measuring liquidity: Current Ratio = Current Assets / Current Liabilities Don’t waste time! Our writers will create an original "The Fundamentals of Working Capital Management" essay for you Create order Accounts Receivable Turnover = Sales / Accounts Receivable (A/R) Days’ Sales Outstanding = 365 days / A/R Turnover Inventory Turnover = Cost of Goods Sold / Inventories Average Stocking Period = 365 days / Inventory Turnover Quick Ratio = (Current Assets–Inventories) / Current Liabilities Cash Operating Cycle: the sum of the average inventory stocking period and the days’ sales outstanding. The shorter this cycle is, the better is the liquidity. Stretching of Suppliers’ Payable is one way to maximize the use of funds. It is an advantage particularly when the firm has a strong bargaining power with its suppliers. Accounts Payable Turnover = Cost of Goods Sold/Accounts Payable Average Payment Period = 365 days / Accounts Payable Turnover

Effects Of Alcohol On Young People - 1510 Words

Alcohol is one of the biggest risk factors for disease burden among adolescents. Among young people aged 16 to 24 years, binge drinking and alcohol related harm is one of the leading causes of disease and injury. Therefore, it is important that preventative measures are taken to reduce the risk of young people binge drinking within Australia. Binge drinking, also known as episodic excessive alcohol consumption, is defined, as occasional excessive consumption of alcohol, however, there is no nationwide agreement on how many drinks constitutes a binge (1). Over time, rates of binge drinking have increased, however, rates of drinking any alcohol have remained stable (2). Alcohol is believed to contribute to 320 000 deaths among 15-29 year olds and is, therefore, a major source of preventable disease burden and high risk factor in adolescents (3). The consumption of alcohol often begins in adolescence, however, while young adults are believed to consume less alcohol than adults, they may drink greater amounts in a single session (3). In the year 2013, research showed that one in five Australian adolescents aged 16-24 years reported drinking eleven to twenty standard drinks in a single session consecutively at least each month (3). Studies in adolescents and their alcohol use has highlighted different risk factors including not only somatic complications, but also traffic and other accidents, violent behaviour and suicide (4). The risk of an adolescent developing anShow MoreRelatedLowering the drinking age: Increasing their Lifespan1058 Words   |  5 Pagestwenty-one to be able to consume or purchase alcohol. States that did not comply faced a reduction in highway funds under the Federal Highway Aid Act. Many can argue that ever since the drinking age was set at a higher age limit, there have been less reports of death due to intoxication, both on the road and off the road (Mooney). Young adults between the ages of eighteen and twenty are still developing many parts of their brain and if they begin to consume al cohol at such an early age, it can thwart theirRead MoreAlcohol Essay1160 Words   |  5 Pagesprint) Signature: Date Abstract The consumption of alcohol in Australia is becoming a problem, and because of irresponsible and callous drinking, Australia is in need of a more mature drinking culture. The main points in this essay discuss the issues concerning irresponsible drinking amongst teens.They include the effects of alcohol on the adolescent brain, accidents involving underage drinkers and teens delaying the consumption of alcohol for as long as possible. This essay argues that becauseRead MoreEffects Of Binge Drinking On Children960 Words   |  4 Pagestreatment for binge drinking. Organisations such as Alcohol know your Limits and like a drink. These organisations provide support and advice to people who are suffering with binge drinking. They provide useful information about alcohol and what each genders drinking guidelines is. In addition they also provide information on the long and short term effects of binge drinking on an individual both physical and mental. Furthermore they have hotlines that pe ople can call in if individuals need advice or helpRead MoreTopic On Alcopops And Teen Binge Drinking1338 Words   |  6 Pagesamounts of alcohol for the purpose of getting drunk. Teenagers generally do this on a weekend and the drink of choice is the sweet flavoured Alcopops. These drinks come in a variety of cool colour and flavours and are marketed at the younger target group Binge drinking is a widely used term, and is the act of drinking heavily over a short period of time or over several days. Alcopops are the only alcoholic drink whose popularity declines with age. Alcopops begin introducing young people to alcohol at aRead MoreLowering The Minimum Drinking Age1429 Words   |  6 Pagesor own an ID that states as such – to legally purchase and consume alcohol (Griggs, 1). According to The World Health Organization â€Å"the U.S. [is] one of only a handful of developed countries –Iceland, Japan, South Korea and Thailand are others – with a minimum drinking age over 18† (Griggs, 1). When Ronald Reagan signed the National Minimum Drinking Age Act in 1984, its goal was to reduce less-mature adults from consuming alcohol and performing reckless acts (Cary, 1). However, despite the currentRead MoreEssay about In what ways does advertising effect young people?650 Words   |  3 Pagessell their products. Advertising expert tr y to appeal to young peoples needs and feeling making their product attractive and desirable. As a result this affects young people to drink alcohol and eat junk food. This essay will explain that advertising increases young peoples obesity and encourages them to drink alcohol. Advertising affect young peoples obesity in different ways. The first way is television advertising increases young people obesity. For example, television is a way to talk directlyRead MoreExploring Factors Related to Alcohol Consumption Young People in Britain1225 Words   |  5 Pagesthe consumption of alcohol in young people in Britain, and to suggest possible solutions for the young people of today and to also carry onto the next generation. This assignment will also research why young people feel the need to drink and what attracts them to alcohol, also this assignment will look into who is more susceptible to drinking alcohol, this could be male or female also what age group this effects the most, the assignment will also look in to what young people can do to pass theirRead MoreThe Drinking Age Should Not Be Lowered1135 Words   |  5 Pagesthe alcohol sold in America is consumed by those under the age of twenty-one, it is still a horrific, nationwide problem. Alcohol is a drug that can make you do things you would never consider doing when you are sober and is very dangerous on top of that. These things can potentially hurt you and hurt those around you. The legal age for the consumption of alcohol should not be lowered because alcohol can affect the health of young people in many detrimental ways, it causes thousands of alcohol relatedRead MoreEffects Of Alcohol On The Body s Organs And Brain Activity1350 Words   |  6 PagesAlcohol is a recreational drug which contains ethanol (Drugfreeworld.org, 2016), a depressant that prolongs the messages from the brain to the body affecting the way one thinks, feels and behaves (Alcoholthinkagain.com.au, 2014). Excessive alcohol consumption can have many negative effects on the body’s organs and brain activity. Major health problems such as cardiovascular disease, cirrhosis, depression, gout and pancreatitis can occur as a result of consuming large quantities of alcohol and haveRead MoreHealth Promot ion Is Important For Individuals1708 Words   |  7 Pagesmedical aid and care for all people around the world. The World Health Organisation is funded and backed by the United Nations, a society of countries banded together to make this world a better place for disadvantaged and regular people. Another party in which the World Health Organisation is governed by is the World Health Assembly. Health can be promoted through campaigns, for example the ‘Parents, Young People and Alcohol’ campaign focuses on the rising issue of alcohol consumption in the younger

Conflict and war are inevitable in life Free Essays

We are going to be discussing â€Å"Conflict and war are inevitable in life.† First of all, you cannot imagine a world without conflict and war as they are happening every day. Human beings are prone to conflict and war. We will write a custom essay sample on Conflict and war are inevitable in life or any similar topic only for you Order Now War and peace are like Ying and Yang. They are combined and nothing can separate it. Needless wars occur around the world endlessly. Conflicts which are occurring now are: 1. Riots e.g: In Egypt. According to the BBC website, over 100 people have been killed due to the riots. You can disagree by saying† however, the police in Egypt are controlling the riots and rioters begin to decrease by each day according to the BBC. This shows that conflicts can be resolved is not inevitable.† 1. Our fellow teachers, like our Mr Harland are going on strike this Wednesday due to their pensions. This is out of the context however this is still a way of causing troubles in our society. â€Å"They are doing this because if they don’t they won’t be able to survive anymore. It won’t be fair on them would it?† Let’s think back a few years. Racism was very common in the United States and in many parts of Europe. Conflict and wars were created due to racism. People had to suffer in order to survive. Americans used coloured people (black) as slaves to do their bidding. This was inevitable in life! Yes it was a tragedy however that too has been resolved. People change their ways to a greater good. Rosa Parks was an extraordinary example. She stood up towards the white people and due to this, racism was soon abolished. So if it wasn’t for Rosa Parks, would racism have gone even further? Would I be sitting here having this discussion? Wars also occurred and are still occurring in around the globe. For example 1. Afghanistan. The British have to assist as well which endangers many soldiers and innocent people who did not want any of this to occur. All this happened because of one man. (Gadaffi). We are still trying to maintain peace around the world by assisting those in need. However, isn’t helping in the war going to increase the number of battles fought and how many more should have to die? I have also heard that the war in Sri Lanka has ended and people are rebuilding their lives. Wars get created and solved all the time. The Ultimate goal of war and conflict in my opinion is because of jealousy towards a person or people and for the satisfaction of human needs. Even in Julius Caesar, Mark Anthony and Octavius go up against Brutus and Cassius in a needless war. Why should people have to die without any cause or reason? This is exactly why war and conflict are inevitable in life. How to cite Conflict and war are inevitable in life, Essays

Minimum Wage and Thomas Cook Group free essay sample

The upheaval of the Arab Spring affected Thomas Cook massively. The Group had been battered by weak consumer confidence within the Middle East destinations, such as Egypt and Tunisia. Many holidaymakers cancelled their bookings to such destinations, which resulted in a decreased cash flow for Thomas Cook. 2. Air passenger duty increase – Holidaymakers will now have to pay even more for foreign holidays, due to a recent increase to air passenger duty. Thomas Cook will have to pass on these increases to their customers, which could result in less bookings due to the impact for British families wanting to travel abroad. Page 7 – Economic Factors 1. Euro zone crisis – British holidaymakers were unfazed by the financial crisis in places like Greece. Business in Greece has returned back to normal relatively quick. Greek bars and restaurants have reduced the prices giving tourists good value for money. 2. Recession – Thomas Cook got into difficulty during the downturn in the travel sector. We will write a custom essay sample on Minimum Wage and Thomas Cook Group or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In the last financial year Thomas Cook struggled with high debt and reported pre-tax losses. Thomas Cook cut 2,500 jobs within the UK and closed almost 200 stores as an attempt to revive its profitability. The redundancies equated to 16% of its UK workforce jobs in the UK. 3. Cost of living – Thomas Cook was hit hard by the recession. Due to the uncertainty of consumer spending Thomas Cook has had to cut the amount of holidays for UK customers. Page 8 – Technological Factors 1. Ease of purchasing holidays using the internet – Consumers today are using technology in all forms. Thomas Cook were the first high street agent to sell holidays online, however this is being out shadowed by dynamic selling sites, such as Expedia and onthebeach. com. Thomas Cook are harnessing the power of technology to improve the customer experience, making it easier to select their destination, book, get more information, share photos and ask questions. 2. Online chat function – Thomas Cook became under fire from independent agents due to high call waiting times. Thomas Cook created the new live chat tool to allow agents to use as an alternative to calling. This facility is effectively the link between online and face to face interaction. 3. Integrate all existing IT structures – Thomas Cook integrated the whole retail network onto one IT system. Employees are able to log on in any store nationwide without any problems. It also means customers are able to pay balances, print off tickets and invoices in any Thomas Cook store. Page 9 – Legal Factors 1. Competition Law This stops businesses who compete in the same market from fixing prices, limiting the products that are on the market and dividing up customers. Thomas Cook must always make independent decisions on how to compete in the market place and should never disclose any sensitive commercial information to any competitor. If any competition laws are broken, this can result in large fines for Thomas Cook and the world famous brand could be seriously damaged. 2. Health and safety – Thomas Cook pro actively work to reduce the number of minor accidents. An enhanced safety management system enables retail stores to access test reports online, making compliance easier. There is also an employee awareness programme and e-learning packages to ensure every employee is made aware of any new changes and are kept up to date and compliant with the current legislation. 3. National minimum wage – Recent changes to the national minimum wage has resulted in Thomas Cook offering a nil pay award to its UK employees. Thomas Cook already pay above the minimum wage for most roles. The Group are also considering the withdrawal of staff concessions due to the governments damaging austerity. Page 10 – Environmental Factors 1. Increase of Green Travel – more effort is needed from Thomas Cook to minimise their impact on the environment. Thomas Cook has joined The Reduce my footprint initiative set up by ABTA. It offers advice and information on how the Group can reduce carbon emissions. There is also the opportunity to offset these carbon emissions through the Travel Foundation. Thomas Cook can choose to pay to offset their carbon footprint. 2. Waste management – production of waste management is a large cost factor for Thomas Cook. On all short and medium haul inbound flights paper, plastic and aluminium cans are recycled. The majority of retail stores recycle their unwanted brochures and other recyclable products. The Group uses Vale Recycling Group, who operate throughout the UK, to collect all the unwanted brochures and confidential waste. 3. Online brochures – Thomas Cook has cut its brochure print by almost a quarter. The project has been done to help Thomas Cook save money through brochure printing and distribution. This has also had a significant environmental benefit in reducing waste. Page 11 12 – Organisational Structure