IRAC Brief Essay

According to United States District Court District of Massachusetts Civil Action 11-10313-GAO (2013), Anderson, Silva, Johnson and Funches contracted through a limited liability company by the name of SLS to perform delivery services work on behalf of HDA (United States District Court District of Massachusetts, 2013). Plaintiffs Case Each driver was provided with their truck Trucks provided to the contractors bore Sears Logo Uniforms bore both Sears and HDA logos Each driver hired their helpers and paid their helpers directly Drivers worked full-time and solely for HDA (while under contract) (United States District Court District of Massachusetts, 2013) HDAs Argument Plaintiffs contracted through SLS and not directly with HDA as individuals; therefore, HDA should not be a litigant in this case Mass. Gen. Laws ch. 149,  § 148B is preempted by the Federal Aviation Administration Authorization Act, 49 U.S.C (See Case 1:11-cv-10313-GAO Document 99 Filed 12/30/13 Page 3 of 5) (United States District Court District of Massachusetts, 2013) IRAC Issue: The issues below are the reasons this case has been brought to court. The court must provide the answers to these reasons in order to begin the rule assessment portion of IRAC (1) Were the plaintiffs (Anderson, Silva, and Funches) misclassified as independent contractors by HAD? (2) Were deductions taken from plaintiff’s wages in violation of wage laws? Rules Below are the rules found in Mass. Gen. Laws ch. 149,  § 148B. These rules must be applied to the facts of the case to assess the fault or culpability of the litigants. Below is cited via United States District Court District of Massachusetts Civil Action 11-10313-GAO (2013). (1) The individual is free from control and direction in connection with the (2) Performance of the service, both under his contract for the performance of service and in fact; and the service is performed outside the usual course of the business of the employer; and (3) The individual is customarily engaged in an independently established trade, occupation; profession or business of the same nature as that involved in the service performed. (United States District Court District of Massachusetts, 2013) Application When looking at the mass general law 149 subsection 148B, we can apply the three stipulations of the law to the case against HDA violating this law. The plaintiffs in the case were acting solely for the purposes of HDA as a delivery service wearing both the seniors and HDA logos on uniforms provided to them. None of the drivers worked outside of the scope of work on subcontracts for any other provider other than HDA, and finally, each driver performed these duties under the direction of HDA’s vision. It is clear in this case that circumstances are such that every appearance and performance of duties was done in a way to appear that they were solely employees of HDA in that HDA has violated Mass General Law on salary and wages (United States District Court District of Massachusetts, 2013). When applying this to business setting the business entity hiring subcontractors must stipulate in a written contract as to whether the employee is to be treated as a subcontractor under a 1099 tax form or as a subcontract employee for the business. Under the assumptions made in mass general law 149 subsection 148B, subcontractors are deemed employees if they meet certain criteria within the law. This criteria is easily determined under general operating practices and business owners should be aware of these criteria before hiring subcontractors (United States District Court District of Massachusetts, 2013). Analysis/Conclusion Plaintiffs (Anderson, Silva, and Funches) were misclassified as independent contractors by HDA. It was found that deductions were taken from plaintiff’s wages in violation of wage laws. Thus, findings were established through determining that HDA violated the law in place (Mass General Law on Salary and Wages). For the foregoing reasons, the plaintiffs’ Motion for Partial Summary Judgment as to liability against HDA (dkt. no. 65) is GRANTED. It is SO ORDERED. Business Managerial Setting Application There are numerous torts to consider when reviewing Anderson v HDA: (1) Intentional Tort a civil matter resulting in an intentional act of damages. (2) Unintentional Tort civil matter unintentional acts that results in economic loss, property damage, or physical injuries. (3) Property Torts occur when one’s enjoyment of their private property is interfered with by either acts of trespass or illegal conversion of the private property. (4) Negligence a civil matter resulting damages due to the lack of care or duty that is owed. (5) Strict Liability Torts can be criminal or civil and culpability or finding of fault is not a factor, to name a few. The tort that is evident in the case of Anderson v HDA is an Unintentional Tort resulting in an act of economic loss. The wage deduction and mis-classification of employment status have led to the loss of wages and possible benefits to the plaintiffs and their helpers. The issues that arose in the Anderson v HDA civil lawsuit could have been avoided by utilizing an effective risk management process for contracts review and management. Co-employment issues arise in the third party relationships due to the unknown, so it is beneficial to know as much as possible about all relationships that are encompassed for the work at hand. Understanding the Torts liabilities that can arise in the areas of contract language and negotiations will ensure that liabilities are managed early in the relationship building process. An effective way to manage this risk is to identify the gaps that may exist with employment status classification, ensure that necessary tax forms are completed, monitor direct partnership and obtain direct partnership attestations regarding their direct  relationship with their contractors. The next step is to have an ongoing control mechanism in place to monitor regulations and update business checklist and standard operation procedures. Reference United States District Court District of Massachusetts. (2013). Civil Action 11-10313-GAO. Retrieved from United States District Court District of Massachusetts, website.

Dinner With Friends

Within the field of psychology there are branches that explore different types of human behaviour. Some of those branches turn their attention to hidden aspects of the human nature, like for example research into our linguistic faculties, other deal with modeling of various situations to better investigate our individual or group modes of action.But perhaps one of the fields of psychology that deals with the realm of human life which is most familiar to us in our everyday goings-on is the branch investigating interpersonal communication. Interpersonal communication can be most generally defined as our communication with another person or within a group of persons. However, this overall description hides the true complexity and variety of the forms that interpersonal communication can take.Indeed, to this aspect of our social life we can attribute such fundamental elements of out interaction with people as ability to initiate and maintain conversations or arguments, to listen, to spea k privately and publicly, to generate and interpret patterns of nonverbal communication, manifest our unconscious modes of communication, and any other skills that actually enable us to be active members of society. At this point, considering the proximity of the phenomenon of interpersonal communication to our everyday life, we may wonder what are the proper ways of study of forms of interpersonal communication?Of course, psychology as a strict science has its own standards and methods of investigation. But at the same time I think that we can find a lot of examples of interpersonal communication happening on a regular basis right before our eyes. To see this we may turn to the film â€Å"Dinner With Friends† (2001) directed by Norman Jewison, which provides a lot of interesting aspects relevant to the theory of interpersonal communication. Let us take a closer look and discuss such aspects.The film â€Å"Dinner With Friends† tells a story of two married couples †“ Gabe and Karen, and Beth and Tom – that have been close friends for 12 years, and were spending their time over dinners discussing their relationships, their children, and other matters and interests that friends can share. However, when unexpectedly for Gabe and Karen Beth declares that she and Tom had decided to separate, this event inflicts a profound change in the pattern of their relationships.As both couples undergo emotional turmoils it turns out that, ironically, their mutual love of cooking may be the only thing that remains between them, while their former friendship is gone. â€Å"Dinner with Friends† is mostly built upon conversations as the vehicle to unfold the story. The personages talk a lot about different things, from their love of food to their ideas about the meaning of life, and the director managed to make dialogues in the film very life-like, akin to those that we would expect from really good friends.In this way, touching upon the theme of t he complexity of human relations that is familiar and important to most of us, the film provides very subtle insights into the nuances of friendship, marriage as a very delicate union between people, and divorce as a force that can have profound impact on lives of people. Now, speaking about interpersonal communication we may immediately begin to find examples of it in the film.Being the direct and the most personal form of interaction, interpersonal communication helps people learn about each other in an intimate way. We can see this in the film, which depicts communication between two people, also called dyadic communication. Dyadic communication occurs in privacy between Gabe and Karen, and Beth and Tom, and also between Karen and Beth, and Tom and Gabe, when due to the break-up of their traditional relations tensions develop between these women and men.In this regard, it is interesting to point out that as Gabe and Karen perceived their friendship with Beth and Tom as a close on e, after learning about the alleged betrayal of Beth by Tom Karen is angry that she had been unaware of the brewing troubles in their marriage. Thus, the previous apparent intimacy of relations between the couples was not completely true, and it could hardly be such. As Karen bitterly says, one can spend the whole life with another person, and in the end it may turn out that the person you fully entrusted your fate to is an impostor.To this, Gabe thoughtfully responds: â€Å"But it can`t be as simple as that†. Indeed, in accordance with the developmental view of interpersonal communication, with time communicators get to know more details about each another, develop ability to partly predict their behavior, and create their own rules of communication. But in the case of the couples from the movie, it seems that their established rules of communication at some point began to lag behind the changing nature of relationships within couples themselves, as most notably was the case with Beth and Tom.At the same time, being influenced and disturbed by the divorce of friends Gabe and Karen also had to reevaluate their seemingly healthy marriage. This fact hints about another quality of interpersonal communication, which lies in its effect on formation of our self-concepts through confirmation and gradual transformation of our identities. In application to the characters from the film, this can be evidenced by the belief of Gabe and Karen that they knew their friends very well, while in reality this was not the case.And when tensions between couples develop, Beth reevaluates the nature of gifts that Karen, who considered Beth to be â€Å"a mess†, had presented to her. In the scene where Beth declares that she has a new lover and Karen advises her to slow down, Beth observes: â€Å". . . you love it when I'm a mess. Every Karen needs a Beth. † It is not wonder that such aggressive stance of the person who had been your close friend can surely influe nce our self-perception. We also may interpret the interrelations between the characters of the film as representative of the small group communication aspect of interpersonal communication.While it is somewhat difficult to define a small group, some researches propose to consider as small such a group in which each participant can immediately sense and remember the presence of other participants. This definition suits the situations of the personages of the film â€Å"Dinner With Friends† very well. Judging from this viewpoint, small group communication between the couples can be interpreted as a dynamical process of receiving inputs, processing the information, and outputting certain behavioral modes.Input factors are present even before a group forms, and in our case it is the mutual background of the two couples, as Beth and Tom were in the first place introduced to each other by Gabe and Karen; process factors are developments that emerge in the process of communication within group, as exemplified in the film by rapid change of the format of individual relations between the personages themselves, and, consequently, between the couples in the aftermath of the break-up between Beth and Tom; finally, output factors are end results of the communication, and for Gabe, Karen, Beth, and Tom the end results were different, but in all cases prominent.For Beth and Tom the divorce meant the transformation of their lives, and for Gabe and Karen the separation of their friends from their small group serves as an impetus to come to conscious conclusion that â€Å"practical matters outweigh abandon† when it comes to their own family chores. On ground of what we have discussed, we can see that in the end of the film all its personages are deeply affected by the changes in the disposition of their dyadic relations and relations within their small group. In this way, it becomes clear that interpersonal communication has a very important role for all of us be cause it can influence the most important aspects of our life, friendship and marriage among them.

Kimmel Financial Accounting Solutions Ch12

CHAPTER 12 Statement of Cash Flows Study Objectives 1. Indicate the usefulness of the statement of cash flows. 2. Distinguish among operating, investing, and financing activities. 3. Explain the impact of the product life cycle on a company’s cash flows. 4. Prepare a statement of cash flows using the indirect method. 5. Use the statement of cash flows to evaluate a company. *6. Prepare a statement of cash flows using the direct method. Summary of Questions by Study Objectives and Bloom’s Taxonomy |Item | |? 1. | |? 1. | |? 1. | |? 1. |? 1. | |? 1. |2 |C |? 4|6* |AP|? 7. | | | | |. | | | | | | | | | | | | |1A | |Distinguish among operating, investing, and financing | |Simple | |10–15 | | | |activities. | | | | | | | | | | | | |2A | |Determine cash flow effects of changes in equity accounts. | |Simple | |10–15 | | | | | | | | | |3A | |Prepare the operating activities section—indirect method. |Simple | |20–30 | | | | | | | | | |*4A | |Prepare t he operating activities section—direct method. | |Simple | |20–30 | | | | | | | | | |5A | |Prepare the operating activities section—indirect method. |Simple | |20–30 | | | | | | | | | |*6A | |Prepare the operating activities section—direct method. | |Simple | |20–30 | | | | | | | | | |7A | |Prepare a statement of cash flows—indirect method, and compute cash-based ratios. |Moderate | |40–50 | | | | | | | | | |*8A | |Prepare a statement of cash flows—direct method, and compute cash-based ratios. | |Moderate | |40–50 | | | | | | | | | |9A | |Prepare a statement of cash flows—indirect method. |Moderate | |40–50 | | | | | | | | | |*10A | |Prepare a statement of cash flows—direct method. | |Moderate | |40–50 | | | | | | | | | |11A | |Prepare a statement of cash flows—indirect method. | |Moderate | 40–50 | | | | | | | | | |12A | |Identify the impact of transactions on ratios. | | Moderate | |25–35 | | | | | | | | | |1B | |Distinguish among operating, investing, and financing | |Simple | |10–15 | | | |activities. | | | | | | | | | | | | |2B | |Determine cash flow effects of changes in plant asset | |Simple | |10–15 | | | |accounts. | | | | | | | | | | | | | |3B | |Prepare the operating activities section—indirect method. |Simple | |20–30 | | | | | | | | | |*4B | |Prepare the operating activities section—direct method. | |Simple | |20–30 | | | | | | | | | |5B | |Prepare the operating activities section—indirect method. |Simple | |20–30 | | | | | | | | | |*6B | |Prepare the operating activities section—direct method. | |Simple | |20–30 | | | | | | | | | |7B | |Prepare a statement of cash flows—indirect method, and compute cash-based ratios. |Moderate | |40–50 | | | | | | | | | ASSIGNMENT CHARACTERISTICS TABLE (Continued) |Problem | | | |Difficulty | |Time | |Number | |Des cription | |Level | |Allotted (min. | | | | | | | | | |*8B | |Prepare a statement of cash flows—direct method, and compute cash-based ratios. | |Moderate | |40–50 | | | | | | | | | |9B | |Prepare a statement of cash flows—indirect method. |Moderate | |40–50 | | | | | | | | | |*10B | |Prepare a statement of cash flows—direct method. | |Moderate | |40–50 | | | | | | | | | |11B | |Prepare a statement of cash flows—indirect method. | |Moderate | |40–50 | | | | | | | | |ANSWERS TO QUESTIONS ?1. (a)The statement of cash flows reports the cash receipts, cash payments, and net change in cash resulting from the operating, investing, and financing activities of a company during a period in a format that reconciles the beginning and ending cash balances. (b)Disagree. The statement of cash flows is required. It is the fourth basic financial statement. ?2. The statement of cash flows answers the following questions about cash: (a) Where di d the cash come from during the period? (b) What was the cash used for during the period? nd (c) What was the change in the cash balance during the period? ?3. The three activities are: Operating activities include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income. Investing activities include: (a) purchasing and disposing of investments and productive long-lived assets and (b) lending money and collecting loans. Financing activities include: (a) obtaining cash from issuing debt and repaying amounts borrowed and (b) obtaining cash from stockholders, repurchasing shares, and paying them dividends. ?4. a)Major sources of cash in a statement of cash flows include cash from operations; issuance of debt; collection of loans; issuance of capital stock; sale of investments; and the sale of property, plant, and equipment. (b)Major uses of cash include purchase of inventory, payment of cash dividends; redemption of debt; pu rchase of investments; making loans; redemption of capital stock; and the purchase of property, plant, and equipment. ?5. The statement of cash flows presents investing and financing activities so that even noncash transactions of an investing and financing nature are disclosed in the financial statements.If they affect financial conditions significantly, the FASB requires that they be disclosed in either a separate schedule at the bottom of the statement of cash flows or in a separate note or supplementary schedule to the financial statements. ?6. Examples of significant noncash activities are: (1) issuance of stock for assets, (2) conversion of bonds into common stock, (3) issuance of bonds or notes for assets, and (4) noncash exchanges of property, plant, and equipment. ?7. Comparative balance sheets, a current income statement, and certain transaction data all provide information necessary for preparation of the statement of cash flows.Comparative balance sheets indicate how ass ets, liabilities, and equities have changed during the period. A current income statement provides information about the amount of cash provided or used by operations. Certain transactions provide additional detailed information needed to determine how cash was provided or used during the period. ?8. (a)The phases of the corporate life cycle are the introductory phase, growth phase, maturity phase, and decline phase. (b)During the introductory phase, cash from operations and investing would be expected to be negative, and cash from financing would be positive.Questions Chapter 12 (Continued) During the growth phase, a company would be expected to show some small amounts of cash from operations while continuing to show negative cash from investing and positive cash from financing. During the maturity phase, cash from operations, investing, and financing would all be expected to be positive while in the decline phase, cash from operations and investing would continue to be positive wh ile cash from financing would be negative. ?9. Tootsie Roll has positive cash from operations that exceeds its net income.Cash from operations exceeded its investing needs and it retired shares of stock and paid dividends. Tootsie Roll appears to be in the middle to late maturity phase. 10. The advantage of the direct method is that it presents the major categories of cash receipts and cash payments in a format that is similar to the income statement and familiar to statement users. Its principal disadvantage is that the necessary data can be expensive and time-consuming to accumulate. The advantage of the indirect method is it is often considered easier o prepare, and it provides a reconciliation of net income to net cash provided by operating activities. It also tends to reveal less company information to competitors. Its primary disadvantage is the difficulty in understanding the adjustments that comprise the reconciliation. Both methods are acceptable but the FASB expressed a pr eference for the direct method. Yet, the indirect method is the overwhelming favorite of companies. 11. When total cash inflows exceed total cash outflows, the excess is identified as a â€Å"net increase in cash† near the bottom of the statement of cash flows. 12.The indirect method involves converting accrual net income to net cash provided by operating activities. This is done by starting with accrual net income and adjusting for items that do not affect cash. Examples of adjustments include depreciation and other noncash expenses, gains and losses on the sale of noncurrent assets, and changes in the balances of current asset and current liability accounts from one period to the next. 13. It is necessary to convert accrual-based net income to cash-basis income because the unadjusted net income includes items that do not provide or use cash.An example would be an increase in accounts receivable. If accounts receivable increased during the period, revenues reported on the ac crual basis would be higher than the actual cash revenues received. Thus, accrual-basis net income must be adjusted to reflect the net cash provided by operating activities. 14. A number of factors could have caused an increase in cash despite the net loss. These are (1) high cash revenues relative to low cash expenses; (2) sales of property, plant, and equipment; (3) sales of investments; (4) issuance of debt or capital stock, and (5) differences between cash and accrual accounting, e. . depreciation. 15. Depreciation expense. Gain or loss on sale of a noncurrent asset. Increase/decrease in accounts receivable. Increase/decrease in inventory. Increase/decrease in accounts payable. Questions Chapter 12 (Continued) 16. Under the indirect method, depreciation is added back to net income to reconcile net income to net cash provided by operating activities because depreciation is an expense but not a cash payment. 17.The statement of cash flows is useful because it provides information to the investors, creditors, and other users about: (1) the company’s ability to generate future cash flows, (2) the company’s ability to pay dividends and meet obligations, (3) the reasons for the difference between net income and net cash provided by operating activities, and (4) the cash and noncash financing and investing transactions during the period. 18. This transaction is reported in the note or schedule entitled â€Å"Noncash investing and financing activities† as follows: â€Å"Retirement of bonds payable through issuance of common stock, $1,700,000. 19. (a)The current ratio is an accrual-based ratio that measures liquidity while the current cash debt coverage ratio is a cash-based ratio that measures liquidity. (b)Solvency can be measured by the debt to total assets ratio (accrual-based) or the cash debt coverage ratio (cash-based). *20. Net cash provided by operating activities under the direct approach is the difference between cash revenues and c ash expenses. The direct approach adjusts the revenues and expenses directly to reflect the cash basis. This results in cash net income, which is equal to â€Å"net cash provided by operating activities. | | | | | |  + Decrease in accounts receivable | |*21. |(a) |Cash receipts from customers = Revenues from sales | | | | | | | | | |  Ã¢â‚¬â€œ Increase in accounts receivable | | | | | | | | | | | | |  + Increase in inventory | | |(b) |Purchases = Cost of goods sold | | | | | | | | | |  Ã¢â‚¬â€œ Decrease in inventory | | | | | | | | | | | | |  + Decrease in accounts payable | | | |Cash payments to suppliers = Purchases | | | | | | | | | |  Ã¢â‚¬â€œ Increase in accounts payable | | | | | | | | 22. Sales$2,000,000 Add: Decrease in accounts receivables 100,000 Cash receipts from customers$2,100,000 *23. Depreciation expense is not listed in the direct method operating activities section because it is not a cash flow item—it does not affect cash. SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 12-1 (a)Cash inflow from financing activity, $200,000. (b)Cash outflow from investing activity, $150,000. (c)Cash inflow from investing activity, $20,000. (d)Cash outflow from financing activity, $50,000.BRIEF EXERCISE 12-2 (a)Investing activity. (d)Operating activity. (b)Investing activity. (e)Financing activity. (c)Financing activity. (f)Financing activity. BRIEF EXERCISE 12-3 Cash flows from financing activities Proceeds from issuance of bonds payable$300,000) Payment of dividends(70,000) Net cash provided by financing activities$230,000) BRIEF EXERCISE 12-4 (a)Cash from operations would be lower than net income during the growth phase because inventory must be purchased for future projected sales.Since sales during the growth phase are projected to be increasing, inventory purchases must increase and inventory expensed on an accrual basis would be less than inventory purchased on a cash basis. Also, collections on accounts receivable would lag beh ind sales; thus, accrual sales would exceed cash collections during the period. (b)Cash from investing is often positive during the late maturity phase and the decline phase because the firm may sell off excess long-term assets that are no longer needed for productive purposes. BRIEF EXERCISE 12-5Net cash provided by operating activities is $2,680,000. Using the indirect approach, the solution is: Net income$2,500,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$110,000) Accounts receivable decrease? 350,000) Accounts payable decrease(280,000) 180,000 Net cash provided by operating activities$2,680,000 BRIEF EXERCISE 12-6 Cash flows from operating activities Net income$280,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$70,000Loss on sale of plant assets? 22,000 92,000 Net cash provided by operating activities$372,000 BRIEF EXERCISE 12-7 Net income$200,000 Adjustm ents to reconcile net income to net cash provided by operating activities Decrease in accounts receivable$80,000) Increase in prepaid expenses(28,000) Increase in inventories(40,000) 12,000 Net cash provided by operating activities$212,000 BRIEF EXERCISE 12-8 Original cost of equipment sold$22,000 Less: Accumulated depreciation 5,500 Book value of equipment sold? 16,500 Less: Loss on sale of equipment 3,500Cash flow from sale of equipment$13,000 BRIEF EXERCISE 12-9 (a)Free cash flow = $127,260,000 – $221,160,000 – $0 = ($93,900,000) (b)Current cash debt coverage ratio = $127,260,000 ? $243,668,000 = .52 times (c)Cash debt coverage ratio = $127,260,000 ? $928,464,500 = . 14 times BRIEF EXERCISE 12-10 (a)Free cash flow = $405,000 – $200,000 – $0 = $205,000 (b)Current cash debt coverage ratio = $405,000 ? $150,000 = 2. 7 times (c)Cash debt coverage ratio = $405,000 ? $225,000 = 1. 8 times BRIEF EXERCISE 12-11 Free cash flow = $123,100,000 – $20,800, 000 = $102,300,000 BRIEF EXERCISE 12-12Free cash flow is cash provided by operations less capital expenditures and cash dividends paid. For Payne Inc. this would be $364,000 ($734,000 – $280,000 – $90,000). Since it has positive free cash flow that far exceeds its dividend, an increase in the dividend might be possible. However, other factors should be considered. For example, it must have adequate retained earnings, and it should be convinced that a larger dividend can be sustained over future years. It should also use the free cash flow to expand its operations or pay down its debt. *BRIEF EXERCISE 12-13 | | | | | | + Decrease in accounts receivable | |Receipts from |= |Sales | | | | | |customers | |revenues | | | | | | | | | | | | – Increase in accounts receivable | | | | | | | | | $1,285,759,000 = $1,287,672,000 – $1,913,000 (Increase in accounts receivable) *BRIEF EXERCISE 12-14 | | | | | | + Decrease in income taxes payable | |Cash payment |= |Incom e Tax | | | | | |for income taxes | |Expense | | | | | | | | | | | | – Increase in income taxes payable | | | | | | | | | $125,000,000 = $370,000,000 – $245,000,000* *$522,000,000 – $277,000,000 = $245,000,000 (Increase in income taxes payable) *BRIEF EXERCISE 12-15 | | | | | | + Increase in prepaid expenses | | | | | | | | | |Cash |= |Operating | | | | – Decrease in prepaid expenses | |payments for | |expenses, | | | | | |operating | |excluding | | | | | |expenses | |depreciation | | | | | | | | | | | | | | | | | | | |and  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | + Decrease in accrued expenses payable | | | | | | | | | | | | | | | | – Increase in accrued expenses payable | | | | | | | | | $79,000 = $90,000 – $6,600 – $4,400 SOLUTIONS TO DO IT! REVIEW EXERCISES DO IT! 12-1 (1)Financing activity (2)Operating activity (3)Financing activity (4)Investing activity (5)Investing acti vity DO IT! 12-2 Cash flows from operating activities Net income$100,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense$6,000 Patent amortization expense2,000 Gain on sale of equipment(3,600) Decrease in accounts receivable6,000 Increase in accounts payable   3,200  Ã‚  Ã‚  Ã‚  13,600 Net cash provided by operating activities$113,600 DO IT! 12-3 (a) Free cash flow = $73,700 – $27,000 –$15,000 = $31,700 b) Cash provided by operating activities fails to take into account that a company a must invest in new plant assets just to maintain the current level of operations. Companies must also maintain dividends at current levels to satisfy investors. The measurement of free cash flow provides additional insight regarding a company’s cash-generating ability. SOLUTIONS TO EXERCISES EXERCISE 12-1 (a)Noncash investing and financing activities. (b)Financing activities. (c)Noncash investing and financing activities. (d)Financing activities. (e)Investing activities. (f)Operating activities. (g)Operating activities. EXERCISE 12-2 |(a) |Operating activity. | |(h) |Financing activity. |(b) |Noncash investing and | |(i) |Operating activity. | | |financing activity. | |(j) |Noncash investing and financing | |(c) |Investing activity. | | |activity. | |(d) |Financing activity. | |(k) |Investing activity. | |(e) |Operating activity. | |(l) |Operating activity. | |(f) |Noncash investing and financing activity. | |(m) |Operating activity (loss); investing | | |Operating activity. | | |activity (cash proceeds from sale). |(g) | | |(n) |Financing activity. | EXERCISE 12-3 |Point in Time | |Phase | | | | | |A | |Introductory phase | |B | |Decline phase | |C | |Maturity phase | |D | |Growth phase | During the introductory phase (point A), cash from operations and investing are expected to be negative while cash from financing would be positive.In the growth phase (point D), a company would continue to show negative cash from operations and investing and positive cash from financing. EXERCISE 12-3 (Continued) During the maturity phase (point C), cash from operations and net income would be approximately the same. Cash from operations would exceed investing needs. In the decline phase (point B), cash from operations would diminish while cash from financing would be negative. EXERCISE 12-4 JEREZ COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$190,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$35,000Loss on sale of equipment 5,000 Increase in accounts payable? 17,000 Decrease in accounts receivable? 15,000 Decrease in prepaid expenses 4,000 76,000 Net cash provided by operating activities$266,000 EXERCISE 12-5 KITSELTON INC. Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$153,000 Adjus tments to reconcile net income to net cash provided by operating activities Depreciation expense$34,000) Increase in accrued expenses payable? 10,000) Decrease in inventory? 4,000 Increase in prepaid expenses (5,000) Decrease in accounts payable(7,000) Increase in accounts receivable  (11,000) 25,000Net cash provided by operating activities$178,000 EXERCISE 12-6 FELIX CORPORATION Statement of Cash Flows—Indirect Method For the Year Ended December 31, 2010 Cash flows operating activities Net income$284,100 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$187,000 Increase in income tax payable4,700 Decrease in accounts payable     Ã‚  (3,700) Increase in accounts receivable(8,200) Increase in inventory   (11,000)   168,800 Net cash provided by operating activities452,900 Cash flows from investing activities Sale of land     Ã‚  35,000 Purchase of building  (129,000) Net cash used by investing activities(94,0 00)Cash flows from financing activities Issuance of bonds200,000 Payment of dividend   (12,000) Purchase of treasury stock     (32,000) Net cash provided by financing activities   156,000 Net increase in cash514,900 Cash at beginning of period  Ã‚  Ã‚  Ã‚  45,000 Cash at end of period$559,900 EXERCISE 12-7 TOVAR CORP Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$? 72,000) Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$28,000) Loss on sale of equipment 8,000) 36,000) Net cash provided by operating activities? 108,000) Cash flows from investing activitiesSale of equipment? 11,000* Purchase of equipment(70,000) Construction of equipment(53,000) Net cash used by investing activities(112,000) Cash flows from financing activities Payment of cash dividends? (19,000) *Cost of equipment sold$49,000) *Accumulated depreciation (30,000)) *Book value? 19,000) *Loss on sale of equipment? (8,000)) *Cash proceeds$11,000) EXERCISE 12-8 (a)MATSUI COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$ 93,000) Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$34,000) Decrease in inventory? 19,000)Increase in accounts receivable? (9,000) Decrease in accounts payable(8,000) 36,000) Net cash provided by operating activities? 129,000) Cash flows from investing activities Sale of land? 20,000) Purchase of equipment(60,000) Net cash used by investing activities? (40,000) Cash flows from financing activities Issuance of common stock? 42,000) Payment of cash dividends (35,000) Redemption of bonds (50,000) Net cash used by financing activities? (43,000) Net increase in cash 46,000) Cash at beginning of period 22,000) Cash at end of period$? 68,000) EXERCISE 12-8 (Continued) (b)1. Current cash debt coverage ratio: |Net cash provided |? Average current | |by operating activities | |liabilities | |$129,000 |? |[pic] |= |3. 0 times | |[Per Part (a)] | | | | | 2. Cash debt coverage ratio: |Net cash provided |? |Average total | |by operating activities | |liabilities | $129,000 ? [pic] = . 59 times *$47,000 + $200,000 **$39,000 + $150,000 EXERCISE 12-9 | | | |PepsiCo |Coca-Cola | |(a) |Liquidity | | | | | | |Current cash debt | |[pic] = . 75 times | |[pic] = . 64 times | | |coverage ratio | | | | | |(b) |Solvency | | | | | | |Cash debt coverage ratio | |[pic] = . 38 times | |[pic] = . 6 times | | | | | | | | | |Free cash flow | |$6,084 – $2,068 – $1,854 | |$5,957 – $1,407 – $2,911 | | | | |= $2,162 | |= $1,639 | PepsiCo’s liquidity is higher (better) than Coca-Cola’s. PepsiCo’s current cash debt coverage ratio is 17% higher than Coca-Cola’s. Coca-Cola’s solvency is slightly higher than PepsiCo’s since its cash debt coverage ratio is higher but its f ree cash flow smaller. EXERCISE 12-10 | | |Hoyt | |Rex | | | | |Corporation | |Corporation | |(a) |Liquidity | | | | | | |Current cash debt | |[pic] = 2. 0 times | |[pic] = 1. 0 times | | |coverage ratio | | | | | |(b) |Solvency | | | | | | |Cash debt | |[pic] = . 50 times | |[pic] = 0. 0 times | | |coverage ratio | | | | | | | | | | | | | |Free cash flow | |$100,000 – $40,000 – $5,000 | |$100,000 – $70,000 – $10,000 | | | | |= $55,000 | |= $20,000 | Hoyt’s liquidity and solvency ratios are higher (better) than Rex’s comparable ratios. In particular, Hoyt’s current cash debt coverage ratio is twice as high as Rex’s.This ratio indicates that Hoyt is substantially more liquid than Rex. Hoyt’s solvency, as measured by the cash debt coverage ratio and free cash flow, is also better than Rex’s. *EXERCISE 12-11 Revenues$192,000) Deduct: Increase in accounts receivable(70,000) Cash receipts from customers*$122,000 O perating expenses 83,000) Deduct: Increase in accounts payable(23,000) Cash payments for operating expenses** 60,000 Net cash provided by operating activities$? 62,000 |** |Accounts Receivable | | |Balance, Beginning of year    | | | |Revenues for the year 192,000   |  Cash receipts for year 122,000 | | |Balance, End of year ? 70,000   | | |** |Accounts Payable | | | |  Balance, Beginning of year 0 | | |Payments for the year ? 0,000   |  Operating expenses for year ? 83,000 | | | |  Balance, End of year ? 23,000 | *EXERCISE 12-12 (a)Cash payments to suppliers Cost of goods sold$5,349. 7million Add: Increase in inventory 4. 7 Cost of purchases$5,354. 4million Deduct: Increase in accounts payable(156. 1) Cash payments to suppliers$5,198. 3million (b)Cash payments for operating expenses Operating expenses exclusive of depreciation ($11,791. 6 – $1,249. 9)$10,541. 7millionDeduct: Decrease in prepaid expenses$(204. 5) Increase in accrued expenses payabl e  (37. 0) (241. 5) Cash payments for operating expenses$10,300. 2million *EXERCISE 12-13 Cash flows from operating activities Cash receipts from Customers$240,000* Dividend revenue 18,000* ?258,000* Less cash payments: To suppliers for merchandise$105,000 For salaries and wages? 53,000 For operating expenses? 28,000 For income taxes? 12,000 For interest     Ã‚  10,000? 208,000* Net cash provided by operating activities$? 50,000* *$48,000 + $192,000 *EXERCISE 12-14 MOSQUITO HOLLOW CORP. Statement of Cash Flows—Direct Method For the Year Ended December 31, 2010Cash flows form operating activities Cash receipts from customers$566,100 Less: Cash payments: For goods and services$279,100 For income taxes93,000 For operating expenses77,000 For interest  Ã‚  Ã‚  Ã‚  22,400   471,500 Net cash provided by operating activities94,600 Cash flows form investing activities Sale of building202,400 Purchase of equipment  (113,200) Net cash provided by investing activities89,200 Cash flows from financing activities Issuance of common stock355,000 Payment of cash dividend (21,800) Purchase treasury stock(57,300) Cash paid to redeem bonds at maturity  (200,000) Net cash provided by financing activities  Ã‚  Ã‚   75,900 Net increase in cash259,700Cash at beginning of period  Ã‚  Ã‚  Ã‚  Ã‚  11,000 Cash at end of period$270,700 *EXERCISE 12-15 Cash payments for rentals Rent expense$ 30,000* Add: Increase in prepaid rent? ?3,100* Cash payments for rent$ 33,100* Cash payments for salaries Salaries expense$ 54,000* Add: Decrease in salaries payable? ?2,000* Cash payments for salaries$ 56,000* Cash receipts from customers Revenue from sales$160,000* Add: Decrease in accounts receivable 9,000* Cash receipts from customers$169,000* SOLUTIONS TO PROBLEMS |PROBLEM 12-1A | | | | |Cash Inflow, Outflow, or No Effect? | | | | | | |Transaction |Where Reported | | |(a) |Recorded depreciation |O |No cash flow effect | | |expense on the plant assets. | | | |(b) |Re corded and paid interest expense. |O |Cash outflow | |(c) |Recorded cash proceeds from a sale of plant assets. |I |Cash inflow | |(d) |Acquired land by issuing |NC |No cash flow effect | | |common stock. | | |(e) |Paid a cash dividend |F |Cash outflow | | |to preferred stockholders. | | | |(f) |Distributed a stock dividend |NC |No cash flow effect | | |to common stockholders. | | | |(g) |Recorded cash sales. |O |Cash inflow | |(h) |Recorded sales on account. O |No cash flow effect | |(i) |Purchased inventory for cash. |O |Cash outflow | |(j) |Purchased inventory on |O |No cash flow effect | | |account. | | | |PROBLEM 12-2A | (a)Net income can be determined by analyzing the retained earnings account. Retained earnings beginning of year$270,000 Add: Net income (plug) 60,500* 330,500 Less: Cash dividends20,000 Stock dividends 10,500 Retained earnings, end of year$300,000 ($300,000 + $10,500 + $20,000 – $270,000) (b)Cash inflow from the issue of stock was $14,500 ($165,000 à ¢â‚¬â€œ $140,000 – $10,500). Common Stock | |140,000 | | | |10,500 |Stock Dividend | | |14,500 |Shares Issued for Cash | | |165,000 | | Cash outflow for dividends was $20,000. The stock dividend does not use cash. c)Both of the above activities (issue of common stock and payment of dividends) would be classified as financing activities on the statement of cash flows. |PROBLEM 12-3A | GRIDER COMPANY Partial Statement of Cash Flows For the Year Ended November 30, 2010 Cash flows from operating activities Net income$1,650,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$ 80,000 Decrease in inventory500,000 Decrease in accrued expenses payable  (100,000) Increase in prepaid expenses(150,000) Increase in accounts receivable(300,000) Decrease in accounts payable  (350,000)  Ã‚   (320,000) Net cash provided by operating activities$1,330,000 |*PROBLEM 12-4A | GRIDER COMPANYPartial Statement of Cash Flows For the Year End ed November 30, 2010 Cash flows from operating activities Cash receipts from customers$7,400,000(1) Less cash payments: To suppliers$4,750,000(2) For operating expenses? 1,320,000(3)? 6,070,000 Net cash provided by operating activities$1,330,000 Computations: (1)Cash receipts from customers Sales$7,700,000 Deduct: Increase in accounts receivable (300,000) Cash receipts from customers$7,400,000 (2)Cash payments to suppliers Cost of goods sold$4,900,000 Deduct: Decrease in inventories (500,000) Cost of purchases? 4,400,000 Add: Decrease in accounts payable 350,000 Cash payments to suppliers$4,750,000 3)Cash payments for operating expenses Operating expenses, exclusive of depreciation$1,070,000* Add: Increase in prepaid expenses$150,000 Decrease in accrued expenses payable100,000 250,000 Cash payments for operating expenses$1,320,000 *$450,000 + ($700,000 – $80,000) |PROBLEM 12-5A | JANTZEN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash fl ows from operating activities Net income$230,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$70,000 Loss on sale of equipment16,000 Increase in accounts payable13,000Increase in income taxes payable 6,000 Increase in accounts receivable  (10,000) 95,000 Net cash provided by operating activities$325,000 |*PROBLEM 12-6A | JANTZEN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Cash receipts from customers$960,000(1) Less cash payments: For operating expenses$601,000(2) For income taxes 34,000(3)? 635,000 Net cash provided by operating activities$325,000 (1)Computation of cash receipts from customers Revenues$970,000 Deduct: Increase in accounts receivable ($70,000 – $60,000)? (10,000) Cash receipts from customers$960,000 2)Computation of cash payments for operating expenses Operating expenses per income statement$614,000 Deduct: Increase in accounts payable ($41,000 – $28,000)  Ã‚  Ã‚  (13,000) Cash payments for operating expenses$601,000 (3)Computation of cash payments for income taxes Income tax expense per income statement$ 40,000 Deduct: Increase in income taxes payable ($13,000 – $7,000)  Ã‚  Ã‚  Ã‚  Ã‚  (6,000) Cash payments for income taxes$ 34,000 |PROBLEM 12-7A | (a)TRAHAN COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$32,000 Adjustments to reconcile net income o net cash provided by operating activities Depreciation expense$17,500* Increase in accounts payable? 9,000 Decrease in income taxes payable? (1,000) Increase in merchandise inventory(7,000) Increase in accounts receivable  (19,000)? (500) Net cash provided by operating activities31,500 Cash flows from investing activities Sale of equipment8,500 Cash flows from financing activities Issuance of common stock4,000 Redemption of bonds (6,000) Payment of dividends  (20,000 ) Net cash used by financing activities  (22,000) Net increase in cash18,000 Cash at beginning of period  Ã‚  20,000 Cash at end of period$38,000 *$32,000 – ($24,000 – $9,500(A)) = $17,500 A)$18,000 (cost of equipment) – $8,500 (book value) = $9,500 (accumulated depreciation for equipment sold) PROBLEM 12-7A (Continued) |(b) 1. |$31,500 |? |[pic] = 1. 17 times | | |[Per Part (a)] | | | *$15,000 + $8,000 **$24,000 + $7,000 2. $31,500 ? [pic] = . 55 times *$15,000 + $8,000 + $33,000 **$24,000 + $7,000 + $27,000 3. $31,500 – $0 – $20,000 = $11,500 |*PROBLEM 12-8A | (a)TRAHAN COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activitiesCash receipts from customers$223,000(1) Less cash payments: To suppliers$173,000(2) For operating expenses 6,500(3) For interest 3,000 For income taxes 9,000(4)? 191,500 Net cash provided by operating activities 31,500 Cash flows from investing activities Sale of equipmen t8,500 Cash flows from financing activities Issuance of common stock 4,000 Redemption of bonds (6,000) Payment of dividends? (20,000) Net cash used by financing activities? (22,000) Net decrease in cash 18,000 Cash at beginning of period 20,000 Cash at end of period$? 38,000 Computations: (1)Cash receipts from customers Sales$242,000 Deduct: Increase in accounts receivable  Ã‚  Ã‚  (19,000)Cash receipts from customers$223,000 *PROBLEM 12-8A (Continued) (2)Cash payments to suppliers Cost of goods sold$175,000 Add: Increase in inventory 7,000 Cost of purchases? 182,000 Deduct: Increase in accounts payable? ?9,000 Cash payments to suppliers$173,000 (3)Cash payments for operating expenses Operating expenses$24,000 Deduct: Depreciation $32,000 – ($24,000 – $9,500*)  Ã‚  17,500 Cash payments for operating expenses$ 6,500 *$18,000 – $8,500 = $9,500 (4)Cash payments for income taxes Income tax expense$8,000 Add: Decrease in income taxes payable 1,000 Cash payments for income taxes$9,000 |(b) 1. |$31,500 |? |[pic] = 1. 7 times | | |[Per Part (a)] | | | **$15,000 + $8,000 ***$24,000 + $7,000 2. $31,500 ? [pic] = . 55 times *$15,000 + $8,000 + $33,000 **$24,000 + $7,000 + $27,000 3. $31,500 – $0 – $20,000 = $11,500 |PROBLEM 12-9A | CIPRA INC. Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$158,900 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$46,500Increase in accounts payable 34,700 Loss on sale of plant assets7,500 Decrease in accrued expenses payable (500) Increase in prepaid expenses? (2,400) Increase in inventory? (9,650) Increase in accounts receivable  (54,800)? 21,350 Net cash provided by operating activities? 180,250 Cash flows from investing activities Sale of plant assets1,500 Purchase of investments (24,000) Purchase of plant assets (100,000) Net cash used by investing activities(122,500) Cash flo ws from financing activities Sale of common stock45,000 Payment of cash dividends (30,350) Redemption of bonds (40,000) Net cash used by financing activities (25,350)Net increase in cash 32,400 Cash at beginning of period 48,400 Cash at end of period$? 80,800 |*PROBLEM 12-10A | CIPRA INC. Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Cash receipts from customers$337,980(1) Less cash payments: To suppliers$110,410(2) For income taxes 27,280 For operating expenses 15,310(3) For interest 4,730? 157,730 Net cash provided by operating activities? 180,250 Cash flows from investing activities Sale of plant assets 1,500 Purchase of investments? (24,000) Purchase of plant assets (100,000) Net cash used by investing ? activities(122,500) Cash flows from financing activities Sale of common stock 45,000 Payment of cash dividends? (30,350) Redemption of bonds? (40,000) Net cash used by financing activities (25,350) Net increase in cash 32,40 0 Cash at beginning of period 48,400 Cash at end of period$? 80,800 Computations: (1)Cash receipts from customers Sales$392,780 Deduct: Increase in accounts receivable  Ã‚  Ã‚  (54,800) Cash receipts from customers$337,980 *PROBLEM 12-10A (Continued) (2)Cash payments to suppliers Cost of goods sold$135,460 Add: Increase in inventory 9,650 Cost of purchases? 145,110 Deduct: Increase in accounts payable? (34,700)Cash payments to suppliers$110,410 (3)Cash payments for operating expenses Operating expenses exclusive of depreciation$12,410 Add: Increase in prepaid expenses$2,400 Decrease in accrued expenses payable 500 2,900 Cash payment for operating expenses$15,310 |PROBLEM 12-11A | MERCADO COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income$ 37,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$42,000 Decrease in accounts receivable? 12,000 Decrease in prepaid ex penses 5,720 Increase in accounts payable? ,730 Loss on sale of equipment2,000 Increase in inventory  Ã‚   (9,450)? 57,000 Net cash provided by operating activities? 94,000 Cash flows from investing activities Sale of land? 25,000 Sale of equipment? 8,000 Purchase of equipment(95,000) Net cash used by investing activities? (62,000) Cash flows from financing activities Payment of cash dividends  (12,000) Net cash used by financing activities  (12,000) Net increase in cash20,000 Cash at beginning of period? 45,000 Cash at end of period$65,000 Noncash investing and financing activities Conversion of bonds by issuance of common stock$40,000 |PROBLEM 12-12A | | | |Current Cash Debt Coverage | | | | | |Ratio |Cash Debt Coverage Ratio | | | |Free Cash Flow ($125,000) |(0. 5 times) |(0. 3 times) | | | | | | | | |Transaction | | | | |(a) |Recorded credit sales $2,500. |NE |NE |NE | |(b) |Collected $1,500 owing from customers. I |I |I | |(c) |Paid amount owing |D |D |D | | |to supp liers, $2,750. | | | | |(d) |Recorded sales returns of $500 and credited the |NE |NE |NE | | |customer’s account. | | | | |(e) |Purchased new equipment $5,000; signed a long-term |D* |NE |D | | |note payable for the cost of the equipment. | | | |(f) |Purchased a patent and paid $15,000 cash for the |D |NE |NE | | |asset. | | | | *Note to Instructor: If only cash capital expenditures are deducted, this answer would be NE. |BYP 12-1 FINANCIAL REPORTING PROBLEM | (a)Net cash provided by operating activities: 2007 $90,064 2006 $55,656Some causes of the significant changes in net cash provided by operating activities during 2007 were the decrease in the accounts receivable, a decrease in inventories, and a decrease in income taxes payable and deferred. (b)The increase in cash and cash equivalents for the year ended December 31, 2007 was $1,877,000. (c)Tootsie Roll uses the indirect method of computing and presenting the net cash provided by operating activities. (d)According to t he statement of cash flows, accounts receivable decreased $2,591,000 in 2007. Inventories decreased $6,506,000 in 2007. Accounts payable (and accrued liabilities) decreased $3,234,000 in 2007. (e)The net cash used by investing activities in 2007 was $43,345,000. (f)The supplemental disclosure of cash flow information disclosed interest paid of $537,000 and income taxes paid of $11,343,000 in 2007. BYP 12-2 COMPARATIVE ANALYSIS PROBLEM | |(a) | | | |Hershey | |Tootsie Roll | | | | | | | | | | |1. |Current cash | |[pic] | |[pic] | | | |debt coverage | |= . 51 times | |= 1. 0 times | | | |ratio | | | | | | | | | | | | | | |2. |Cash debt | |[pic] | |[pic]= . 54 times | | | |coverage ratio | |= . 22 times | | | **$57,972 + $116,523 **$62,211 + $98,747 (b)Tootsie Roll’s current cash debt coverage ratio provides a ratio of $1. 50 of cash from operations for every dollar of current debt.It is a better representation of liquidity on an average day than the current ratio. Tootsie Ro ll’s higher ratio (1. 50 vs. .51) indicates Tootsie Roll was significantly more liquid in 2007 than Hershey but both measures are acceptable. The cash debt coverage ratio shows a company’s ability to repay its liabilities from cash generated from operating activities without having to liquidate the assets employed in its operations. Since Tootsie Roll’s cash debt coverage ratio was more than twice as large (. 54 vs. .22) as Hershey’s, Tootsie Roll’s ability to repay liabilities with cash from operations was significantly greater than Hershey’s in 2007. BYP 12-3 RESEARCH CASE | (a)The article suggests that most people aren’t concerned about Sears’s liquidity. Instead, the concern is that the company won’t have adequate cash to implement the changes it needs to make a return to profitability. Also, some investors were concerned that a cash shortage will reduce Sears’s ability to carry out the treasury stock buyback program that it had previously announced. (b) At the time of the article, Sears had not reported its cash flow numbers. It had, however, reported an estimate that by the end of the quarter the company would have $1 billion in cash on hand. This was lower that analysts had expected.Based upon estimates of amounts that the company had spent on treasury stock, debt repayment, and capital expenditures, analysts determined that it was likely that, to arrive at $1 billion in cash on hand, the company’s cash flow must have declined. (c)Individuals who tried to defend Sears said that they thought it was inappropriate to make such negative statements about the company based on estimates. They suggested it would be better to wait until the company reports its actual cash flow numbers before evaluating the company. (d)The article suggests that, if, in fact, Sears’s cash flow is declining, it is a bad time of year for that to be happening. Normally the fourth quarter would be a p eriod when cash flows would be strong, because of the holiday shopping season.In contrast, Sears frequently experiences negative cash from operations during the first three quarters of the year. |BYP 12-4 INTERPRETING FINANCIAL STATEMENTS | (a)Current ratio—2001:$1,207. 9? $ 921. 4= 1. 31 —2004:$2,539. 4? $1,620. 4= 1. 57 Current cash debt ?coverage ratio—2001:($119. 8)? $ 948. 2= (. 13) times —2004: $566. 6? $1,436. 6= . 39 times Both Amazon’s current ratio and its current cash debt coverage ratio improved dramatically from 2001 to 2004. Amazon’s current ratio increased by 20% (from 1. 31 to 1. 57) during the 3-year period.In addition Amazon’s current cash debt coverage ratio improved by $. 52 per dollar of current liabilities (from a negative $. 13 per dollar in 2001 to a positive $. 39 per dollar in 2004). Amazon’s liquidity improved greatly from 2001 to 2004. (b)Cash debt ?coverage ratio—2001:($119. 8)? $3,090. 0= ( . 04) times —2004: $566. 6? $4,773. 4= . 12 times Debt to total ?assets ratio—2001:$3,077. 5? $1,637. 5= 1. 88 —2004:$5,096. 1? $3,248. 5= 1. 57 Amazon’s solvency also improved significantly from 2001 to 2004. Its cash debt coverage ratio increased by $. 16 per dollar of total liabilities during the 3-year period. Amazon’s debt to total assets ratio also improved (decreased) by 16% from 2001 to 2004. c)Free cash flow—2001:($119. 8)–$50. 3 – $0= ($170. 1) —2004: $566. 6–$89. 1 – $0= $477. 5 Amazon’s free cash flow increased by almost $650 million from 2001 to 2004. The increase was caused by Amazon finally generating a profit in 2004. If Amazon is able to continue operating at a profit and producing a large free cash flow, it should be able to finance an expansion of its operations. BYP 12-4 (Continued) (d)While these measures tell us a lot about Amazon. com, they don’t tell us whether the stoc k price is reasonable. Amazon. com’s high stock price is a reflection of a belief by investors that Amazon. com will continue to grow incredibly fast.If this growth falters, its stock price will fall rather quickly. Also, Amazon. com’s heavy reliance on debt financing compounds the risk of investing in its stock because it may have a difficult time paying its debts if its growth does not continue. |BYP 12-5 FINANCIAL ANALYSIS ON THE WEB | Answers will vary depending on the company chosen by the student. |BYP 12-6 DECISION MAKING ACROSS THE ORGANIZATION | (a)DEVITO COMPANY Statement of Cash Flows For the Year Ended January 31, 2010Cash flows from operating activities Net loss$(35,000)* Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense$? 55,000 Gain from sale of investment? ?(5,000)50,000 Net cash provided by operating activities15,000 Cash flows from investing activities Sale of investment 80,000 Purchase of inves tment ? (75,000) Purchase of fixtures and equipment  (320,000) Net cash used by investing activities(315,000)* Cash flows from financing activities Sale of capital stock? 405,000 Purchase of treasury stock? (10,000) Net cash provided by financing activities395,000 Net increase in cash 95,000 Cash at beginning of period? 40,000 Cash at end of period$235,000 Noncash investing and financing activities Issuance of note for truck$20,000 BYP 12-6 (Continued) *Computation of net income (loss) Sales of merchandise$385,000 Interest revenue 6,000 Gain on sale of investm

CULTURAL EVENT PAPER (MID-OHIO COMIC CON) Essay

CULTURAL EVENT PAPER (MID-OHIO COMIC CON) - Essay Example The main purpose of attending the Convention according to personal opinion was to understand the comic book scene in the United States of America. As I am a foreign student, it was imperative for me to take the initiative and go to a Comic Convention in the U.S because reading comic books has been my hobby since I was a young boy. I wanted to comprehend the kind of characters that the Americans speak of proudly and the comic books that they release to the rest of the world on such popular demand. Furthermore, I wanted to take time out and interact with American people interested in comic books and was also able to make a few contacts and friends at the Convention. This has really provided me with the opportunity to meet new people and share my ideas and thoughts regarding comic books. I am also interested in writing and imagining comic stories and thus wanted to share my ideologies with people because someday I might want to write my own graphic novel and meeting people at such a con vention is the best way of broadening one’s horizons. ... The convention played host to some very renowned celebrities, and they came together to talk to people and share their ideas and thoughts with others as well which in my opinion was a very interesting experience. This event was created by Wizard World.com, a publishing group that has given rise to a number of such conventions all around the United States of America. Wizard World was founded by Gareb Shamus in 1991 and it grew from being just a magazine to a publishing company with a number of interests, the main one today being holding conventions. In America, this entertainment group is very widely known for its convention organizations and boasts of very high attendance of people coming to visit the Convention every time it is held in different cities all around. It has also won a number of awards for conducting some of the best conventions of all time. The event was extremely light and exciting with a number of people coming together to view different comic books, talk to each oth er, listen to the celebrities and interact with them as well as find out information regarding the new comic books on the scene. There was a great amount of energy in the air and the atmosphere was extremely lively as people of all different age groups came together to talk about and meet the parallel world of comic books. As a person completely new to the entire experience of attending the setup I should have felt like an outsider. However, I felt like an insider because of the love for comic books that I shared with everyone at the event. Everyone had the same thing in common and that brought people together. I was able to interact very freely

Final Project Essay Example | Topics and Well Written Essays - 1500 words - 2

Final Project - Essay Example In order to transform vision into opportunity, it is necessary that that vision is first transformed to the functional level because it would otherwise be difficult to gather and motivate employees if something is forced onto them from the top. (Kotelnikov). Thus in order to convert the vision into opportunity, first thing which must be taken into account is the fact that whether the proposed change would be acceptable down the line and if not then what top management of the organization have to make it acceptable within the organization. The administrator’s decision to turn vision into opportunity is what leaders are known for. A good manager and a good leader always create opportunities. Since the competitive environment where low cost service providers are already there with good market penetration, it takes a lot of courage to turn the competitive threats into the opportunities for the organization. For a flexible organization, the strength of the organization is in the fact that how swiftly and quickly it can convert its vision into opportunities and opportunities into real time business actions to derive value for the organization. â€Å"The structure of an organization is the manner in which various sub-units are arranged and inter-related.† (FAO) Therefore considering the above action of the administrator to covert the vision into opportunity is going to have a strong impact on the organizational structure. There are various organizational structures ranging from line structures to more complex organic structures of the organizations. From the given information, it seems that the organization has a functional structure and it is going to have most impact with the decision of the administrator to go for the provider based services. Since this kind of organization has to rely on the technical skills of its various staff therefore a functional structure would be most affected. In order to assess the

Position paper Essay Example | Topics and Well Written Essays - 750 words - 2

Position paper - Essay Example s the male body† is also talking about these learned assumptions of individuals when they perceive certain images specifically when they look at advertisements. However, Border argues that trends are changing but she also affirms that this is how people perceive certain aspects in society with false assumptions without relating it to the true meaning of those images. In short, it is seen that every image has emotional effects on an individual as well on the society and Berger and Border are providing strong arguments on this assertion so that people are made aware of looking the images in a new light in order to see the true meaning behind the content. John Berger in his book, â€Å"Ways of seeing† argues that the meaning of images and pictures, which are reproduced, have become smeared and distorted and the technology has affected an individual’s mind in perceiving images. According to him, people are adapting to the changes subconsciously without looking at its originality. He further argues that a distorted perception of a particular image loses its meaning (Berger). Berger states â€Å"The way we see things is affected by what we know or what we believe in† (Berger p.141) which means people while looking at any image presume what it is depicting without further knowledge of its existence. Berger describes in his book that there are many paintings present around old cathedral. These paintings were hard to reproduce. Most of the people perceive them as an addition of colors around that area and fail to acknowledge its presence, which indicated that those paintings were actually part of the room. In the same way, he mentions that when people go to Louve to look at the painting of Mona Lisa, they only perceive it as looking at the painting by Leonardo da Vinci and do not know its significance and worth when the painter designed it. Likewise, when people go to the National Gallery in London to look at the virgin of the Rocks another painting of Leonardo da

Ibarra & Hansens Are you a Collaborative Leader Article

Ibarra & Hansens Are you a Collaborative Leader - Article Example The employees could also use the video broadcast and express their views. Beinoff kicked off the debate by grabbing an iPad and commenting on the Chatter, soon employees from their offices started commenting back. The debate lasted for weeks thus allowing Beinoff the opportunity to align the employees to the mission and create an open culture for salesforce.com. Command and control policies hinder collaboration in many organizations. A survey of â€Å"best performing CEOs in the world† done early 2010 revealed that collaborative leaders require strong skills such as acting as connector, ensuring diversity of talent, guiding teams and modeling collaboration at the top (Ibarra and Hanse 3). According to Malcolm Gladwell, collaborative leaders play a global connector role by linking the employees, the ideas and resources. David Kenny, President of Akamai Technologies is one of such leaders who spend time travelling in order to meet with business partners, customers and employees around the world. Collaborative leaders can attain insightful ideas such as macroeconomic issues and impact of climate change through collaborating with business partners. Collaborative leaders will make global connections in order to spot business opportunities and model the top managers on the business expectations. Collaboratibve leaders will attend to conferences outside their professional specialty and meet people outside the organization like external partners (Ibarra and Hanse 4). According to previous research, diverse teams will produce better results. Collaborative leaders will engage diversity in their teams in order to enhance creativity. Such teams should consider the diversity in terms of nationality, age and time dedicated to visiting emerging markets. For instance, nonnative English speakers may be disadvantaged in Multinational companies in emerging markets. Danone of France has

Fair Value Essay Example | Topics and Well Written Essays - 1250 words

Fair Value - Essay Example Thus, the AASB framework provides the general guidelines, establishing the way a company should measure all its assets. The aim of the act is to avoid inconsistency of the various methods of measuring fair value, providing a more rigorous framework, for all companies. Thus, the market value of any current asset will be measured by the replacement cost of the services or benefits currently embodied in the asset. One very disputed and problematic point concerned the market value of different assets that weren't commonly traded on the open market, such as buildings or other possessions of this nature. The conclusion reached by the AASB researchers and specialists was that the best way to measure the market value of such assets would be by comparing the selling-prices of other buildings in the area. Although controversial at first, this rule was, seemingly, the best one to follow in establishing the potential selling price of any asset held by a company. The concepts of "current assets" and "current liabilities" are also defined by AASB, as being "an asset that is expected to mature or be realized within a 12 month period", while current liabilities are those liabilities that are "expected to be paid, settled or extinguished within a period equal to or less than 12 months from the reporting date". FASB and IASB board members met on 12th of May, 2006 to discuss and establish the revenue recognition methods that should be used. In doing so, there were some factors that had to be acknowledged as important to the recognition of any revenue. First on the list was customer acceptance, which lead, after thorough examination and in-depth discussions, to the conclusion that: "Revenue shall be recognized if the customer must accept performance to date. That is, the contract's legal remedy for breach is, or is like, specific performance or in the event of customer cancellation, the customer is obligated to pay damages reflecting performance to date." (see http://www.fasb.org/board_meeting_minutes/04-27-06_rr.pdf) "We're hoping that there will be more consistency in the way companies approach fair value measurement, and less diversity in practice from the user's perspective. Users should have more confidence that when they look at those disclosures about what is being shown at fair value and the methods used, they'll have better information to use to assess the quality of earnings and how they view the reliability of the estimates being made.", stated FASB board member, Leslie F. Seidman (Glenn Cheney, "FASB standard clarifies fair value measurement", 16 Oct, 2006,). From this point of view, the AASB framework provides rigorous guidelines, avoiding misunderstanding and inconsistency. Still, as all regulations were changed and revised, many companies complain that they have a difficult time in applying them, and that many criteria provided by this statement have been so frequently changed and discussed that the danger of misinterpreting or failing to respect the newest changes is real and impossible to ignore. Given the fact that the market value is mainly based

Publick Speaking and Me Essay Example | Topics and Well Written Essays - 500 words

Publick Speaking and Me - Essay Example well thought-out, purposeful way in order to inform, influence, or entertain the audience and it requires the effective use of language, voice, volume, eye contact, gestures, conversational style, and visual aids. As public speaking has become a very important activity in the contemporary social contexts, the formal training of the various techniques of public speaking is essential. One can be effectively trained in the use of voice, volume, gestures, posture, conversational style, nonverbal communication, projection, eye contact etc. The technical training in establishing the tone, vocal flexibility, the formation of words, making the point, indicating values and relations, expressing feelings, showing the picture, and expression by action etc can help one in effectively making a public speaking and the training of these technical elements has influenced my skill in public speaking. The utility of gestures, postures, and nonverbal communication is fundamental in expression by action and proper training is required. Similarly, presenting the theme of the speech effectively to the audience is one of the basic elements determining the success of public speaking. For this, the speaker requires proper preplanning and research about the topic to be dealt with. Organization of the content in a logical order is also important to convey the message effectively to the audience. Therefore, the speaker should be well prepared with his topic and be confident to present it in a logical manner. One of the basic intension of every speech is persuasion and the speaker should be able to convey his ideas through the effective use of language, vocal flexibility with good tone and volume, nonverbal communication, posture, gesture, conversational style etc. An audience-centered attitude is also essential for the speaker to be effective and the feelings of the audience should be given great priority. The speaker’s eye-contact with the audience is fundamental to establish

Internet is good for study Essay Example | Topics and Well Written Essays - 3000 words - 1

Internet is good for study - Essay Example Statistics has revealed that global use of the internet as of 2012 have profoundly increased and where China ranked as the number one country with the highest number of Internet users and followed by the United States (Top 20 Countries with the Highest Number of Internet Users). The popularity of the Internet could be attributed to different reasons, depending on the profile of the users. It has always been acknowledged that members of the current generation, especially adolescents and young adults use the Internet for diverse purposes other than fact finding or information gathering. The popularity of social networking sites has significantly increased Internet usage through sharing of experiences, photos, events, and recent updates on the lives of friends, relatives, and acquaintances. From the study conducted by the Lebo, the Internet was found to be used for the following general purposes: fact finding activities, visiting social networking sites, playing games, watching videos, paying bills, and even purchasing products online (Lebo). Fact finding activities could already be classified as a general category for studying. In this regard, the current discourse contends that the Internet is actually a good medium for enhancing academic performance or in studying for the reasons that information is easily accessible; more people from all walks of life have immediate access to this technological medium; and studying through the Internet could be undertaken across time and geographic locations. A discussion of the reasons why the Internet is deemed good for studying would initially be provided. To present a balanced discourse, the views of people who contend that the Internet actually poses threats to learning and academic development would also be expounded. Thus, the next section would present a discussion on why the Internet could be detrimental to academic endeavors. The final section would weigh the arguments asserting the

Cultural Context Essay Example for Free

Cultural Context Essay Even though construction is usually considered as originally the activity of men and machines in digging, moving, shaping, erecting, and so forth, the relative use of building materials by the construction industry far exceeds its share in the gross domestic product. Specifically is construction of great significance for that special class of materials sometimes called as the â€Å"physical-structure† materials, which made major things of human civilization. Out of these â€Å"physical-structure† materials the more or less long-lasting and reliably shaped are wood and concrete. They are basic building materials for thin-shell roof construction, walls, tanks, large-diameter pipes, runways, highway bridges and many other structures. Main Body Concrete is related to the most significant building technologies in twentieth and the early twenty first century. However, other important building materials, such as wood, also figure in the construction picture. The poured method of concrete building has been so improved that buildings of this material are now erected as rapidly as a wood structure. Engineering departments all over the world are now prepared to assist engineers, architects and builders to apply concrete and wood to their construction work. Increasingly in the beginning of the twentieth century, when builders were asked how they should build the foundation possessing good physical strength, their answer was concrete. Either by placing the steel frame upon concrete foundations or by placing it upon a more spacious concrete raft foundation, architectural constructors in most cases complement steel with concrete as a problem-solving building material. By reinforcing concrete with steel rods, or by using steel machinery to form concrete blocks as prefabricated building blocks, builders further diversified their architectural techniques. The most approved composition of concrete for general construction consists of a mixture of broken limestone, granite or clean screened mixture of rock fragments, clean coarse sand and cement, in such proportions that the voids between the stone are completely filled by the sand and the voids in the sand completely filled with cement, with a slight excess of cement to guarantee a perfect connection with the stone. To create top-quality concrete, manufacturers need equally high-grade cement. By 1900 approximately three-quarters of that material was Portland cement, named after the tiny island of Portland in the U. K. where a desirable limestone used in its manufacture was descovered. In 1824 Joseph Aspdin, from Leeds, was the first to provide the world with Portland cement, but after 1872 the material was produced in the United States and its popularity spread rapidly (Collins, 1998). At the 1876 Philadelphia Exhibition, American Portland cement was displayed to the public as a useful and practical building material, but production only began in earnest in 1880 and domestic cement only began to overtake European imports in 1897, by which time American machinery for crushing aggregate and making concrete had also begun to substitute European machines, even in Europe itself (American Exporter, 1906, 58 (3), pp. 79-87). Wood structures can be constructed more quickly and inexpensively than other kinds. Wood still is used for finish flooring in the living areas of about four out of five homes, although plastic tiles and other materials are gaining ground. Flooring generally involves both the visible flooring and a subflooring. Most frame houses utilize boards for subflooring, but plywood is gaining ground. In buildings which use concrete beams, concrete flooring slabs are generally poured right along with the beams. Steel structures may be floored with poured concrete or with precast concrete or gypsum slabs. Roofs of houses, which have a timber framework and cladding, are likely to have as the foundation wooden board, plywood, or composition planking. However, the current general tendency in home building toward flat, or low-pitched, roofs has led to a partial shift from tile, wood, and asbestos tiles to concrete materials and poured concrete. Because of its important role in residential buildings, wood does only slightly less well than concrete. Although its relative cost has increased with time, it is still the most popular building material all over the world. The open-grained wood of any of numerous coniferous trees, such as pine and cedar, as distinguished from that of a dicotyledonous tree, enters the English home as framing, siding, shingles, finishing panels, sash, millwork, and boarding, used to cover the wall studding or roof joists of a timber frame; the wood of any of numerous broad-leaved dicotyledonous trees, such as oak, beech, ash, etc. principally as flooring, material used for making panels, and trim. In non-residential buildings, wood is put to practice as the most widely used building material for concrete formwork, railroad ties, telephone poles, railings, fences, and many other purposes (BLAIRSLTD). The chief advantages of wood in construction industry include its ease of production and of process by which wood is packaged and transported, its low thermal conductivity, and its strength-to-weight ratio (which is greater than that of cast iron and is identical to that of the stronger concretes) (Rowell 9). Yet, because of its peculiar weaknesses as an organic material, such as vulnerability to fungi and various insects, its relative lack of versatility in terms of design, and its long-term rise in price in comparison with concrete, the relative role of wood as a building material may to some degree decrease in the future, and further replacement may be projected. If considered as a structural material in large building construction, wood has already been largely replaced by concrete framing, brick or concrete walls, and concrete floors. This trend will probably continue in the future. On the other part, wood framing probably will retain its dominating position in the residential building, although giving way a bit to steel, concrete, perhaps aluminium, and sandwich panel method of building. The advantages of metal roof frameworks are gradually reducing the amount of wood required for roof structures. Moreover, for exterior trimming wood is being increasingly substituted by brick exterior and by panels of such building materials as asbestos, metal, and organic materials with a polymeric structure. Dry wall building and the utilisation of gypsum plasterboard and of metal lath are also considerably lessening the need for wood. The most important role for wood is probably in finished flooring, but there are modern trends toward replacement of composition and various types of synthetic materials even in living areas. Wood, like steel, is yielding to aluminum as the leading building material for window frames, door frames, doorways, trim, and other such purposes. In concrete building the formwork is tending change from wood to steel and plywood and also to plastics. Growing popularity of plywood and of laminated structural members may slow down the trend away from wood. Laminated wood arches, structural frameworks of wood, and roof systems have proved appropriate for spanning distances up to 120 feet, and, because of their attractive and pleasant appearance, are today in frequent use in the building of churches and temples, buildings for public gatherings or meetings, shopping areas, and the similar places. Plywood, which to some degree possesses more physical strength than lumber, may replace lumber in almost any of its uses; it is already extensively used in subflooring, boarding, interior panelling, concrete forms, and so forth. Thus, it may be expected to grow in total use at almost twice the rate predicted for lumber. Use of concrete in building is constantly increasing today. It is a changeable mixture of portland cement, fine aggregates (almost always sand), and coarse aggregates (crushed stone, gravel, cinder, slag, or whatever else is available within a particular area). The proportions of these ingredients are influenced by the particular use to which the concrete is to be intended, but they are at most times 1:2:4. As can be seen, cement is the minor component in this mixture. The fact that concrete is the most extensively used building material can be explained by its advantages related to wood among which are versatility, its high breaking strength relative to bricks and other kinds of masonry materials, the low price which makes it comparatively inexpensive material relative to structural steel, and in essence the presence of concrete components almost in all areas (Classic Encyclopaedia). The main uses of concrete in England are in dams, water tanks, pipes and sewers, heavy walls, piers, caissons, columns, and road and sidewalk pavements. In addition, concrete is utilised in the form of units cast in a particular form before being used in building, such as concrete blocks and cast stone, whose principal advantage over wood, brick, and structural tile is that they are costing relatively little. Because of the low flexural strength of concrete, it is combined with steel in most of its construction applications (Classic Encyclopaedia). This combination is made possible by the match of coefficients of thermal expansion of these materials. The amount of reinforcing steel rods, wire, wire-mesh, and so forth needed for a concrete structure is only one-third to one-half the amount needed for a similar completely steel structure. In England, the possibilities of this technique of construction are just beginning to extend its use beyond massive complex constructions. The chief disadvantages of reinforced concrete (also known as ferroconcrete or armoured concrete) in comparison with structural steel are the time and costs of construction, even if one takes account of the applying paints to the surface of steel members and their trimming. It is costly to build and remove forms, shores, and temporary metal or wooden frameworks. Most of the developments, which been made not long ago, in methods of concrete building are somehow related to reducing expense on forms, First, as an alternative to the traditional lumber and plywood, steel and more recently, plastic with fibrous matter to confer additional strength forms have been experimented. Plastics are especially showing great promise, in view of the fact that they are smooth and easily utilised, able to keep water, may be given extraordinary shapes, and may be use again and again from fifteen to twenty times. Second, â€Å"slip-form† pavers have been successfully employed in laying road pavements (Green 1-2). Third, precasting of concrete members has been used as a mass production technique and to provide solid and robust in construction, more unchanging in form concrete, but presents some transportation problems. Fourthly, so-called tilt-up construction and lift-slab construction has permitted walls, floors, and columns to be poured on a horizontal surface and then either tilted or lifted into place. Finally, able to be used more than once, adjustable length steel trusses have removed the need for the multiple strengthening which differently has to be placed under the conventional built-up forms. The faster such form-saving processes are improved and used by engineers and constructors, the faster steel concrete is likely to be used as a structural material. One more limitation of usual concrete is its low heat insulation value. That is why concrete walls are occasionally of a non-load bearing, sandwich type, being composed of a layer of insulating material cast between two concrete slabs. In this application, concrete is to a serious degree threatened by other types of curtain walls, including various types of sandwiches. Alternative way to give concrete protecting properties is to make it with relatively light weight aggregates – such as vermiculite, expanded clay, and so forth. In this form, it not any more has sufficient quality of being physically strong to be used for load bearing purposes, although it has been very well utilised in long-span roof building. Prestressed concrete has gotten great significance as a building material. The basic characteristic of prestressed concrete is that, by compressing concrete and keeping it under compression, the tensile stresses caused by loads are neutralized (CEMENT). The compression is accomplished by casting the concrete around stretched rods or cables, the tension on which is released as the concrete sets. A prestressed beam needs only one-fourth the weight of the steel and one-half the weight of concrete which is needed to support the same load by a usual reinforced concrete member. Although it was patented by a San Francisco engineer in 1886, prestressed concrete did not emerge as an accepted and effective building material until a half-century later. Since then it had been intensively used in Europe for structural purposes. Up to the present moment, prestressed concrete’s applications have been limited mostly to pipes, tanks, runways, and from time to time highway bridges. As engineers and constructors gain experience and manage to reduce the manufacturing expenses, prestressing may become competitive with steel and with reinforced concrete building. After weighing up all the factors, the trend is more toward a substitution of concrete for other building materials than of other building materials for concrete. The use of portland cement which is made by heating a slurry of clay and crushed chalk should more than double in the next decades, may presumably triple, and at its lowest is expected to become greater by at least one-third.

Language and Arthur Millers skills as a dramatist Essay Example for Free

Language and Arthur Millers skills as a dramatist Essay A view from the bridge is a two-act tragic play by Arthur Miller in the mid 50s. This play puts light on the working American-Sicilian population, in particular the Carbone family, the head of which is Eddie Carbone. In this essay I will be analysing Eddie Carbones character whilst occasionally making comments on the language and Arthur Millers skills as a dramatist. Eddie is a simple, straight forward man that lives with his beloved wife and niece. Alfieri describes Eddie as a long shore man. He is very protective over his orphaned niece, Catherine. Arthur Miller uses informal language to show Eddies social class. It is worthy to note that Arthur Miller was skilfully able to come down to the status of long shore man and was able to produce speech successfully in their tone and language. Eddie is portrayed as generous, but at the same time selfish and self-protective. This is since, although he is generous to offer his home to two of his wifes cousins, Marco and Rodolfo, he believes he is Superior. This is shown as he reminds Beatrice not to offer them his bed and he is very jealous of anyone that gets too close to Catherine. This jealousy also adds to his hardship in accepting Rodolfo and Catherines relationship, another reason to this envy is his over-protective nature. He has brought up Catherine as his own daughter and feels afraid to let her grow up, so he cannot face her having any relation to other men. Eddies wife, Beatrices is unhappy with Eddies attitude towards Catherine, which soon starts to create a rift between the couple. Its been many days and nights since you havent slept with me; shows that Eddie has been so caught up in Catherine and making sure she does not fall for Rodolpho, that he begins to forget about his duties as a husband. Further into the play, Eddie begins to feel another emotion towards Catherine: sexual attraction. This is shown by many things which happen throughout the play. He quickly begins to feel extremely jealous of the immediate impression Rodolfo makes on Catherine. The stage directions state at a point, He looks at [Catherine] like a lost boy, when she reveals her feeling for Rodolfo to him, but he is unable to admit it to everybody else. Furthermore, Eddie becomes so obsessed with Catherine, that he has no control over his emotions; for example Catherine begins to like Rodolpho, Eddie cannot control himself and has to find a way to vent his anger, so He decides to hurt Rodolpho, by using an exercise of teaching him to box,:you ever do any boxing? Eddie, at this point, feels so remorseless, that even when Rodolpho refuses to hit him, I dont want to hit you Eddie, he stills feels like the need to hit him, showing how obsessed he is. Moreover, Eddie becomes too interested into the relationship between Catherine and Rodolpho, that he involves the Immigration Bureau, this is because he could not spilt the true love apart. In the eyes of the audience and the other characters, it causes Eddies remaining honours to be thrown in the dirt. As in any community, even though there may be accused, the government should not be called in, otherwise the one, who spread the word, shall not be respected by all others and therefore, he becomes an out-cast. His redemption occurs towards the end of the play. His honour is restored with his own death. This is as he fights with Marco and ultimately dies, but he accepts his fate, and therefore restoring his respect and honour. In this part of the play, he also shows how he had planned the fight and was so obsessed that he brought a knife and fought like a coward. This brought his redeemed respect again to an all time low. Society respects a man, who acts like a man, and Eddie in this part, fights like a coward, which is unacceptable in the society. In conclusion, Eddie, although being a real man at the start, ends his life in a shameful and cowardly way. In my analysis, I have shown how Arthur Miller portrays this in an effective and skilful way, which shows his brilliant ability as a writer. I feel that A View from the Bridge is a very high-quality book with a interesting and deep story, giving it full marks in my view.

Security Forensics and Risk Management

Security Forensics and Risk Management Acknowledgement Foremost I would like say thanks to god for all support in all my life and secondly University of Greenwich to give this my life aim to complete my masters. Next my supervisor Professor Kevin Parrott to the supports he gave because without his support I wouldnt be able to complete my project with this quality. Especially the suggestions and appreciation given my supervisor make me feel better and gave positive thinking. Finally need to thank my family and friends for unbelievable supports and encouragements. Abstract As we are in the information era the world is changing to use electronic means for day to day use. The paper documents is gone and most of them are paper free because of so many reasons such as pollution, easy, fast, etc At the same time this digital media has availability, scalability, confidentiality and integrity which are required behaviour for secure communication. The risk is increased with the increase of computer and digital means usage and the single security lack may cause huge losses. There are some surveys says most of the crimes are happening through electronic means and the target is computer or computer peripherals. If the attacker found a single security lack that is enough to start and break the whole system and the security lack could be configuration mistake, firewall issue and basically problems in the protection mechanism. Because of these reasons testing become very important and this process called as Auditing. There are so many types in the auditing and this auditing requires technical knowledge to make these tests perfect and to give an audit report including suggestions. The auditing falls into two main categories such as Automatic and manual. The test will be efficient if it is automated using testing tools which are called as automated or computerised test. Even though there are some tests cannot be automated and need to test manually. This auditing covers network security test, physical or environment security test, computer security test which includes software and hardware tests. The computerised test will carry on with some security tools and the manual will use questioner to minimise human made errors mainly forgetting.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Security audit is the technical assessment of the application or system. The assessment may be manual or systematic or both. In most case the auditing process uses manual and systematic/ automatic methods because there are some tests cannot be automatic such as review of the security policy, asset management, etc   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  This auditing has different types such as internal or external. This type is depends on the company size and the resource availability. Usually big companies have their own security auditor so they will perform the audit internally and the small and medium size companies mostly hire auditor form outside. Both types got pros and cons in security and financial manor. Chapter 1 Introduction This chapter largely contains non-technical information to give the understanding of high level objectives. Also describe the techniques and technologies used in the project and research to accomplish the project Objective Audit The audit is a systematic or manual security assessment of the network, infrastructure, system, etc The complete audit should be the combination of manual and automatic assessment because in every test target there will be some test cannot be automatic. The audit has so many categories and the following paragraph will explain about the categories and the functions or techniques behind that. There are 3 controls in the auditing process which are Preventive control The preventive controls are controls may in the form of software or hardware or ant configuration to prevent the error or vulnerabilities. This is an active type control always monitor the interface for any vulnerabilities and block such vulnerabilities or errors before it enter into the system or infrastructure. This is most effective control mechanism because not allows the vulnerabilities. Detective control The detectives are in placed to monitor the vulnerabilities in the form of software or hardware but the different between preventive and detective is the preventive wont allow the vulnerabilities into the system where detective allows entering everything and correcting the vulnerabilities after enter. The best example is for this control is fire alarm because fire alarm wont prevent the fire before but if any fire it will work. Corrective controls The corrective controls are the controls to correct the error or issue before it make any harm. This is very important control for all places even if they have other controls because there are some issues or vulnerabilities cannot detect by the controls if they will come and attack so there should be some control to correct those before loss occur. Addition to that the controls should up to date such as latest firmware or latest definition. Type of auditors   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  There are two basic types of auditors in the information era the internal and external auditors. This selection of the auditor will be done by the management with the use of financial status of the organisation. Size of the organisation and the policies defined in the company. Internal auditors Internal auditors are auditors belong to that particular company which is going to perform the audit. That means the auditor is an employee of the company. So the auditor is always available to do the auditing and data or information will keep within the organisation. This is the main advantage of having the internal auditor and the same time and the employee purposely recruited for auditing then is cost a lot for the company. So it is only possible for the big level companies because they have huge investments and revenue. The disadvantage of the internal auditor is they may be up-to-date and dont have current market or audit status such as new techniques and tools. External auditors The auditor recruited from other auditing firm for the auditing so it is very hard to find professional auditor because of the availability and as the auditor recruited from outside the company information may go out. At the same time the auditor needs some time to get and understand the company process. But the advantage of recruiting the external auditor is their knowledge and it is suitable for middle and small level companies. Types of Audit: Traditional Audit It is just like a manual auditing. It is useful when working with a large amount of data in a large company. Here auditor took some sample data from different place then provide a report. Advantage: Easy Cheaper Disadvantage: Always do not provide correct information. In IT sector it is not useful. Software audit: Software audit is a wide popular for any educational institute or organization. It is just like a review of the software and the system that can find all information of the system such as operating system, application software, processor, drives, controllers, bus adapters, multimedia, virus protection, system model, main circuit board, memory models, local drive volumes, network drives, printers information etc.. There are so many auditing tools in the market such as Belarc Advisor, E-Z audit that are very power full. KW116 is the main Lab for school of computing and mathematical science in University of Greenwich. CMS installed lots of software for students to continue study or research. According to Copy right, Design and Patents Act 1988, all Software must have a valid licences to continue the process. As Lab uses large amount of software and different software expire on different time so it is very difficult for Lab administrator to keep up to date all licence by manually checks. Only auditing by software can possible to give details report to administrator to keep up safe the system. Advantages: Correct Information: Machine always provide the correct information so it has less chance to provide the incorrect information. Save time: Software very quickly provides a report of the system so it saves time. Details description: It provide a details description of system including any warning or licences issues etc Minimise the cost: By implementing the software audit two peoples work may possible with one people so it reduce the extra cost. Disadvantages: Investment Costly: Software is very expensive so university need extra money to buy this software. Risk: Auditor knows the details information of the system. Work flow: Auditor needs part of the lab to check the system. So it discontinues the student workflow. The approach The typical audit has different approach to collect the data. The single audit will use multiple techniques to gather full information and it is necessary to use different technique for different level of people. These are common techniques here. Interview This technique uses to collect the information from outside people or top level people and the number should be limited. During the interview the auditor or interviewer will ask questions from other people and collect the information. So the person will be well prepared for the interview. This is very robust method because it will allow people to express fully and the method also simple as it is talking which is natural way to communicate. Another advantage is this bi directional communication, means both parties allows to ask questions for clarification or gather information. Observation This method uses in the place where real time process monitoring or behavioural change is required. This is a powerful way of do the changes throughout the audit because other techniques exist in currently not possible to get real time information. Inspection The technique required to do some action with collected data to collect audit related information. This is the form of observation with advance criteria expected. This is extended version of observation because if the auditor apply any advance criteria to gather the data which is necessary to the auditing. After collecting the data the next step is to identify the weakness and process it. The identifying is the key work in the audit and after that categorising. The identifying uses some techniques to make that easy, preface and professional. The techniques used here are Root cause analysis General technique for analyse and get the better solution for the vulnerability or weakness. Because this technique drilldowns to the issue and finds the root and fix the weakness. The basic technique behind this is if the root is fixed automatically it will fix all other problems related to that. So simply close all related issues at once. As mention the easy and robust way to stop the issues exist and the issues may come in the future. After root cause analysis the next step is to get the solution for the root of the issue. The important thing here is choosing better and effective solution for the issue. The selection depends on some external and internal restrictions. Organisation policy Cost per benefit Legal restrictions Availability Compatibility Vendor and citification Advantage of having Auditing: Satisfaction: It brings the confidence of the Lab administrator of the University of Greenwich to continue the business process. Owner always thinks is there any lack that breaks down the continuity of the business. Detection and prevention of errors: Human can made error in any times .on one can say there is no error in there company. By auditing people can find the error and suggestion to recover the error. Detection and prevention of fraud: It also just likes errors. Sometimes user intentionally or unintentionally does this thing. So after audit we can find out the fraud. Verification of the Licences: KW116 Lab installs lots of software for student. Here some software for 1 year some software for more than one year and some software has limitation (No. Of user can use) for use. So auditor can find all kind of licence issues. Independent opinion: Audit always done by the independent people .so this report always accepted by everyone. Safety form exploitation: Health and safety always is a big issue for any organization. KW116 Lab got lots of equipment that are connected with electricity. So always chances for short circuit or exploitation. Audit identifies the all lack point and advice for prevention. Disadvantage of having Auditing: It is expensive Sometimes slow or stop the work flow External people know the company information. Encryption Encryption is the simple technique in the different for to send the date securely through shared place like internet. The form of encryption may vary from each other but they all commonly use digital certificate to encrypt and decrypt the data. Encryption use keys to make cipher text from actual message. The cipher text is not readable and it is the encrypted version of the massage using some algorithm. Security roles/user roles The security roles are very important technique to make network administration easy. This is basically creating some groups with different permissions according to the organisation operation or policy. A user or staff can have multiple security roles according to their need. This roles use to authorise the user permission. Security policy Security policy is a document which has all rules and regulations documented and approved by management and align with laws and legislation. This policy is used to define all activities and this is used to make some decision. Business Continuity: There are three things always we have to mind to continue the business Essential: to running the business any customer order cannot be delay more than seven days. Tolerate delay: some application may delay to continue the business such as management pay. It is a midterm i.e. one to four weeks. Discretionary: some application is useful for business but it is not affected to continue the business operation such as management report. It is a long term i.e. 3 to 6 months. Business continuity planning Business continuity planning (BCP) is the most important for any organization to continue the business. BCP engages with only different kind of risk to continue the business process that might occur in the organization and it also creates the policies, plan and procedures to reduce the risk. BCP can continue the business process in disaster situation as well. The main goal of the BCP is to combine together all policies, procedures and process so that any disruptive situation business process can continue or it may impact very little. Here main important function of BCP is Maintaining the business operation Continue the business in emergency situation Reduce the risk If any situation BCP cannot take over then Disaster recovery planning (DRP) takes over. British Auditing Standard BS7799: It is a British standard called as BS7799 that developed by British standard institution where describes the security policy and standard procedures.BS7799 become the ISO IEC 17799 after accepting the ISO IEC technical committee for international use. Now a days information is a valuable asset for organization .So it is very important to protect the information like other corporate asset. Here BS7799 introduces how to protect the information from threats and suggest the three points to secure the information such as Integrity: it is assurance the completeness and accuracy of the information. Confidentiality: Information can only access by the authorise people Availability: Authorise people can access the information when needed. Attacks and prevention for the attacks Errors and Omissions: Errors and Omission is one of the most common and toughest vulnerabilities .It is a human made error because human interact with programming, controlling and enter data for computer. There are no countermeasures to protect the errors and omission. Fraud and theft: It is a one kind of criminal activities that may occur in the KW116 Lab. It includes computer component such as mouse, keyboard, router, switch, cables, CPU box etc. It was observed that security person always not in the access point. So it is harm to secure the lab from fraud and theft. By protecting the access control we can reduce the fraud and theft. Both internal and external people are responsible for that kind of activities. Prevention of Fraud and theft: Regular auditing and monitoring program will help to identify all kind of fraud and theft. Deploy all of the access control. CCTV in proper place. Virus: Virus is a malicious code that has ability to reproduce his code itself and spread one system to another system via e-mail, downloading, storage devices (CD, DVD, memory stick, removal hard drive) and destroy the computer system. It was observed that removal memory stick all most every user are using and it is the most change to spread the virus in the Lab computer system and also observed user are using their own laptop and connected to the university wireless network. If user laptop effected with virus then it also change to spread the lab network that can affect the internal network and attack the server and crash the hard drive. Prevention: Install the latest antivirus software. Regular update the antivirus software. Follow the backup procedures regularly. Scan the device when transfer data. Installing the NIDS (Network Intrusion detection system) and firewall Minimise the download from internet. Download only repudiated site web site. Scan before the download. Care full to open unknown e-mail attach. Scan all incoming file from the remote site. Aware the user about danger of the virus. Trap-doors: It is an undocumented command that might user can create to speed up the work flow. Unfortunately sometimes student might leave these trap-doors. Prevention of Trap-doors: Use latest antivirus software. Give permission to develop the code only authorise people. Check properly all coding before use it. Logic bombs: It work s like time bombs and affect the system in a particular event or day such as program launch, website logon. It changes the data and deletes the data from the system. Here student are accessing the lots software to do the course work or project. So they are strong enough to build the logic bombs. It is normally happen in company if employee leaves the job. Prevention: Audit regularly and monitoring Always back up the necessary file Allow authorise people to develop the code Need record of all modification or changes Trojan Horses: It is a software programming that contains the malicious code. Normally students are interested to download the music, free software from internet. It is the most change to affect the lab computer and destroy the data stored on lab computer system. Prevention: Avoid unwanted software and music download from internet. Aware the user about Trojan Horses. Worm: Warm also is a malicious code that can spread itself without any human involvement from one system to another system .It works only computer network system and does not need any devices to transport. Prevention: Use firewall Use update antivirus software Spyware: It is an unwanted software interface that monitors the activity of the user and transfers the important information like log in details or account details to the remote system that monitor the user activities. Adware: It is also similar to spyware but it does not intent to transfer the user details to a remote system. It works like advertisements on the internet. Some adware monitor the searching behaviour of the user and then redirect the related websites. Prevention of Adware /Spyware: Close the pop up window. Aware about the spyware/adware. Click only reputed link. Social Engineering: Most of the users are getting unknown mail and they are also chatting with unknown people. Social engineering is one of the most popular techniques that attackers use to access the system by sending the mail or chatting with people to know the password. So it is a major risk to the security of the password. Prevention: Not response the unknown mail. Not chatting with unknown people. Dont give any one personal information or login id. Proper training or aware the new user about social engineering. Ping of death: we have only permission to send the largest packet (65,536 bytes) on the server. Attackers know this amount of bytes from ICMP specification. So they try to send the packets more than 65,536 bytes (at least 65,537). If the server does not check the size of the packet and try to process then it hung or crashed the operating system. Dumpster diving: Every day Lab user printing there necessary document but sometimes by mistake they are printing unnecessary document and end of the day through all document in the bin. Hacker is very intelligence. They always look at the bin and find the necessary document to access the network. Prevention: Destroy all documents before put in a bin Natural disasters: If anything happen that is not under control of human it is called natural dusters such as earthquakes, volcano, floods, fires, storms, hurricanes etc It may occur in any time but most risk is the fire for KW116 lab. It may cause from heater, power supply, over heating the power box, short circuit etc. Natural disaster is less chance for lab but it affect is more than any threat .It may destroy the part of the building, loses the all information. Prevention: Follow the health and safety procedures. Clear the fire exit. Aware the user about possible disaster. Man-Made Disasters: If anything happen intentionally to destroy the business process or destroy the part of the business and it is control of human then it is called the Man-Made Disaster such as Fire, Act of Terrorism, Bombings/Explosions, and Power Outages etc. Prevention: Check always ID card Allow only authorise people Use metal detector CCTV Equipment failure: Students are always busy with their course work and other course related work so equipment failure may loss the all data. Prevention: Use extra UPS Back up all data Auditing Stages/Steps Scope and Pre-Audit survey Planning Field work Analysis Reporting Scope and Pre-Auditing The first step or stage of the audit is to understand the purpose of the audit and the areas need to cover during the audit. Understanding the audit purpose is basically get the idea why this audit needs to perform; means any special risk assessment or annual audit. If it is special risk assessment audit this will be more specific and the scope will be narrow and deep otherwise if it is annual audit it will be the general audit to cover as much as possible area. Pre-Auditing survey is to verify the audit areas using risk management techniques and some general techniques such are reading previous audit report, web browsing, background reading, etc This will reduce the chance of failure by correcting the plan by lesson learned. Planning and Preparation In this stage the scope is going to break into small areas to make auditing easier and clear. So the clarity will be more and purpose will be easy to understand. Usually this stage will involve the work breakdown plan and risk control matrix. The risk control matrix is just a check list contains questions to carry out during the audit. Field work Actual auditing will perform during this stage by different techniques or methods. Simply it starts with interviewing staff or students using questioner or oral interview to system or network test by auditing software tools. The result of this stage will be the evidence of the audit to get a conclusion or submit to the management with audit report. So this will be the most important stage in the audit process. This step may use several testing software tools depend on the scope of the audit and the software selection is another key event of the audit process because there are so many fake software applications available in the market. Actually those are virus and the reason of making virus in the form of auditing tools. The reason of spreading the virus in the form of auditing or testing tool is very easy and hart to detect. Analysis Using the evidences or any results collected in the previous stage are the input of this stage. This stage is fully analysis and decision making so it needs a lots of time to investigation and assessment. The most sensitive area of the audit process is analysis because this is the place going to take the decision to submit to the board so that should be perfect otherwise the audit is useless and it will lead to make some wrong decision. Reporting The stage is to present all audit findings in the form of report. This is the document contains all evidences, analysis results, suggestions recommendations, conclusion, etc This document will pass to the management or the higher level people to review approve and take necessary action if necessary. The report should be clearly written and easy to understand because this document need for future also to give some information to start next auditing or to take some strategic decision. Problem Domain Because of the increased use of university of Greenwich KW116 lab the chances of threats or issues are high and this is the responsibility of the student and the staff to make the lab secure in all aspects. The reason of this project based on KW116 is that is the lab used by the students largely and usually network related or any other lab sessions and happening in this lab so if the lab got any security hole or lack that may affect the student and the staffs. Easiest way to ensure the security level of the lab is auditing. This auditing needs to cover all areas from physical security to network security. Then only this will the perfect audit and the audit can use some standard checklist to make more efficient and to eliminate human made errors such as forgotten, typing mistakes, etc There are so many ways to make sure the security level such as penetration testing and vulnerability testing. These are more specific with attacks and threats and for the general purpose security audit is the suitable one as it will cover all areas of the security. According the reasons given above the general security audit is the most suitable technique to verify the security level of the lab. So the auditing will cover most of the areas of the lab with the aid of standard checklist which is approved by British Standard Institute. Test behind the auditing Physical test Network test Software Test Security Policy test Hardware/Peripherals test Access control test Objectives To evaluate the actual level of security that exists at The University of Greenwich Maritime campus KW116 Lab. Activities plan and schedule the audit Auditing with software tools Analysis audit result Deliverable Detailed audit report with suggestions and recommendation This is the main objective of the project and this will carry on with several tools like packet sniffer, port scanner software, etc There are three different tests using these tools to identify internal and external vulnerabilities. To evaluate various methods of implementing the security policy, determine the security weaknesses and implement risk management for the existing security weaknesses. University lab security policy review Analysis Deliverable Detailed security policy analysis report with changes/suggestions/recommendation. The reason of this objective is to stop the holes from policy level because this is the easy way to implement. Learn Audit and Audit process and practice auditing and Research auditing products available in the market and select appropriate. This task is fully learning about audit and audit related stuffs. This objective is the key or starter of this project because if project start without proper knowledge that will mislead to somewhere else not to project aim. To draft a new security policy that addresses the existing weakness to the management. According to the analysis draft a security policy to fix or overcome all existing security holes. Deliverable Draft security policy How the objectives will be achieved Third and fourth objectives will be achieved with books and internet. This objective will give the idea about auditing the outcome of this objective will be a documentation which contains all requirements which need to cover in this project. The research will give the details about tools which requires to perform the auditing the methods/process for the auditing. Internet is the main and basic mean for this research as it is easy to access and with wide range of data. Tools which identified from the research will used to perform the security auditing and this audit result will monitor in real-time and document instantly. Mostly these tools will be freeware and from well-known vendor. The auditing will perform in three different views to make sure the area is secured fully. The views are inside computer local network, outside computer local network, outside computer different network. Audit Methodology This project uses two different methodologies to accomplish the task such as checklist and questioner. The check list is an aid for the auditor to perform the audit and it is a manual to the audit. So the checklist will contains all tests need to perform during the auditing where questioner is to get the opinion or feedback for the staffs and students (generally this will be feedback from stockholders). The analysis also will carry in two different way using questioner and the checklist and finally compare both and get the conclusion. The questioner and checklist covers most of the areas and those are grouped separately to make the auditors life easy and more understandable. The areas coved in the documents are Physical Security/ E Security Forensics and Risk Management Security Forensics and Risk Management Acknowledgement Foremost I would like say thanks to god for all support in all my life and secondly University of Greenwich to give this my life aim to complete my masters. Next my supervisor Professor Kevin Parrott to the supports he gave because without his support I wouldnt be able to complete my project with this quality. Especially the suggestions and appreciation given my supervisor make me feel better and gave positive thinking. Finally need to thank my family and friends for unbelievable supports and encouragements. Abstract As we are in the information era the world is changing to use electronic means for day to day use. The paper documents is gone and most of them are paper free because of so many reasons such as pollution, easy, fast, etc At the same time this digital media has availability, scalability, confidentiality and integrity which are required behaviour for secure communication. The risk is increased with the increase of computer and digital means usage and the single security lack may cause huge losses. There are some surveys says most of the crimes are happening through electronic means and the target is computer or computer peripherals. If the attacker found a single security lack that is enough to start and break the whole system and the security lack could be configuration mistake, firewall issue and basically problems in the protection mechanism. Because of these reasons testing become very important and this process called as Auditing. There are so many types in the auditing and this auditing requires technical knowledge to make these tests perfect and to give an audit report including suggestions. The auditing falls into two main categories such as Automatic and manual. The test will be efficient if it is automated using testing tools which are called as automated or computerised test. Even though there are some tests cannot be automated and need to test manually. This auditing covers network security test, physical or environment security test, computer security test which includes software and hardware tests. The computerised test will carry on with some security tools and the manual will use questioner to minimise human made errors mainly forgetting.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Security audit is the technical assessment of the application or system. The assessment may be manual or systematic or both. In most case the auditing process uses manual and systematic/ automatic methods because there are some tests cannot be automatic such as review of the security policy, asset management, etc   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  This auditing has different types such as internal or external. This type is depends on the company size and the resource availability. Usually big companies have their own security auditor so they will perform the audit internally and the small and medium size companies mostly hire auditor form outside. Both types got pros and cons in security and financial manor. Chapter 1 Introduction This chapter largely contains non-technical information to give the understanding of high level objectives. Also describe the techniques and technologies used in the project and research to accomplish the project Objective Audit The audit is a systematic or manual security assessment of the network, infrastructure, system, etc The complete audit should be the combination of manual and automatic assessment because in every test target there will be some test cannot be automatic. The audit has so many categories and the following paragraph will explain about the categories and the functions or techniques behind that. There are 3 controls in the auditing process which are Preventive control The preventive controls are controls may in the form of software or hardware or ant configuration to prevent the error or vulnerabilities. This is an active type control always monitor the interface for any vulnerabilities and block such vulnerabilities or errors before it enter into the system or infrastructure. This is most effective control mechanism because not allows the vulnerabilities. Detective control The detectives are in placed to monitor the vulnerabilities in the form of software or hardware but the different between preventive and detective is the preventive wont allow the vulnerabilities into the system where detective allows entering everything and correcting the vulnerabilities after enter. The best example is for this control is fire alarm because fire alarm wont prevent the fire before but if any fire it will work. Corrective controls The corrective controls are the controls to correct the error or issue before it make any harm. This is very important control for all places even if they have other controls because there are some issues or vulnerabilities cannot detect by the controls if they will come and attack so there should be some control to correct those before loss occur. Addition to that the controls should up to date such as latest firmware or latest definition. Type of auditors   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  There are two basic types of auditors in the information era the internal and external auditors. This selection of the auditor will be done by the management with the use of financial status of the organisation. Size of the organisation and the policies defined in the company. Internal auditors Internal auditors are auditors belong to that particular company which is going to perform the audit. That means the auditor is an employee of the company. So the auditor is always available to do the auditing and data or information will keep within the organisation. This is the main advantage of having the internal auditor and the same time and the employee purposely recruited for auditing then is cost a lot for the company. So it is only possible for the big level companies because they have huge investments and revenue. The disadvantage of the internal auditor is they may be up-to-date and dont have current market or audit status such as new techniques and tools. External auditors The auditor recruited from other auditing firm for the auditing so it is very hard to find professional auditor because of the availability and as the auditor recruited from outside the company information may go out. At the same time the auditor needs some time to get and understand the company process. But the advantage of recruiting the external auditor is their knowledge and it is suitable for middle and small level companies. Types of Audit: Traditional Audit It is just like a manual auditing. It is useful when working with a large amount of data in a large company. Here auditor took some sample data from different place then provide a report. Advantage: Easy Cheaper Disadvantage: Always do not provide correct information. In IT sector it is not useful. Software audit: Software audit is a wide popular for any educational institute or organization. It is just like a review of the software and the system that can find all information of the system such as operating system, application software, processor, drives, controllers, bus adapters, multimedia, virus protection, system model, main circuit board, memory models, local drive volumes, network drives, printers information etc.. There are so many auditing tools in the market such as Belarc Advisor, E-Z audit that are very power full. KW116 is the main Lab for school of computing and mathematical science in University of Greenwich. CMS installed lots of software for students to continue study or research. According to Copy right, Design and Patents Act 1988, all Software must have a valid licences to continue the process. As Lab uses large amount of software and different software expire on different time so it is very difficult for Lab administrator to keep up to date all licence by manually checks. Only auditing by software can possible to give details report to administrator to keep up safe the system. Advantages: Correct Information: Machine always provide the correct information so it has less chance to provide the incorrect information. Save time: Software very quickly provides a report of the system so it saves time. Details description: It provide a details description of system including any warning or licences issues etc Minimise the cost: By implementing the software audit two peoples work may possible with one people so it reduce the extra cost. Disadvantages: Investment Costly: Software is very expensive so university need extra money to buy this software. Risk: Auditor knows the details information of the system. Work flow: Auditor needs part of the lab to check the system. So it discontinues the student workflow. The approach The typical audit has different approach to collect the data. The single audit will use multiple techniques to gather full information and it is necessary to use different technique for different level of people. These are common techniques here. Interview This technique uses to collect the information from outside people or top level people and the number should be limited. During the interview the auditor or interviewer will ask questions from other people and collect the information. So the person will be well prepared for the interview. This is very robust method because it will allow people to express fully and the method also simple as it is talking which is natural way to communicate. Another advantage is this bi directional communication, means both parties allows to ask questions for clarification or gather information. Observation This method uses in the place where real time process monitoring or behavioural change is required. This is a powerful way of do the changes throughout the audit because other techniques exist in currently not possible to get real time information. Inspection The technique required to do some action with collected data to collect audit related information. This is the form of observation with advance criteria expected. This is extended version of observation because if the auditor apply any advance criteria to gather the data which is necessary to the auditing. After collecting the data the next step is to identify the weakness and process it. The identifying is the key work in the audit and after that categorising. The identifying uses some techniques to make that easy, preface and professional. The techniques used here are Root cause analysis General technique for analyse and get the better solution for the vulnerability or weakness. Because this technique drilldowns to the issue and finds the root and fix the weakness. The basic technique behind this is if the root is fixed automatically it will fix all other problems related to that. So simply close all related issues at once. As mention the easy and robust way to stop the issues exist and the issues may come in the future. After root cause analysis the next step is to get the solution for the root of the issue. The important thing here is choosing better and effective solution for the issue. The selection depends on some external and internal restrictions. Organisation policy Cost per benefit Legal restrictions Availability Compatibility Vendor and citification Advantage of having Auditing: Satisfaction: It brings the confidence of the Lab administrator of the University of Greenwich to continue the business process. Owner always thinks is there any lack that breaks down the continuity of the business. Detection and prevention of errors: Human can made error in any times .on one can say there is no error in there company. By auditing people can find the error and suggestion to recover the error. Detection and prevention of fraud: It also just likes errors. Sometimes user intentionally or unintentionally does this thing. So after audit we can find out the fraud. Verification of the Licences: KW116 Lab installs lots of software for student. Here some software for 1 year some software for more than one year and some software has limitation (No. Of user can use) for use. So auditor can find all kind of licence issues. Independent opinion: Audit always done by the independent people .so this report always accepted by everyone. Safety form exploitation: Health and safety always is a big issue for any organization. KW116 Lab got lots of equipment that are connected with electricity. So always chances for short circuit or exploitation. Audit identifies the all lack point and advice for prevention. Disadvantage of having Auditing: It is expensive Sometimes slow or stop the work flow External people know the company information. Encryption Encryption is the simple technique in the different for to send the date securely through shared place like internet. The form of encryption may vary from each other but they all commonly use digital certificate to encrypt and decrypt the data. Encryption use keys to make cipher text from actual message. The cipher text is not readable and it is the encrypted version of the massage using some algorithm. Security roles/user roles The security roles are very important technique to make network administration easy. This is basically creating some groups with different permissions according to the organisation operation or policy. A user or staff can have multiple security roles according to their need. This roles use to authorise the user permission. Security policy Security policy is a document which has all rules and regulations documented and approved by management and align with laws and legislation. This policy is used to define all activities and this is used to make some decision. Business Continuity: There are three things always we have to mind to continue the business Essential: to running the business any customer order cannot be delay more than seven days. Tolerate delay: some application may delay to continue the business such as management pay. It is a midterm i.e. one to four weeks. Discretionary: some application is useful for business but it is not affected to continue the business operation such as management report. It is a long term i.e. 3 to 6 months. Business continuity planning Business continuity planning (BCP) is the most important for any organization to continue the business. BCP engages with only different kind of risk to continue the business process that might occur in the organization and it also creates the policies, plan and procedures to reduce the risk. BCP can continue the business process in disaster situation as well. The main goal of the BCP is to combine together all policies, procedures and process so that any disruptive situation business process can continue or it may impact very little. Here main important function of BCP is Maintaining the business operation Continue the business in emergency situation Reduce the risk If any situation BCP cannot take over then Disaster recovery planning (DRP) takes over. British Auditing Standard BS7799: It is a British standard called as BS7799 that developed by British standard institution where describes the security policy and standard procedures.BS7799 become the ISO IEC 17799 after accepting the ISO IEC technical committee for international use. Now a days information is a valuable asset for organization .So it is very important to protect the information like other corporate asset. Here BS7799 introduces how to protect the information from threats and suggest the three points to secure the information such as Integrity: it is assurance the completeness and accuracy of the information. Confidentiality: Information can only access by the authorise people Availability: Authorise people can access the information when needed. Attacks and prevention for the attacks Errors and Omissions: Errors and Omission is one of the most common and toughest vulnerabilities .It is a human made error because human interact with programming, controlling and enter data for computer. There are no countermeasures to protect the errors and omission. Fraud and theft: It is a one kind of criminal activities that may occur in the KW116 Lab. It includes computer component such as mouse, keyboard, router, switch, cables, CPU box etc. It was observed that security person always not in the access point. So it is harm to secure the lab from fraud and theft. By protecting the access control we can reduce the fraud and theft. Both internal and external people are responsible for that kind of activities. Prevention of Fraud and theft: Regular auditing and monitoring program will help to identify all kind of fraud and theft. Deploy all of the access control. CCTV in proper place. Virus: Virus is a malicious code that has ability to reproduce his code itself and spread one system to another system via e-mail, downloading, storage devices (CD, DVD, memory stick, removal hard drive) and destroy the computer system. It was observed that removal memory stick all most every user are using and it is the most change to spread the virus in the Lab computer system and also observed user are using their own laptop and connected to the university wireless network. If user laptop effected with virus then it also change to spread the lab network that can affect the internal network and attack the server and crash the hard drive. Prevention: Install the latest antivirus software. Regular update the antivirus software. Follow the backup procedures regularly. Scan the device when transfer data. Installing the NIDS (Network Intrusion detection system) and firewall Minimise the download from internet. Download only repudiated site web site. Scan before the download. Care full to open unknown e-mail attach. Scan all incoming file from the remote site. Aware the user about danger of the virus. Trap-doors: It is an undocumented command that might user can create to speed up the work flow. Unfortunately sometimes student might leave these trap-doors. Prevention of Trap-doors: Use latest antivirus software. Give permission to develop the code only authorise people. Check properly all coding before use it. Logic bombs: It work s like time bombs and affect the system in a particular event or day such as program launch, website logon. It changes the data and deletes the data from the system. Here student are accessing the lots software to do the course work or project. So they are strong enough to build the logic bombs. It is normally happen in company if employee leaves the job. Prevention: Audit regularly and monitoring Always back up the necessary file Allow authorise people to develop the code Need record of all modification or changes Trojan Horses: It is a software programming that contains the malicious code. Normally students are interested to download the music, free software from internet. It is the most change to affect the lab computer and destroy the data stored on lab computer system. Prevention: Avoid unwanted software and music download from internet. Aware the user about Trojan Horses. Worm: Warm also is a malicious code that can spread itself without any human involvement from one system to another system .It works only computer network system and does not need any devices to transport. Prevention: Use firewall Use update antivirus software Spyware: It is an unwanted software interface that monitors the activity of the user and transfers the important information like log in details or account details to the remote system that monitor the user activities. Adware: It is also similar to spyware but it does not intent to transfer the user details to a remote system. It works like advertisements on the internet. Some adware monitor the searching behaviour of the user and then redirect the related websites. Prevention of Adware /Spyware: Close the pop up window. Aware about the spyware/adware. Click only reputed link. Social Engineering: Most of the users are getting unknown mail and they are also chatting with unknown people. Social engineering is one of the most popular techniques that attackers use to access the system by sending the mail or chatting with people to know the password. So it is a major risk to the security of the password. Prevention: Not response the unknown mail. Not chatting with unknown people. Dont give any one personal information or login id. Proper training or aware the new user about social engineering. Ping of death: we have only permission to send the largest packet (65,536 bytes) on the server. Attackers know this amount of bytes from ICMP specification. So they try to send the packets more than 65,536 bytes (at least 65,537). If the server does not check the size of the packet and try to process then it hung or crashed the operating system. Dumpster diving: Every day Lab user printing there necessary document but sometimes by mistake they are printing unnecessary document and end of the day through all document in the bin. Hacker is very intelligence. They always look at the bin and find the necessary document to access the network. Prevention: Destroy all documents before put in a bin Natural disasters: If anything happen that is not under control of human it is called natural dusters such as earthquakes, volcano, floods, fires, storms, hurricanes etc It may occur in any time but most risk is the fire for KW116 lab. It may cause from heater, power supply, over heating the power box, short circuit etc. Natural disaster is less chance for lab but it affect is more than any threat .It may destroy the part of the building, loses the all information. Prevention: Follow the health and safety procedures. Clear the fire exit. Aware the user about possible disaster. Man-Made Disasters: If anything happen intentionally to destroy the business process or destroy the part of the business and it is control of human then it is called the Man-Made Disaster such as Fire, Act of Terrorism, Bombings/Explosions, and Power Outages etc. Prevention: Check always ID card Allow only authorise people Use metal detector CCTV Equipment failure: Students are always busy with their course work and other course related work so equipment failure may loss the all data. Prevention: Use extra UPS Back up all data Auditing Stages/Steps Scope and Pre-Audit survey Planning Field work Analysis Reporting Scope and Pre-Auditing The first step or stage of the audit is to understand the purpose of the audit and the areas need to cover during the audit. Understanding the audit purpose is basically get the idea why this audit needs to perform; means any special risk assessment or annual audit. If it is special risk assessment audit this will be more specific and the scope will be narrow and deep otherwise if it is annual audit it will be the general audit to cover as much as possible area. Pre-Auditing survey is to verify the audit areas using risk management techniques and some general techniques such are reading previous audit report, web browsing, background reading, etc This will reduce the chance of failure by correcting the plan by lesson learned. Planning and Preparation In this stage the scope is going to break into small areas to make auditing easier and clear. So the clarity will be more and purpose will be easy to understand. Usually this stage will involve the work breakdown plan and risk control matrix. The risk control matrix is just a check list contains questions to carry out during the audit. Field work Actual auditing will perform during this stage by different techniques or methods. Simply it starts with interviewing staff or students using questioner or oral interview to system or network test by auditing software tools. The result of this stage will be the evidence of the audit to get a conclusion or submit to the management with audit report. So this will be the most important stage in the audit process. This step may use several testing software tools depend on the scope of the audit and the software selection is another key event of the audit process because there are so many fake software applications available in the market. Actually those are virus and the reason of making virus in the form of auditing tools. The reason of spreading the virus in the form of auditing or testing tool is very easy and hart to detect. Analysis Using the evidences or any results collected in the previous stage are the input of this stage. This stage is fully analysis and decision making so it needs a lots of time to investigation and assessment. The most sensitive area of the audit process is analysis because this is the place going to take the decision to submit to the board so that should be perfect otherwise the audit is useless and it will lead to make some wrong decision. Reporting The stage is to present all audit findings in the form of report. This is the document contains all evidences, analysis results, suggestions recommendations, conclusion, etc This document will pass to the management or the higher level people to review approve and take necessary action if necessary. The report should be clearly written and easy to understand because this document need for future also to give some information to start next auditing or to take some strategic decision. Problem Domain Because of the increased use of university of Greenwich KW116 lab the chances of threats or issues are high and this is the responsibility of the student and the staff to make the lab secure in all aspects. The reason of this project based on KW116 is that is the lab used by the students largely and usually network related or any other lab sessions and happening in this lab so if the lab got any security hole or lack that may affect the student and the staffs. Easiest way to ensure the security level of the lab is auditing. This auditing needs to cover all areas from physical security to network security. Then only this will the perfect audit and the audit can use some standard checklist to make more efficient and to eliminate human made errors such as forgotten, typing mistakes, etc There are so many ways to make sure the security level such as penetration testing and vulnerability testing. These are more specific with attacks and threats and for the general purpose security audit is the suitable one as it will cover all areas of the security. According the reasons given above the general security audit is the most suitable technique to verify the security level of the lab. So the auditing will cover most of the areas of the lab with the aid of standard checklist which is approved by British Standard Institute. Test behind the auditing Physical test Network test Software Test Security Policy test Hardware/Peripherals test Access control test Objectives To evaluate the actual level of security that exists at The University of Greenwich Maritime campus KW116 Lab. Activities plan and schedule the audit Auditing with software tools Analysis audit result Deliverable Detailed audit report with suggestions and recommendation This is the main objective of the project and this will carry on with several tools like packet sniffer, port scanner software, etc There are three different tests using these tools to identify internal and external vulnerabilities. To evaluate various methods of implementing the security policy, determine the security weaknesses and implement risk management for the existing security weaknesses. University lab security policy review Analysis Deliverable Detailed security policy analysis report with changes/suggestions/recommendation. The reason of this objective is to stop the holes from policy level because this is the easy way to implement. Learn Audit and Audit process and practice auditing and Research auditing products available in the market and select appropriate. This task is fully learning about audit and audit related stuffs. This objective is the key or starter of this project because if project start without proper knowledge that will mislead to somewhere else not to project aim. To draft a new security policy that addresses the existing weakness to the management. According to the analysis draft a security policy to fix or overcome all existing security holes. Deliverable Draft security policy How the objectives will be achieved Third and fourth objectives will be achieved with books and internet. This objective will give the idea about auditing the outcome of this objective will be a documentation which contains all requirements which need to cover in this project. The research will give the details about tools which requires to perform the auditing the methods/process for the auditing. Internet is the main and basic mean for this research as it is easy to access and with wide range of data. Tools which identified from the research will used to perform the security auditing and this audit result will monitor in real-time and document instantly. Mostly these tools will be freeware and from well-known vendor. The auditing will perform in three different views to make sure the area is secured fully. The views are inside computer local network, outside computer local network, outside computer different network. Audit Methodology This project uses two different methodologies to accomplish the task such as checklist and questioner. The check list is an aid for the auditor to perform the audit and it is a manual to the audit. So the checklist will contains all tests need to perform during the auditing where questioner is to get the opinion or feedback for the staffs and students (generally this will be feedback from stockholders). The analysis also will carry in two different way using questioner and the checklist and finally compare both and get the conclusion. The questioner and checklist covers most of the areas and those are grouped separately to make the auditors life easy and more understandable. The areas coved in the documents are Physical Security/ E