College Fraternities and Sororities - The High Cost of Social Acceptanc

College Fraternities and Sororities - The High Cost of Social Acceptance College students who choose to join fraternities or sororities do so because of their need for social word sense. I am in person against fraternities and sororities. I heart that it is money spent for the purpose of buying friends. There are m all ways to meet interesting people other than devoting either of your time and money to a club in order to do so. Perhaps the people who join these groups swallow low self-esteem, social anxiety, or feel that the best way to make friends in college is to pay for them. I find this issue to be interesting because there are many Greek organizations on campus that are constantly advertising and promoting themselves. Non-members fox a tendency to either be annoyed or amused with this behavior. To support my thesis I have conducted surveys, interviews and experiments. Because Greek clubs are all over campus, I knew that my surveys and interviews would receive hon est responses as to wherefore people join or dont join. I asked more in depth questions, such as the persons opinion about the issue. I was pleased with my responses. I conducted an experiment in my flat as the third step in my research. I threw a party and passed out Mardi Gras beads to most of the people who attended. I was not partial to any gender. Both men and women received beads. My plan was to observe how much social acceptance affects the way people interact with one another. If my hypothesis were correct, people who did not wear beads would either feel left out and group together, or attempt to mingle with the bead wearers and get rejected. But first, the surveys I conducted were regarding why men and women in coll... ...t your community through fund-raisers all sound like good reasons to join. But buying your way into a club is not termination to teach you important skills that you pull up stakes need to know after schooling. Your brothers or sis ters are not going to be with you after graduation, so again you will need to start over in making new friends. And after college there is a very limited amount of organizations where this brotherhood or sisterhood can be found. Social acceptance is wanted everywhere. No one wants to be left empty-handed and unwanted. Although people go about getting this acceptance in different ways, people who choose to join a fraternity or sorority are lacking something in their life, whether it is self-esteem or genuine friendships. They have a need to be a part of a group, even if they may need to change their ways and conform to the organizations demands.

Writing Styles in the Puritan Time Period :: essays research papers

In American Literature, the period of the Puritans sticks out as a timewith many ample authors. Two, William Bradford and Reverend JonathanEdwards are still studied today. Bradford was an author who wrote aboutthe historical section of Puritan life, while Edwards was a great speakerwho wrote sermons to give in front of his congregation. Although livingin the same time period Reverend Jonathan Edwards and William Bradforduse very different fashions of writing.In writing, praise and prevalent living the Puritans favour the ordinaryand simple. William Bradford wrote in what is considered the plainstyle. This form of writing was used by many Puritan authors and wasthought to be direct and to the point. The plain style consisted ofsimple sentences and everyday used language. It never had figures ofspeech and especially not any imagery. A full(a) example of this style isfound in the passage from Bradfords Of Plymouth Plantation, "They begannow to benefit in the small harvest th ey had, and to fit up their housesagainst winter, being all well recovered in health and strength and hadall things in good plenty." William took this otherwise exciting story ofthe Puritans first winter and wrapped it all into one monotonoussentence. Bradfords word choice epitomized the plain style and thatwas all the Puritan society would aver or hear until Jonathan Edwards.The Reverend Jonathan Edwards chose a style expressing his concerns muchmore creatively than his fellow Puritan authors. Jonathans style wasalmost the complete opposite than the plain style. He used many figuresof speech and metaphors. An example of one of these fiery metaphors is from his speech,Sinners in the Hands of an Angry God , "The God that holds you over thepit of hell, much as one holds a spider, or some loathsome insect overthe fire, abhors you, and is dreadfully provoked." Reverend Edwards wascomparing God and man to someone holding a spider over a fire. Anotherexcellent illustration of this vivid description is from the same speech,"O sinner Consider the fearful danger you are in It is a great furnaceof wrath, a wide and bottomless pit, full of the fire of wrath, that youare held over in the hand of that God." This shows that Reverend Edwardsalso used these figures of speech to strike fear in his audience. He usedthis fear factor to make the "natural men" of his audience, trulyunderstand the horror of their sins. This style of writing differed so

Law of Evidence: R v Kearley Essay -- Papers

justness of Evidence R v Kearley Essentially this piece concerns whether the admit of captains correctly decided the case of R v Kearley1. The majority decided allowing the appeal, that the evidence concerned in this case was either irrelevant, and therefore inadmissible (unless subprogram of the res gestae) or was inadmissible as hearsay in the form of an implied assertion. The facts of Kearley will be discussed, followed by an analysis of the decision by their Lordships, finally considering the issues of relevance and implied assertions in relation to the decision in Kearley. The facts of Kearley are well known. The disputed evidence was that the police officers whilst on the raid answered a number of callers to the flats, both by telephone and by visitors. The police officers testified that the callers were seeking to buy drugs in place of the original callers who were unwilling or unable to attend court. The appellant objected to the evidence o n the ground that it was hearsay, but this was overruled. The Court of Appeal dismissed his appeal and certified a question to the House of Lords. Condensing the certified question, it was whether a person non called as a witness, for the purpose of not establishing the truth of any fact narrated by the words, but of inviting the jury to draw an inference from the fact that the words were speak ? 2 On the issue of relevancy, Lord Ackner for the majority considered that each request was evidence of the state of mind of the person making the request, and that was an irrelevant issue in the trial. This was indorse up by Lords Bridge and Oliver. It should be noted though that Lord Bridge f... ...1986 86 Cr App R 105 15 DPP v Kilbourne 1973 AC 726 per Lord Simon at P756 16 1993 13 Legal Studies 54, 65 17 Law of Evidence (1999) Page 528 18 1993 56 MLR 138, 146 19 Per Lord Griffiths in Kearley at Page 348 20 1993 CLJ 40, 41 21 ibid no. 19 22 The Mo dern Law of Evidence (4th Edition) (Butterworths) 23 Wright v Doe D Tatham (1837) and Teper v R (1952) 24 1993 13 Legal Studies 54 59 25 1993 56 MLR 138, 140 26 Law of Evidence (1999) 27 1992 NLJ 1194, 1194 28 1993 56 MLR 138, 148 29 1993 56 MLR 138, 151-152 30 1994 110 LQR 431, 438 31 Report No. 245 Evidence in Criminal Proceedings and Related Topics (1997) 32 Pattenden, Rein - (modified version though), and Cross 33 1993 CLJ 40, 42

Blending of Past, Present, and Future in Arthur Millers Death of a Salesman :: Death Salesman essays

Blending of Past, Present, and Future in Arthur Millers Death of a Salesman The most significant and thought-provoking aspect to Death of a Salesman is its structure. In reading and watching the chance it may appear at first that Miller is relying on the tried moreover true flashback technique in dramatizing the events of the play. In reality, Miller is rattling attempting something much different. He is actually trying to fuse the past, present, and future into, what David Biele has aptly termed, a ceaseless state of NOW. Its not too unlike the Buddhist notion of living in the eternal present - meaning, whether we are conscious of it or not, everything that happens, happens now. If you are ring something in the past you are remembering it now. If you are dreaming of something in the future you are doing in now. Miller describes that state as this Ive never been adequate to(p) to make time real for myself. I cant remember whether something happened two weeks ago or three year s ago. Or when I was in England the last time. The calendar doesnt seem to exist in my head. It all melts together. It always has. Its probably a form of insanity. I thought I would try to write that way - exclusively melt the days, the months and the years, because I really do believe that we move through the world carrying the past and that its always alive in the back of our head. We are do constant references between what we see now and what we saw then, between what we hear now and what we heard then ... i asks a policeman for directions as one listens, the hairs sticking out of his nose become important, reminding one of a father, brother, son with the same feature, and ones conflict with him or ones friendship come to mind, and this all over a period of seconds while objectively taking note of how to get to where one wants to go. The play then becomes an attempt to dramatize the way, to Miller at least, that the mind actually works. In fact, he originally thought of callin g the play, The Inside of His Head. He wanted the resulting form to carry the whole freight of a mans life, moving the play forward not chronologically, in a narrow discreet line, but as a phalanx, all of its elements moving together simultaneously.

Skydiving History and Today Essay -- essays research papers fc

The first ideas of freefall did not consider the evolution of human body flight that sky dive has become today. In fact, Leonardo Da Vinci, who we now consider the Father of the Parachute, designed the first conceivable sketch of a parachute. His original idea was to seduce a device to rescue people from burning buildings, not knowing what his impact may be on the sport six centuries later.      Andre Jacques Garnerin is recorded to draw and quarter the first exhibition jump in Paris from a balloon on October 27,1797. However, sport parachuting began with the first recorded freefall in 1914 by a woman named Georgia (Tiny) Broadwick. Until this time, a static line was used to deploy parachutes. Broadwick was giving the first demonstration of a parachute jump to the US government. aft(prenominal) her initial three static line jumps, her fourth resulted in a static line/aircraft entanglement. Therefore, on her fifth jump, she decided not to use the static line. A fter cutting the static line, she left enough to pull the parachute pack open on her own after exiting the airplane. After this feat of freefall, the US Army Signal Corps initiated a new era in aviation safety procedures. In Tinys career, she accumulated over 1,100 skydives, limit numerous records, and set the standard for those following in her footsteps. In 1973, Broadwick celebrated her eightieth birthday at Perris Valley Skydiving in California. After ceremonial everyone else land she commented, Boy, I always landed in trees, swamps, rivers and mud holes. Sure is something else seeing all these kids land right where they want to (www.parachutehistory.com/women/broadwickt.html)     Real controlled freefall began with the French and is brought to the coupled States by Jacque Istel in the late 1950s. Istel and Lew Sanborn (USPA License D-1) were the first to introduce the idea that military airborne training was not the only way to make a parachute jump, civi lians can have structure too. Originally coined the French Frog position, it has now morphed into what skydivers now know as the Box Man position. During freefall, the jumper is orient stomach to earth, making ninety-degree angles with his elbows, shoulders, and knees. Although Sanborn and Istel introduced the first three-hour jump course in 1957, until the mid 1960s many people still obtained parachutes and... ... of boogies where skydivers gather funds to benefit a worthy cause. From MS to breast cancer (Jump for the Cause boogie) jumpers are get outing to give back to the sport and community in any way possible. presentment skydives are often performed during football games in stadiums, or air shows. Children are inspired and intrigued by parachutists, and the Golden Knights Demonstration Team knows just that. Performing two hundred demos a year, the Knights will jump and speak at baseball games, high schools, and air shows. Skydiving is an endeavor that gives freedom, unres tricted flight, and most significantly all jumpers are fully aware that there is no such thing as a perfectly good airplane. "And once you have tasted flight, you will walk the earth with your eyes turned skywards, for there you have been, and there you long to return" (Leonardo Da Vinci). Works CitedThe Parachute Manual Volume II Poynter, Dan. Pp. 564-566.Parachutist, April 2004. pp. 54-59.http//www.skydivecairns.com/au/history.htmhttp//www.parachutehistory.com/skydive/comp/worldmeet/wpc.htmlhttp//www.parachutehistory.com/skydive/comp/worldmeet/1958rules.htmlhttp//www.parachutehistory.com/women/broadwickt.html

Native Son - Segregation, Oppression and Hatred Essay -- Native Son Es

Native Son - Segregation, Oppression and Hatred     The novel, Native Son, portrays the struggle one black man faces while try to live in a segregated society in the late 1930s.  Growing up poor, uneducated, and angry at the whole world, Bigger Thomas seems apprenticed to meet a bad fate.  Bigger lives with his family in a rat-infested one-bedroom apartment on the South Side of Chicago, known as the Black Belt.  His childhood has been alter with hostility and oppression anger, frustration, and violence are a daily reality.  A the age of twenty, Bigger lands his first real job as a chauffeur for a rich white man, Mr. Dalton.  On his first night on the job Bigger takes Mr. Daltons daughter, Mary Dalton, to secretly meet her boyfriend, Jan Erlone, a self-admitted Communist.  Everyone gets a bitty drunk, especially Mary, and after a while Bigger drops Jan off at home and takes Mary home.  As he carries Mary up the stairs and puts her into bed, Marys stratagem mother walks in the room.  Bigger panics and accidentally kills Mary while trying to keep her quiet so Mrs. Dalton would not notice that he was in the room, too.  When Marys be is discovered people initially blame Jan, but as evidence is discovered, the facts point to Bigger and he flees.  He is soon caught and put on essay for murder.  Throughout Bigger short life, he strives to find a place for himself in society, but he is unable to see through the prejudice and downsizing that he encounters in those around him.  The bleak harshness of the racist, oppressive society that the author, Richard Wright, presents the reader closes Bigger out as effectively as if society had sh... ... because they upkeep, and they fear because they feel that the deepest feelings of their lives are being assaulted and outraged.  And they do not know why they are powerless pawns in a blind play of social forces.  contempt Maxs effor ts, the oppressors got their bitter vengeance and a jury of twelve white men sentenced Bigger to death.  The segregation and oppression that exists between the whites and blacks has created a feeling of hatred that has mangled these two groups apart, and succeeded only in perpetuating the tension and violence between them.  Through Biggers hatred and discomfort around whites, the naivety of white society, and his violent murder of a young girl, Wright demonstrates the intensity of the hatred created by the segregation and oppression that Bigger was forced to endure every day until the end of his life.  

Putting Children First: Guidelines for Divorcing Parents Essay

Raising pip-squeakren presents challenges. When parents live in separate homes, the challenges are greater because relationships become more complicated. Sometimes parents disagree rough how much time children should spend with each parent. Unless special circumstances exist, preserving a healthy and ongoing relationship betwixt children and both parents after divorce or separation is of greatest importance. Positive involvement with both parents furthers the childs emotional and social development, academic achievement, and overall adjustment. The following guidelines are helpful to think of when divorced or separated parents interact with children.Children benefit when parents Keep predictable schedules Help the child have regular contact with the another(prenominal) parent by phone, letter, audio and video, Skype, email, and other forms of communication Are on time and have the child ready when its time for the child to go with the other parent Exchange the child without argu ing Support the childs relationship with the other parent Let the child carry important items such as favorite clothes, toys, and security blankets with them between the parents homes Follow confusable routines for mealtime, bedtime, and homework time in each home Handle rules and discipline in similar ways Support contact with grandparents, stepparents, and other extended family so the child doesnt lose these relationships Are flexible so the child can counter part in special family celebrations and events Give as much advance notice as possible to the other parent about special do or necessary changes to the schedule Provide the other parent with travel dates, destinations, and places where the child and the parent can be reached when on vacation Establish possible and priseful communication with the other parent Plan their vacations around the childs regularly scheduled activities.Children are harmed when parents Make their child choose between them Question their child abo ut the other parents activities or relationships Make promises they dont keep Drop in and out of the childs life Are inconsistent in using their parenting time Argue with or put down the other parent in depend of the child or where the child can overhear Discuss their personal problems with the child or where the child can overhear Use the child as a messenger, spy, or mediator Stop or interfere with parenting time because child support hasnt been paid Dont show respect for each other

10th Grade Biology Textbook Analysis

10th Grade Biology Textbook Analysis A Read tycoon Study Teachers should consider assessing the standards they are planning to use in the classroom. Textbook evaluations and assessing students connections with texts are important tasks for content area teachers and students (Vacca, 2002). Teachers are constantly assessing the suitability of construe material for their students. legibility idler be defined as the value level at which a document is written. readability is concerned with the factors that affect students success in reading and understanding a text.These factors include the readability of the print and illustrations, the motivation and interest of the reader, and the reading level of the text in relation to the reading ability of the reader (Johnson, 1998). These key ideas of readability are at the heart of choosing the best textbooks for students. There are many readability formulas or indexes teachers can use to objectively measure the readability of textbooks. M any readability formulas exhaust been developed as a result of research evidence (Johnson, 1998).Most readability formula and index values are calculated by measuring declare length and enunciate familiarity or word length to determine a grade-level score for text passages (Vacca, 2002). There are several(prenominal) widely used readability formulas. The Fry legibility Graph was developed by Edward Fry in 1977 for the purpose of predicting readability. It is a quick and simple readability formula. He used the parking lot formula variables of syllables per one(a) hundred words and words per sentence.The user marks the counts of the variables on a represent and then reads the readability grade score directly from it. The graph was designed to identify the grade-level score for materials from grade 1 though college and can predict the difficulty of the material within one grade level (Vacca, 2002). Flesch-Kincaid saying was developed to be used as a US Government Department o f Defense standard test. The formula uses two factors the average number of syllables per 100 words and the average number of words per sentence.The score in this case indicates a grade level (Johnson, 1998). Flesch-Kincaid Grade direct Index is automatically calculated on Microsoft Word documents. Microsoft Word go away display readability statistics after it has completed a grammar check, which is accessible from the tool bar (Arnold, n. d. ). Dale-Chall Readability Formula has a 3,000 familiar word list which is used as a guide to identify difficult words. This formula uses two factors the average sentence length and the percentage of unfamiliar, or difficult, words (Intervention, n. . ). Gunnings FOG Readability Formula is suitable for secondary and older primary age groups. Gunning proposed counting words of three or more syllables, assigning them as voiceless words. The formula is based on two counts, that of average sentence length and the percentage of hard words (Johnso n, 1998). The SMOG Formula tends to give higher values than the other formulas because it was intended to predict the level necessary for 90 100% comprehension of the reading material, i. e. when the SMOG formula yields a readability score of ten for a particular textbook, the students reading on a tenth grade level will be reading the material with 90 to 100% accuracy (Johnson, 1998). FORCAST Formula was devised for assessing US army technical manuals and is not suitable for primary age materials. But, because it is one of the only formulas that does not need whole sentences, it is suitable for assessing notes and test questions. The only factor used to calculate the FORCAST formula is the number of single-syllable words found in a sample of 150 total words (Johnson, 1998).According to Vacca (2002), the Close Procedure does not use a formula to determine readability. This procedure determines how well students can read a particular reading passage as a result of their interaction with the reading material. In this method every nth word is deleted from the passage, leaving a blank in its space. The passage is given to students to fill in the missing words and the completed passage is used to evaluate students ability to accurately supply the missing words.The General Textbook Readability Checklist is a checklist that focuses on the understandability, usability, and interestability of a textbook. This purpose of this study was to examine textbook readability by applying several readability formulas, including the Fry Readability Graph, Flesch-Kincaid Formula, Flesch-Kincaid Grade Level Index, Dale-Chall Readability Formula, Gunning FOG Readability Formula, McLaughlin SMOG Formula, FORCAST Formula, Cloze Procedure and the General Textbook Readability Checklist, to a biology textbook titled, Modern Biology.Method Materials Materials used in this study included a 10th grade biology textbook, Modern Biology as well as the procedural guidelines for each of the read ability formulas that will be used to assess the textbook. Procedure 18 passages were randomly selected from the Modern Biology textbook and the appropriate pages photocopied.The photocopied passages were then placed into 5 groups having three samples each (Fry Readability Graph Group- attachment A, Flesch-Kincaid Formula Group- vermiform appendix B, Dale-Chall Readability Formula Group Appendix D, Gunning FOG Readability Formula Group- Appendix E, and FORCAST Formula Group- Appendix G), and three separate groups containing one passage each (Flesch-Kincaid Grade Level Index Group- Appendix C, McLaughlin SMOG Formula Group- Appendix F, and Cloze Procedure Group- Appendix H). A more subjective measure was used in the General Textbook Readability Checklist (Appendix I).Procedures were followed for each of the Formulas and Indexes, and results were tabulated and reported. A brief summary and discussion were included in the write-up. Results and Discussion This purpose of this study wa s to examine textbook readability by applying several readability formulas, including the Fry Readability Graph, Flesch-Kincaid Formula, Flesch-Kincaid Grade Level Index, Dale-Chall Readability Formula, Gunning FOG Readability Formula, McLaughlin SMOG Formula, FORCAST Formula, Cloze Procedure and the General Textbook Readability Checklist, to a biology textbook titled, Modern Biology.As table 2 illustrates, the Flesch-Kincaid Formula (10. 8 grade, 15. 8 years old) was the only readability method that supported the teachers decision to use this textbook. The Fry Readability Graph (Table 1) indicated that the textbook was at an 8th grade level (13 years old). The remaining objective methods for readability, Flesch-Kincaid Grade Level Index refer to Table 3 (12 grade), Dale-Chall Readability Index (Table 4 -16 grade), Gunning FOG Readability refer to Table 5 (13. 6 grade, 18. 6 years old), McLaughlin SMOG Formula see Table 6 (13. 1 grade, 18. 1 years old), and the FORCAST Formula see Table 7 (12. grade, 17. 1 years old) indicated that the textbook reading would be too difficult for a 10th grader. In an attempt to produce a more cohesive point on the scale of readability, the averages of six tests (Fry Readability Graph, Flesch-Kincaid Formula, Dale-Chall Readability Index, Gunning FOG Readabilty, McLaughlin SMOG Formula, and the FORCAST Formula) were found for the textbook. As illustrated in Table 10, the average grade for this text is found to be at the 12th grade. The Close Readability Procedure results also indicate that the reading level is to difficult for the 10th grade class (Table 8).According to the General Textbook Readability Checklist the textbook is strongest in its usability and weakest in its understandability (Table 9). I really am not surprised that the results indicate that the textbook is too difficult for the 10th grade student. Science textbooks are probably inherently more difficult to read because the subject matter is more complex as is the terminology. Although these tests didnt provide the desire results, there is a lot of similarities between them and I believe that they are still good measures of the readability of textbooks.

Chaos theory

What but is the chaos hypothesis? Some believe the chaos theory is one of the many theories that will be recognized in the centuries to come. The chaos theory embodies many conditions of science, such as physics, engineering, economics, philosophy, mathematics, music, and up to now psychology. The chaos theory is only beginning. The chaos theory is a theory used in different categories of science that a seemingly possible phenomena has an underlying meaning. When was chaos first discovered? Edward Lorenz was the first true experimenter in chaos, he was a meteorologist.In 1960 Edward Lorenz was working on a weather prediction problem, he ad a computer set up to model the weather with 12 equations. His computer program did not predict the weather, but theoretically predicted what the weather might be. In 1961 Edward Lorenz wanted to see a specific sequence again, to pull through time he began in the middle of the sequence. He entered his printout number and let it run. An hour la ter the sequence had changed differently. The pattern had diverged, ending up being exceedingly different. His computer had saved the numbers to a six decimal place, he printed it out for three decimal places to save paper.The original sequence was 0. 506127 he had it as 0. 506. Lorenzs experiment he ditterence amongst the sta rting values ot these curves is only . 000127. (Ian Stewart, Does God Play Dice? The Mathematics of Chaos, pg. 141) This is how the flutter effect became, because of the number of differences of the two curves starting shoot fors was that of a coquettes wings flapping. Unpredictability is one of the most important element is a complicated system. Lorenz calls this flightiness sensitivity to initial conditions, which is also known to be the butterfly effect.This idea means with a non-linear, complex systems, starting conditions will effect in extremely dissimilar outputs. The effect of the utterflys movements, to predict the weather. An example is if a bu tterfly flaps its wings in Tokyo, it could predict a storm in Texas in several weeks time. The dependance on initial conditions is extreme. There is a mold for complicated systems that one cannot create a model that will predict outcomes accurately. The idea initial conditions on sensitive dependance mathematical roots be powerful.If you have a circle with the points XO and Xl , this represents the starting value for a variable. We assume that the difference betwixt there two numbers is represented by the keep between the points on the circle, given by the ariable d. To demonstrate the importance of infinite accuracy of initial conditions, we iterate T. Atter only one iteration, d, or the distance between T ), has doubled Iterating again, we find that the distance between the two points, already twice its initial size, doubles again. In this pattern, we find that the distance between the two points, Tn(XO) and Tn(X1), is 2nd.Clearly, d is expanding quite rapidly, leading the mod el further and further astray. After only ten iterations, the distance between the two points has grown to a whopping 210d = 1024d. This example determines that to close conditions begin, after only a few minor ifferences, and iterations. The exact point on the circle can only be describes with an infinite amount of decimal places, the other remaining decimal places are discarded. There will always be a decimal error even if you enter the initial numbers into the computer with precision.Chaos is deterministic, sensitive to initial conditions, and orderly. Chaotic systems do have a sense of order, non chaotic systems are random. In a chaotic system even a minor in the starting point can lead to different outcomes. Equations for this system appear to show an append to completely random behaviour. When raphed the system, something surprising happened, the output stayed on a double spiral curve. Lorenzs equations were certainly ordered, because they all had followed a spiral. The poin ts never ended on a single point , but they werent periodic either, they never repeated the same thing.He called his graphed equation the Lorenz attractor. In 1963 he published a paper describing his discovery and the unpredictability of the weather. This paper also included key information about the types of equations and what caused this behaviour. Since he was not a mathematician or a physicist he wasnt cknowledged for his discoveries until year later, when there had already been rediscovered by others. Lorenz had to wait for someone to discover him, his discovery was revolutionary. Another example of sensitive dependance of initial conditions is flipping a coin. There are two variables.One is how steady it is flipping, and the other is how fast it will hit the ground? Apparently, it should be likely to control how might the coin end up. In practice, it is impossible to control exactly how fast the coin flips and how high. There are similar problems like this in ecology. This oc curs with the prediction of biological population. If the population rises continually, but with predators and limited food supply the equation is incorrect. next years population = r * this years population * (1 this years population) Benoit Mandelbrot was a mathematician working at 18M, he was studying self- similarity.One ot the areas ne studying was cotton prize tluctuation. He tested many times to analyze the data of the price for cotton, but the data did not go with the normal distribution. He decided to collect data from. Mandelbrot in the end gave up, until he decided to gather all the information dating back to 1900. He IBMs computer and found a surprising fact The numbers that produced aberrations from the point of view of normal distribution produced symmetry from the point of view of scaling. Each particular price change was random and changes unpredictable.But the sequence of changes was independent on photographic plate curves for daily price changes and monthly pri ce changes matched perfectly. Incredibly, analyzed Mandelbrots way, the degree of variation had remained constant over a tumultuous sixty-year period that saw the two human being Wars and a depression. dames Gleick, Chaos Making a New Science, pg. 86) Another example of the chaos theory is the human heart. The heart has a chaotic pattern. The time between the beats is not constant. It depends on how much actions a person is doing and there also among other things.

Performance Appraisal: a Critical Review

PERFORMANCE APPRAISAL A CRITICAL REVIEW Abstract Performance approximation is utilise in many organizations in order to assess the surgical process of their employees. But there argon some issues and problems that are associated with implementation judgment commode bear negative impacts on the exertion of employees and can make it useless. These issues and problems are absence of objective criteria, gender issues, raters bias, social and ethnic issues. And there are a posteriori rehunt evidences that are genuinely much consistent with the problems and issues I identified before.But performance appraisal should non be abandoned due to the problems mentioned above. Its can prove very effective if used by trained authenticators in a constructive manner using objective criteria against which the performance of the appraisee to be checked. It not only reviews the performance of an employee but also helps to identify dressing and breeding needs of the appraise. Introduction In organizations, there are some formal and unceremonial methods of performance assessment, and performance appraisal is one of the most widely used formal methods of the assessment of performance.Performance appraisal is also a valuable calamus of performance focus in organizations as CIPD describes thatPerformance appraisal is an distinguished part of performance management. In itself it is not performance management, but it is one of the plod of tools that can be used to manage performance (CIPD, 2008). CIPD (2008) describes that performance appraisal essentially provides an opportunity to the appraisees and appraiser to review and discuss, in a constructive manner, the performance of the appraisee and possible reasons and determinants of his or her bad performance in a one on one meeting.It also provides an opportunity to them to identify and set objectives regarding training and development for the future and to reach an agreement about the possible actions required getting those objectives and the support the soul or appraisee expects from the manager. If performance appraisal is conducted in a beautiful and constructive manner, then it can establish a positive relationship surrounded by the individuals and the line managers. Aims and objectives of performance appraisal on that point are some blow over aims and objectives for conducting performance appraisal in organizations, and these objectives are listed and described below 1. atomic number 53 purpose of conducting a performance appraisal is to exercise organizational control 2. The chief(prenominal) purpose of a performance appraisal system is to review the performance of individuals over a period of time 3. Performance appraisal is also aimed at finding out that the appraisee is productive or not. 4. One purpose of performance appraisal is to review the actual performance of an employee against the set objectives or desired standards. 5. some other important objective of conducting a perfor mance appraisal is to find training and development needs of the appraisee. 6. One purpose is to identify the type of support the appraisee expects from the management in order to meet those training and development needs. Key elements of performance appraisal CIPD (2008) has described avocation five key elements of performance appraisal 1. beat individuals performance is assessed against agreed standards and objectives. 2. Feedback the individual or appraisee is provided information on his performance and progress after the performance has been assessed. . Positive reinforcement the appraiser recognises the good performance and make constructive criticism about the aspects of performance where there is a need of improvement. 4. Exchange of views there is a dialogue between the appraiser and the appraisee about the outcomes of the assessment, and how appraisees can improve their performance, the support they need from their managers to achieve this and their aspirations for th eir future career. 5. Agreement an agreement is reached by all parties about what needs to be done to improve performance and issues are overcome. Problems with performance appraisalHaving described the definition, objectives, and the key elements of performance appraisal, we move on to problems or dilemmas with performance appraisal. Performance appraisal is considered a way or tool of motivation and enhancing morale and it is also assumed that appraisal will lead to an improvement in performance or performance will decrease without appraisal. (Grint, 1995). But it can also lead to negative effects on performance and motivation and leaves the apprsisee with negative feelings much(prenominal) as inferiority, bitterness, depression and some other negative feelings (Ridly, 1995).On the part of the appraiser, there are some dilemmas and difficulties that the appraiser faces in the course of performance appraisal process. One of these is the subjectivity of the appraiser that cannot b e completely avoided in spite of efforts. Another important dilemma faced by the appraiser is to play both the roles of a judge and a facilitator at the same time as Fiona Wilson (2002) and many other including McGregor (1957), and Fletcher and Williams (1985) stool described this problem. One of the aims of performance appraisal is to identify training and development needs of the employees.In order to do so, the appraiser is assumed to judge the gaps between the desired performance and the actual performance by assessing the performance of the employee against a set of objective standards, this not always possible to have objective criteria available, as Fiona Wilson (2002) describes that If staff development is the aim then the temptation is to search for inadequacies in the appraisees performance. In order to act as judge the appraiser needs criteria with which to judge, yet the internal evaluation and trait oriented criteria for evaluating performance have been recognised as a central problem.Objective criteria against which to assess staff are difficult to achieve and are going to be faultfinding(prenominal) to some degree. Counseling does not usually involve making any judgments but allows the person to reflect on performance and make their own judgments. There is an increase in the use of 360-degree feedback in organizations as Bruce and Ira Kay have noted that The use of 360-degree feedback has grown dramatically in recent years. According to HR consulting firm William M. Mercer, 40 percent of companies used 360-degree feedback in 1995 b 2000, this figure jumped to 65 percent (Bruce & Ira, 2002).But there are also some sincere issues associated with 360 degree feedback and it is assumed that it can have some negative effects on performance and can hurt the appraise as Bruce and Ira Kay (2002) have quoted Watson Wyatts human capital index playing area which found that the use of 360-degree feedback is associated with a decrease in shareholder ba nkers bill out. Bruce and Ira also quoted the other findings of Watson Wyatts HCI study and described thatWatson Wyatts 2001 HCI report revealed that companies using 360-degree feedback have lower market value.According to the study, companies that use peer review have a market value that is 4. 9 percent lower than similarly situated companies that dont use peer review. Likewise, companies that allow employees to evaluate their managers are valued 5. 7 percent lower than similar firms that dont (Bruce & Ira, 2002). Ghorpade (Ghorpade quoted in Bruce & Ira, 2002), a professor of management at San Diego State University, reported that only triad studies out of 600 feedback studies found improvement in performance and one-third found a decrease in performance and rest of them found no effects.Bruce and Ira (2002) have also identified some other issues and problems with 360-feedback such as lack of training, and the costs of 360-degree feedback. Arvey and Murphy(1998) have described t he issues around the costs of measures of performance as well A discussion of the relative costs of utility(a) performance measures was provided by Stone et al (1996). As an alternative to a more expensive hands-on performance measure, a affordable, readily available measure of performance was developed for Air Force specialty jobs using an existing data base that rank-ordered individuals.More research is needed to explore the relative advantages of low-fidelity and low-cost performance measures. Conceivably the relative value of such instruments might be better than more highly specific, high-fidelity instruments if relatively molar decisions are universe made about individuals (e. g. promote versus not-promote, high versus low performance) Subjective and objective Evaluation The main problem and issue associated with performance appraisal may be the subjective evaluation and absence of objective criteria against which the performance of the individual is to be assessed.Subjecti ve evaluation may result in devastating effects on the performance of the individual or the appraisee. As Longenecker et al. (1987) have noted that the appraisers olds intentionally distort and manipulate appraisal for political purposes. Subjective measures of performance sometime lead to biasness on the part of the rater and result in negative effects on performance. But Arvey and Murphy (1998) have reviewed a research conducted by Bommer et al in 1995, and described that Bommer et al assessed the relationships between relatively objective and subjective measures of employee performance.He used meta-analytic techniques to summarize the relationships for over 50 independent samples, and found that the dickens measures were significantly related. Bias on the part of line manager or the appraiser or rater can result in negative effects on performance. Arvey & Murphy (1998) write that many studies have focused on the potential biases of supervisors that occour as a result of their l ikings and disliking about their subordinates. But recent studies show that emotional influences on ratings may not represent rating biases. Vera et al (quoted in Arvey & Murphy, 1998) presented evidence that supports this argument.Arvey and Murphy (1998) quoted a study in their paper conducted by Schrader and Steiner in 1996, and described that They hypothesized that ratings in which employees are evaluated against clear and specific objective standards will differ from those in which such objective criteria are not specified and the standards are ambiguous. Results supported this proposition. However, ratings made when using internal, relative, or multiple standards of comparison were not terribly different from those made under the more objective conditions both in terms of mean differences and supervisor-self agreement.Thus, a conclusion that employee standards that involve objective and specific standards against which to evaluate individuals are the one best method seems prem ature given the results of this study Ethnic, Social and Gender Issues There are some gender, and social issues in terms of bias and subjectivity related to performance appraisals. Societal stereotypes may pillowcase the appraisers to be biased against women and minorities.In 1996, Woehr & Roch (quoted in Arvey & Murphy, 1998) studied the effects of prior evaluations that were different in terms of performance and ratee gender on succeeding evaluations and on recall of a male or female of average performance. Results bespeaked that both the performance level and the gender of the target ratees prior evaluation affected the subsequent rating. Relatively low performance for the prior target influenced subsequent evaluations differentially for male and female target ratees and males were given higher evaluations than females.Another study conducted by Ford et al (quoted in Arvey and Murphy, 1998) conducted a meta-analysis across 53 studies, and found that that blacks receive slightl y lower performance scores than whites on both subjective and objective measures of performance. Arvey and Murphy reviewed a study conducted by Kraiger and Ford in 1985, and wrote that Kraiger & Ford (1985) conducted a meta-analysis of 74 studies across field and laboratory settings and concluded that an fundamental interaction effect existed White raters rate white ratees higher than black ratees, whereas black raters evaluated black ratees higher than white ratees.Moderator effects were found also for group part and research setting Effect sizes increased as the proportion of blacks in the group decreased, and field studies generated larger effect sizes than laboratory studies. (1998). These are the problems and issues that make a person think if the performance appraisal should be abandoned or not. In my opinion, performance appraisal should not be abandoned because of the problems and issues associated with it, if it is used carefully in an objective and constructive manner, i t can prove a useful tool in motivating, developing and enhancing the performance of an employee.Bruce and Ira have also move to answer this question Despite these drawbacks, there are good reasons not to give up on 360-degree feedback. The process still holds the potential to deepen employees pinch of their own performance. And, it may be able to help companies create value by better aligning job performance with business strategy. The question is this bathroom 360-degree feedback be implemented in such a way that it achieves these benefits without negatively affecting the bottom line?Based on our analysisand conversations with clients we believe the following steps may help companies transform 360-degree feedback into a value creator, not destroyer. Implement 360-degree feedback for the right reasons. The first thing you need to ask is why youre doing it, says capital of Minnesota Rumely, a New York-based executive coach, If you cant articulate a strong business case for a 360- degree feedback program, it should not be introduced (Bruce & Ira, 2002).Training can be very useful in enhancing the effectiveness of performance appraisal systems and can equip the raters with essential knowledge and skills to cope with the problems and issues associated with performance appraisals in work settings. Bruce and Ira suggest that Train people in giving and receiving feedback. Companies that implement 360-degree feedback without first checking and developing managers feedback skills risk serious damage to teamwork and morale. Providing constructive feedback takes instruction, training and practice. (Bruce & Ira, 2002).They also write that slice training individuals to give and receive feedback may temporarily increase the expense associated with 360-degree feedback programs, the gains will outweigh the higher costs as the feedback delivered to participants becomes more focused, targeting the behaviors most well-nigh associated with value creation and destruction. Ult imately, the goal should be to create a culture in which individuals feel comfortable giving and receiving feedbackboth positive and negativeon a realtime basis, rather than waiting for an annual review (Bruce & Ira, 2002).Assessment of performance of employees is essential to the process of performance management in organizations, and a performance appraisal not only assess or review the performance of an employee but also identify training and development needs of the employee, and is an important need of organizations. As Fiona Wilson has also stressed Given these difficulties identified in the literature, it may be tempting to abandon any hope of finding dependable assessment of performance.Yet, there is still a need for control, accountability, assessment and staff development in organizations. Bias is difficult to overcome but can an individual give feedback on performance without that feedback being construed as negative and can staff be developed? One way to achieve this is to design an appraisal scheme where the emphasis is on development, to use a safe approach, which recognises achievements and supports professional development and avoids the issue of accuracy and rating of performance (Fiona Wilson, 2002).

Custom Snowboards Essay

routine Snowboards, Inc. is pleaseed in securing funding to expand into the European securities industry. Financial statistics get been provided inwardly this tarradiddle to discuss the feasibility of this enlargement. To fund the project, use Snowboards wishes to secure capital debt of $1,000,000. customs Snowboards has seen consider fitting growth in the percentage of rank revenue enhancement and substantial profit in revenue. They expect future uncouth revenue to continue to rise, which would be beneficial to the l arrester and utilisation Snowboards. A flat analysis leave al hotshot be reviewed and lead shop the utilization Snowboards financial position everywhere a three- stratum period. This get out servicing in the actual approval process. The review provide bear at hear points and pass on help to confirm Custom Snowboards ability to success honesty expand into Europe. put to work upabilityThe financial health of a caller-up reviews gross revenue, be as limits and electronic pelfwork price in relation to how profit was earned (Hunt, 2013). Thus, income statements from a three division period will be reviewed and this will help develop a picture of Custom Snowboards financial health. solve SalesNet gross gross gross sales increase 32,200 or 0.49% from social class 12 to socio-economic class 13. This indicates strength within Custom Snowboards, even though the increase was minimal. Year 13 to year 14 net sales useped by 3.4% or $225,400. This does not bode well for Custom Snowboards and could cause a chafe regarding the ability to repay the debt. The utilisation SNOWBOARDSCompanys corrective action project should be reviewed to see if the changes implemented worked.Cost of Goods SoldThe apostrophize of goods sold in year 12 and 13 increased by 0.49% or $22,400. Thisis considered strength. It makes since that net sales increased that the look at aim for goods sold increased as well. However, when net sales decr eased in year 13 and 14 so did the demand for goods sold. This decrease is equal to a decrease in sales of 3.4%. There was no over spending during this term frame and is determined by the greet of goods sold and net sales percentages were exactly the same.Gross ProfitYear 12 and 13 aphorism gross profit increase by $9,800. Again, sales were increased, so gross profit was increased by 0.049%. The gross profit was above $2,000,000 during year 12 and 13. Gross profit by year 14 had dropped 3.4% or $1,950,200. This is a line of work for Custom Snowboards, since it represents a decrease in revenue and viability. in operation(p) IncomeOperating income for year 12 and 13 dropped by $63,000 or 23.56%. The operating income continue to drop during year 13 and 14. By year 14, the operating income had fallen $109,000 or 53%. This is a busy for Custom Snowboards and they may ingest trouble paying all their liabilities. Custom Snowboards finance team means to implement protocols to correct deficiencies in operating income. Earnings before income taxesEarnings before income taxes dropped by $57,800 or 30% in year 12 and year 13. This continues to drop 82.74% during year 13 and year 14. However, Custom tradition SNOWBOARDSSnowboards lost $106,000 on salary before income taxes. Earnings before income taxes help tack together a measurement of profitability, except do not really represent exchange pelf (Investopedia, 2013). To specify on credibility, other factors have to be considered on with this item. However, Custom Snowboards wants to witness enhancer and accuracy in trying to secure this debt.Net IncomeNet Income was down $43,350 or 30% during year 12 and year 13. This drop act into year 13 and year 14 by continuing to drop 82.74% or $80,175. This is a concern for Custom Snowboards. This indicates dominance problemsexist, such as workf unkept, end product, and pay. Further much, the financial picture of the go with is not a healthy one.Liquidity Trading activity within Custom Snowboards liquidity is characterized as high. The horizontal analysis will determine how quickly currency weed be converted into use. Also, the horizontal analysis will help determine the troupes liquidity and the ability to meet obligations.Cash and Cash EquivalentsSh atomic number 18s and bonds that bottomland be easily converted into hard currency argon considered change and cash equivalents. This converted cash is then immediately avail equal for use. Custom Snowboards had a cash and cash equivalent of 83.8% during year 12 and year 13, but that dropped to 7.2% in year 13 and year 14 since sales dropped during that period of epoch. This would be a concern for Custom Snowboards and indicates they may not have the custom SNOWBOARDS 5assets on tap(predicate) to bind immediate cash flow available, oddly if sales are not as expected in Europe. essential Current Assets$142,260 or 19.3% represents the total new assets of Custom Snowboards durin g year 12 and year 13. However, in year 13 and year 14 total current assets fell 16%. This is a concern for Custom Snowboards since the come with must(prenominal)(prenominal) have enough assets to fund ope proportionalityns and pay expenses. Continued low sales and hold assets is a concern for lenders and poses the enquire if Custom Snowboards would be able to meet its financial short-run obligations.SolvencyCustom Snowboards appears to be financially solvent from the review of the income statement and equilibrium sheet. Custom Snowboards has dressd liabilities and maintained consistent repayments to reduce grand-term financial obligations. This is strength for Custom Snowboards since they saw sales drop.Long-term LiabilitiesYear 12 and Year 13 saw long-run liabilities drop 6.4% and then drop another 6.8% in year 13 and year 14. This is strength for Custom Snowboards and shows a determination in simplification these liabilities. Custom Snowboards is attempting to demonstra te they are committed to expansion and growth. They anticipate the European expansion will help generate sales and earnings that will help them meet their long-term liabilities. consumption SNOWBOARDS 6Total LiabilitiesCustom Snowboards posted total liabilities of $54,640 in year 12 and year 13, which is down 5.5%. Total liabilities continued to show a decrease during year 13 and year 14 of 6.2% or $57,520. This is strength for Custom Snowboards and shows a determination to reduce debt. Custom Snowboard has provided transparency of its financial records to provide an recogniseing of the mission of the company and to help with the approval process in securing the $1,000,000 debt.A2. RisksProfitability is important in any parentage sector. To learn profitability, cost-saving measures must be considered and initiated to reduce financial assays (Hunt, 2013). This will help Custom Snowboards continue to grow and see sales grow. Net SalesNet sales dropped $225,400 or 3.4% in year 13 and year 14. Merkgraf (2013) believes the way to increase net sales is to hold ply accountable by and by the implementation of ad hoc sales strategies and the setting the bar high. To accomplish this, the focus will involve to be on repeat sales. This put forward be accomplished through market outing and thus the marketing budget will need to be addressed and have additional funds. merchandising and public relations can help increase the drop in sales and to inform consumers Custom Snowboards is stick outning expansion into the European market. A realistic conclusion to strive for is a 20% increase in sales each year for the next 5 years to help recover from the loss in sales and revenue. This will make the company more advantageous and increase the net operating income. Marketing must focus on repeat clients and initiating creative promotionalincentives that will bring in customer affaire. Sales staff must in like manner find customs SNOWBOARDSThese incentives bene ficial so they are able to be resourceful when utilizing sales tactics and to override potential customers into actual customers. The actual plan must implement methods that are cost effective and do not increase cost during drudgery. The goal is to reduce spending and costs and increases sales.Gross ProfitGross profit was preserve at $1,950,200 or a decrease of 3.4% at the end of year 14. This is a concern since the goal of all logical argument is to increase gross profit to make the company more valuable. The company must increase sales to note gross profit up. Operating IncomeYear 12 and year 13 saw operating income drop $63,000 or 23.56%. Operating income continued to crash in year 13 and year 14 to $109,000 or 53%. Again, sales must increase for an increase in operating income to be seen. A doable strategy to increase sales is to offer personalized snowboards. These snowboards can be priced less than other snowboards, thus making them more attractive to the customer. Als o, it ruins the customer a chance to obtain a product different from others and cheaper than others, which can increase the interest to purchase the product.Earnings Before Income TaxesYear 12 and year 13 earnings before income taxes dropped $57,800 or 30%. This objurgate continued into year 13 and year 14 with a drop of $106,000 or 82.74%. This is not a good sign for Custom Snowboards. Costs need to be cut and management will need to determine where the areas that can be trimmed exist. The goal of any work is profitability and growth. The company will need to demonstrate they are capable of usance SNOWBOARDS 8meeting financial obligations when expansion into the European market is well underway.Net IncomeNet income dropped 30% or $43,350 in year 12 and year 13. This drop continued into year 13 and year 14 with a total drop seen of $80,175 or 82.74%. This indicates a poor financial picture and position for Custom Snowboards. There may be production or workflow problems that may become apparent and be concerning to lenders. This drop in net income affects everyone within the company. To increase net income, sales must be increased. Thus, the minimal advertising budget must have additional funds allocated to increase sales and public relations. This is especially important during expansion to let customers sleep together Custom Snowboards will be involved within the European market. Cash and Cash EquivalentsCash and cash equivalents were enter at 7.2% in year 13 and year 14. This is a substantial drop from previous recordings. To avoid liquidity concerns, Custom Snowboards must increase the balance in cash and cash equivalents. nail down causes for the decline must be determined and corrective plans must be implemented. An increase in marketing and public relations to increase product sensation is one example that could be implemented that would help generate sales.Total Current AssetsAssets are important in the business arena and profitability inelucta bly to rise for a company to be successful. Total current assets dropped 16% in year 13 and year 14 for Custom Snowboards. This is a concern and companies that see assets drop are not profitable and over time lose cash (Hammel, 2013). Total current assets need to be CUSTOM SNOWBOARDS 9raised and to do so debt inescapably to be paid off or even down. However, Custom Snowboards involve to redirect some monies to be utilized during the expansion process. A3. Ratio AnalysisThe solvency of Custom Snowboards will be reviewed and confirmed by the symmetry analysis. Custom Snowboards is seeking a loan for $1,000,000 and has great potential for growth in the snowboard market. The snowboard market has seen a demand for the product and an increase in sales. Income statements and balance sheet from two years of financial information will be reviewed and presented.ProfitabilityGross Profit MarginCustom Snowboards financial health is determined by the gross profit margin. Year 13 Custom Snow boards gross profit margin was 30.4. This means Custom Snowboards upholded $0.30 out of every $1.00 earned. Year 14 saw no change in the gross profit margin. A gross profit margin of only 30.4 is not a strong margin ratio and indicates a weakness for Custom Snowboards, especially when the industry average was 32.1%. Custom Snowboards experienced a reduction in sales and was able to maintain the $0.30 per dollar in revenue, which indicates strength within the company. It goes without reflexion that profitability will be low when gross profit ratio is low (Horngren, 2009). Custom Snowboards plan to help the expansion project by eliminating costly liabilities.Net Profit MarginCustom Snowboards net profit ratio was 1.5% in year 13 and with a downturn in sales in year 14 the ratio had dropped to 0.3%. This was well below the industry average CUSTOM SNOWBOARDS of 5.1% save by Winter Sports. This is a concern for Custom Snowboards since the business sustainability is in question if pro fit drops or is absent. Custom Snowboards needs to increase sales and show an increase in network to ease any concerns lenders may have regarding the companys efficiency to reverse the unforeseen decrease. Return on Total AssetsCustom Snowboards go past times on total assets was preserve at 5.4% in retrogresss in year 13, which is considered a strong performance. The profitability and sales were strong as well. However, Custom Snowboards stop on total assets had dropped to 1.0% by the end of year 14 due to poor sales and profitability. A major competitor, Winter Sports, recorded a more profitable year at 4.8% return on total assets. This demonst evaluate the competitor was able to control budget items better than Custom Snowboards. Return on Common EquityReturn on commonplace equity demonstrates how equity is effectively used to createmore profits and is a significant ratio for the company. The return on common equity for year 13 was 11.4% and is seen as strength for Custom S nowboards. It figures to $11 return on every $ degree centigrade earned by the company. However, by year 14 the return on common equity had dropped to $2 on every $100 earned. This was subpar and below the industry average. A major competitor, Winter Sports, recorded 8.1% return on common equity ratio.LiquidityCurrent RatioProblems with liquidity can be found within a common financial ratio. This will give an idea of what the working capital position is like for that company. Furthermore, CUSTOM SNOWBOARDS it will be a good exponent to determine if a company will be able to repay a debt within a 12-month time frame. A company with a high current ratio often has cash or inventory necessary to pay for short-run debts. The current ratio for Custom Snowboards during year 13 was 6.82. This is an acceptable number, as 2 often is the indicator that determines whether a company is able to pay for short-term liabilities. Again, year 14 saw a decrease in numbers and lost almost one full poi nt in the current ratio dropping to 5.84. This is not a cause for concern, but demonstrates strength for Custom Snowboards and their position to meet short-term liabilities. This ratio is better than a major competitor, Winter Sports, who recorded a current ratio of 4.20. Acid-Test RatioInvestopedia (2013) defines an acid-test ratio as one that determines whether inventory needs to be sold to cover immediate liabilities or if a company has enough short-term assets to do so. Along with a current ratio, the acid-test ratio should have a high number to be in a better financial position. Year 13 recorded the acid-test ratio at 6.82 and year 14 at 3.64. Year 13 and year 14 are seen as strengths, since an acid test ratio should have a 1 or higher to be considered able to meet current liabilities. Year 14 saw Custom Snowboards lose sales in a struggling economy yet maintain a higher acidtest ratio than the industry average of 3.40. Again, this is seen as strength for Custom Snowboards an d the ability to meet short-term obligations.SolvencyDebt RatioA debt ratio is reviewed to see the financial ability of a company to repay its debts and the ability to have a cushion to fall back upon should the need arise. Custom CUSTOM SNOWBOARDSSnowboards has stringently worked to accumulate large cash and cash equivalent balances to help in case of an economic downturn and prevent a cash crisis. The debt ratio was 52.5% in year 13 and 50.4% in year 14. This reduction demonstrates company strength, since Custom Snowboards was able to continue to reduce debt go facing a decline in profits and sales. However, Winter Sports were able to record a lower debt ratio of 38%. Custom Snowboards must develop a strategic plan to increase sales, reduce costs, and reduce current debts so they are able to reduce the gambles for insolvency. Time Interest EarnedA higher time interest earned ratio is indicative on how well a company can make payments on interest owed for debts. To find this rati o, you must know the total earnings before interest and taxes of a company then divide by the total amount of interest due on the debt. Custom Snowboards recorded a 2.58 time interest earned in year 13 and 1.29 time interested earned in year 14. A time interest earned ratio of 1.5 is indicative of the companys ability to make payments on the debt. Thus year 13 is strength for Custom Snowboards and was generating enough money to meet the interest payments owed. However, year 14 saw a decrease and a weakened financial position. This was due to a decline in sales and difficulty generating revenue. Winter Sports had a much stronger financial position and recorded a time interest earned ratio of 5.10. B1. Historical AnalysisThe past and present performance information of Custom Snowboards liability and equity will be reviewed utilizing a horizontal analysis for year 12, year 13, and year 14. The balance sheet and income statement will be reviewed and comparisond to measure CUSTOM SNOWBO ARDS 13growth and reduction. The review will also look for insolvency so correctiveactions may be implemented.Net ProfitNet sales and growth in profit is important for company existence. Net sales for Custom Snowboards were recorded at $6,601,00 in year 12 and increased by $32,200 or 0.49% in year 13. Year 14 saw a decrease in net sales and recorded a drop of 3.40% and net sales of $6,407,800. Net sales, when up, indicate strength for a company and are indicative of a expand business, but when down there is an effect on profit that everyone notices.Cost of Goods SoldThe cost of goods sold in year 12 and year 13 increased 0.49% and recorded expenditures of $32,000 more in year 13 on cost of goods sold. This actually amounted to the same as net sales during the same time period. Year 13 and year 14 saw costs of goods sold drop and net sales drop to 3.40%. These can be seen as strengths for Custom Snowboards since they are meeting the demand for their product and demonstrating a relat ionship between profit and cost of goods sold (Kennon, 2013). Gross ProfitCustom Snowboards recorded an increase in gross profits of 0.49% in year 12 to year 13. This is not surprising since net sales and cost of goods sold were recording an increase at this time. This is considered strength for Custom Snowboards because gross profits increased when sales increased. Year 13 to year 14 gross profits saw a dramatic drop of 3.40% or $600,000 due to the decline in sales from the economic downturn and the possibility of competitors selling similar products at reduced costs. CUSTOM SNOWBOARDS 14Operating ExpensesOperating expenses for Custom Snowboards increased 4.21% or $733,000 in year 12 and year 13. This trend continued into year 14 and increased another 2.23% or 40,400 to a total of $1,853,200. Custom Snowboards must find a way to determine how operating expenses can be reduced without facts of life product prices yet increasing sales. General and Admin ExpensesCustom Snowboards inc reased administrative salaries 4.76% in year 12 and year 13 when sales were increased as well. Salaries also increased during thistime period 13.63%. This makes sense because sales were increased, so production would need to be increased as well. Administrative compensation is a concern upon review and rose from $210,000 in year 12 to $250,000 in year 14. Year 14 saw sales drop and gross profits drop. The demand for products has been reduced and this is not feasible that compensation should continue to increase more than 13%.Executive SalariesCustom Snowboards increased executive salaries 2.63% in year 12 and year 13. The company proceeded to increase executive salaries again in year 13 and year 14 10.26%. This is not feasible and a concern for Custom Snowboards. The company needs to be cutting operating costs and compensation of executive salaries since a loss of sales and demand for products has turn overed. Custom Snowboards needs to measuring rodize production practices for ma ximum efficiency, reduce staff hours to compensate for the decrease in production demand, and reduce costs while the demand remains low. CUSTOM SNOWBOARDS 15UtilitiesCustom Snowboards recorded increased utility costs of 7.14% or $17,000 in year 12 and year 13 and then a continued increase of 1.96% or $5,000 increase for year 13 and year 14. The increase in year 12 and year 13 is not surprising because the demand for products was higher and sales were increased. The cost for utilities and energy consumption should then have decreased when production demand waned. The utility budget for Custom Snowboards was not realistic, since sales increased 0.49% or $32,200 and that is less than half of what monies are provided within the utility budget. Current AssetsChanges in percentages on multiple accounts can affect profitability. Custom Snowboards recorded current assets that changed period to period by increasing and then decreasing.Cash and Cash EquivalentsCustom Snowboards recorded an 83 .8% increase in cash and cash equivalents in year 12 and year 13. This gave the company a large cash balance and theability to meet short-term obligations without problems. A 7.2% reduction in cash and cash equivalents in year 14 was recorded when sales declined. The higher the cash and cash equivalents the more availability the company has to liquidate assets to cover short-term obligations. Accounts ReceivablesCustom Snowboards recorded a minimal increase of 0.5% in accounts receivable during year 12 and year 13. To have an increase in accounts receivable is a concern for the company since its indicative that customers are often having trouble making payments for products purchased. Accounts receivable was improved in year 13 and year CUSTOM SNOWBOARDS 1614 when a decrease of 3.4% was recorded. This would be strength for the company and indicate the customer has paid for products purchased and revenue is moving in the right direction. painful Materials InventoryRaw materials inven tory increased 0.5% in year 12 and year 13, but decreased 3.4% in year 13 and year 14. To have limited raw materials inventory for production is strength for Custom Snowboards. This limited inventory is easy to store when sales decline and easily accessible when sales rebound and production increases. LiabilitiesLiabilities are obligations owed on short-term and long-term debts. Custom Snowboards decreased liabilities 5.5% in year 12 and year 13. The company was further able to reduce liabilities 6.2% in year 13 and year 14. This is strength for Custom Snowboards and is indicative of positive financial repayments. Accounts and Notes PayableCustom Snowboards accounts and notes payable increased 0.5% in year 12 and year 13, but decreased 3.4% in year 13 and year 14. This is considered strength for Custom Snowboards and is indicative of positive financial repayments. Total Current LiabilitiesCustom Snowboards total current liabilities increased for year 12 and year 13 0.3%, but year 13 and year 14 recorded a decrease of 3.4%. This is strength for the company and again shows a positive repayment history that exhibitscreditworthiness. This should tell lenders that Custom Snowboards is committed to repaying liabilities even when a decline in sales come ups.CUSTOM SNOWBOARDS 17B1a. Future PerformanceA trend analysis will be conducted to view financial changes that have transpired over the multiple years within Custom Snowboards. These changes will then be calculated, evaluated and used for comparison to the base year to help develop a plan of action and provide direction for which Custom Snowboards will head financially. The base year is year 12 with $6,601,000 in net sales at 100%. Net sales recorded minimal growth in year 13 at 0.5% over base or 100.5%. Monetarily net sales recorded a $33,200 growth in year 13, which is not seen as a strong growth, especially since the demand for the product was decreasing. Year 14 recorded a drop in net sales to 97.1% from baseli ne in year 12 and 96.6% in comparison to year 13. This is a concern for Custom Snowboards since sales could not be maintained.Procedures may need to be reviewed to check for inconsistency and inefficiency in production and sales so this may be corrected and sales can be boosted. Pricing ad verticalments can be made and the product may become more appealing to potential and existing customers. Custom Snowboards forecasts a recovery of 3% in year 15 on the trend analysis, which will help strengthen their financial picture. Management envisions growth and net sales will occur and increase consistently as the economy improves. The forecast for year 16 is not as favorable as year 15 and net sales drop 1% or $100,000. The prices on products will be ad adepted to remain competitive within the industry. Management believes the economy will recover then net sales and revenue will improve. Year 17 is forecasted to improve 3.7% over base line or total earnings of $6,647,452. This trend analysi s shows the management of Custom Snowboards believes the company can recover and become prosperous and grow.CUSTOM SNOWBOARDS 18B2. Improvement RevisionLine items in use will be reviewed in the overhead analysis to see what is profitable, cost effective and best practice for personalizing snowboards.The goal for Custom Snowboards is to increase net sales and revenue and limit liabilities, while making everyone happy. The company must maintain prices that can be competitive within the industry and European market yet maintain profit margins that are reasonable to succeed.A traditional cost method is presently implemented at Custom Snowboards. The company currently has two product lines, fixedness snowboards and customized snowboards. The individual eccentric of snowboard and the inventory ordered for each determines the cost of each snowboard. The assumption is the manufacturing cost drives the price of the product. The concern with this type of cost driver is it does not take int o consideration all the underlying costs that affect the overall product price (Johnson, 2013). Custom Snowboards must be more accurate in production costs to have increased profits without rising product pricing and remain competitive in the industry. exercise establish cost could be something Custom Snowboards wants to implement to help obtain a more accurate picture of production costs. This method allows a company to see the overhead in manufacturing and what each activity actually costs in the production process. It is more accurate and adjustments can be made with specific activities to reduce the amount of money spent.Custom Snowboards produces regular and personalized snowboards. Activity based costing can compare these manufacturing processes and see where the overhead costs are in each step of the production process for each product. The material and labor CUSTOM SNOWBOARDSCosts for some(prenominal) traditional and activity based costing is $3,375,143 for the regular sno wboard. The personalized snowboard material and labor costs is $1,177,344 utilizing both the traditional and activity base costing methods.Custom Snowboards has a lump sum overhead charge for manufacturing using the traditional costing method. Regular snowboards sum is $1,068,982, while the personalized snowboards sum is $334,048. Utilizing the traditional costing method the total production cost is $4,444,125 for the regular snowboard and $1,511,392 for the personalized snowboard.Activity based costing distributes costs among the activities it takes for manufacturing to help determine accurate product pricing. Some activities included in activity based costing consideration are product organic evolution, lineament control, package assembly and shipping, and miscellaneous items. Regular snowboards have a manufacturing cost of $546,863 utilizing the activity based costing method. Personalized snowboards activity based cost for manufacturing is $856,167. Thus, total cost for product ion for regular snowboards is $3,922,006 and personalized snowboards is $2,033,511.The activity based costing method reveals Custom Snowboards has overspent during the manufacturing and production process while utilizing the traditional costing method. The new personalized snowboards have a greater factory setup cost, but should decrease over time as the product is sold. One forward motion identified is packaging and shipping of both products. There is a significant difference between the cost with regular snowboard packaging and shipping costing $266,072 and personalized snowboards packaging and shipping cost of $66,516. This is quite a dramatic difference, especially CUSTOM SNOWBOARDSSince regular snowboards comprise on 20% of sales while the personalized snowboard sells 80% of the sales output. The activity based costing method can help trim costs and overspending while being able to forecast more accurate pricing and sales to ensure a better return on investment.Custom Snowboar ds could utilize the just in time costing method that follows the principle materials do not sit in the warehouse, but are pulled when the demand is there for the product. This is not an rarefied costing method for some businesses, since it leaves no wiggle room when forecasting the future. The just in time method does minimize costs and production time, since these things take place when there is a demand for the product and no excess inventory is left sitting around. This leaves more cash for the company to re-invest and improve costs.For just in time costing to work contracts the company to forecast sales andevaluate excess inventory and materials. Custom Snowboards had $143,136 in excess inventory in year 14. This will continue to increase by 0.1% annually if no adjustments are made to production. Custom Snowboards has previously had excess inventory and materials left over annually. Utilizing the just in time costing method can help increase income for the company and help sa ve time, costs, and resources during the production demands.B3. Internal and External RisksRisks that can be controlled by the company are informal risks. Risks that happen outside of the company and the company cannot control are external risks. External risks often happen without warning and this is why companies must have the forethought to be prepared for many things. Some external risks include environmental ejects, currency CUSTOM SNOWBOARDS step in rates, economic factors, and legal issues both domestic and internal. Internal risks may include production staffing, language barriers, and management twist. Management Structure and StaffingStaffing and management structure would be considered an internal risk since Custom Snowboards will have to make changes in the management structure with expansion into Europe. The company will have business operations in two countries and the goal will generally need to remain the same at both locations. The leaders will need to be both ef fective and efficient to guide the company to a successful transition. Staffing will play a major role, since multiple positions will have multiple plurality working in that role in both facilities. The leadership of the company will have to evaluate these positions to maximize efficiency to work towards increased revenue and profits. Loss of FocusExpansion may often cause a shift of business focus to change and move away from important issue like quality assurance, production efficiency, and production deadlines. Leadership must ensure the company has a strong core to stay focused on the business goals for current and future project successes.Language and Cultural BarriersExpansion into Europe is bound to cause language and cultural barriers. A new country and market can cause interactions to be s proficient if language and cultural barriers cannot be breached. Language is important in business to ensure communication is effective the company must have leaders that know the langua ge in the new country and are sensitive to the cultural differences for a successful expansion. It would be CUSTOM SNOWBOARDSDeferential to offend potential customers, thus ruining company relations. The business goal is to prosper.Currency Exchange scoresThe expansion into the European market will require Custom Snowboards to deal with foreign currency. The foreign currency rates change frequently and Custom Snowboards will have to convert this into US Dollars. The company will have to ensure they are not losing money on their products and they are not overspending on production costs. The company cannot control this external risk factor, but they do need to try and prepare for any eventually that may affect the company. The US economy may be strong, but a variety of things can cause this to crash and the same goes for the European economy. Foreign economy can lead to large fluctuations and for great revenue gains, but it also means it can cause big losses as well.International Le gal RisksInternational and US legal risks are similar in temperament and can cause several problems. Custom Snowboards must understand the tax laws and operations as it expands into the European market. The company must understand the legal standards of the business operations in the market. The company must ensure they have met all the obligations of the law within the countries they will be providing services to and to defray any problems that may arise. Also, by understanding these laws Custom Snowboards can eliminate costly legal fees and fines.Environmental RiskAn external risk beyond Custom Snowboards control is an environmental risk. Snowboards require snow and winter. Environmental factors can severelyaffect sales of CUSTOM SNOWBOARDSSnowboards. Dry, warm climates are less likely to need a snowboard. Marketing is important in this aspect and should focus on areas that have winter seasons and snow. European areas vary in climate and marketing should focus on areas that are p rime for skiing. Weather patterns may also play a role in environmental risk. El Nino and La Nina can affect the winter season and how much snow and how cold the area actually gets.Complete Customer ServiceCustomer service is important with any business. The goal is to help square off any issues a customer may have to reduce the dissatisfaction. Custom Snowboards will have a large area to cover within the European market and must be cogzignant of a wide variety of languages and customs to be cognisant of. Customer support should be convenient for all consumers. A positive customer service experience will lead to good reviews and word-of-mouth sales, which boost revenues. Poor customer service travels fast and would hurt Custom Snowboards and reduce sales and revenue.Reputable SuppliersCustom Snowboards must be able to get products to the European plant to produce the snowboards. Communication skills are key to transaction with business partners to reduce any potential obstacles. B usiness practices must be clarified to avoid any complications. Product quality must be written contractually to avoid any possible confusion. Individuals with good communication skills must be placed in the positions to help secure these suppliers to keep product quality the best and available for production. CUSTOM SNOWBOARDSB3a. RecommendationManagement Structure and StaffingA management and staff model must be developed and utilized to extenuate risks. The plan must outline the companys organizational chart and who reports to whom. The organizational chart will outline each department of the company and the staff that are identified within each department. The company will then develop specific job descriptions for each position toclarify the role and expectations. Custom Snowboards management team will then be able to identify what positions are exactly needed and where cuts can be made. This will help ensure the strongest staff is in place for the expansion to deal with issu es as they arise. A plan in place will ensure the company can ensure smooth transitions for future expansions.Loss of FocusLoss of focus in current business practices requires a business plan to keep the company trained on the goal. The business plan will actually outline the goals Custom Snowboards has and where they want them to lead to. The company will implement the staffing plan into the business plan to mitigate risk. A taskforce will be formed that will focus solely on the management of the US plant, but will receive updates on the planned European expansion.Language and Cultural BarriersLanguage and cultural issues require knowledge and education to reduce risk. Employees who are educated on languages and cultures are more likely to be comfortable and less likely to offend the customer. Custom Snowboards can hire interrupters to help staff until all are comfortable within new positions and skills have been attained. The CUSTOM SNOWBOARDS 25company should also consider hirin g staff from all different cultures to strengthen the moral and company. Custom Snowboards should hold training seminars frequently to reinforce cultural identities served, especially when employees will be traveling to a new area.Currency Exchange RatesCurrency exchange rates are external risks, but Custom Snowboards are preparing to reduce any damage that affects the company. The exchange rates change frequently. The company will want to compare products with competitors to understanding pricing concerns prior to the expansion. The cost for production should carefully considered reducing all necessary overhead to increase revenue. The European financial market trends must be evaluated and then trend projections can be created. The financial market is not totally predictable so it not able to mitigate risk completely.International Legal RisksA legal team that is well versed with international law is key to reduce risk. Also, a management team that is aware of potential pitfalls and risks associated with international is key to have in charge during expansion. The company must comply with all laws and ensure they understand all the laws of the countries that they will be doing business with. The company should educate staff on what laws are pertinent to their respective departments and keep them abreast of changes. Custom Snowboards should ensure they have enough cash available to survive, should issues arise. Environmental RisksCustom Snowboards has absolutely no control over the environment. They can ensure plants and warehouses are up-to-date and in stable condition to be able to weather CUSTOM SNOWBOARDSAny type of weather they may encounter. Production needs to take place in multiple areas, so should something happen to one area they can continue production without further losses. Custom Snowboards can review and analyze annual weather reports to help forecast trends and be prepared for the unexpected. An environmental risk can take many forms and is hard to predict and control. The company must have multiple contingency plans in place for this reason.Customer ServiceCustomers are essential to a business. The profitability of a business relies greatly on how satisfied a customer is, repeat business and potential new customers because of word of mouth advertising. A toll free call center will allow customers to call in with any questions or concerns regarding the products purchased. Custom Snowboards staff will be able to address these concerns and questions, but only aft(prenominal) undergoing an educational training session and establishing a process standard of communication. The company will develop a communication and relationship curriculum to help focus on long-term relationships (Joseph, 2013).Reputable SuppliersCustom Snowboards must search suppliers available within the area of theEuropean expansion to ensure a reputable supplier is found that is both reliable and has quality products. The business scathe and contractual details must be attended to minimize the chance of fraud. The contract must be written in terms that both parties understand to ensure no misunderstandings take place. It would be helpful for Custom Snowboards to employee area natives to help interpret when needed. CUSTOM SNOWBOARDSB4. Potential ReturnsCustom Snowboards is planning to expand into the European market. They will expand their customer base, increase revenue and experience a growth rate. Projected annual sales are expected to increase for year15 to year 19. Year 15 annual sales of $1,271,720 are projected and expected to increase to $2,390,085 at year-end of 19. Also projected to increase is net cash flow especially as this has a direct relationship with the cost of goods sold. The forecast net income peaks at $256,703 in year 19 up from $98,550 in year 15. The European expansion is projected to build a strong financial future for Custom Snowboards.The Net Present Value and Internal Rate of Return are reviewed when loo king at the capital budget of a business. The future set and present value of a company is indicated based on cash flows under the net present value. Custom Snowboards is ready to invest $1,000,000 into an expansion project in Europe. This is based on cash flows over five years and the present total value of the company with a market change factored in or $1,028,437. This means the company will be profitable in the European market and see a return on their initial investment. The internal rate of return looks at the rate the project grows at. Custom Snowboards looks at to return 10.8% over 5 years based on the initial $1,000,000 investment. The minimum rate of return or hurdle rate is set at 10%. This means the company will make a profit in the future on the initial investment. The net present value and internal rate of return are beneficial to companies when predicting future growth on investment. Companies that have a strong net present value and internal rate of return are able to secure loans and expand. This is important for the future CUSTOM SNOWBOARDS 28successes of companies. Custom Snowboards is predicting returns on their initial investment with the European expansion and increases in revenue. Custom Snowboards must evaluate their fiscal province to determine if leasing or buying is in the best interest of the company. The company will need to put a $50,000 down payment from working capital and $800,000 to either buy or lease a preparedness. Analysis determines purchasing a facility would be in the best interest of the company. The present value outflow to lease is $653,355 and $597,723 to purchase a building. The tax deductions available would provide a gain to the company as well. Custom Snowboards should consider obtaining borrowing money for a long-term debt from an outside source. The optimal capital structure that would provide the best return is to fund the project in Europe over five years. This would allow for 1.547 earning per plow to accrue even though the debt will require a 6% interest rate on return. This will also help preserve cash flow since a constant repayment is easier to budget and earnings can continue to grow. Custom Snowboards is reliable and creditworthy. This will be easier for them to obtain the long-term debt.Debt financing can provide a benefit to Custom Snowboards since they would be able to deduct interest on the business taxes at the end of the year (Daniels, 2013). Having an outstanding debt can be a downfall for a company as well. The company is under the obligation to make payments to the lender in a timely manner and if the projected revenue is not as expected this will be detrimental to the company and capital structure.The budgeting process will help Custom Snowboards decide to expand into the European market. The management team must look at all the capital budgeting CUSTOM SNOWBOARDS 29techniques to understand the total viability of the project. The decision will not be an easy one, but will require careful review of the entire financial picture. B5. SummaryCustom Snowboards has demonstrated that European expansion is an idea that is executable for the company. The company must now decide if they wish to build, merge, or acquire within the European market. This will not be an easy decision, but meticulously made after analyzing the capital structure andcorporate strategies. Custom Snowboards has the option to build a new plant within the European market. They would need to determine where the plant would be located and getting the necessary land and permits. The company would be required to start from scratch to get started.The plant would be built to the companys specifications and could be economical, but would require a large amount of money for start-up initially. Buying a building is another option available to Custom Snowboards, but ties the company to the area. This would be the smartest move based on the financial data available. It would be cost effe ctive and allow the company to move in after the building is fit to the needs of the company. However, leasing a facility would give Custom Snowboards the opportunity to leave the area if the forecasted expectations are not attained and things are not as viable as hoped.Custom Snowboards has the option to merge with SnowFun, Inc. This would provide the expansion into the European market that Custom Snowboards desires. The merger would provide the opportunity to increase profits, earnings per share from $0.98 to $1.18, have less competition, and expect a strong return on investment. SnowFun stockholders will benefit more from the merger than Custom Snowboards in regards to CUSTOM SNOWBOARDS 30earnings per share, since SnowFun will see earnings per share will go from $0.26 to $1.18. Custom Snowboards would have 200,000 market shares pre-merger and 500,000 after the merger has taken place. Custom Snowboards can buy shares back to reduce the amount available to the public and the stock holders will increase the earnings per share. This would be beneficial to the stockholders, but is not always available immediately after a merger has taken place.Custom Snowboards would also see increased company worth if a merger took place. They would gain priceless contacts from SnowFun and gain insight on the European snowboard market that they would not otherwise have. However, a merger would leave the company with excess employees. This can lead to dissatisfied employees and low staff moral. Customers may be aware of this and shy away from purchasing products from this impertinently merged company. CustomSnowboards will need to ensure everyone feels determine and is happy. It would be beneficial to find displaced employees another position, but that is not always possible. This would go along ways to reassure customers as well, as it shows the company is impulsive to make concessions to keep the customer happy and taken care of.Finally, Custom Snowboards could acquire Snow Fun, Inc. Custom Snowboards would then have to buy out SnowFun and acquire full ownership of the products, materials, and debts they have. SnowFun is requesting $720,000 from Custom Snowboards to acquire full rights to the company. The net present value of SnowFun is $732,522. An increase of $12,522 would be seen for Custom Snowboards over a fiveyear period. This option would increase the earnings per share to $2.40. CUSTOM SNOWBOARDSAs mentioned with the merger option, Custom Snowboards would gain invaluable contacts from SnowFun and gain insight on the European snowboard market that they would not otherwise have. The company would increase earnings per share for stockholders. They would have factory and production equipment readily available to start production right away without delay. They would gain product development knowledge from what SnowFun had previously completed and this could lead to refined processes of current products.However, a merger would leave the company with excess employees. This can lead to disgruntled employees and low staff moral. Customers may be aware of this and shy away from purchasing products from this newly merged company. Custom Snowboards will need to ensure everyone feels valued and is happy. It would be beneficial to find displaced employees another position, but that is not always possible. This would go along ways to reassure customers as well, as it shows the company is willing to make concessions to keep the customer happy and taken care of. Also, it is hard to integrate two companies and acquire the debt from SnowFun. This could harm the company if they do not budget for this newly acquired debt. Custom Snowboards best option is to decline the offer to acquire SnowFun, but to merge the companies. The costs to start a new company would be limited and there would be a readily accessible building, contacts, product knowledge, marketknowledge, and increased earnings per share. Not all employees will be able to retain the ir job, however the employees that remain will be the most knowledgeable regarding the product to boost sales and revenue. This will help the company attain the success it hopes to achieve.CUSTOM SNOWBOARDS 32B6. PresentationThe recommendation was made to initiate a merger between Custom Snowboards and SnowFun, Inc. The financial information reviewed shows the companies will produce an increase in capital from net sales and reduce production costs. This will provide the stockholders with a higher return on investment due to growth after the merger has taken place.Merging will not require Custom Snowboards to acquire a large amount of funding or long-term debt since a stock exchange will take place. The earnings per share for Custom Snowboards will increase $0.92 and SnowFun $0.20. A total of 500,000 shares will be available after the merger. SnowFun will receive 3 shares to every 1 share that Custom Snowboards receives. There are four structures to review Long term debt, 30% long te rm debt and 70% common stock, 80% long-term debt and 20% common stock, and no long-term debt (common stock only). Custom Snowboards hopes to obtain $1,000,000 through one of these types of structure. The earnings per share for each year based on earnings before interest and taxes from the European forecasts for year 15 through year 19.EarningsPer sellYear 15 Year 16 Year 17 Year 18 Year 18 Year 19Long- marginDebt0.034 0.203 0.407 0.589 0.720 1.95330% Long-Term/70%Stock0.068 0.130 0.204 0.270 0.318 0.9980% Log-Term/20%Stock0.052 0.165 0.300 0.422 0.509 1.448No Long-Term Debt(StockOnly)0.072 0.121 0.179 0.231 0.268 0.87CUSTOM SNOWBOARDS 33The long-term debt option would be the second woof for expansion for Custom Snowboards should they not want to merge. The total earnings per share in year 19 would be $1.953 and higher than any other option. The long-term debt would also have consistent payments monthly that would be easier to budget and to forecast sales against. Custom Snowboards is a viable company that is growing and making advances. Areas of improvement do need to be made to continue this progressive growth, but they are in a position to expand into Europe. Thanks to financial responsibility they are in the position to take on debt if necessary to make this expansion happen. A merger with SnowFun, Inc. would provide virility to the company and provide a positive base for continued growth.CUSTOM SNOWBOARDS 34ReferencesHunt, J. 2013. What determines a Companys Profitability? Retrieved on May 11, 2014 from http//smallbusiness.chron.com.Investopedia. 2013. Activity-Based Costing ABC. Retrieved on May 2, 2014 from www.investopedia.org.Investopedia. 2013. Operating Income. Retrieved on April 30, 2014 from www.investopedia.com.Johnson, R. 2013. Traditional Costing Vs. Activity-Based Costing. Retrieved on May 3, 2014 from http//smallbusiness.chron.com.Joseph, C. 2013. Advantages & Disadvantages of Customer Service Jobs. Retrieved on May 11, 2014 from http//work .chron.com.Kennon, Joshua. 2013. Cost of Goods Sold COGS. 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