Autism Essay Example | Topics and Well Written Essays - 500 words - 1

Autism - Essay Example Generally individuals afflicted with this neurological condition have difficulty in social interaction and communication. Repetitive and obsessive behavior frequently occurs, as individuals with autism will oftentimes develop intense and focused interests in specific subject matter. A number of theories have emerged regarding the origins and causes of autism. One of the newly emergent theories involves considerations of the individual’s biological clock. Within this mode of understanding, autism is understood as a timing disorder wherein individuals have difficulty determining communication timing. One important consideration in this context of investigation is that of the biological clock. Theorists have explored notions regarding biological clock genes regulating neuronal oscillators in the brain that potentially affect the timing problems of autism. There has been research that has supported this hypothesis, with findings noting that, â€Å"Two Single nucleotide polymorphisms (SNPs) are enriched in clock genes in DNA obtained from autistic children† (‘Autism’, ppt). The two nucleotides referred to are the Period-1 (Per-1) and the NPAS2. Still, these nucleotides are in non-coding segments, complicating their potential as causing a d isorder. Recognizing the challenge of non-coding nucleotide mutations contributing to a disorder such as autism, researchers have explored the microRNA ("Micrornas provide new," 2011). In these regards, RNA forms secondary nucleotide structures. The miRNA functions through recognizing a seed sequence, as 7 nucleotides at 5’ end binds to a 3’ end of target. Notably, there are basepairing consequences that occur in relation to the microRNA functioning. Among these consequences include the degradation of the mRNA target, a block in translation resulting in new mechanisms of action, and subsequently new data that can activate translation. This is central to the understanding of autism as related to the human’s biological

Evaluation of Deterrence Theory Research Paper Example | Topics and Well Written Essays - 1500 words

Evaluation of Deterrence Theory - Research Paper Example In my evaluation, I use the evaluation method proposed by Akers and Seller. In this technique, the theory is evaluated using its scope, logical consistency, parsimony, testability, empirical validity, and its usefulness and policy implication. A major advantage of this method that it can give us the chance to evaluate almost all the aspects of this theory. Theory Discussion This theory uses the idea that fear of punishment or negative consequences resulting from committing a crime can cause individuals to refrain from committing offenses (Maimon, 2012). One of the things this theory uses in explaining criminology is human rationality. It says that human nature is motivated to do something that has more gains than losses. Therefore, if someone sees that he will have more loss than gain from a crime when he is caught, he will be motivated to refrain from the crime. This theory thus proposes that severe punishments should be imposed on crimes and offenses to increase the risks that a pe rson exposes himself to when committing them. The theory also uses the concept of an individual’s free will and the power of a person to make calculated choices in explaining crime. This theory states that people commit crimes due to the drive to do so from their free will without being directed to do so by someone else. However, it indicates that in making a choice to commit a crime individuals to analyze the gains and losses which might result from the choices they want to make. As a result, the choices they make are always calculated to make sure they maximize gains while minimizing risks. If severe punishments are imposed on crimes they will make the crimes to be less attractive and hence make individuals refrain from them. This theory explains individual offending and how people can be deterred from committing crimes. It suggests that imposing formal legal punishments can deter individuals from offending. However, according to Maimone al (2012), the theory explains that the deterrent effect of these formal legal punishments depends on their severity, certainty, and celebrity.

Types of Introductory Paragraphs Essay Example for Free

Types of Introductory Paragraphs Essay According to world statistics, the level of air pollution has been steadily increasing throughout the years. Though the result is not alarming, it is important for us to take measures in controlling activities that lead to air pollution. Only by doing so, will we be able to have better quality air. Therefore, the first thing to do is to find out what causes air pollution and its outcomes. Based on my observation there are two major causes and effect of air pollution. Type: Anecdotal Topic 2: Arguments I used to live next door to a couple who always argued. They argued over even the smallest matter. Sometimes, they argued the whole day, and sometimes the argument even continued to the next day. After sometime, I learned to ignore the shouting and name calling that they used to do to each other. Sometimes, just for fun, I would listen to their arguments and made up my own refutations; my own answers to their accusations. When I was older and began to understand more, I started thinking about the reasons why people argue. From what I have heard from my neighbours, arguments can be caused by two main issues; money and jealousy. Type: General to Specific Topic: AIDS According to Oxford Advanced Learner’s Dictionary, AIDS stands for Acquired Immune Deficiency Syndrome. It is an illness which attacks the body’s ability to resist infection. It is a lethal disease that everyone fears. However, in some countries where sex trade is rampant, this deadly disease is unavoidable especially for those directly involved. Why is AIDS deadly and how does it affect the victims? Based on scientific researches done, there are two deadly outcomes of AIDS. Samples of Concluding Paragraph : Causes and/or Effects Essay Topic 1: Air Pollution In summary, air pollution is caused by increase in population and industrial activities. Due to these reasons, the world is suffering from global warming as well as higher lung diseases. In my point of view, more preventive measures must be taken in order to improve the air quality in our nation. Only by doing this, will we be able to see healthier population and better environment. Topic 2: Arguments In a nutshell, arguments can break out at anytime and anywhere. The main reasons why people argue are usually because of financial difficulty as well as personal feelings towards each other. I think, it is wise for people to find time to talk about things that are causing these arguments in a mature manner or else, they will create animosity instead of unity in their relationship. Topic: AIDS To cut it short, people who suffer from AIDS will experience lower immunity as well as public criticism. In order to protect ourselves from AIDS, we need to educate our generation and future generations about the dangers of having unprotected sexual intercourse, taking drugs and to increase their awareness of general health.

Enigma and Lorenz Machines Their Contribution to Computing

Enigma and Lorenz Machines Their Contribution to Computing The purpose of this report is to understand the working of cryptography by studying the working of Enigma and Lorentz machines which were used by Germans during World War II. The report will also discuss the effect of the invention of this machines on modern day cryptography. Cryptography has been helping humans to transmit information in secured way but the popularity of cryptography was limited to certain individuals and it was not used widely. During World War II the demand of cryptography increased which resulted in invention of Lorentz and Enigma machine by Germans. The encrypted information was important to Britains to gain an edge over the Germans war strategies, hence a research center was constructed in Britains to decode the encoded information. The report discusses the working of Enigma and Lorentz machine and the various methods adopted by Britains to decode the encoded information. The report will conclude by studying the effect of the creation of the encrypting and decrypting machines on the modern-day computing. Cryptography play an important role in humans daily interaction with technological devices, with the advent of computing devices and internet it has become extremely important to hide private information. We often wonder how we can transfer money through internet or by using ATM cards. The sensitive personal information such as bank details are transferred securely through internet which is available to everyone. This paper tracks the events which contributed to the development of modern day cryptography and discusses the development in the field of cryptanalysis. Cryptography is the science of secretly transferring information from one point to another so that the information is reliably transferred from one point to another, which is unintelligible to all receiver of information except the intended user. The aim of the cryptography is to prevent eavesdroppers from understanding the message. (A. Eskicioglu and L. Litwin, 2001) The human want of secrecy of information has resulted in the invention of cryptography. Ciphers were created to hide personal information. The need to securely transmit information has increase with the advent of modern communication. Confidential information such as Business plan, financial transaction which are send over internet needs to be transferred in a secured way. Since, internet is available to everyone it important to encrypt the information which is being transferred (Zwicke, 2003). The basic working of encryption can be divided into three parts: Encryption: Cryptography works by modifies the original information (termed plain text in cryptography) which is in readable form to encrypted form (termed ciphertext in cryptography) which is not easily interpreted by unauthorized person. The encryption process scrambles the plaintext by combining it with a key which is a random sequence of letters or numbers and produces ciphertext. Transmission Once the information is encrypted it is transferred to the intended user by various methods. For example, it could be transferred by writing it on paper or can be send via complicated modern wireless system. Decryption: After the information is received by the intended person the person tries to decode the information with a key. The key is unique and usually only the receiver has the key to decode the information (An introduction to cryptography, n.d.). 3.1 Stream cipher Stream cipher is an encryption algorithm which encrypts one bit of data in one cycle of its operation. The stream cipher uses infinite stream of pseudorandom bits of key to encrypt the plaintext. The robustness of the stream cipher depends on the algorithm which is used to produce the key. Since, repetition in the key can cause the stream cipher to be easily predicted and the encrypted text could be easily decrypted (Villanueva, 2015). The working of the stream cipher is explained below: As discussed above encryption works by combining the plain text Xi with key Si to produce ciphertext Ci . The combining process uses modulo 2 operation which is the modulus between the bits of the plaintext and ciphertext. We can denote this mathematically as Ci = Xi à ¢Ã…  Ã¢â‚¬ ¢ Si To decrypt the message the same key stream is used which was used for encrypting the message. Mathematically this can be stated as Xi = Ci à ¢Ã…  Ã¢â‚¬ ¢ Si   (C. Paar, J. Pelzl) The diagram below summarizes the entire process: Figure 1 Encryption and decryption with stream cipher. Reprinted from Understanding cryptography, by C. Paar, J. Pelzl, (n.d.), Retrieved from http://bit.ly/2mEit9i Copyright by Springer-Verlag Berlin Heidelberg 2010 Enigma machine eliminated the human effort of encryption by automating the process of encryption. The use of enigma machine during World War II was done to secretly transmit the classified information to remote military units. The enigma was electro-mechanical machine which encoded the character stream to cypher text. The simplest version of the enigma machine had three motors which are interconnected with each other. It also has a plug board which is a board to interconnect letters to improve the encryption of the enigma machine. A keyboard was used to input the characters to be encoded by the machine. A light board was used to display the encrypted letter of the plaintext character. Figure 2 Enigma How the machine worked. Reprinted from The guardian website, by Hern, Alex, (2014, Nov 14), Retrieved from https://www.theguardian.com/technology/2014/nov/14/how-did-enigma-machine-work-imitation-game Copyright Simon Singh. 4.1  Working The working of enigma machine was simple. When the operator types the letter on keyboard electric signal is generated. The signal then passes through the plug board which substitutes the letter per the connection of the plug board. The signal then passes through the three rotors with internal wiring. This is where the actual encryption takes places. As mentioned above each motor consists of 26 steps of rotation before making one complete cycle. The arrangement of the three motors was such that when the first motor completes a full rotation the second motor would move by one step. The same step is applicable for third motor. After passing through the connection of motors the signal is then reflected and again passes thorough the plug board. After passing through the plug board the signal lights up the appropriate letter on the light board providing the encrypted letter of the plain text character. The Lorentz machine was developed by C. Lorentz in Berlin. In 1940s Germans saw the need to establish secured communication between German high command in Wà ¼nsdorf close to berlin and German army throughout Europe. With the invention of mechanical machine and electronic boards it became possible to build a machine capable of encrypting the message which was send to remote army. The Lorenz machine was used for sending tactical information (Smart, n.d.). Lorentz machine uses Lorentz cipher which was based on Baudot code. Lets discuss about the working of Baudot code. Baudot Code: It used five bit of data to encode characters. Baudot code was a standard means of communication via teleprinter. Since five bits were insufficient to represent all the characters on the keyboard. Hence the code was divided into two states called letter shifts and figures shifts. To toggle between the two states a control character was used, there were other characters which had special functions such as space. To understand the working of Baudot code lets take an example of encrypting the word Hello. The first step is to fill the Paper tape with holes and insert the paper tape into telegraph to send the message. To punch holes in the paper tape the position of the holes needs to be determined which was obtained from the Baudot code table. These holes were converted to bits and then transferred by teleprinter. Figure 3 The Baudot printing telegraphy system. Second Edition. Reprinted from Circuitousroot website, by Pendry, H, W. (1919) Retrieved from http://www.circuitousroot.com/artifice/telegraphy/tty/codes/ 5.1 Lorenz Cipher The Baudot code is taken as input by the Lorenz cipher. The Lorenz cipher consisted of 12 motors which are separated into 3 pairs. Each motor had different number of pins on it as shown in figure below: Figure 4 An Enigma machine rotor. Reprinted from Plus magazine website, by Ellis Claire. (2005, Mar 1). Picture retrieved from https://plus.maths.org/content/exploring-enigma Copyright by Simon Singh Each pin could store either 0 or 1 based on the configuration of the machine. The configuration of the machine (setting the starting position of each motor) was performed by the operator of the machine and the same configuration of the machine was used at the receiving end to decrypt the message. The Lorentz machine was divided into three pairs of motors as shown below: Figure 5 The internal working of the Lorentz cipher machine. Reprinted from the Rochester institute website, by Payne, Japnce. (n.d.), Retrieved from https://people.rit.edu/japnce/payne/images/rotorsall.png The three pair of motors are termed as K, M, and S. The description of each pair of motors is discussed below: K motors: These consist of 5 motors with following pin configuration K1=41, K2=31, K3=29, K4=26, K5=23. This set of motors shift by one pin for every character which was encoded. M motors: These consist of 2 motors with following pin configuration M1=61, M2=37. This set of motors shift by one pin for every character which was encoded. Further the output of the M motors decided whether the S motors should be rotated by one pin or should remain unchanged. S motors: These consist of 5 motors with following pin configuration S1=43, S2=47, S3=51, S4=53, S5=59. This set of motors shift by one pin based on the output of M motors. Working The 5 bits of the characters are first X-OR with the 5 bits of K motor. The output is then again X-OR with the 5 bits of S motors to get the cypher text. At the receiving end since the Lorentz cipher is a symmetric cipher, the same configuration is used to set up the Lorentz machine at receiving end and the encrypted message is decrypted. The mathematical formula of the encryption and decryption process is as follows: Suppose Message = M, Cipher text = C, Cypher = E M à ¢Ã…  Ã¢â‚¬ ¢ E = C (Encryption) C à ¢Ã…  Ã¢â‚¬ ¢ E = M (Decryption) (Smart, n.d.) Most of the technology that was in existence during World War II was like that which was used in World War I. The telegraph, which was type-printed using a typewriter was widely used commercially and by military personnel. In the late 1800s an Italian scientist, Guglielmo Marconi discovered the radio communication. However, it wasnt until the early 1900s that this technology was adopted for military purposes. It was the year 1914 and most major military powers of the world has started relying extensively on this technology but there was a problem there were no security mechanisms in place for a wireless signal to hide the messages being transmitted. The U.S. soon used a more sophisticated version of this technology as soon as Frequency Modulation was invented in 1920. Figure 6 Soldier during World War II using telegraphic switchboard Another important element of communication technology invented before and during the World War II was the RADAR technology. Developed by the U.S. navy for military use, these were signals sent in the microwave wavelength. It was an entirely new way of surveillance that enabled the allies to see in total darkness and find out about enemy ships in the distant sea or air.   Radar used small-short signals that were sent into a direction using an antenna. This would return the position and speed of an object which would serve as a critical early warning tool. Radar navigation implementation by the German bombers meant that the previous tactics of indiscriminate, area-based bombing was now replaced by more accurate precision targeting. Then there were the German fire control radars, Lichtenstein SN2 was mounted on top of airplanes and had an effective range of 2.5 miles. A methodology that had been in existence for a quite a while but was found of prime use during the World War II was Cryptography. Cryptography emerged as the saving grace to answer all questions about the immense need of secrecy. Cryptography had been in existence for over a thousand years but it wasnt until the early 19th century that mathematicians came together to build a machine that would be used for a very specific purpose send messages during times of war. During this period, Cypher machines were developed under extreme secrecy. These machines were of the mechanical and electromechanical kind. Out of the two, the later were developed by Germans into what they called the Enigma machine Allies and enemies developed and adopted the use of cryptographic communications of all sorts during this period. While Germans were focusing on techniques to build machines for encryption, the UK was busy trying to perform cryptanalysis on these machines. Numerous machines came out of Germany that used cryptography in its own unique way. FISH, as the UKs Bletchley Park codenamed them, were a series of German stream ciphers developed during the World War II era. The enigma in the early 1920s which was of the electro-mechanical sort that used a keyboard, rotors and a spindle to do the tricks. Another machine known as the Lorenz cipher was simultaneously developed as a form was a rotor stream cipher and started its use in military since 1941 in a SZ form. The tunny cipher as it was called was used for wireless telegraphy which eventually and unfortunately for the Germans, quite soon led to the interception of its messages. Poland came up with its own cryptographic machine called Bomba, which meant cryptographic bomb in Polish. While there is less information available about why it was named so, Bomba was a glorified Enigma machine in more ways than one. It was developed after the mathematician and its creator, Marian Rejewski studied by breaking apart an Enigma. Put simply, it was a multiple Enigma machine that used an electrical power aggregate of six Enigmas. Most countries like Poland, United States and the UK devoted their time and resources in cryptanalysis of these machines. Bletchley Park in England was extremely instrumental in bringing about a new era with the cryptanalysis or code breaking of messages that were being transmitted by the Germans during the World War II. The Lorenz machine was a stream cipher that encoded/streamed electrical pulses over a telephone line. The technique used was something we call XOR today which is an addition operation. A key property of XOR is that if one was to run the Ciphertext through the same key again, the original message could be found. The exploitation of this very concept of the Lorenz cipher led to its success cryptanalysis. One day after a 4000-letter message was sent out to Vienna, the sender who encodes the message received a response from the receiver asking to resend the message since they had not received the message. The sender reset the Lorenz machine and started to abbreviate a few words to make the process quicker. At this time, Bletchley Park had two copies of the same message and the prime mistake was that both were sent using the same key. The folks at Bletchley park were not just great mathematicians, but they also had an exceptional sense of awareness. They proceeded to add the two messages together, essentially cancelling out the keys. They were now left with two messages added together and then John Tiltman, an experience code breaker who not just able to figure out the message, but also figured out the key. John Tiltman gave this key to Bill Tutte, a young graduate from Cambridge who liked solving puzzles. He was able to out the length of the key by writing it down in rows with the aim to find out patterns. Bill Tutte found that the pattern of the wheel on the right had a period of 41. However, the pattern was not perfect and had an element of randomness which suggested that a wheel on the left was used that moved only sometimes. This information was enough for other mathematicians to jump onboard and fully figure out the Lorenz machine. The Enigma on the other hand had multiple variations in the structure of the machine throughout its useful life to be cracked at one go. The earlier versions of the Enigma were using a 3-rotor structure which was used as the main subject by the Polish Cipher Bureau. Marian Rejewski who worked for the bureau made significant developments in breaking the Enigma, without having much access to any of the official information about its inner workings. Rejewski developed a bomba machine in the process, this cryptanalysis machine was build using the observations Rejewski gathered that showed that the first three letters of a message were the same as the second three. Rejewskis method failed when in 1938 the Germans increased the rotors to include two additional ones. It was Alan Turing who developed a sophisticated Bombe that used statistics and the Bayes law for calculating the probability to narrow down on the number of possibilities. The bombe machines were also quickly updated to test the hypothesis. Figure 7 The British Bombe currently in display at the Bletchley Park Alan Turings Bombe was composed of drums which together simulated an enigma and each drum replicated the functioning of one rotor of the machine. The objective of the Turings bombe was to find out the key used by the Enigma, the starting position of the rotors and the steckers or plugs. The drums were designed to move from a set starting position every time. The movement was designed with the help of statistics and the Bayes law, hence the key space was greatly reduced thereby reducing the run time. Alan Turing has been regarded as one of the biggest contributors to defeating the German navy by helping the Allied Forced during the World War II. It is believed that the British employed 200 Bombes during the Second World War and collectively these Bombes decoded 4000 messages on any given day. The cryptanalysis of the Enigma is believed to have contributed to saving millions of lives and is identified as a prime reason why the war ended years before what it couldve lasted. Britains World War II codebreakers were centrally located at Bletchley Park, a code-breaking center run by the United Kingdom Government Code and Cypher School (GCCS). They primarily focused on deciphering German Enigma and Lorenz communications and producing Ultra intelligence (Hinsley, 1996). Ultra was the designation for high level encrypted Axis-power intelligence the codebreakers intercepted and decrypted (Hinsley, 1993). Ultra-intelligence generated by decrypted Enigma and Lorenz signals is credited with shortening the war, and without it the outcome of the war may have been different (Hinsley, 1996). The Enigma machine was the Germans primary encryption method during the war. Alan Turing, working at Bletchley Park in 1939, created the Bombe, which was an electromechanical machine used to decrypt Enigma ciphers (Smith, 2007). Gordon Welchman refined the Bombe in 1940 with a diagonal board, increasing the Bombes efficiency (Budiansky, 2000). Welchmans diagonal board addressed the plug board vulnerability in the Enigma. The Bombe was based on the Bomba, a Polish machine designed to break Enigma ciphers, which was created by Marian Rejewski (Kozaczuk, 1984). The creation of the functional Bombes led to Allies deciphering of Enigma signals. Beginning in 1940, Germany started developing more advanced machines that used the Lorenz cipher. The first was called the SZ40 machine, which was codenamed Tunny by the British codebreakers at Bletchley Park, and was followed by subsequent versions (SZ40A, SZ40B, and SZ42 (Copeland, 2006). These machines produced more complex ciphers than the Enigma, and were ultimately defeated by the 1+2 break in method created by Bill Tutte (Copeland, 2006). Multiple advanced decryption machines were designed to combat the Lorenz ciphers. First was the British Tunny Machine, which replicated the functions of the SZ40 machines. With the proper cam settings, it was able to produce clear text from cipher text that was input into it (Hinsley, 1993). Built on the Tunny machines, the Heath Robinson, or Robinsons, were created to automate the 1+2 break in (Copeland, 2006). They ran paper tapes to find the wheel settings of the Lorenz machine. Although they were functional, issues with keeping the paper tapes synchronized and slow processing speed limited their effectiveness (Copeland, 2006). Working on the Robinsons at Bletchley Park, Tommy Flowers was instrumental in the advancement of the Colossus computer. Colossus was capable of faster processing than the Robinsons due to processing electronically. This also allowed for only one paper tape, which did not have to be synchronized with another and could be run at a faster speed, around 5,000 characters per second (Copeland, 2006). Although the Colossus computer was created first, the American ENIAC was often credited for being the first electronic digital computer ever made. This was caused by Colossus being shrouded in secrecy after World War II. The term computer originally referred to a human operator who performed mathematical computations. As the need for more demanding and complex computations increased, a push for electronic or digital computing began (Copeland, 2006). Computers like Colossus and ENIAC were called program-controlled computers, in which programs each computer was to process were not stored in the computers memory they had to be manually programmed. For Colossus and ENIAC, this involved modifying wiring by hand using plugs and switches. Modern computers utilize a stored-program concept, in which the programs a computer runs are stored in that computers memory (Copeland, 2006). The concept of the modern computer started with Alan Turing in 1936. He described a universal computing machine, containing limitless memory that stored both data and programs. A scanner would process the data based on the selected program. The use of any program with the data allowed the computer to process any calculation a human could, making it universal. Being universal allowed the computer to switch from one task to another, as opposed to a completely different and unique machine needing to be created for each individual task (Copeland, 2006). Turings concept can be seen in modern computing today, where personal computers and mobile devices (smartphones, etcetera) store both data and programs, and can easily switch between different tasks based on the users needs. Programming to achieve a particular task is relatively simple in comparison installing a program in a modern computer is much less complex compared to rewiring something like the Colossus computer or creating a completely new machine entirely. As discussed, the Germans and Axis powers used Enigma and Lorenz ciphers heavily for their encrypted communications in World War II. The decryption of Enigma and Lorenz was key for the Allies and the development of Ultra intelligence, which likely shortened the war by years. In the end, the need for decrypting Enigma and Lorenz was the initial catalyst the eventually led to modern computing. Colossus, being the first electronic computer, spearheaded the push into the modern stored-program concept that computers and modern devices use today. Without this need for computing power, the world may well have progressed in a much different way. References Budiansky, S. (2000). Battle of Wits: The Complete Story of Codebreaking in World War II. Free Press: 1734. Cooper, S., Leeuwen, J. (2013). Alan Turing: His Work and Impact. Saint Louis, U.S.: Elsevier Science. Copeland, B., ed. (2006). Colossus: The Secrets of Bletchley Parks Codebreaking Computers. Oxford: Oxford University Press. Enigma Machine. (2006). In J. Merriman J. Winter (Eds.), Europe Since 1914: Encyclopedia of the Age of War and Reconstruction (Vol. 2, pp. 964-966). Detroit: Charles Scribners Sons. Retrieved from http://go.galegroup.com/ps/i.do?p=GVRLsw=wu=csuf_mainv=2.1it=rid=GALE%7CCX3447000319sid=exlibrisasid=50a327ace003888aadf98172a87c0eb6 Eskicioglu, A., Litwin, L. (2001). Cryptography. IEEE Potentials, vol. 20, no. 1, pp. 36-38. doi: 10.1109/45.913211 Hinsley, F. H. (1993). The Influence of ULTRA in the Second World War. Retrieved from https://web.archive.org/web/20120706194507/http://www.cl.cam.ac.uk/research/security/Historical/hinsley.html Hinsley, F. H. Stripp, A. (1993). Codebreakers: The Inside Story of Bletchley Park. Oxford: Oxford University Press. Kidwell, P. (2007). Technology and Culture. 48(3), pp. 663-664. Retrieved March 9, 2017, from JSTOR database. Kozaczuk, W. (1984). Enigma: How the German Machine Cipher Was Broken, and How It Was Read by the Allies in World War Two. Frederick, MD: University Publications of America. Paar, C., Pelzl, J. (2010). Understanding Cryptography. Dordrecht, London, New York: Springer-Verlag. Smart, N. (n.d.). Cryptography: An Introduction. Retrieved from http://www.cryptocellar.org/files/NP_Smart_Cryptography.pdf Smith, M. (2007) [1998]. Station X: The Codebreakers of Bletchley Park. London: Pan McMillan Ltd. The Ohio State University Fisher College of Business. (n.d.). An Introduction to Cryptography. Retrieved from https://fisher.osu.edu/~muhanna.1/pdf/crypto.pdf Villanueva, J. (2015). An Introduction to Stream Ciphers and Block Ciphers. Retrieved from http://www.jscape.com/blog/stream-cipher-vs-block-cipher Welchman, G. (2005). The Hut Six Story: Breaking the Enigma Codes. Cleobury Mortimer, England: MM Baldwin. Zwicke, A. (2003). An Introduction to Modern Cryptosystems. SANS Institute. Retrieved from https://www.giac.org/paper/gsec/2604/introduction-modern-cryptosystems/104482

Zionism :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚   Do you know the moral to the story of the tortoise and the hare? Is it slow and steady wins the race? Or is it that cockiness gets you nowhere? They are both correct but this is a good example of how a children’s fable, like interpretations of the bible, can easily be different from one another. Interpretations of the bible vary and occasionally get the message wrong, but this variation can be attributed differences of opinion in interpretation. Whether motivated by politics, social presuppositions, or theological differences the variation can paint a contrasting picture of Biblical information. Time plays a very large part in the variations of Biblical interpretation. The interpretation according to the rabbinic midrash is very different than interpretations according to modern Zionism or for that matter modern Feminism.   Ã‚  Ã‚  Ã‚  Ã‚  Classic midrash served an important purpose for the authors of the Torah. It allowed them to create a way to make the Torah an intimate part of the lives of Jews. The result of transforming Biblical stories in to more compelling and interesting stories gave the writers of the Torah a way to connect with the Jewish people on a more personal level. The writers of the Torah realized that the Jewish people could connect with the Biblical stories more if they could relate the stories to everyday life. What the authors of the Torah failed to realize is that by transforming the stories, they had now added the opinions and beliefs of the time into their stories. This is the cause for many revisions to come.   Ã‚  Ã‚  Ã‚  Ã‚  Rabbis during the seventh and eighth centuries developed a distinct branch of Jewish mysticism. The Kabala interprets the Scriptures as an esoteric manner, and seeks answers to the divine mysteries. Kabala required intense meditation and preparatory rites that lead to a mystical union with God. The presiding factor at hand is the idea of faith. It is faith in the experience is what allowed the rabbis to interpret the Scripture. Here again we see and example of the ways in which Biblical information is interpreted.   Ã‚  Ã‚  Ã‚  Ã‚  The Zionist movement brought with it the desire to create a national identity for the Jewish people. In order to accomplish this Herzl thought that Jewish people should move to an area where they could escape the anti-Semitism in Germany. The basis for ideals of Zionism is to establish a national identity for the Jewish community.

Bush donate a buck to the Africa :: essays research papers

AIDS IN AFRICA: Mission Control - Pres. Bush's plan to triple US spending on fighting AIDS in Africa President Bush's new $15 billion AIDS-fighting initiative for Africa will triple U.S. spending on the crisis. It is a "work of mercy," says Bush-a mission-one undertaken by a "blessed country" that recognizes its moral responsibility to help the wretched of the earth. It's no surprise that Bush speaks of the plan in the language of religious mission. He himself is a believer, and his decision to commit massive resources to the African catastrophe reportedly was influenced by his meeting with evangelical Christian leaders. We applaud the president's tender heart for suffering Africans, but we hope he keeps a hard, clear head as the program is implemented-and that he stays in close touch with those evangelicals. As our Rod Dreher reported in NR's last issue, experts have had solid evidence for at least a decade that the only effective way to arrest the HIV infection rate in Africa is with an education program emphasizing abstinence and fidelity, with condoms as a safety net should the first two strategies fail. Uganda, almost alone among African nations, tried this approach, working closely with religious groups preaching traditional morality. Most other African nations followed the condoms-only advice of Western experts. Result: HIV infection rates peaked in Uganda in the early 1990s, while the crisis in the rest of Africa raged out of control. Behavioral change is the only thing shown to have worked to bring down HIV infections in Africa. Yet this is the strategy that the vast majority of the Western AIDS establishment-doctors, scientists, public-health bureaucrats, donor organizations, activists-resists with all its might, in large part because it sees this approach as "moralizing." If the president wishes to avoid throwing good money after bad, these experts must not be allowed to continue excluding proven behavior-change strategies from their AIDS-fighting arsenal. Fully half the budget of the new program will go to pay for anti-retroviral drug therapy for those already suffering from AIDS, which would reduce their infectiousness. This is needed, as are the monies set aside for other medical interventions. (We trust, however, that the administration will work to make sure that any legislation precludes the possibility that AIDS funding will be diverted to the promotion of abortion.

Financial Analysis Decision Making

FACS Page 1 If you require a receipt for the post module work please complete the form below and clip it to the outside front of your assignment, together with a stamped pre-addressed envelope. * To be completed by the student * * * * NAME: MODULE: CHUTSANA NA NAGARA FINANCIAL ANALYSIS & CONTROL SYSTEMS MODULE DATE: 3rd, 4th, 7th December 2007 DUE DATE FOR POST MODULE WORK: January 28, 2008 I confirm the post-module work relating to the above module was received on †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Signature †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Warwick Manufacturing Group N. B. Post Module Work received by WMG after 16. 0 (Monday- Friday) will be stamped as having arrived on the next working day. Chutsana Na Nagara (0654258) FACS Page 2 I declare that the work contained in this assignment is my own, unless otherwise stated. Signed: Chutsana Na Nagara (for on-line submission it is only necessary to type your name in this space) MODULE TITLE: MODULE DATE: GROUP: NAME: FINANCIAL ANALYSIS & CONTROL SYSTEMS 3rd, 4th, 7th December 2007 B CHUTSANA NA NAGARA (0654258) Chutsana Na Nagara (0654258) FACS Page 3 TABLE OF CONTENTS Page Question 1 : Analysis of the Financial Reports : Electrocomponents plc. Brief Description of Electrocomponents Plc. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 Evaluation of Company Performance †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Group Income Statement and Profitability Ratios †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 Group Balance Sheet†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 Efficiency Ratios†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 Liquidity Ratios †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 Investment Ratios†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 Group Cash Flow Statement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦ 16 Conclusion †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16 Corporate Governance †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 Ethical Concerns †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 Suggestions †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 18 Question 2 : Management Accounting Part A : Cash Management†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 21 Part B (1) Budgeting †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23 Part B (2) Marginal Costing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 24 Appendix †¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 34 Chutsana Na Nagara (0654258) FACS Page 4 FINANCIAL ANALYSIS AND CONTROL SYSTEMS Question 1 : Analysis of the Financial Reports Brief description of the company Electrocomponents Public Company Limited is a high service distributor of electronic, electromechanical and wider industrial products. They supply products to worldwide engineering customers. The group operates in 27 countries, covering 82% of global GDP, and supplies to most of the remaining countries worldwide via third party distributors.Chutsana Na Naga ra (0654258) FACS Page 5 Group Strategy—a three year-plan commencing from May 2005; ? Focus separately on two distinct customer groups, Electronic and Electromechanical (EEM) and Maintenance and Repair and Operations (MRO): by extending products ranges and availability to build on the enthusiastic response and meet customer expectations. ? ? Implement the integrated system, Enterprise Business System (EBS) Create a lower cost infrastructure: moving to new head offices, tighter control of costs, supply chain management, for instances Main Products: Nearly 350,000 products around the world.The main product ranges are; ? ? ? ? Electrical, automation and cables Electronic components, power and connectors Mechanical products and tools IT, test and safety equipment Main Customer Groups Total around 1. 5 million customers from all industrial sectors are typically research and development (R&D) or maintenance engineers in business. They also sell products to end customers. Currently they are focusing on 2 main customer groups refer to product groups. 1. Electronic and Electromechanical or EEM Primary customers are electronics design and pre and low volume electronics production.This has been seen as an attractive and growing segment because of strong electronics market growth, technology proliferation and R&D investment. Chutsana Na Nagara (0654258) FACS Page 6 2. Maintenance, Repair and Operations or MRO Within MRO, their important customer is involved in factory automation that primarily uses process control and automation products (PCA). Main Markets are divided into 4 geographical areas: UK, continental Europe, North America and Asia Pacific. below. UK 40% Current market size (in sales) is shown Continental Europe 33% Asia Pacific 9% North America 18% Chutsana Na Nagara (0654258)FACS Page 7 Channels ? Catalogue: a traditional channel ? e-Commerce: total around 25% of group’s sales ? Trade counters/Sales Offices: operating globally Evaluation of Compa ny Performance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Four techniques are selected (horizontal analysis, trend analysis, vertical analysis, and ratio analysis) to interpret and illustrate business performance during year 2007 comparing to 2006 and 2005. For trend analysis, Y2005 is assumed to be a base year (=100%) as it was the last year before massive investments and reorganization projects took place as well as implementation of maintaining dividend paid/share.Ratios will be divided into four groups to evaluate company performance in separate areas. Group Income Statement and Profitability Ratios†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. (Calculations in Appendix1-2) Trend analysis shows sales have increased by 13% from Y2005 as international sales increased (Business Review) due to a combination of strong revenue growth in continental Europe, North America (joint promotions programs), and Asia Pa cific especially a successful customer acquisition program and contribution from new Thailand sales office.However, cost of sales has increased by greater amount (by 20%). Generally speaking, cost of sales should not increase much more than increase in sales because this shows that all produced goods might not be sold (stolen, defected, etc. ) or raw Chutsana Na Nagara (0654258) FACS Page 8 material cost greatly rose due to inefficient procurement. Also, normally when sales increases, business will receive discounts from big batch purchases and even reduces cost of sales. By comparing cost of sales with sales: Y2005 was accounted for 47% but Y2006-7 was the same at 49% of sales.So the problem for Electrocomponents might be, (Chief Executive’s and Business Review), that their strategy to expand product ranges, availability, and promotions to better satisfy and attracts customers in highly competitive markets. These led to increase in inventory holding and cost of sales. As a r esult, gross profit increased by only 4% from Y2006 or 8% from Y2005 (lesser amount than sales growth). directly affected. Gross profit and mark-up ratios are Gross Profit Ratio Gross Profit x 100 Sales Y2007 443. 5 x 100 = 50. 5 % 877. 5 Y2006 426. 4 x 100 = 51. 5 % 828. 5 Gross profit ratio shows every ? sales; business earned 50. 5pence and cost of sales took 49. 5p from it because of increase in cost of sales as mentioned earlier. To illustrate, sales increased by 5. 9% (877. 5 -828. 5? m) but cost of sales increased by 7. 9% (434 – 402. 1? m). Mark-up Ratio Gross Profit x 100 Cost of Sales Y2007 443. 5 x 100 = 102. 2 % 434 Y2006 426. 4 x 100 = 106% 402. 1 Mark-up ratio shows the profit business added up to cost of sales has decreased. Gross profit derived from sales deducted by cost of sales. They normally change adversely; the more cost of sales, the less gross profit.Ratio also illustrates market situation; UK is their biggest but highest competitive market (Business R eview) so increasing price to raise profit is prohibited. That is why business earned only 2. 2pence profit after deducting all cost of sales. Chutsana Na Nagara (0654258) FACS Page 9 For internal comparison, Gross profit ratio is compared with net margin ratio: Net Margin Ratio Operating Profit x 100 Sales Y2007 91. 1 x 100 = 10. 4 % 877. 5 Y2006 68. 5 x 100 = 8. 3 % 828. 5 They are measuring profitability at different levels. Although gross profit ratio decreased, net margin ratio increased.This supports that business better managed operating expenses through achieving in Enterprise Business Systems or EBS and reorganization projects. In other words, It is justified that (13%increase) distribution and marketing expenses which seems to be variable costs (especially sales commissions) for Y2007 has changed in relation to sales (14%increase)—comparing to Y2006; these expenses increased 15% while sales only increased 7%. This was because strong field sales team in North America , EBS, and Japan’s e-commerce increased to 57% of its sales, (Business Review).Moreover, administrative expenses (fixed costs) greatly decreased (78%) because reorganization project led to low infrastructure cost especially the removal of around 110 roles including the closure of the telemarketing department in the UK (Webpage1). So, total operating expenses decreased to 40% as a percentage of sales and led to increase in operating profit by 32% from Y2006. Regarding profitability, the business is doing well in terms of generating profits from worldwide sales growth which is supported by effective marketing activities, product strategies, and investment projects.Group Balance Sheet†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. (Also refer to Appendix3-4) Overall picture, Y2007 total assets were about the same as Y2005, despite a slight increase in Y2006â €™s. On the other side (assets = liabilities + equity), while fixed liabilities and equity decreased, current liabilities was the Chutsana Na Nagara (0654258) FACS Page 10 only one area that greatly increased especially loans and borrowings that increased by ? m56 and also with increases in trade and other payables by ? m9. 4. For further analysis, we shall look at detailed performance from ratios.Efficiency ratios†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Inventory Turnover Ratio (times) Cost of Sales (Ending) Inventory Y2007 434 160. 6 Y2007 434 159. 6 = 2. 7 = 2. 7 402. 1 158. 6 Y2006 402. 1 150. 45 Y2006 = 2. 5 Cost of Sales (Average) Inventory = 2. 7 Inventory turnover ratio: If average inventory is used to calculate ratio, business remains efficiency of purchasing and selling goods at the same level of 2. 7times. A high relative volume of 2. 7times turnover means business had only 4 months of sales in stock.However, it is acceptable to use â€Å"ending† inventory as it was the most current inventory level business held and it shows that supply chain management truly helped improve stock turn from 2. 5 to 2. 7times (Business Review). Notes17 illustrates that business tended to increase raw materials while decrease finished goods. In general, when sales increase, business should stock finished goods for availability to customers—not raw materials as they are not immediately ready for sale. However, ratio can mislead if business stocks too much and cost of sales are not well-managed, the ratio still increases and problems are hidden.Debtor Collection Period (days) Receivables x 365 (Average) Trade Debtors Y2007 150. 5 x 365 = 62. 6 877. 5 Y2006 138. 2 x 365 = 60. 9 828. 5 Debtor collection period: Gross trade debtors (from Notes18) comparing to sales shows business has begun to weaken than Y2006 and industry figure because median period for UK is about only 50 days, Dyson1 Chutsana Na Nagara (0654258) FACS Page 11 (2007). Also, if comparing it with inventory turnover ratio, company sold products quicker but collected money slower. The possible reason might be current global expansions, for example, new trades in Thailand.Payment transactions are neither yet well-settled nor flowing smoothly; therefore, increase leadtime. Also, it is possible that customers buy more because attractive credits terms are offered especially high competitive and mature market like UK (Notes2 and Business review). This is meaningless because sales—not cash inflow increases. Moreover, business must ensure the collection period is shorter than credit sales otherwise business can go bankruptcy. Net Assets Turnover (times) Sales Capital Employed Y2007 877. 5 450. 4 = 1. 9 828. 5 543. 5 Y2006 = 1. 5Net asset turnover shows the improvements in efficient utilization of capital employed to genera te sales. Every ? 1invested in assets, business earned nearly ? 2sales. Sales increased (as earlier mentioned) while capital employed greatly decreased mainly because of increase in current liabilities especially unsecured bank facilities and loans, Notes20. Fixed Assets Turnover Ratio (times) Sales Fixed Assets @ NBV (NBV = Net Book Value) Y2007 877. 5 95. 3 = 9. 2 828. 5 96. 3 Y2006 = 8. 6 Fixed asset turnover ratio: Business had better utilized fixed assets to generate sales or they began to pay off.In other words, every ? 1fixed assets invested can generate sales ? 9. 2. Main effects were from decrease in net book value of intangible assets (Notes12) and slightly increase in property, plant and equipment (Notes13). However, sales increased in greater amount; hence, satisfied ratio. It is wise to compare net book value with other businesses (on like-for-like basis) or industrial ratio for comparisons of performance and position. Chutsana Na Nagara (0654258) FACS Page 12 Similarly , fixed assets can be compared with operating profit to show its ability to generate profit—not just sales.Operating Profit Fixed Assets @ NBV Y2007 91. 1 95. 3 = 1. 0 times 68. 5 96. 3 Y2006 = 0. 7 times Ability to generate profit has also improved; therefore, business well utilized fixed assets to generate both sales and profit. In similar fashion, we can see how well business utilized total assets as below. Return on Total Assets Operating Profit x 100 Total Assets Y2007 91. 1 x 100 = 13. 5 % 676. 8 Y2006 68. 5 x 100 = 9. 7 % 703. 3 Return on total asset ratio shows that company has improved on utilizing each ? 1total assets invested to generate profit.Ratio is higher due to decrease in intangible assets (Notes12), cash and cash equivalents (Notes28), while increase in operating profit. Regarding efficiency in using assets, business is also doing well in this area accept for debtor collection period that has slightly gone up two more days and is still much longer than the average UK’s, Dyson1 (2007). This suggests business closely control international sales and payments along with its expansions. Chutsana Na Nagara (0654258) FACS Page 13 Liquidity ratios†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. (Also refer to Appendix3-4)Current Ratio Inventory + Debtors + Cash + Short term investments Creditors + Short term loans + Overdrafts Y2007 350. 7 211. 9 = 1. 7 360. 3 146. 5 Y2006 = 2. 5 This measures how well business can immediately pay debt from sufficient liquid resources when it falls due. It shows their ability to use any ? 1current assets to pay current debts was weaker because creditors and enormous current borrowings/loans increased (Notes19-20) while decreased in cash and cash equivalents especially call deposits and investments (Notes28). We further look at acid test.Acid Test Debtors + Cash + Short term investments Creditors + Short term loans + Overdrafts Y2007 190. 1 211. 9 = 0. 9 201. 7 146. 5 Y2006 = 1. 4 Normally, inventory cannot immediately turn to cash. Acid test which excludes inventory shows real business ability to meet its obligations. Acid test declines to even lower than 1 showing a worrying sign. Business invested in too much inventory such as product ranges which affected their liquidity. Although, some liabilities may not be due in some months, business cannot neglect the situation.Their liquidity seems very stretch at the moment as the two ratios shows a warning sign that business did not maintain proper level of liquidity and can expose to more severe financial risk unless they make soonest improvement. Chutsana Na Nagara (0654258) FACS Page 14 Investment ratios†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ (Also refe r to Appendix3-4) Gearing Ratio (Fixed loans and borrowings + Current loans and borrowings – Cash and cash equivalents) x 100 Equity Y2007 (76. 3 + 79 -19. 1) x 100 304. 6 = 44. 7 % Y2006 (137. 2 + 23 – 39. 4) x 100 336. 4 = 35. 9 % Interest Cover (times)Operating Profit Interest Charges Y2007 91. 1 5. 9 = 15. 4 68. 5 3. 4 Y2006 = 20. 1 Operating Profit (%Change Y2006-7) (91. 1 – 68. 5) x 100 68. 5 = 33 % Interest Charges (%Change Y2006-7) (5. 9 – 3. 4) x 100 3. 4 = 74 % Gearing ratio increased from Y2006: This illustrates business depends more on borrowed funds rather than shareholder funds. It seems that business borrowed short term loans for (main consumption) development of new warehouse and office in North America (Business Review, Notes2). At the same time, shareholder funds decreased due to decrease in other reserves, Notes26; hence higher ratio.Regarding shareholders’ view, they may be in high financial risk as borrowing interests must be p aid before distributing dividend and, in liquidation; lenders will be repaid before shareholders receive any repayments, FACS1. The gearing ratio itself does not mean very much because it depends on type of business and investment stage. We compare it with interest cover Chutsana Na Nagara (0654258) FACS Page 15 which decreased due to interest charges increased by greater amount (74%) than profit (33%). It shows that operating profit can only cover interest charges 15. times so again this is because interests paid for current borrowings/loans as mentioned earlier. Dividends = 18. 4p per share for three years Refer to Chairman Statement; the Board announced in Y2005 that business would maintain dividend paid at 18. 4p per share for the following three years. This is good for shareholders as they know exactly what they will receive, however, it is very risky for business as they must ensure to earn sufficient profit to meet what they said or, if not, business must seek new funding sou rces to finance such commitment. Return on Shareholder FundProfit after Tax & Interest x 100 Shareholders Funds Y2007 56. 2 x 100 = 18. 5 % 304. 6 Y2006 43. 6 x 100 = 13 % 336. 4 Return on shareholder funds increased because of increase in profit after tax and interest which is mainly due to no provisions for Y2007 RoHS cost (Notes3, 11), profit on sale of former head office (Notes5, 11), and decrease in other reserves in shareholder funds (Notes26). This gives confidence to shareholders that every ? 1invested can generate profit 5. 5% higher than Y2006. Chutsana Na Nagara (0654258) FACS Page 16 Group Cash Flow Statement†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦The statement illustrates profits earned each year is totally different from cash they hold. It serves as a tool for management control that allows business monitor their cash flows especially the cash outflows. The first major cash outflow was capital expenditure and financial investment which might be due to infrastructure projects business is implementing especially new warehouse in North America, (Notes2, Business Review). Moreover, Income Statement for year ended 2005-7 shows profits after tax and interests attributable to equity shareholders (? m67. 6, 43. , and 56. 2 for Y2005-7 respectively) are less than total dividends paid of ? m80 (18. 4p/share). This is probably the reason that business had new bank loans during these three consecutive years (Cash Flow Statement). Although loans might also be distributed to other activities, it seems that they were partially paid as dividends as announcement in Y2005. Consequently, this is why Y2007 profit (? m85. 2) which increased from Y2006 (? m65. 1), was actually left at the end of the trading year as â€Å"real† cash and cash equivalents at only ? m17. 2 decreased from ? m38.Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ In conclusion, since the business has been established in 1928, they are growing and expanding internationally rapidly (Webpage2 and Webpage3). At present, they are doing well in term of profitability, efficiency, and investment areas, or to say, they are succeeding in sustaining global sales growth across the group, grow margin stabilization and tight control of costs. ROCE ratio also illustrates overall success. Chutsana Na Nagara (0654258) FACS Page 17 Return on Capital Employed (ROCE) Operating Profit x 100 Capital Employed Y2007 91. 1 x 100 = 20. 2 % 450. Y2006 68. 5 x 100 = 12. 6 % 543. 5 ROCE is the combination of Net Margin and Net Assets Turnover. As earlier mentioned both ratios increase and led to significantly increased ROCE. It suggests that overall performance is satisfied due to effective pricing and cost management as well as asset management were im proved comparing to Y2006. This also illustrates overall success in EBS, product strategy, new technology launches, supplier relationships and low costs projects that are paying off. The number of times (1. 9) that net assets can generate sales is very important as one turn equals to 10. % that sales can generate profit. That is why ROCE = 20. 2% as it equals two turns. This suggests that it may greatly increases sales very soon because business recently plans to accelerate sales growth in China which is a big potential market and if business can manage to utilize assets well, there will be increase in profit on capital employed even more. Furthermore, it is better if the ROCE rate of 20. 2% is less than the rate of cost (interest rate) that business pays for money borrowed to invest in these assets because it means assets are used for generating profit that can cover cost of acquiring them.Regarding Corporate Governance (Webpage4), the business is subject to the provisions of the C ombined Code on Corporate Governance published in July 2003 and appended to the Listing Rules of the UK Listing Authority. There are many practices company must follow. For example, the Audit Committee shall consist of not less than three members and be independent non-executive directors. Also, it is authorized by the Board and able to investigate any activity within its Terms of Reference which allows for full access to Company information and can seek that information from any employee of the business.Employees are directed to co-operate with any request made by the Committee. If, at all time, company strictly follows the set rules, they can ensure operating properly. Chutsana Na Nagara (0654258) FACS Page 18 Moreover, regarding Ethical concerns (Business Review), they are focusing on many areas of responsibilities such as ethical trading and sets of KPI for environmental concerns. Along with their profitability, business is considered be on track of long term prosperous. However , there is one important area that needs to be immediately improved. This is liquidity. From the logic below;Total assets = Fixed Liabilities + Current Liabilities + 676. 8 100% = = 145. 8 21. 54% + + 226. 4 33. 45% + + Equity 304. 6 ? m 45. 01% or; Sources of asset investments are from three parts. Business acquires funds from borrowings/loans 54. 99% (21. 54% + 33. 45%) which exceeds equity (45. 01%). The proportion shows business is considered at high risk. This evidence is also strongly supported by earlier ratios and cash flow analysis. Suggestions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Suggestions aim to point out at major areas. Most of them involve the concern on liquidity which has been mentioned earlier. . Recently, there are many business activities going on to support their expansions that involve mostly in long term investments. However, it seems t hat business finance their activities with short term liabilities as they increased significantly, Notes20. This is not a proper means of investment because, normally, short term liabilities are at higher interest rate and the payment due is sooner (amounts falling due less than a year is as high as 79? m from 23? m, Notes20), but business uses them for long term investments which take time to generate cash back.Business may soon suffer from low liquidity and inability to pay day-to-day expenses and interests as business pays back the cost of using money even before they make profit from the money borrowed. Chutsana Na Nagara (0654258) FACS Page 19 The evidence was supported by increased in Gearing ratio; while, Current ratio, Acid test and Interest Cover ratio have significantly decreased. Although, interest expenses from borrowings reduce tax payable, business must ensure they have ability to pay interests and it is worth to do so.Unless they restructure funding sources, they can go bankruptcy very soon because many long term projects will be implement next year. By doing so, business surely improves their liquidity and reduces financial risk for business itself as well as shareholders’. 2. It was very risky that the Board has announced to maintain the same amount of dividend paid for three years while business is under investments/expansions and these two activities consume huge amount of money. Dividend amount is greater than profits after tax and interests; business seemed to borrow current liabilities for cash dividend paid.This could be a good strategic idea to retain shareholders’ confidence on the successful implementation of EBS, execution of the strategy and cost reduction initiatives will significantly improve financial performance over the next three years. However, it could turn to be the worst idea especially when liquidity is now in concern. The alternative solutions can be that business issues more shares so they use cash receive d to pay dividend or pay shareholders with stock dividends (dividend reinvestment plan) so they still retain cash in the business.These two alternatives will increase number of shares so, refer to Gearing ratio, financial risks can be reduced. Point 1&2 above suggest that business rearrange sources of funding by seeking for long term sources and bewares of â€Å"overtrading†. They are expanding, stocking more inventories, having more debtors but lack of cash to pay for creditors—not only from normal trading but also interests from borrowing/loans. Although the Board seems to be sure that after all these investments come alive under well-managed plan for implementations they will urely benefit and guarantee long term prosperous to business, business may go bankruptcy even before reaching the goal. Chutsana Na Nagara (0654258) FACS Page 20 3. Business’s strategy to satisfy customers with around 350,000 products stocked globally, this can hardly do so efficiently. Although inventory turnover seems satisfied, acid test shows inventory greatly affects business’s liquidity. Business is suggested reconsider inventory policy to rearrange classes and only stock fast moving, high volume but low value items.For slow moving, low volume but high value items, business may decide to use pooled strategy by stocking them in one warehouse in location that can easily transport products to anywhere needed, Chopra and Sodhi (2004). 4. Business is expanding very much. Their performance on receivables collection period is slightly weaker because trading worldwide interfaces with many parties and increases procedures complexity. Business must ensure activities are in control and they have sufficient cash to pay creditors. 5. Regarding risks assessment (Business Review); it is wise to include isks from suppliers into consideration as they are trading in competitive markets with enormous competitors and high penalties. Satisfying customers is vitally importa nt; therefore, this requires reliable suppliers as well as effective supply chain management for inventory management and reduce cost of sales. 6. It is suggested business focus on international markets especially North America and Asia which have higher revenue growth. Currently, North American’s e-commerce is account for only 10% of total sales. This is elatively low comparing to other regions. This may be a great opportunity to increase profits because sales can be increased through e-commerce; while, costs are reduced from, for example, reduction in sales teams. (3,824 Words) Chutsana Na Nagara (0654258) FACS Page 21 Question 2 Part A : Cash Management†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. – The significance of cash management in managing a business. Cash is one of the most important resources in running a business as Pizzey (199 8) put that it is the life-blood of the business.However, cash is not profit. Highly profitable businesses cease to exist just simply because they do not maintain sufficient cash to allow proper level of liquidity; for example, paying for routine business’ expenses. While too much idle cash means inefficiency as it does not generate any added value to business. To avoid falling into either ends, business needs cash management. This can be done through preparing cash flow statement to examine past performance and include corrective actions/improvements in cash budget for future directions/guidelines.To illustrate, business can recognize transaction flows with initial factors; identify risk because it allows for regular monitoring and control; plan their money ahead such as acquiring funds from proper sources at reasonable price rather than rushing into lenders when problems surprisingly happen, etc. We can; therefore, say that ultimate significances of cash management are that business runs smoothly, stably; is safe from insolvency and increases confidences for shareholders. – Impact of Production Manager’s role on the cash position of the business game.Refer to Year2 Cash Flow Statement (Appendix5) Major decisions that affected (negative) cash position were; Machine choice & bottle neck : Machine Mark-I has longest leadtime. Work-in-process are slowly produced. Finished goods tie up waiting for workin-process before consolidating into batch delivery. The longer leadtime, the longer business gets paid from customers and it is even longer from foreign markets. So it keeps borrowing more money to run business and paying interests. Chutsana Na Nagara (0654258) FACS Page 22Routing : At fist stage, Wolfs were produced from Mark-I which had most expensive unit cost of $m(5). This increased cost of sales and while price was fixed, business received less profit. Capacity : Business has already invested in Engineering&Quality and bought new factory. However, using Mark-I led to insufficient capacity; decreased opportunity to win big contracts; and limited sales volume. Business ended up with insufficient products to generates enough sales to cover all costs especially capital expenditure. Three issues above affected cash out-flows which led to extremely high negative cash position.One possible solution is to replace Mark-I with Mark-III to efficiently increase capacity. So leadtime is decreased; stocks are reduced; business tends to decrease debtors, increase profit, reduce loans and interest paid; hence, cash position gets better. – Comment on the impact of Production Manager’s role in managing the cash in a real business. Managing real business will involve more complex issues—unlike the game. The role affects managing cash in numbers of ways: – Control on scrap/defect rates to reduce cost of sales. – Methods to manage defected products to minimise all costs related. Sequencing rule when th ousands different product groups are produced/day, good sequencing is required to avoid delay, quality problems and unnecessary costs. The more costs increase, the less profit business gains—especially in competitive markets where prices can hardly be increased, business suffer more severely. It is worth remembering some points : decisions cannot be made in isolation as one’s decisions affect others’. All functions’ commitment is vitally important. Also, final decisions must be considered regarding company’s For example, purchasing function cuts cost by enefits not a function’s. ordering low quality materials. Additional costs pass on to inspection and production functions. Also, if customers reject products, there will be claiming Chutsana Na Nagara (0654258) FACS Page 23 process, reverse logistic, and product replacement. All these increase costs for whole business no matter in which functions they occur. (541 Words) Part B (1) : Budgeting †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Budgeting Budgeting comprises of two important parts, preparation and budgetary control, which will be described referring to FACS2.Preparation: Business critically analyses internal and external environments/factors to formulate strategic plans that must be in line with business objectives. Business then sets up operational plans with properly identifying resource requirements to support strategies. This resource plans are finally translated into financial plans to complete a budget preparation. Budgetary control: Budget is compared with actual figures. If variances occur, timely corrective actions are required; involving sending feedbacks back for reviews and formulated plans and/or forecasts may be revised. These re continuous processes and required management contributions/commitments at all time so that intended benefits are surely achieve d. The technique can apply to WinningMarginTM. Our objective is to lead Wolf markets and strategy is ensuring products are adequate for sales. We prepare production and sales budgets (Appendix6-7) showing maximum productions are 14 Terriers and 8 Wolfs with total sales $116. 6. From this point, purchasing manager knows how many exactly materials to order and when to prevent material shortage. Production manager can effectively manage shift allocations.Financial manager can see how much money to borrow more as we plan to invest in engineering and quality next year. Moreover, commercial manager can evaluate market share correctly. All Chutsana Na Nagara (0654258) FACS Page 24 functions know their responsibilities and control areas which help achieve the objective. In real business, all processes are much more complex and involve enormous factors such as competitors, substitute products, technologies, government legislations, as well as funding/borrowings which are not easy or fast as in the game. Also, business is legally committed to pay tax and interests which can be very high.More importantly, suppliers and customers are not always reliable. Late payments from customers or late delivers from suppliers can severely interrupt whole business plan/process. (298 Words) Part B (2) : Marginal Costing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Marginal Costing Marginal costing is a costing technique that helps business making decisions. We must understand cost behaviors to properly classify and, more importantly, control them. Total costs roughly comprised of variable costs, which changes with activity Dyson3 (2007) and fixed or â€Å"time-based† costs, which remain unchanged within a period of time regardless of how many products produced.The difference between price and variable cost can be used to cover fixed costs and this is known as â€Å"contribution†. Business makes prof it from any contribution amount exceeds fixed costs; or loss, if insufficient contribution. Regarding WinningMarginTM, this technique would have helped our decision in choosing market. Appendix8 suggests we produce Tiger because of highest contribution in both situations. However, we actually chose Wolf. To make profit from Wolfs; we must produce 11 Wolfs (best case) or 76 Wolfs (worst case). However, our capacity is very limited due to machine constrains (Appendix6).This suggests we have adequate investments in engineering Chutsana Na Nagara (0654258) FACS Page 25 quality and market development to get best available prices as well as enough contracts so that all products will be sold. Alternatively, we may replace MarkI with Mark-III to increase capacity; hence, increase contribution and profit. In real business, marginal costing is more widely used for strategic decisions, for example; â€Å"Make or buy†: Normally making products in-house required more fixed costs. Business buy-in if increase in variable costs is less than fixed costs. â€Å"Price incentives†: Reducing price can increase sales.Business reduce price if contribution from additional sales can cover total price reduction. Or increase price if contribution covers total sales lost. Comparing to real world, a number of costs are associated. To get best from the technique, business ensures they carefully distribute all costs to the right groups otherwise results can mislead decision-making and greatly affects business. (296 Words) Chutsana Na Nagara (0654258) FACS Page 26 Appendix Appendix 1 : Trend Analysis of Group Income Statement 2007 (? m) SALES REVENUE 877. 5 877. 5 x 100 773. 9 2006 (? m) 828. 5 2005 (? m) 773. 9 113% 828. 5 x 100 773. 9 = 107% 100% (Cost of sales) 434 434 x 100 361. 8 402. 1 = 120% 402. 1 x 100 361. 8 361. 8 = 111% 100% GROSS PROFIT 443. 5 426. 4 = 103. 5% 412. 1 443. 5 x 100 412. 1 = 108% 426. 4 x 100 412. 1 100% (Distribution & marketing expenses) 346. 2 346. 2 x 100 303. 3 348. 9 = 114% 348. 9 x 100 303. 3 303. 3 = 115% 100% (Administrative expenses) 6. 2 6. 2 x 100 8 9 = 78% 9 x 100 8 8 = 113% 100% (Total operating expenses) 352. 4 357. 9 311. 3 OPERATING PROFIT 91. 1 91. 1 x 100 100. 8 68. 5 = 90% 68. 5 x 100 100. 8 100. 8 = 68% 100% Chutsana Na Nagara (0654258) FACS Page 27Appendix 2 : Vertical Analysis of Group Income Statement 2007 (? m) SALES REVENUE 877. 5 = 100% 828. 5 2006 (? m) = 100% 773. 9 2005 (? m) = 100% (Cost of sales) 434 434 x 100 877. 5 402. 1 = 49% 402. 1 x 100 828. 5 361. 8 = 49% 361. 8 x 100 773. 9 = 47% GROSS PROFIT 443. 5 426. 4 412. 1 (Distribution & marketing expenses) 346. 2 348. 9 303. 3 346. 2 x 100 877. 5 = 39% 348. 9 x 100 828. 5 = 42% 303. 3 x 100 773. 9 = 39% (Administrative expenses) 6. 2 6. 2 x 100 877. 5 9 = 0. 7% 9 x 100 828. 5 8 = 1% 8 x 100 773. 9 = 1% (Total operating expenses) 352. 4 352. 4 x 100 877. 5 357. 9 = 40% 357. x 100 828. 5 311. 3 = 43% 311. 3 x 100 773. 9 = 40% OPERATING PROFIT 91. 1 68. 5 100. 8 Chutsana Na Nagara (0654258) FACS Page 28 Appendix 3 : Trend Analysis of Group Balance Sheet 2007 (? m) FIXED ASSETS Intangible Assets 2006 (? m) 2005 (? m) 196. 7 196. 7 x 100 191. 9 208. 2 = 102. 5% 208. 2 x 100 191. 9 191. 9 = 108. 5% 100% Property, plant, and equipment 111. 1 111. 1 x 100 110. 9 112. 8 = 100% 112. 8 x 100 110. 9 110. 9 = 102% 100% Investments Other receivables Deferred tax assets Total fixed assets 0. 3 2. 7 14. 2 325 325 x 100 323. 2 0. 3 3. 2 17. 5 342 = 101% 342 x 100 323. 2 0. 2 2. 17. 4 323. 2 100% = 106% CURRENT ASSETS Inventories 160. 6 160. 6 x 100 142. 3 158. 6 = 113% 158. 6 x 100 142. 3 142. 3 = 111. 5% 100% Trade and other receivables 171 171 x 100 145. 1 162. 3 = 118% 162. 3 x 100 145. 1 145. 1 = 112% 100% Income tax receivable Cash & cash equivalents 1. 1 19. 1 19. 1 x 100 64. 8 1 39. 4 = 29. 5% 39. 4 x 100 64. 8 2. 2 64. 8 = 61% 100% Total current assets 351. 8 351. 8 x 100 354. 4 361. 3 = 99% 361. 3 x 100 354. 4 354. 4 = 102% 100% Tot al assets 676. 8 676. 8 x 100 677. 6 703. 3 = 100% 703. 3 x 100 677. 6 677. 6 = 104% 100% Chutsana Na Nagara (0654258) FACS Page 29Appendix 3 : Trend Analysis of Group Balance Sheet (Continued) 2007 (? m) CURRENT LIABILITIES Trade and other payables 2006 (? m) 2005 (? m) 132. 9 132. 9 x 100 109. 5 123. 5 = 121% 123. 5 x 100 109. 5 109. 5 = 113% 100% Loans and borrowings 79 79 x 100 27. 7 23 = 285% 23 x 100 27. 7 = 83% 27. 7 100% Tax liabilities Total current liabilities 14. 5 226. 4 226. 4 x 100 155. 9 13. 3 159. 8 = 145% 159. 8 x 100 155. 9 18. 7 155. 9 = 103% 100% Net current assets 125. 4 125. 4 x 100 198. 5 201. 5 = 63% 201. 5 x 100 198. 5 = 102% 198. 5 100% 521. 7 100% Capital employed 450. 4 450. 4 x 100 521. 7 543. 5 = 86% 43. 5 x 100 521. 7 = 104% FIXED LIABILITIES Other payables Retirement benefits obligations Loans and borrowings 7. 9 38. 7 7. 8 41. 8 7. 6 47 76. 3 76. 3 x 100 92. 5 137. 2 = 82% 137. 2 x 100 92. 5 = 148% 92. 5 100% Deferred tax liabilities Total fixed liab ilities 22. 9 145. 8 145. 8 x 100 166 20. 3 207. 1 = 88% 207. 1 x 100 166 18. 9 166 100% = 125% EQUITY Called-up share capital Share premium account Other reserves Total equity 43. 5 38. 7 222. 4 304. 6 43. 5 38. 4 254. 5 336. 4 43. 5 38. 4 273. 8 355. 7 Chutsana Na Nagara (0654258) FACS Page 30 Appendix 4 : Vertical Analysis of Group Balance Sheet 007 (? m) FIXED ASSETS Intangible Assets 2006 (? m) 2005 (? m) 196. 7 196. 7 x 100 325 208. 2 = 60. 5% 208. 2 x 100 342 191. 9 = 60. 9% Property, plant, and equipment 111. 1 111. 1 x 100 325 112. 8 = 34% 112. 8 x 100 342 110. 9 = 33% Investments Other receivables Deferred tax assets Total fixed assets 0. 3 2. 7 14. 2 325 = 100% 0. 3 3. 2 17. 5 342 = 100% 0. 2 2. 8 17. 4 323. 2 CURRENT ASSETS Inventories 160. 6 160. 6 x 100 351. 8 158. 6 = 45. 7% 158. 6 x 100 361. 3 142. 3 = 44% Trade and other receivables 171 171 x 100 351. 8 162. 3 = 48. 6% 162. 3 x 100 361. 3 145. 1 = 45%Income tax receivables Cash & cash equivalents 1. 1 1 2. 2 19. 1 1 9. 1 x 100 351. 8 39. 4 = 5. 4% 39. 4 x 100 361. 3 64. 8 = 11% Total current assets 351. 8 = 100% 361. 3 = 100% 354. 4 Total assets 676. 8 703. 3 677. 6 Chutsana Na Nagara (0654258) FACS Page 31 Appendix 4 : Vertical Analysis of Group Balance Sheet (Continued) 2007 (? m) CURRENT LIABILITIES Trade and other payables 2006 (? m) 2005 (? m) 132. 9 132. 9 x 100 226. 4 123. 5 = 59% 123. 5 x 100 159. 8 109. 5 = 77. 3% 109. 5 x 100 155. 9 = 70% Loans and borrowings 79 79 x 100 226. 4 23 = 35% 23 x 100 159. 8 27. 7 = 14. 4% 27. 7 x 100 155. 9 = 18%Tax liabilities Total current liabilities Net current assets Capital employed FIXED LIABILITIES Other payables Retirement benefits obligations Loans and borrowings 14. 5 226. 4 = 100% 13. 3 159. 8 = 100% 18. 7 155. 9 = 100% 125. 4 450. 4 201. 5 543. 5 198. 5 521. 7 7. 9 38. 7 7. 8 41. 8 7. 6 47 76. 3 76. 3 x 100 145. 8 137. 2 = 52% 137. 2 x 100 207. 1 92. 5 = 66% 92. 5 x 100 166 = 56% Deferred tax liabilities Total fixed liabilities EQUITY Called-u p share capital Share premium account Other reserves Total equity 22. 9 145. 8 = 100% 20. 3 207. 1 = 100% 18. 9 166 = 100% 43. 5 38. 7 222. 4 304. 6 43. 5 38. 4 254. 5 336. 4 43. 5 38. 273. 8 355. 7 Chutsana Na Nagara (0654258) FACS Page 32 Appendix 5 : Year 2 Cash Flow Statement of Simulation Game (Reconciling profit to cash) Year 2 Cash Flow Statement Profit before interest Add: Depreciation Movements in working capital: (Increase)/Derease in stock (Increase)/Derease in debtors Increase/(Derease) in debtors Financing costs and taxation: Interest paid Dividends paid Tax paid Investing activities: Capital expenditure Disposal of assets Cash generated/(consumed) in year Financing activities: Loans raised/(repaid) Other Increase/(Decrease) in cash in year $m (14) 6 (8) (13) (24) 0 (45) (10) 0 0 (55) (34) 0 (89) 0 0 (19) Appendix 6 : Production Budget Factory 1 Machine Mark-I Mark-I Mark-I Mark-II Mark-III Mark-III Mark-III Mark-III Q1 Te Te Te Te Wo Te Wo Te Te Te Wo Te Wo Total (22) Q2 Te Q3 Q4 Total units Terrier Wolf 1 1 2 2 4 4 4 4 14 8 Tiger 2 Te Wo Te Wo Te Wo Te Wo 3 Chutsana Na Nagara (0654258) FACS Page 33 Appendix 7 : Sales Budget Terrier Opening finished stock (Q1) Production (from Production Budget) Available for sales Forecast unsold finished stock (Q4) Sales Direct costs $s Sales value $s 0 14 14 0 14 14Ãâ€"2 = 28 14Ãâ€"4. = 63 Units Wolf 0 8 8 0 8 8Ãâ€"4 = 32 8Ãâ€"6. 7 = 53. 6 Tiger Total 60 116. 6 Appendix 8 : Optimizing Contribution Terrier Best Worst 5 3 2 2 3 1 13 38 Wolf Best Worst 7. 5 5. 5 4 5 3. 5 0. 5 11 76 Tiger Best Worst 10. 5 8. 5 6 7 4. 5 1. 5 9 26 Sales value Variable cost Unit contribution Break-even volume (Fixed cost of ? 38) Chutsana Na Nagara (0654258) FACS Page 34 References Business Review : Electrocomponents plc’s annual report and accounts 2007, p. 8-13 Chairman Statement : Electrocomponents plc’s annual report and accounts 2007, p. Chief Executive’s Review : Electrocomponents plc’s annual re port and accounts 2007, p. 7 Chopra and Sodhi (2004): Managing risk to avoid supply-chain breakdown, MIT Sloan Management Review, Fall 2004, p. 53-61 Dyson1 J R (2007) : Profitability Ratios, Accounting for Non-Accounting Students, Pearson Education Limited, England, 7th Edition, p. 230 Dyson2 J R (2007) : Profitability Ratios, Accounting for Non-Accounting Students, Pearson Education Limited, England, 7th Edition, p. 230Dyson3 (2007) : Direct costs, Accounting for Non-Accounting Students, Pearson Education Limited, England, 7th Edition, p. 293 FACS1 : Financial Analysis and control systems module pack, WMG, Winning MarginTM, p. 14 (2007) FACS2 : Financial Analysis and control systems module pack, WMG, Budget and Budgetary Control, 2007 FACS3 : Financial Analysis and control systems module pack, WMG, Marginal Costing, 2007 Group Balance Sheet : Electrocomponents plc’s annual report and accounts 2007, p. 25 Chutsana Na Nagara (0654258) FACS Page 35Group Cash Flow Statement : E lectrocomponents plc’s annual report and accounts 2007, p. 26 Group Income Statement : Electrocomponents plc’s annual report and accounts 2007, p. 24 Notes 1 – 30 : Please refer to Notes to the Group Accounts, Electrocomponents plc’s annual report and accounts 2007, p. 29-45 Pizzey A (1998) : Cash: the life-blood of the business, Finance and Accounting for Non-Specialist Students, Financial Times, Pitman Publishing, England, p. 83 Webpage1 : About Us, Low Cost Infrastructure, Electrocomponents plc webpage, [online], http://www. lectrocomponents. com/ecm/about/strategy/infrastructure/ Webpage2 : About Us, Our History, Electrocomponents plc webpage, [online], http://www. electrocomponents. com/ecm/about/history/ Webpage3 : Investor Center, Historic Trends, Electrocomponents plc webpage, [online], http://www. electrocomponents. com/ecm/ir/finperformance/trends Webpage4 : Our Responsibilities, Corporate Governance, Electrocomponents plc webpage, [online], htt p://www. electrocomponents. com/ecm/responsibilities/corpgov/ Chutsana Na Nagara (0654258)