Internet Addiction, Excessive Usage, And Gratification

Nisaa Kirtman PSY 7102, Week 4 Internet addiction, excessive usage, and gratification: A review of two articles The growth of the internet and internet-dependency has become some of the many facets in people?s day-to-day lives. Smartphones, radio, the television, newspapers, and magazines are flooded with news and non-stop information that some may not classify as ?news? (e.g., celebrity gossip, etc.). It seems that the prevalence of the internet are indicators of a nation, communities, organizations, or individuals who have become a members of the information society, or have entered the information era. This prevalence of the internet begs the following questions: Is the Internet as beneficial to our future lives and work as we may think? Can the Internet harm our daily off-line lives? How is it that the internet can entice individuals to produce addiction-like behaviors? In past research, the word addiction was only used to describe substance abuse, such as drugs and alcohol. While the definition has become more broadly used, and is less rigid, the addiction behaviors seen with excessive internet use have been shown with similarly abusive behaviors with substances, activities or interactions (e.g., sex, gambling, eating, or television viewing). Like newer labels such as ?internet addiction? and even studying mass media addictions, researchers used research models of drug abuse to examine these phenomena. For instance, some research has assumed that using theShow MoreRelatedInternet Addiction And Digital Dependency Among Young New Zealand Adults Essay1519 Words   |  7 Pagesthemselves while using the internet, whether it is for social media, educational or for business use. The internet is a large part of an individual’s daily life, particularly young New Zealand adults from the ages of 18 to 30 years old. Majority of individuals cannot go days or even hours without checking social media or using the some form of digital technology. This is has resulted in multiple clinicians, academics and even journalists claiming that there is a new form of addiction impacting societiesRead MoreInternet Addiction And Its Negative Impact1002 Words   |  5 PagesThe Buzz about Internet Addiction and its Negative Impact Meta Description: The internet connects millions of people, providing information, entertainment and communication platform. HealthyHow2 is a leading resource for well-researched medical information. Internet Addiction The internet has become an integral component of our life, and this has greatly transformed the way we access information, communicate and do our work. Added to this fact, the internet is widely available in people’s homesRead MoreHow Do People Act When The Wifi Goes Down? Essay1587 Words   |  7 PagesSocial media is a cure for boredom, the lack of interesting hobbies, and a method to attain the sought after â€Å"busy†. This deadly habit often transitions into an addiction. An addiction by definition forms an uncontrollable desire, it can prevent someone from their work, studies, health, and relationships. Humans who suffer from addiction experience extreme discomfort if their addictive needs are not readily satisfied. How do people act when the wifi goes down? Nir Eyal, a startup founder and authorRead MoreSocial Network Use Enhances Self Esteem1443 Words   |  6 Pagesmeet other people based on shared interests. An exponential rise in usage of SocialNetworks has been seen within the last few years. Their ease of use and immediate gratification effect on users has changed the way people in general and students in particular spend their time. Young adults, particularly teenagers tended to be unaware of just how much time they really spent on socialnetworks. Negative correlates of SocialNetworking usage include the decrease in real life social community participationRead MoreEffects of Online Social Networks on Adolescents Health Essay1160 Words   |  5 Pagesat all times so they wont miss a call or text message. They also feel like the have to respond to the text message right away, even when they are behind the wheel of a car. It is becoming harder for todays teen to curb their addition of cell phone usage and the costs are deadly. So who are teenagers who hyper network always talking to? Aside from the massive flood of text messages, much of it had to do with social networking sites like Facebook and MySpace. On average, the typical hyper networkerRead MoreEffect Of Smartphone Addiction On Adolescents1838 Words   |  8 PagesAddiction is defined in Webster’s dictionary as a strong and harmful need to regularly have something or do something, and an unusually great interest in something or a need to do or have something. The term was once only used to refer to drugs and substances, but it today’s world, it applies to Internet, gaming, and most importantly smartphone usage (Kwon et al. 2). Smartphones these days have been negatively affecting teenagers in several ways. More students are being reported addicted to theirRead MoreEssay on Internet Addiction Disorder4686 Words   |  19 Pageswith anything there is a good and bad side. Americans and people around the world are becoming more and mo re reliant on using the internet for their informational, academic, social, entertainment, organizational, and connectional needs. Along with all of the good that this has brought a new disorder is arising, internet addiction disorder. Although internet addiction disorder has not been added as of yet to the DSM hopes by the researchers are high that it will be added in the future editions. MuchRead MoreComputer Addiction1784 Words   |  8 PagesSaint Paul College Foundation, INC. Mandaue Branch A Research on Computer addiction among 3rd year and 4th year students of St. Paul College Foundation INC Jason A. Labaya And Jed C. Gorgonio Submitted in Partial Fulfillment of the Requirements in English IV High School Department St. Paul College Foundation INC Feb.21, 2011 APPROVAL SHEET The research paper attached hereto, entitled â€Å"Computer addiction among 3rd year and 4th year students of St. Paul College Foundation INC†, prepared andRead MoreInternet Addiction: Government Policy or Personal Responsibility?4485 Words   |  18 PagesInternet Addiction: An issue of government policy or a personal responsibility? BIS 421/CSS 411 - Spring 2010 â€Å"Why is it drug addicts and computer aficionados are both called users?† – Clifford Stoll Introduction There is no doubt the presence of the internet is increasing at a rapid pace. A Pew Internet and American Life Project study finds two thirds of all Americans use the internet to frequently participate in internet related activities (Fellows, 2008). Another study shows that 55%Read MoreThe Impact Of Social Media On Technology Essay1587 Words   |  7 Pagesand alcohol, become violent, and become highly sexually active as well (Ahn, 2011). Today it has become the norm for modern technology to highlight numerous acts of violence such as riots, gun battles, sniper attacks, and acts of physical abuse. Excessive users of social media are 94% more likely to have engaged in a physical fight (Fischer, Reuber, 2011). Such acts of violence may result in students and teenagers becoming more aggressive in their everyday lives. Using social media not only leads

Self Interest The Enemy Of True Affection - 1086 Words

Ashwin Thomas Ms. Dunlop ENG 2D1 9 November 2015 Self-interest, the enemy of true affection Self-interest forms a base of every relationship, be it friendship, marriage or trade. Love and friendship are regarded as two types of relationships where no one seeks to gain any benefit from each another but seemingly many humans enter into a relationship for that purpose. In both the plays, the Merchant of Venice and The Crucible has depicted the role of self-interest in human relationships. They emphasize this theme through examples of love, friendship, power. The relationship between Portia, Bassanio and Antonio in The Merchant of Venice and the friendship between Abigail Williams and all the girls in The Crucible are both based on selfish motives. Bassanio asks Antonio for money in order to marry Portia. However, his motives for the marriage consists not for his unreasonable love for Portia but mostly his desire to obtain Portia’s wealth and be able to pay back his debts. He reveals this motive when he tells Antonio that, â€Å"I owe you much, and, like a willful youth, that which I owe is lost. But if you please to shoot another arrow that self way which you did shoot the first, I do not doubt, as I will watch the aim, or to find both or bring your latter hazard back again and thankfully rest debtor for the first† (1.1.146-152). This shows Bassanio’s character and his want for money. Similarly, in The Crucible, we have Reverend Parris, a calculating character that ArthurShow MoreRelatedSelf Interest, The Enemy Of True Affection1199 Words   |  5 Pages09-11-2015 Self-interest, the enemy of true affection Self-interest forms a base of every relationship, be it is friendship, marriage or trade. Love and friendship are regarded as two of relationships where no one seeks a hard-headed purpose but seemingly many humans enter into a relationship just to extract some benefit from it. In both the plays, William Shakespeare with his famous piece, the Merchant of Venice and Arthur Miller with his famous play, The Crucible has depicted the role of self-interestRead MoreSelf Interest, The Enemy Of True Affection1228 Words   |  5 Pages09-11-2015 Self-interest, the enemy of true affection Self-interest forms a base for every relationship, be it is friendship, marriage or trade. Love and friendship are regarded as two of relationships where no one seeks a hard-headed purpose but seemingly many humans enter into a relationship just to extract some benefit from it. In both the plays, William Shakespeare with his famous piece, the Merchant of Venice and Arthur Miller with his famous play, The Crucible have depicted the role of self-interestRead MoreThe Merchant Of Venice By William Shakespeare1036 Words   |  5 Pagessomeone a â€Å"misbeliever.† This is both violent and hostile, and the hostility escacales even as Antonio is struck with great misfortune and loss and is unable to pay off his bond on time. Antonio takes out a bond to allow his best friend to search for his true love, and during this short span, loses all of his merchant ships at sea, and with that all of his money. Any decent human being would be sympathetic to this, but not Shylock. Rather, he is insistent on his punnishment of Antonio, and will show noRead MorePride and Prejudice by Jane Austen Essay899 Words   |  4 Pagesmarry a rich man. The actual relationship entailed by marriage was not very important to most women with many different reasons for marriage being used such as Financial security, Mutual interests, affection, and lust. For Jane Austin the perfect marriage is one based on love and affection rather than a marriage based on financial security like that of Charlotte Lucas or a marriage of Lust like the marriage between Lydia and Wick ham. Jane Austens ideal view of marriageRead MoreEssay about The Winner Within688 Words   |  3 Pagespeople start behaving selfishly, believing that they are more important than the team. I learned from this chapter that greed and resentment eat away at a team’s togetherness and undermine its ability to collaborate and win. â€Å"Self-interest is the enemy of all true affection† -Tacitus Chapter seven is another one of my favorite chapters, ‘Complacency’. Complacency comes when you feel good about who you are and what you have achieved. It is subtle erosion and it makes people start feelingRead MoreSocial Networking Media and Using Proper Online Ettiquette877 Words   |  4 PagesBetter explanations are also needed to explain the basic information needed to guide people to understanding the â€Å"social media† guidelines as well as implications made from participating in online media forums. First, social networking media are not true public spaces. Facebook, MySpace, and other such networks are privately owned and regulated. Participants give up their rights to the information that they post through the website by agreeing to be part of these online communities at initial signRead MoreMachiavellis View on Human Nature Essay1454 Words   |  6 Pageswritings based on human weakness (Western Humanities, pg. 346). In The Prince, Machiavelli d escribes the many negative traits that are inherent among human beings. These traits included are that: people are interested only in themselves, but their affections for others can be won and lost; they are trustworthy when times are good, but turn selfish, deceitful, and driven by profit when times are bad; they admire courage, honor, generosity, and virtue in others, but most people do not have these traits;Read MoreJane Austins Pride and Prejudice: A Famous Work of Englands Regency Period 1636 Words   |  7 Pagesbooks set in this time period all seem to highlight the elegance and romance that was prevalent at the time. Famous Regency Era literary works, such as Pride and Prejudice, portray young English women getting their happily-ever-after endings with their true loves. Unfortunately, such endings did not actually happen to real women of the era because they lived very austere and vapid lives. They hardly had a choice in many of their lives’ decisions and had little to no career options. These women were raisedRead MoreShakespeares Henry IV on Film and Television1428 Words   |  6 Pagesorder of the country, turning it into a society where greedy, selfish and corrupt men like Falstaff can thrive. Harry may feel real affection for him, and loyalty to his real father, but he certainly will not govern the country like them. His father feels guilt for his crimes and is condemned by a sense of illegitimacy and fear of being overthrown in turn by his enemies. Harry dutifully fights for his father against rebels like Warwick and Hotspur, but he is also very concerned at the diseased stateRead MoreRalph Waldo Emerson, John Winthrop, And Benjamin Franklin1297 Words   |  6 PagesWhat is the ideal mode of life? Society has the difficult decision between valuing the individual or the community as a whole more. Will society benefit more by focusing on the individual perfecting himself or herself and staying true to who they are, or will we benefit more by conforming to the ways of the community? This question has been asked for multiple years and several different answers have been given. Three American writers who have discussed this topic are Ralph Waldo Emerson, John Winthrop

Bmw Marketing Mix Free Essays

string(132) " far the most successful models were the MINI, the 3-series and the 5-series, but the other models were also in significant demand\." History: The origins of BMW trace back to 1913 when Karl Friedrich Rapp, who was a  Bavarian(well-known engineer in a German aircraft company in Munich. The company specialized in airplane engines. But it was a  problematic area. We will write a custom essay sample on Bmw Marketing Mix or any similar topic only for you Order Now He had a  financial difficulties and decided to form new company owners Franz-Jozef Popp and financier Camillo Castiglioni and relaunched Motoren Werke and because Rapp was Bavarian there was a  new name Bayerische Flugzeug-Werke (BFW) was formed after a  short time the name was changed to BMW and from the beginnig they started to produce airplane engines. At the beginning of the 20? s BMW slapped their logo, which is unchanged until today. After the 2. world war the treaty of versailles prohibited BMW to switch to manufacturing air brakes for railway cars. After this treaty company started to focus on developing motorcycles engines. Ower a  2 years they built 2 motorcycle models(Victoria, Flink) and after this they built their first BMW factory. Two-wheeled vehicles quickly turned into four-wheeled ones in 1928. With their motorcycles they made world records, because they were the fast motorcycles. In 1932 they launch new car model 3/20 PS. As time passed by, BMW got bigger and bigger and, shortly before the Wold War II outbreak, took over some more factories in the vicinity of Berlin. Due to BMW’s versatility and need for mechanized faming implements and spare parts, the first BMW bicycle was born. They started to export their motorcycles to new york in 2 decades. The last one at the beginning of the 40? s. The 1955 Isetta, powered by a 12/13 hp motorcycle engine, becomes a favorite among customers. Over 160,000 units are sold, transforming the Isetta into a symbol of the post-war decade. They had a  lot of technological improvements on their cars. With the help of Herbert Quandt, BMW, still a share-owned company, is brought one step closer to independence. The 60’s brought a multitude of achievements with the 1500 and 1600 series, as well as a range of new sedans, the 2500, 2800, American Bavaria and the 2. 5 CS and 2800 CS coupe models. Production lines that would become worldwide pieces of success soon came out, such as the 6 and 7 series and the recently reconstructed BMW M1 model. By the end of the 70’s, BMW had dug deep into other car-improvement related fields as well, and electronics proved to be the perfect ground for growing BMW’s next generation of computerized car devices. Economic fuel research then became top priority. Research started to be heavily reinforced and reached new uncharted areas through the employment of over 6,000 people. Once the Z1 one came along, the profits kept pile-up trend. Caring for the customer and staying ahead of competition was proof enough that BMW had turned into a true, mature brand. Business development: BMW has various sources for research and product development: A well known BMW location is the Engineering Center (FIZ) in Munich. This institution was launched in 1987, implementing the idea of co-location. Co-location stands for bringing together all people into one site, who are concerned with the product development process, incl. suppliers. Nowadays about 5,000 researchers, engineers and technicians are working at the FIZ. A design studio in California, which provides trendy designs from one of the most creative places of the world. A project team in Japan, which serves as an antenna into Japanese technical developments. BMW-Technik GmbH, which was launched in 1985 and is responsible for idea generation off-site, equipped with own design facilities, acoustic wind tunnel and various other facilities for noise reduction. This company employs about 100 people. Company mission and business focus: Reading the BMW Group mission statement, it’s easy to understand why the BMW Group is clearly associated with premium products, premium prices, and premium experiences. The BMW mission statement is†¦ The BMW Group is the world’s leading provider of premium products and premium services for individual mobility. Beyond that, each brand of vehicle under the BMW Group umbrella has its own distinct brand identy†¦ BMW Brand – â€Å"The BMW brand stands for one thing: sheer driving pleasure. Sporting and dynamic performance combined with superb design and exclusive quality. † MINI Brand – â€Å"The MINI brand wins hearts and turns heads. MINI is refreshingly different: extr overted, spontaneous and in every respect something out of the ordinary. † â€Å"For over 100 years, motor cars of the Rolls-Royce brand have stood for truly outstanding engineering, quality and reliability. The BMW Group is the world’s leading provider of premium products and premium services for individual mobility. † Focus: he concept of premium will be increasingly defined through sustainability in the future. BMW, like no other brand, will still stand for vitality and driving pleasure in the future. But it will also represent efficiency and environmental friendliness. .. We have introduced our fuel-saving technology, Efficient Dynamics, as a standard feature in all series. It uses start-stop technology, brake-force energy recovery and other methods to drastically reduce fuel consumption, while at the same providing more power. We call this â€Å"Sheer Driving Pleasure 2. 0. MARKETS OF BMW The main markets for BMW automobiles have been in Europe, the USA, Japan and the Pacific region, with the markets of Germany and the US accounting for almost half the total car sales. Important markets have also been the fast-growing UK, and the Italian, French and Japanese markets. Sales in the USA market have been particularly successful, as they grew by over 8 per cent on the previous year to 277,000, becoming the biggest market for the group and overtaking the Lexus brand for the first time. At the end of 2003, the outlook for 2004 by group management and industry observers was upbeat. This view was supported by the successful launch of the new 5-series, the consolidation in Europe and Asia of the BMW Z4, the introduction of the BMW X3. The new BMW 1 Series and the BMW 6 Series cabriolet were launched early in 2004. By far the most successful models were the MINI, the 3-series and the 5-series, but the other models were also in significant demand. You read "Bmw Marketing Mix" in category "Essay examples" In the Chinese markets there was growing demand for the higher end models of the range, specifically for 7-series and 5-series Target customers: Upper middle class — professional employees at the upper part of corporate ladder such as financial analysts Product policy: Assortment: cars: BMW 1 series (3, 5 door, coupe, convertible), BMW 3 series (sedan, coupe, convertible, touring, compact) BMW 5 series (sedan, touring) BMW (coupe, grand coupe, convertible) BMW 7 series (sedan) BMW X1-X6, BMW Z4 roaster, BMW M series( 3,5,6) also MINI :MINI is one of the most entertaining cars on the road, with dynamic performance and handling and an unmistakable appearance that makes it instantly recognisable. It is currently available in a range of models including: MINI Hatch (MINI One, MINI Cooper, MINI Cooper D, MINI Cooper S), MINI John Cooper Works, MINI Convertible (MINI One Convertible, MINI Cooper Convertible, MINI Cooper S Convertible) and MINI Clubman (MINI Cooper D Clubman, MINI Cooper Clubman, MINI Cooper S Clubman). MINI is produced in England and is now sold in over 70 countries worldwide. The Rolls–Royce Motor Cars :Rolls-Royce launched the Drophead Coupe in 2007 which has a V / 12 / 48 engine, reaches a top speed of 149 mph and does 0-100km/h in 5. 9 seconds. The Rolls-Royce Phantom features a 6. 5 litre light alloy V12 engine that provides 460PS (453bhp) of power. Rolls–Royce also launched the Centenary Experimental 100 EX and the limited edition Centenary Phantom in 2004. Summer 2008 saw the production of the new Phantom Coupe, the most driver-orientated model in the Phantom line. Motorcycles: SPORT, TOUR, ROASTER,ENDURO,URBAN MOBILITY SPORT: S1000 RR, K  1300S TOUR: F800GT, R 1200RT, K  1600GT, K  1600GTL, ROASTER: F800R, R1200R ENDURO: G 650 GS, S  650 GS sertao, F 800 GS, R 1200 GS, R 1200GS adventure URBAN MOBILITY: C 600 sport, C 650 GT Scooters: BMW C 600 Sport BMW C 650 GT BMW C EVOLUTION e-Scooter Acessories: DVD systems, radios, car care, lights, navigations,air condition†¦ Clothes Quality: in 2008 BMW received a score of 3 out of a possible 5 points in the averaged category of Overall Quality( like ford, kia, nissan) Logo: The BMW logo consists of a thick black ring encircled by a silver lining. The letters ‘BMW’ are inscribed in a non-serif font in the top half of the black ring. The gap within the ring is divided into four equal alternative blue and white quarters. The BMW logo, commonly known as â€Å"roundel†, was created and registered in 1917. The created logo design is remarkably simple and projects an identity that is smart, clear, sporty and image-conscious. It is one of the most distinctive logo designs in the world, speaking highly of a brand-led company. The 1929 Dixi was the first vehicle to carry the famous BMW logo. The BMW logo has been altered very rarely and minutely and has maintained its original look throughout the company’s history. Here are some of the logos that have been used since 1917. People think that the BMW logo is based on a rotating airscrew. The origin of this interpretation is the cover of a BMW aircraft magazine. This picture (shown below) was taken in 1929, years after the logo first came into existence. BMW chose the Bavarian national colours as a  symbol Innovations: BMW Innovations With a constantly updated menu of inspired new technologies and products, BMW is leading the charge in automotive evolution. We engineer our renowned vehicle lineup to be the most advanced in the world. And we continuously push the limits of efficiency and performance. We do this because our goal is not to be ahead of the curve; we are determined to be ahead of everything else on the road. Connected Drive: BMW is focused on connecting you, the driver, in meaningful ways to your vehicle, and to your world at large. Intelligent innovations provide you with unprecedented mobility, so you enjoy the best possible combination of safety, comfort, entertainment, and – above all – driving pleasure. Head-Up Display: BMW’s full-colour Head-Up Display projects critical driving information, such as speed, directions, and alerts, directly in your field of vision, so distraction is minimized. This virtual image appears approximately two metres ahead of you, at the end of the hood, seamlessly integrating into whatever scenario your find yourself in. Your eyes and attention stay focused on the road, where they rightfully belong. BMW Apps: Introducing a new way to stay in touch. With the BMW Apps you can bring Facebook, Twitter, your calendar, or even your favourite web radio station into your car on the iDrive screen. Your Control Display can show the latest status updates from your Facebook or Twitter account, as well as upcoming events, while the car’s audio system can read them out using the text-to-speech function. Get ready for the next generation of mobile communication and entertainment – with your iPhone and BMW ConnectedDrive BMW Concierge: There’s much more than just a welcoming voice on the other end of BMW Concierge. Whether you’re looking to book a flight or hotel, find the nearest ATM, or make a reservation at your favourite restaurant, our customer relations agents are always there for you. BMW Concierge is available 24/7 and transfers address data directly to the Navigation System of your BMW. And in case of emergency, BMW Assist is equipped with a host of helpful tools, including Emergency Request, Enhanced Roadside Assistance, Remote Door Unlock, Advanced Automatic Collision Notification, Stolen Vehicle Recovery, and more. Night Vision: Your command of the road doesn’t end when the sun sets. BMW Night Vision is our exclusive infrared technology that allows you to see through the dark, up to a class-leading 300 metres ahead. Objects, animals, and pedestrians are instantly distinguished, leading you to safer nighttime driving. Google MyInfo: Use Google Maps to send points-of-interest information directly to your BMW using your e-mail address and BMW Assist account. Find restaurants, friends’ homes, or even the location of your next meeting. With Google Maps, you can send any destination to your vehicle from your computer, and then accept the information into the Navigation System once in your car. You can even call your destination using Bluetooth integration by selecting the displayed telephone number. http://www. bmwvictoria. ca/BMW/Innovations/tabid/206/Default. aspx tam videa Services: Financing, insurance,credit cards, leasings, Pricing policy: Price strategy- How to cite Bmw Marketing Mix, Essay examples

Financial Accounting And Human Resource Management

Question: The following context is provided for the questions. You have recently been appointed as a Manager for the Procurement Cost Unit at Braemer Shipping Ltd. Your employment starts on January 1st Year 0, and you find in place a 12-month budgeted Income Statement as presented below. Figures are expressed in GBP (000). Braemer Shipping Ltd - Procurement Unit Budgeted Income Statement for the 12-month period Year 0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Sales revenues 52 55 59 65 55 53 57 59 62 65 68 72 722 Cost of sales (30) (31) (34) (37) (31) (31) (33) (34) (35) (37) (40) (42) (415) Salaries wages (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (120) Electricity (6) (6) (5) (4) (2) (2) (2) (2) (3) (5) (6) (7) (50) Depreciation (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (24) Other overheads (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (36) Total expenses (51) (52) (54) (56) (48) (48) (50) (51) (53) (57) (61) (60) (641) Profit 1 3 5 9 7 5 7 8 9 8 7 12 81 The business policy on trade receivables and trade payables is 30 days credit. Hence customers who receive an invoice in January will only pay in February and likewise, invoices received from the business suppliers in January will be paid in February. Prior to your arrival, the cash account has a credit of 70 from December of the previous year (Y -1) which is brought forward to January, giving you an opening cash balance of 70. Sales revenues in December Y-1 were 45 and costs of Sales 38. Three months into the job you are invited to attend Senior Management meeting, to which you propose that some changes be made to the existing policies, and these are: Starting April, suppliers will be paid after 60 days; As from July, inventory levels will be reduced by 3 per month in July, August and September to align with the low trading season, and will increase again by 8 per month in October, November and December to maximise sales revenues generated by consumers spending spree; As from April, electricity costs will be paid quarterly; The equipment for warehouse handling must be disposed of in December and a new system put in place using a standard 6 year leasing agreement. Senior Management has agreed to all your suggestions, and you can now implement them on schedule. Activity 1 on cash budget Prepare a cash budget for the 12-month period of Year 0 reflecting the effects of your new proposals. Activity 2 on budgeted P/L account and cash budget Using the budgeted Income Statement for Year 0, prepare the Income Statement forecast (budgeted) for year Y+1. Assumptions are: Electricity costs will decrease by 1 each month Sales revenues will increase by 5 each month Leasing fees on new equipment is set at 3 per month and the bank has arranged for the supplier to install it on January 03 of Year (Y+1). Prepare the cash budget for Y+1 on the basis of the assumptions listed above, AND including the changes you introduced in Year 0 cash budget. Briefly discuss the effects of your initiatives on the profitability of the business. Activity 3 on fixed asset The equipment used in the warehouse was bought 3 years ago (Y-3) at acquisition cost of 150 with a five years life and a residual value of 30. You can sell it on the market for 95 and buy a more energy efficient equipment. This sale will be realised on December 31, Y0, but the leasing agreement on the new equipment will be effective the following year (Y+1). You need to prepare the fixed asset statement for this equipment at the end of Year 0. Answer: Introduction A budget is defined as a long term plan which helps the business to estimate the level of expenses and the level of profit that the Business will earn in the future years. The organizations generally formulate different monetary plans and policies and make the expenses and the profits accordingly to facilitate a new budget. The plan in the budget helps the company to make sales and demand forecast. According to Samkin (2010) the importance of budget is as follows: To help the management perform, review and control To ensure that the business is moving according to plan by comparing the actual results with the budgeted results To take appropriate actions when disparity is noticed between the actual plan and the budgeted expenses The report here deals with the preparing of the cash budget of Global supply chain of Kawaski. The report shows the profit and loss statement as well as the cash budget statement for year Y+0 and the cash budget statement for the year Y+1. 1. Cash budget for 12 month period of Year 0reflecting the effects of new policy Cash Budget Year + 0 Jan Feb Mar April May June July August September October November December Trade receivables 65 52 55 59 65 55 53 57 59 62 65 68 Trade payables -35 -29 -31 0 -34 -36 -31 -29 -33 -34 -35 -36 Salaries -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 Electricity -2 -3 -4 0 0 -6 0 0 -5 0 0 -15 Overheads -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 Total -50 -45 -48 -13 -47 -55 -44 -42 -51 -47 -48 -64 Cash Surplus 15 7 7 46 18 0 9 15 8 15 17 4 Opening balance 50 65 72 79 125 143 143 152 167 175 190 207 Closing balance 65 72 79 125 143 143 152 167 175 190 207 211 The cash budget for Y+0 shows the trade receivables same as the given income statement. Before January trade receivable of 65 was incurred and hence the same has been included at the beginning of Y+0 Budget sheet (Modell, 2010). The same has been done in case of Trade payables. April is shown to be zero because from April the new policy of 60 days has been implemented. The electricity costs from April are made on quarterly basis and also reduced by 1 every month to cut the expenses as well as energy efficiency. 2.1 Forecasted P/L for year Y+1 Budget Profit and loss for year Y+1 Jan Feb Mar Aprl May June July August September October November December Sales revenue 55 58 62 68 58 56 60 62 65 68 71 75 Cost of sales -29 -31 -34 -36 -31 -29 -33 -34 -35 -36 -37 -39 Salaries and wages -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 Electricity -3 -4 -5 -5 -2 -2 -2 -3 -3 -5 -6 -7 Other overheads -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 Total expenses -45 -48 -52 -54 -46 -44 -48 -50 -51 -54 -56 -59 Profit 10 10 10 14 12 12 12 12 14 14 15 16 2.2 Cash budget of Y+1 year Cash budget Yr 1 Jan Feb Mar Arpl May June July August Sept Oct Nov Dec Trade Receivables 71 55 58 62 68 58 56 60 62 65 68 71 Trade payables -35 -36 -29 -31 -34 -36 -31 -29 -33 -34 -35 -36 Salaries -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 Electricity 0 0 -9 0 0 -6 0 0 -5 0 0 -15 Overheads -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 Total expenses -48 -49 -51 -44 -47 -55 -44 -42 -51 -47 -48 -64 Cash surplus 23 6 7 18 21 3 12 18 11 18 20 7 Opening balance 211 234 240 247 265 286 289 301 319 330 348 368 Closing balance 234 240 247 265 286 289 301 319 330 348 368 375 The year Y+1 budget have been prepared keeping in mind the changes in the previous budget. The opening balance has been derived from the closing balance of the Y+1 budget. This has helped the management to compare both the budgets so as to get a fair knowledge about the effectiveness of the policies (Horngren, 2013). 2.3 Techniques of working capital management Weetman (2010) opined that a direct relation between the working capital management and the budget affects the cash position of the business. Hence if the policies are made to control the budget then the policies will have a direct effect on the working capital structure of the company. The main components of a budget are Trade receivables and the trade payables. Horngren (2013) suggested that working capital cycle is in a simpler sense known as the Trading cycle. Hence the change in the days of trade receivable and trades payable makes changes in the budget as well as the working capital cycle of the company. For this reason to keep parity between the two the company can use two different policies namely the subjective approach and the objective approach. The other approaches that will help the company to prepare the budget are the determination of the Economic order quantity which will help the company to decide how much of a particular item should be ordered when the stocks reach replenishment level. Moreover the control of the trade payables is also a major issue of managing the balance. The trade payables arise when the business buy goods on credit (Epstein and Lee, 2010). To make timely payment of the trade payables the company must have a positive trade receivable policy. Here the trade receivable policy is 30 days and the trade payable policy is 90 days. This is giving the business sufficient time to collect money from the debtors to be able to make payment to the creditors. However Atrill and McLaney (2013) opined that if the trade payable cycle is less than the trade receivable cycle then the business would have to pay cash from store and this will in turn reduce the liquidity of the business. 3. Effects of disposal of equipment on business worth The 5 major T accounts that can be used for the calculation of the effect of fixed asst disposal as well as the effect of depreciation are namely fixed assets account, cash account, accumulated depreciation account, disposal of asset account and Profit and loss account (Blocher, 2013). Step 1: Debit Fixed asset a/c by 250 Step 2: Depriciation of (250-50) / 5= 40 is credited to accumulated depreciation a/c each year and debited to P/L account. Step 3: After three years the accumulated depreciation is 120 Step 4: The sale price is fixed at 110. At this point the accumulated depreciation is 120 making a net book value of (250-120) = 130 Step 5: The sale results is loss of 20. Step 6: closing of the accounts The fixed asset account will be closed by creating a disposal of fixed asset account and debiting the account by acquisition costs that is 250. The disposal account will further be credited by 110 of the sale price. The accumulated depreciation account will be closed by debiting 120 and crediting the disposal of fixed asset account. Step 7: Calculation of the net worth Sale + accumulated depreciation- acquisition cost = (110+ 120) 250 = (20) The amount is added to the loss of the year and will go to the shareholders funds to balance the net worth in the balance sheet. P/L account for Y-2 Jan Feb Mar Aprl May June July August September October Novemeber December Sales revenue 55 58 62 68 58 56 60 62 65 68 71 75 Cost of sales -29 -31 -34 -36 -31 -29 -33 -34 -35 -36 -37 -39 Salaries and wages -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 Electricity -3 -4 -5 -5 -2 -2 -2 -3 -3 -5 -6 -7 Leasing fee -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 Other overheads -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 Total expenses -48 -51 -55 -57 -49 -47 -51 -53 -42 -57 -59 -62 Profit 7 7 7 11 9 9 9 9 23 11 12 13 4. Report analysis The Report shows the cash budget preparation of both Y+0 and Y+1 years. Since the changes in the polices have been made in order to prepare a new budget for Y+1 hence the report tries to analyze the changes in the cash flow registered due to changes made in the budget as the policies. The trade cycle has been changed which shows a positive effect on the cash balance of the Y+1 year. The trade receivable time has been decreased to 30 days which means that the company will be able to realize the cash faster. On the contrary, the trade receivables policy of the company has been increased to 90 days which means that the company will have ample amount of time to utilize the cash received for the payment of the creditors Finally the policy of reducing the electricity charges by 1 each month is a noble decision on the part of the management because it not only provides sustainable side to the company but also reduces the expenses thereby increasing the cash surplus. Another decision of making the quarterly payment of the electricity expenses showed a rise of the cash surplus in the quarters where the company did not need to make any payments. However it can be seen that a quarterly payment may increase the burden of the company to make overall expense payment in one month. Reference list Books Atrill McLaney, 8th edition. 2013.Accounting finance for Non-Specialists, pp.307-342. Blocher, E. (2013).Cost management. New York, NY: McGraw-Hill/Irwin. Epstein, M. and Lee, J. (2010).Advances in management accounting. Bingley: Emerald. Horngren, C. (2013).Introduction to Management Accounting. Harlow: Pearson/Education. Weetman, P. (2010) Management Accounting, Chapters 1 2. Journals Modell, S. (2010). Bridging the paradigm divide in management accounting research: The role of mixed methods approaches.Management Accounting Research, 21(2), pp.124-129. Samkin, G. (2010).Qualitative research in accounting management. [Bingley, UK]: Emerald.