Global Digital Store – Ebooks and Softwares

Tag: classified

Cash Flow Statement Manipulation

[ad_1]

Unlike in the accrual accounting world, cash flow is an efficient way for investors to measure a company’s financial health and operational strength. The whole idea of recognizing revenues when realized or realizable can be tricky when an investor has to make a financial decision regarding a certain company. Whereas, having a good understanding of where the money is coming from and how it is being used is much more helpful for an investor. However, calculating and analyzing cash flow isn’t as easy as finding the difference between what money came in and what money went out in a company’s cash register. The difficulty arises from the tricks that companies use to manipulate their cash flow statement. Companies often try to promote the good and hide the bad in their financial reports, which is why the cash-flow statement has seen some manipulation over the years. The following explains how this is done.

When looking at a cash flow statement, there are three sections that the statement is divided into: operating, investing and financing. The most important section to an investor would be the operating section because this is where one can find the money a company is generating from its operations. Investors want to see more cash generated from a company’s operations rather than from borrowing or equity transactions.

Unfortunately, it is not always clear where a company is generating its cash from. One way company’s skew their operating section is through the misclassification of inventory purchases. The costs of purchasing inventory that eventually will be sold to customers, should be classified as an item in the operating section of the cash flow statement. However, some companies disagree and feel that purchasing of inventory is an investing outflow, which would increase operating cash flows. One should question this method of accounting because large investing outflows shouldn’t occur as part of a company’s normal cost of operations.

In addition to misclassifying inventory purchases many companies capitalize some expenses which increases a company’s bottom line. When a company capitalizes costs, they write off the cost of an asset gradually, in installments, instead of taking all the costs at once. This allows companies to record the cash going out as an investing activity, because the cash going out is considered an investment, rather than a deduction from net income or the operating section. As a result, the companies cash flow from operations will remain the same and look much better than it really is.

Next, companies give their operating cash a boost by selling their accounts receivables. This speeds up a company’s cash collections, but it also forces the company to accept fewer dollars than if the company had waited for customers to pay. This action can have a negative impact on a company’s operating section. The decline in accounts receivable means more cash has come in through the sale of receivables, but this would give investors the wrong message. By accelerating collections a company isn’t improving operations, they are just finding another way to boost the operating section of the statement.

Another cash flow statement manipulation is through the account payables. Sometimes there is a substantial increase in the accounts payable line item which would mean payments are not being made to suppliers. If these payables are left open for a long period of time, then a company receives free financing, which increases the operating section inaccurately.

All of these examples are ways that companies can easily manipulate their operating section. These examples give companies an opportunity to show that they have more money at their disposal for operating expense than they actually do. For instance, in 2000 Enron reported it had over $4 billion cash flow from operations, which in reality was overstated by $1.5 billion.

This manipulation caused Enron’s stock value to increase, which in turn led to Enron’s collapse. Another example in 2002, Tyco International delayed paying its executives their first quarter bonuses to increase the company’s operating cash flow for the quarter. This move caused the company’s operating cash flow to wrongly increase by $200 million.

The above examples show how easy it is for the cash flow statement to be manipulated.This goes to show that investors should be careful when looking at this particular financial statement. An investor should be consciences of any manipulation that can cause dishonest financial information. In conclusion, the cash flow statement is the most useful financial statement to an investor, but just as cash easily switches hands, the cash flow statement can just as easily be manipulated.

[ad_2]

Source by Ryan M Henzes

Views: 0

December 30, 2019
5 Simple Steps To Earn Money From Internet As An Affiliate Marketer

[ad_1]

The online industry is growing every passing day. The proof is – there are many options to earn money from internet. Affiliate marketing is one of them and it is currently selling like a hot cake! There are two possible reasons behind its immense popularity and demand. Firstly, the process involved is very simple and easy to follow. Secondly, it commands a very little investment and offers a steady source of income.

When it comes to the process involved, it comprises of three things – seller, middle man and customer. The internet marketer basically plays the role of the middleman. The marketer promotes products of the seller and earns a certain amount of commission every time a customer purchase’s the said product.

Remember – as an affiliate, you are expected to generate sales through different promotional tools. Therefore, you are expected to take appropriate measures which in turn can enhance your earnings. Following are the 4 simple steps that can help you in this regard.

Choose Your Niche Wisely: Make sure to choose the niche/topic that you are passionate about. It will help you in your work if you select a particular area that interests you. If needed, you may take help of search engines or online forums. It helps in identifying products or services that are in great demand now. Whatever niche you choose, always stick to it. It is advisable that you don’t jump from one niche/topic to another. For, it has chances of destroying the trust of your customers.

Select Products With A Thorough Investigation

As a part of investigation, try to judge the marketability and profitability of the products you choose. Fortunately, there are several affiliate marketing networks such as Commission Junction that is very helpful. These websites have a marketplace wherein you can find innumerable number of products. The best part – registration to these sites is absolutely free of cost. On completion of registration, you are provided with an affiliate ID and a special affiliate link. Every time a customer clicks the link and buys a product, your account gets credited with the commission.

Make A Blog or Website To Reach Your Audience

Having a blog or website of your own allows you to reach your target audiences in quick time. In addition, it permits you to place your affiliate links according to your convenience. Instead of registering with free web hosting service provider, it is better to opt for reputable companies like Host Monster or GoDaddy. This way, your objective to earn money from internet becomes smoother and easy.

Create Quality Content: Your website or blog may contain the slickest web features. However, it has no relevance when it comes to driving traffic. Instead, it will all depend on quality of content you provide. In order to attract customers and convert the clicks into sales, it is very important you keep all promotional matter very alluring. If time does not permit you to write such content, you may get it written by someone else.

Drive Quality Traffic To Your Blog or Website: If you wish to earn money from internet with affiliate marketing, you need to drive website traffic. For this purpose, you may utilize suitable methods like E-mail marketing, Classified Ads, Paid Advertisement and Article marketing. This is very important when you choose programs like Amazon Affiliate Marketing. More traffic means more visitors, more sales and more commission!

[ad_2]

Source by Bijoy Ranjan Dey

Views: 0

December 24, 2019
Role of Alternative Medicine in Modern Society

[ad_1]

Typically, alternative medicine differs from traditional medicine in that alternative medicine is older and what we might call unconventional or non-Western medicine. Alternative medicine does not follow the traditional science and research that current medicines undergo. Alternative medicine could also be termed complementary or traditional medicine or the therapies that can be integrated into current medicine. The staff of the National Library of Medicine of the United States classified alternative medicine under the category of complementary therapies in their Medical Subjects Heading Section. This was done in the year 2002. The definition provided was that alternative medicine therapeutic practices were not considered as an integral part of the traditional allopathic medicine. Therapies like acupuncture, dieting, physical therapy like exercises or yoga, etc. are termed as alternative medicine. These therapies are called complementary when they are used along with conventional treatments. If they are done in place of conventional treatments, they are known as alternative treatments.

In April 1995, the panel of National Institutes of Health, Bethesda, Maryland, worked on Definition & Description, CAM Research Methodology Conference, Office of Alternative Medicine. The panel defined alternative medicine and complementary medicine as those healing resources that encompass all health systems and practices that are different from the dominant health system of a particular society or culture. Usually, therapies like ayurveda, herbal medicine, folk medicine, homeopathy, acupuncture, naturopathy, diet practices, chiropractic, music therapy, massage, pranic healing, etc. are classified as alternative or complementary medicine. People who do not find a cure, remedy or success in allopathic medicine generally try alternative medicine. Such people generally suffer from cancer, arthritis, acquired immuno deficiency syndrome (AIDS), chronic back pain, etc. Therapies included under alternative medicine would cease to be included in that category once their efficacy is proven and they are considered safe and effective. They are then considered as part of traditional medicine. An example would be chiropractors. Twenty years ago insurance would not pay for them as they were considered “alternative and ineffective.” Today thousands of people have been helped by chiropractors and they are now recognized in the medical community. A similar movement is underway in the nutritional supplement and nutraceutical industry.

Over the years, more and more people have been using alternative medicine because traditional medicine is not working for them. The 2004 survey by the National Center for Complementary & Alternative Medicine of the United States revealed that approximately 36% of Americans used alternative medicine in 2002. If alternative medicine is used in conjunction with traditional allopathic medicine, an integrative doctor is a person’s best option. Some traditional doctors are adamantly against or simply do not believe in complementary medicine, even though research continues to show the benefits of many compounds. Your doctor should be informed about other approaches you may be using and if they are not comfortable with that then always feel free to choose another doctor. This would enable the doctor to foresee any possible complications or a better time in which to use a complementary therapy. The concern in using alternative medicine stems from the fact that some practitioners of alternative medicine do not have an accredited medical degree and therefore do not have a valid medical license. However, in recent times, many educational institutions and universities have started offering courses in homeopathy, ayurveda, siddha, unani, acupuncture, and naturopathy. The recent growth in this industry is evident by the many people demanding different, and in some cases better, care than what they are receiving in “modern medicine.” They are no longer accepting the fact that they need to suffer with pain or illness because modern pharmacy does not have a magic bullet for them.

[ad_2]

Source by Darren Dunner

Views: 0

December 22, 2019
7 Habits of Highly Effective People – Chapter 3 Overview

[ad_1]

Chapter 3 is the final piece of the puzzle on your way to conquering your very own personal victory. Habit one shows us that we are in charge of our own destiny. It empowers you to change your program that may have been put in place since childhood. Habit two starts the process of identifying what it is you want to be through your powers of visualization. This is the mental creation of the end you desire. Habits one and two are the prerequisite to chapter three which will put your mental creation into a physical force. It’s the day in day out action you will need to take. With the foundations set, you will be able to practice effective self management through your principle centered lifestyle.

The successful person has a tendency to do what other people won’t do. It’s not that they necessarily like it but their strength of purpose will overcome the doubts. The chapter gives you the opportunity to critically examine where you spend your time. There are 4 quadrants to choose from and your answers may well surprise you. Is your day consumes with urgent matters? Is everything you do classified as important? Are you one of the many who are swamped on a daily basis by what is called “crisis management”?

You will gain a terrific understanding of what effective people do to manage their time. Habit 1 suggested you are the programmer, habit 2 sheds light on writing the program and habit 3 is all about running the program or in fact, “living the program”. Living the program is not something we do every now and then. If it is in line with our principle centered pathway, our program becomes how we live our lives day in day out. How we spend our time is absolutely paramount to our levels of success. The chapter delivers towards the beginning of “public victories” with some further examination of the P/PC balance and a concept which was brand new to me called “The Emotional Bank Account”.

The emotional bank account is a metaphor for something that describes the amount of trust that has been built up in any given relationship. Courtesy, kindness and honesty are examples of deposits into a bank account and discourtesy, cutting off and disrespect are withdrawals that can deplete your account. Without a positive emotional bank account that has established a trend of continual deposits, withdrawals will tend to have a compounding and negative effect.

This concept can be adapted to every relationship you have whether it be personal or business, the power of a positive account will always increase your level of trustworthiness and integrity. Learn, understand and implement the content contained in these pages and you will not only change your life but you will be well and truly ready for the public victories that are about to follow.

[ad_2]

Source by Peter L Bennett

Views: 0

October 9, 2019
How To Prevent Alcohol And Drug Addiction

[ad_1]

Drug addiction is a serious disorder. If not treated, it can lead to crises like loss of employment, living quarters and important relationships. And as if this weren’t enough, this kind of addiction can cause illness and even death. Drug addiction is multi-layered and has a variety of causes as well as contributing factors. With the knowledge we have today, Simplistic anti-drug campaigns, such as the “Just Say No” program back in the 1980’s, and even more complex programs like “War on Drugs” is not very effective. The reason for this is that these campaigns do not address the root causes of drug addiction but battles the symptoms not the causes of drug addiction.

When most people consider a drug addiction problem, their minds go automatically to old movies or TV-series. A junkie trembling on a street corner, selling her own body for her next fix, or a tragic, pale old man lying in a gutter with a needle in his arm, or even a college girl snorting a line of crystal meth in a frat house bathroom during a wild party. These images are powerful indeed, but drug addiction generally creeps up in a slow but determined pace. Months or years are passing, during which time the addicted person is still able to function in a job, maintain a place to live as well as keeping relationships going. A drug or alcohol addiction problem generally passes slowly through several phases. Just because someone you know has not lost everything he or she owns to drugs does not have to mean that he or she does not have a drug addiction problem.

One of the most insidious drug addiction is prescription drug addiction, followed closely by alcohol addiction. Let’s face it; we are a nation of pill poppers and alcohol beverage drinkers. Since we were children we learned that if something hurts, we should take a pill to make the pain disappear. We also see that children are being prescribed drugs such as Ritalin in increasing amounts, as parents and doctors smudge the line between active, healthy kids and kids with a true Attention Deficit Hyperactivity Disorder (ADHD). All the time we are bombarded with advertising for pain relievers, sleep medication and a lot of other remedies; prescribed and over the counter. Seen from this point of view, prescription drug addiction is not hard to understand. We hardly question the doctor thoroughly about the risk of dependency on any medication, since using medicine for almost any problem is so widely accepted. It’s so easy to take the drug without question and before we know it, we may have developed a prescription drug addiction.

Alcohol addiction is almost as easy to develop for much the same reason. We live in a culture of drinking. We often go out for cocktails after work or drinking beer with friends during a sports event slowly gives way to having one, two, three, even six or eight beers every night. It feels normal to continually re-visit the bar during a night at a pub. Next thing we identify is a full-blown alcohol drug addiction.

How harsh (or maybe great) it may sound, you are the only person that can prevent alcohol or drug addiction, due to the choices or decisions you make. Although addiction is classified as a disease, it may well be one of the few diseases that people choose to get. Each drug or alcohol addicted person started their life as an addict by making a choice. You are free to make the same choice or you can choose to not allow drug addiction to be your disease. It’s your choice and whether you like it or not, it is the price you have to pay for being a human with a free will.addiction a seat in your life. It’s up to you.

[ad_2]

Source by David Richards

Views: 0

October 8, 2019