The Principle Of Population By Thomas Malthus - 1471 Words

POLS1301 Essay One Thomas Malthus 1798 An Essay on the Principle of Population, Chapter 1 Thomas Malthus was an English philosopher who lived from 1766 to 1834, An Essay on the Principle of Population, is one of the most influential pieces of writing in history. Not only did it help to establish the modern field of economics, it aided Charles Darwin on his regarding evolutionary science. Malthus’ core argument that runs a majority of the book is dedicated to the ‘Iron Law of Population’. This essay will seek to examine the premises of Thomas Malthus’ 1798 an Essay on the Principle of Population and conclude on its argument as well as provide a justification of the invalidity of the argument. In addition, it will identify its multiple influences on historical contexts throughout time. The most persistent theory written by Thomas Malthus in 1798 regarding population growth and the effects on humanity, which is rather ironic as it has a almost lack of connection to the actual history of humanity and its population growth. In 100CE the population of the Earth was estimated to be under one billion people, roughly at 200 million people, following on almost 2 millennia later to 1800CE the population had seen a mere growth to approximately 800 million. During this time Malthus wrote a piece regarding the slow growth in population and why this was rate was the way things would be for the rest of human life. He put forward that the limits of human population growth are due toShow MoreRelatedThomas Malthus : The Principle Of Population843 Words   |  4 Pagesfamous English economist Thomas Robert Malthus published the wildly successful An Essay on the Principle of Population. Within his work, Malthus examined a myriad of economic topics from labor supply to wage rates, bu t most notably to modern economics and population observation, Thomas Malthus found that food production tends to increase arithmetically; while, population size tends to increase at a geometric (or exponential) rate (Malthus, 1798). From his findings, Malthus purported the demise ofRead MoreEssay on Thomas Malthus and the Principle of Population1503 Words   |  7 Pages1. Introduction This essay deals with Thomas Malthus and the first two chapters of his â€Å"Essay on the Principle of Population†. At first I will provide a short biographical note on Malthus and I will also mention his main achievements. Then, a summary of Malthus main ideas of the first two chapters of mentioned work follows. Afterward, the essay concludes with a personal note. 2. A short biography Thomas Robert Malthus was born in 1766 (course textbook, n. d.) in Surrey, England, as the sixthRead MoreThe Industrial Revolution And The Public Health Revolution1697 Words   |  7 Pages Since our origin, worldwide human population has steadily been on the rise. We humans emerged as a species about 200,000 years ago. In geological time, that is really incredibly recent. Just 10,000 years ago, there were one million of us. By 1800, just over 200 years ago, there were 1 billion of us. By 1960, 50 years ago, there were 3 billion of us. There are now over 7 billion of us. By 2050, your children, or your children s children, will be living on a planet with at least 9 billion otherRead MoreOpositions to Thomas Malthus Theory on Population Growth 694 Words   |  3 PagesThomas Malthus was an early 19th century English scholar who specializes in political economy and demographics. One of his most well-known and influential works ‘An Essay on the Principle of Population argued that the increase in population growth would ultimately create social and economic problems for a nation. On the contrary, many famous political economists such as Ester Boserup and Julian Simon suggested different views about population and resource growth; which contradicts the Malthus’ theoryRead MoreDarwins Theory of Evolution Essay702 Words   |  3 PagesUniformitarianism. He was the author of Principles of Geology. His theory was that earth must be very old and that throughout time the planet has undergone processes that change the shape the land. That includes erosion, earthquakes, glacial movements, volcanoes, and the decomposition of dead plants and animals. (Port, 2006) Thomas Robert Malthus was born on February 13th, 1766, at Dorking, a town south of London. His theory about population was that population growth usually exceeds the amount ofRead MoreReverend Thomas, Robert Malthus969 Words   |  4 PagesReverend Thomas, Robert Malthus (b. February 13 or 14, 1766; d. December, 1834) Overview Reverend Thomas, Robert Malthus was a political/classical economist born in the late 1760’s. He studied at several different schools in the areas of mathematics, literature, and arts. Malthus was married in the early 1800’s and had three children. Malthus is most famous for his theories on population growth and how he proposed we go about controlling it. He later died in the 1830’s at the age of 68. ChildhoodRead MoreThomas Robert Malthus Essays565 Words   |  3 PagesMalthus Thomas Robert Malthus was a well-known economist as well as a clergyman. He was born on February 13th, 1766, in Surrey, England, and was the sixth of seven children. Malthus attended Cambridge in 1784 and graduated four years later with honors in mathematics. In 1789, Malthus became a deacon in the Church of England and curate of Okewood Chapel in Surrey. In 1798, he anonymously published his renowned work An Essay on the Principle of Population as it affects the Future ImprovementRead MoreMalthus Principle Of Population Growth1585 Words   |  7 PagesAccording to Malthus, Economic Growth leads directly to population growth, and the latter tends to be more rapid than the former. Malthus’ principle appears to have held for the pre-industrial world for millennia. However, the industrialising capitalist countries of Europe experienced low population growth rates during the 20th Century, in spite of their high economic growth rates. Why did Malthus’ principle fa il to apply in this case? Thomas Robert Malthus (1766-1834) was a famous Economist, famousRead More The Economic Agency of Women in Malthus’ Essay on the Principle of Population947 Words   |  4 PagesAgency of Women in Malthus’ Essay on the Principle of Population It is difficult to examine the question of the division of labor within the household in Malthus’ writings as it seems to be entirely outside the scope of his work. Though his conclusions are predicated on the relationship between men and women, from reading his writing one has the distinct impression that women are not really a factor. In spite of this, an examination of the implications inherent in Malthus’ analysis is revealingRead More overpopulation a problem? Essay1438 Words   |  6 Pagesnbsp;nbsp;nbsp;nbsp;nbsp;This question seems to be question that is asked quite frequently lately. In the last two centuries, population has skyrocketed. In 1800 the world population was only at 1 billion, and today it’s estimated that the world population exceeds six billion people. With overpopulation, many problems have arisen. Some believe that overpopulation is the reason for world hunger, global population will reach crisis proportions by 2050, and some believe that overpopulation will bring the extinction of the

Analyzing Financial Statements Free Essays

HSM 260 Analyzing Financial Statements By Darrell L. Lee Axia College of University of Phoenix October 31, 2012 Instructor: Danette Brown Calculate the following: Current ratiolt; Long-term solvency ratio, contribution ratio, programs/expense ratio, general and management/expense ratio, and revenue/ expense ratio for the years 2003 and 2004. Current ratio = current Assets Current Liabilities 2003 Current Ratio = [pic] Current Ratio = 0. We will write a custom essay sample on Analyzing Financial Statements or any similar topic only for you Order Now 87 2004 Current Ratio = Current Assets Current liabilities Current Ratio = [pic] Current Ratio = 0. 90 (rounded –up) Long-Term Solvency Ratio Long- Term†¦ Solvency Ratio = Total Assets Total Liabilities Long- Term†¦ Solvency Ratio = [pic] Long- Term†¦ Solvency Ratio = 1. 38 2003 Contribution†¦ Ratio = Last revenue source Total Revenue Contribution†¦ Ratio = [pic] Contribution†¦ Ratio = 0. 51 (rounded-up) 2004 Contribution†¦ Ratio = Last revenue source Total†¦ Revenue Contribution†¦ Ratio = [pic] Contribution†¦ Ratio =0. 49 Program Expense Ratio 2003 Program/ Expense Ratio = Total Revenue Total Expense Program/Expense Ratio = [pic] Program/Expense Ratio = 1. 0 2004 Program/Expense Ratio = Total Revenue Total Expense Program/ Expense Ratio = [pic] Program/ Expense Ratio = 1. 11 2003 Management/Expense Ratio = Total General and Management Expense Total Expenses Management/Expense Ratio = [pic] Management/Expense Ratio = 0. 28 (rounded –Up) 2004 Management/Expense Ratio = Total General and Management Expense Total Expenses Management/Expense Ratio = [pic] Management/Expense Ratio = 0. 33 (Rounded –up) Revenue/Expense Ratio 2003 Revenue/Expense Ratio = Total Revenue Total Expenses Revenue/Expense Ratio = [pic] Revenue/Expense Ratio = 0. 94 2004 Revenue/Expense Ratio = Total Revenue Total Expenses Revenue/Expense Ratio = [pic] Revenue/Expense Ratio = 1. 11 Include the current ratio, long-term solvency ratio, contribution ratio, program/expense ratio, general and management/expense ratio, and revenue/expense ratio calculated in week four Assignment. 2002 Current Ratio = Current Assets Current Liabilities Current Ratio = [pic] Current Ratio = 0. 75 2002 Long-term Solvency Ratio = Total Assets Total Liabilities Long-term Solvency Ratio = [pic] Long-term Solvency Ratio = 1. 26 2002 Contribution Ratio = Last Revenue Source Total Revenue Contribution Ratio = [pic] Contribution Ratio = 0. 53 Program/Expense Ratio = Total Revenue Total Expense Program/Expense Ratio = [pic] Program/Expense Ratio = 1. (Rounded –up) 2002 Management/Expense Ratio = Total General and Management/Expense Total Expenses Management/Expense Ratio = [pic] Management/Expense Ratio = 0. 30 (Rounded –Up) 2002 Revenue/Expense Ratio = Total Revenue Total Expense Revenue/Expense Ratio = [pic] Revenue/Expense Ratio = 0. 98 Provide a 200- to 300-word explanation of the importance of each ratio for all three years listed in Appendix D. Include a statement of whether the organization’s financial picture has improved or not within the three-year period specified in Appendix D. Appendix D lists 5 ratios that are each important in different ways. A non-profit organization uses the current ratio to evaluate some of its assets. These assets are both cash and other things that could be changed into cash, and they might be used if necessary to pay their costs of operating. A non-profit organization uses the long-term solvency ratio to find out if they are likely to be able to pay their bills. This ratio will tell the non-profit exactly how much they depend on contributions from other sources outside of their organization. The organization uses the management/expense ratio to tell them how much they should set aside for administrative costs, besides their program costs. If they save too much money in this category, they can spend less money on their programs. The revenue/expense ratio tells them how much funding they have used to support their fund-raising. The revenue/expense ratio is like the management/expense ratio because if too much money goes into revenue/expense, not enough will go to their programs. Calculate the fixed cost, variable cost and break-even point for the XYZ Corporation for the years 2003 and 2004 listed in Appendix D. Expenses20032004 Program Services Payroll/Benefits $520,069. 00 $915,787. 20 Supplies $171,622. 7 $ 320,525. 52 Rent/Utilities $150,000. 00 $150,000. 00 Phone $24,000. 00 $24,000. 00 Other $79,888. 00 $115,999. 00 Management/Other $371,101. 00 $ 445,819. 00 Total Expense $1,361,681. 00 $ 1,972,131. 00 Variable Cost:20032004 Supplies: $171,622. 77 $320,525. 52 $171,622. 77 + $320,525. 52 = $ [pic] = $264. 074 Fixed Cost20032004 Rent and Utilities $150,000. 00 $150,000. 00 Telephone $24,000. 00 $24,000. 00 $174,000 *2 = $348,000. 00 = [pic] = $261,000. 00 Break-even Point Customers:20032004 ,821 11,822 6,821 + 11,822=18,643 [pic] = 9,322 PX = A + BX 9322 X = 174,000 + 246,074 X 9322 X = 174,000 + 22,939,018. 28 X = 22,940,758. 28 Include the fixed cost, variable cost, and break-even point for the XYZ Corporation for the year 2002 from the week Six Checkpoint Average Variable Cost per Unit: $1,011. 00 20028 **** $417,004 + $ 125,101. 20 +$117,903 + $ 351,000 1, 142, 683 20031 ****$520,069 + $ 171,622. 70 +$79,888 + $371. 101 1,798,113 20041 ****$915,789. 50 +$320,525. 52 +$115,999 +$445,819 $3, 951, 82 Total0 Number of years 3 1, 317, 27 Average VC3 Average Customers 8,202 Average VC per Unit$ 161 $174,000. 00 Fixed Cost:0 ****150,000 + 24,000 Breakeven Breakeven = Fixed cost / (Average Revenue per unit- Average VC Per unit) Breakeven = $174,000 / ($187 – $ 161) Breakeven = $174,000 / $26 Breakeven = 6,682 Customers Discuss the purpose, advantages, disadvantages, and type of feedback pro vided by a line item, performance, and program budget in a 350- to 700-word essay. Using performance, line-item, and program budget systems has a few advantages. Each system is best for a particular reason. Each system has both is pros and its cons. The administration will consider the needs of its organization, and with this in mind choose which system they should use. Martin (2009) explains, â€Å"The three major budgeting systems (line-item, performance, and program) provide the financial performance feedback in a performance measurement system† (p. 77). A performance budgeting system’s most important advantage is that it gives the administration information about the cost of the organization’s â€Å"outputs. †For example, this performance budgeting system calculates the cost to the organization of particular individual services. If this budget is related to a homecare program, it would take into account even service that is included in or related to the homecare service– for instance, if there is a separate charge for administration of medicines or for travel time. Only the program-level is the right place for this kind of budget system. This kind of budget also gives a great deal of detail, which makes it often better than line-item budgeting. One disadvantage to performance budgeting is that it is more difficult to calculate. An umbrella is a useful metaphor for a program budgeting system. It reaches over each of the individual program expenses. A cafeteria, for example, has expenses like supplies, utilities, salaries. A program budget does not list each individual expense; it instead gives the program a total figure of cost. Administration can use a program budget to look at the smaller parts of the total budget. This system’s disadvantage is that it only applies at the program level and does not give any details about which expenses come from what. A simpler kind of budget system is the line-item, which is easy to use. Administration can quickly read a line-item budget and use it to predict the future expenses of the organization. If there is any question of verification, the information can be accessed at any time. A line-item system would take into account particular things like salaries, donations, and the operating expenses of the organization– like utilities or the phone. A line-item budgeting system, though, is not suitable for use by a large organization, which is a disadvantage. It does not outline what the organization spends on the costs of its programs. Both a performance budget and a program budget are used at the program level, but a program budgeting system and a performance budget system operate in different ways. The biggest difference is that a performance budget calculates how much each of the organization’s individual services costs them. For examples, for the homecare program, this kind of budget would take all of the services offered with the homecare program into account in its budget for this program. These could be particular charges for medicine administration or for time spent traveling, for example. An umbrella is a useful metaphor for a program budgeting system. It reaches over each of the individual program expenses. A cafeteria, for example, has expenses like supplies, utilities, salaries. A program budget does not list each individual expense; it instead gives the program a total figure of cost. Administration can use a program budget to look at the smaller parts of the total budget. A human service agency must always keep its expenses in mind. They need the kind of detailed information that comes from a performance budgeting system in order to know exactly how much each service costs them. Keeping this kind of budget lets the administration guess how much things will cost in the future, and change their costs if the need to. A program budget lets the administration know exactly how much their programs costs, so that they can adjust their costs by looking at the budget. The program budget tells their administrators how much each of their programs costs compared to others. Provide a 350- to 700-word response to the following: Identify and describe two types of traditional approaches to fund development, and two types of nontraditional approaches to f und development that would be appropriate for the XYZ Corporation, and provide a conclusion of the organization’s current and future financial picture. An agency can try several different kinds of fund development. Each of these forms is to attain the same purpose – the help the agency to reach the funds for a particular goal. Traditional approaches to fund development: Fund raising: The organization might have scheduled Campaigns to ask for money in an organized way large company might give the organization a donation that would then lower their own taxable income. Most organizations use the mail or telemarketing to get publicity for their campaigns. †¢The organization might have Special events To raise funds through auctions or other rewards for donations, they might use a raffle or a walk-a-thon, among other ways, to raise funds in this form. †¢Client’s donations: Is another source of funding for an organization, a client might give donations to an organization without hoping for any reward or service, often from gratitude. Entrepreneurial approaches to fund development: Entrepreneurial approach: Affinity marketing Is a joint venture between a vendor and an organization which raises money for the organization? A store could tell its customers, for example, that they will contribute a set portion of their profit to a particular organization. This relationship benefits both parties involved with it. The vendor wins because they make a profit on each item and bring in more customers. The customer gets the satisfaction of contributing to a cause and buying something that they want. The organization wins because they get funds with little to no effort. †¢An individual might contribute from their estate with a Be quest program. This way, a person leaves money for an organization in their will. The organization might decide to enter into a Commercial venture: An organization could sell its services to people who can pay in many ways. Willing clients with handicrafts skills might donate things that the organization could sell on the internet. This kind of fundraising needs a lot of planning and organizing, and the organization still needs to keep receiving donations while they plan their commercial venture. The venture itself might require extra costs. People might be more willing or able to donate items to support an organization than to donate cash. Reference: Martin L. (2001). Financial Management for Human Service Administration, Boston, MA Allyn and Bacon How to cite Analyzing Financial Statements, Papers Analyzing Financial Statements Free Essays string(19) " A ratio of over \." Analyzing Financial Statements Elizabeth Black HSM/260 October 16, 2011 Denise Lindley University of Phoenix Analyzing Financial Statements XYZ Corporation Years 2003/2004/2002 (Respectively Listed One Page after Another) 2003 Current Ratio| | | | | | | | | | | | | | | | | Current Ratio =| Current Assets| | $82,058. 00 | | | 0. 87| | | Current Liabilities| | $93,975. We will write a custom essay sample on Analyzing Financial Statements or any similar topic only for you Order Now 00 | | | | | | | | | | | | | | | | | | | | | | Long-Term Solvency Ratio| | | | | | | | | | | | | | | | Long-Term Solvency Rate = | Total Assets| $359,863. 00 | | | 1. 39| | | | Total Liabilities| $259,979. 00 | | | | | | | | | | | | | | | | | | | | | Contribution Ratio| | | | | | | | | | | | | | | | | Contribution Ratio=| Largest Revenue Source| $632,889. 00 | | | 0. 51| | | Total Revenues| | $1,244,261. 00 | | | | | | | | | | | | | | | | | | | | | | Programs and Expense Ratio| | | | | | | | | | | | | | | | Programs/Expense Ratio= | Total Program Expenses| $865,692 | | 0. 66| | | | Total Expenses| | $1,316,681. 00| | | | | | | | | | | | | | | | | | | | | General and Management and Expense Ratio| | | | | | | | | | | | | | | | Total General and Management Expenses| $ 450,989| | 0. 4| | | Total Expenses| | | $1,316,681. 00 | | | | | | | | | | | | | | | | | | | | | Revenue and Expense Ratio| | | | | | | | | | | | | | | | Revenue/Expense ratio= | Total Revenues| | $1,244,261. 00 | | 0. 9 5| | | | Total Expenses| | $1,316,681. 00 | | | | | | | | | | | | Fund Raising/Expense Ratio| | | Total Fund-Raising Expenses| | | $79,888. 00| | . 06| (Note on this Page)Total Expenses $1,316,681. 00 (Please note), There is no category for fund raising expenses, so I took the figure in the â€Å"Other† column. 2004 Current Ratio| | | | | | | | | | | | | | | | Current Ratio =| Current Assets| | $302,902. 00 | | | 0. 90| | | Current Liabilities| | $337,033. 00 | | | | | | | | | | | | | | | | | | | | | | Long-Term Solvency Ratio| | | | | | | | | | | | | | | | Long-Term Solvency Rate = | Total Assets| $699,004. 00 | | | 2. 06| | | | Total Liabilities| $338,937. 00 | | | | | | | | | | | | | | | | | | | | | | Contribution Ratio| | | | | | | | | | | | | | | | | Contribution Ratio=| Largest Revenue Source| $1,078,837. 00 | | | 0. 51| | | Total Revenues| | $2,191,243. 00 | | | | | | | | | | | | | | | | | | | | | | Programs and Expense Ratio| | | | | | | | | | | | | | | | Programs/Expense Ratio= | Total Program Expenses| $1,410,312. 00 | | 0. 66| | | | Total Expenses| | $1,972,131. 00| | | | | | | | | | | | | | | | | | | | | General and Management and Expense Ratio| | | | | | | | | | | | | | | | Total General and Management Expenses| $ 561,818. 00| | . 29| | | Total Expenses| | | $1,972,131. 00| | | | | | | | | | | | | | | | | | | | | Revenue and Expense Ratio| | | | | | | | | | | | | | | | Revenue/Expense ratio= | Total Revenues| | $2,191,243. 00 | | 1. 11| | | | Total Expenses| | $1,972,131. 0 | | | | | | | | | | | | Fund Raising/Expense Ratio| | | Total Fund-Raising Expenses| | | $115,999. 00| | . 06| Total Expense $1,972,131. 00 2002 Current Ratio| | | | | | | | | | | | | | | | | Current Ratio =| Current Assets| | $104,296. 00 | | | 0. 75| | | Current Liabilities| | $139,017. 00 | | | | | | | | | | | | | | | | | | | | | | Long-Term Solvency Ratio| | | | | | | | | | | | | | | | Long-Term Sol vency Rate = | Total Assets| $391,270. 00 | | | 1. 26| | | | Total Liabilities| $310,246. 0 | | | | | | | | | | | | | | | | | | | | | | Contribution Ratio| | | | | | | | | | | | | | | | | Contribution Ratio=| Largest Revenue Source| $617,169. 00 | | | 0. 53| | | Total Revenues| | $1,165,065. 00 | | | | | | | | | | | | | | | | | | | | | | Programs and Expense Ratio| | | | | | | | | | | | | | | | Programs/Expense Ratio= | Total Program Expenses| $ 716,105. 20 | | 0. 6| | | | Total Expenses| | $1,185,008. 00 | | | | | | | | | | | | | | | | | | | | | General and Management and Expense Ratio| | | | | | | | | | | | | | | | Total General and Management Expenses| $ 468,903. 0 | | 0. 4| | | Total Expenses| | | $1,185,008. 00 | | | | | | | | | | | | | | | | | | | | | Revenue and Expense Ratio| | | | | | | | | | | | | | | | Revenue/Expense ratio= | Total Revenues| | $1,165,065. 00 | | 0. 98| | | | Total Expenses| | $1,185,008. 00 | | | | | | | | | | | | Fundraising /Expense Ratio| | | Total Fu ndraising Expense| | | $117,903. 00| | 0. 1| Total Expense $1,185,008. 00 Synopsis and Ratio Explanations It is very important for organizations to know how well they are doing financially when most efforts are being made to serve clients. It is easy to forget that pouring money into a problem will not fix it unless revenue flows continue or are increased and expenses are controlled. Some of the easiest computations can be made with information retrieved from balance sheets and income statements provided by accountants. Ratios such as the current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management expense ratio, fund-raising and expense ratio, and revenue and expense ratio can provide a picture of where a company stands now compared to where it was in past years and what may need to be done in the future. The current ratio gives a picture of the liquidity of an agency; the amount of cash and other assets which can be easily accessed for use to pay expenses. The current ratio is expected to be over 1. 0; if it is less, the agency may have problems meeting its obligations. In this scenario, each year the ratio has shown that XYZ is getting closer to 1. 0; 2002 reflected . 75, while by 2004 it has increased to . 90. This means that while it still may make it difficult to pay obligations, the situation has gotten much better. The purpose of the long-term solvency ratio is to provide insight on how well an agency will be able to pay their annual expenses as they come due. The result of the ratio should be at least 1. 0, but the higher the number the better; if it is less than 1. 0, the viability or likelihood of existence is questionable. (Martin, 2001) In 2002, a figure of 1. 26 was acceptable, but in 2004 it has risen to 2. 06; this is a good figure and shows that the organization is improving in its financial planning and will more than likely remain viable. The contribution ratio is used to show to what extent an agency is dependent upon their main funding source. It is best for an organization to have their revenues spread through many sources rather than becoming dependent on only one or two which may or may not fund them in the future. If the figure calculated is above . 5, the agency is overly dependent on one source of revenue. XYZ Corporation needs to look for more sources of funding. Their contribution ratio is . 53 for 2002 and has remained stable in 2003 and 2004 at . 51. While their dependence has dropped a little bit, they are still working in the danger zone. The programs and expense ratio is based upon a standard set by the National Charities Information Bureau (NCIB). This agency provides the standards which show whether or not a program is making or not making the grade as far as how much of programs expenses are in comparison to overall expenses. It is expected that this ratio be a minimum of . 60. In 2002, XYZ Corporation produced a ratio of . 60; in 2003 and 2004, this number raised to . 66. The beginning figure is acceptable, but the rise in ratios for 2003 and 2004 is even better. The general and management xpense ratio identified how much money is spent on administration of the agency in comparison to the total expenses. If the calculated figure is greater than . 35, the organization should begin to cut the costs related to administration. XYZ Corporation has consistently brought their administrative costs down. Beginning in 2002 this organization had a . 40 ratio, which is unacceptable; then in 2004 a figure of . 29 which is wel l within acceptable range. The fund-raising expense ratio basically tells how much money is being spent related to the total expenses in order to raise revenues to be used by the agency. A ratio of over . 15 is a sign that more money is being spent than necessary to raise the funds needed by the agency; this means that less can be spent for essential services. In 2002, XYZ Corporation’s ratio was . 1, which is within acceptable limits; in 2003 and 2004, they reduce their amount still farther to . 60. While this rate is very good, it is important to be aware that cutting this ratio too close may actually limit the revenues of the agency; some money needs to be spent to identify and court some funding sources or those potential revenues may be lost. The revenue expense ratio is a very important figure in understanding where an organization stands. This ratio informs the reader whether the agency is making money, losing money, or breaking even. It gives a starting point for making decisions about whether a program should continue, if it should be re-evaluated, or if it should be discontinued. The financial management team should be held accountable to the figures they produce and be able to explain shortfalls or positive changes. The acceptable figure for this ratio is 1. 0 or greater. In 2002, this agency had a ratio of . 8, which is just below acceptable. Through hard work it appears that they have raised this number to 1. 11. This is a big change and shows that XYZ is working to make their organization more stable. Overall, based on these figures, this corporation is taking positive steps towards making their agency viable, effective, and efficient. All of their ratios reflect movement towards acceptable levels and if history predicts future behavior, they will continue to grow and be able to provide services for their clients without fear of insolvency. They do need to work on getting more grantors instead of having one major source of revenue, but even now they have increased to two major donors. This in itself is a major accomplishment. XYZ Corporation Fixed Costs, Variable Costs, and Break-even Point Comparison of Years 2002, 2003, and 2004 (respectively) 2002 Fixed Costs for 2002 in Expenses: Rent and Utilities| $150,000. 00 | Telephone| $24,000. 00 | Management and other| $351,000. 00 | Total Fixed Costs| $525,000. 00| Variable Costs for 2002 in Expenses: Other Expenses $117,903. 00 Payroll and benefits| $417,004. 00 | Supplies| $125,101. 20 | Total Variable Costs$660,008. 20 Rounded to $660,008. 00 Per Appendix D What is the BEP for the program since we see that they were in the red for the year? Total Fixed Costs = $525,000 Total Variable Costs = $660,008 Revenue per Customer = Total Revenue/Total Customers $1,165,065. 00/5962 = $ 195. 42 Variable Cost per Customer = $660,008/5962 = $110. 70 BEP = Total Fixed Costs/ (Revenue per Customer – Variable Costs per Customer) BEP = $525,000/($195. 42 – $110. 70) = $525,000/ $84. 72 = 6196. 88Rounded to 6197 2003 Fixed Costs Rent and Utilities $150,000 Telephone 24,000 Management and Other 371,101 $545,101 Variable Costs Payroll and Benefits $520,069 Supplies 171,623 (rounded up the $. 77) Other Expenses 79,888 $771,580 Break-Even Point Total Fixed Costs = $545,101 Total Variable Costs = $771,580 Revenue per Customer = Total Revenue/Total Customers $1,244,261. 00/6821 = $182. 42 Variable Cost per Customer = $771,580/6821 = $113. 12 BEP = Total Fixed Costs/ (Revenue per Customer – Variable Costs per Customer) BEP = $545,101/($182. 2-113. 12) = $545,101/ $69. 30 = 7866Rounded to 7,866 because there is no way to have a partial person and at 7865, we will not make break-even. 2004 Fixed Costs: Rent and Utilities $150,000 Telephone 24,000 Management and other 445,819 619,819 Variable Costs: Payroll and Benefits $915,787 (rounded down) Supplies 320,526 (rounded up) Other Expenses 115,999 $1,352,312 Total Fixed Costs = $619,819 Total Variable Costs = $1,352,312 Revenue per Customer = Total Revenue/Total Customers 2,191,243/11,822 = $185. 35 Variable Cost per Customer = $1,352,312/11822 = $114. 39 BEP = Total Fixed Costs/ (Revenue per Customer – Variable Costs per Customer) BEP = $619,819/($185. 35 – $114. 39) = $619,819/70. 96 = 8,735Rounded to 8,735 Budgeting There are three basic types of budgeting which apply to human service organizations; line item, performance, and program budgets. Deciding which method will be best for a given agency depends on what information they wish to retrieve and from perspective they wish to look at revenues and expenditures. By listing the advantages and disadvantages of each method, a inancial management professional or Executive Director may make the appropriate decision on which format to use. Line budgeting is the most utilized budgeting method because it simplifies how money is allocated and how well each program is controlling expenditures. (Martin, 2001) Because of its simplicity, employees, financial managers and laymen can readily identify key pieces of information. Financial control is the basic purpose for this type of budgeting. Line item budgets are easy to prepare, easy to justify and easy to understand. They provide specific information as to where money is allocated and for what purposes. There are two major disadvantages to line item budgeting; lack of relationship between the budget, objectives, and the outcome of the program. The second disadvantage is that there is no real way to estimate what the future holds; line item budgets are always based on historical data which may not properly reflect the current situation. The purpose of â€Å"performance budgeting is to relate agency expenses to programs by determining (a) a program output (or unit of service) performance measure, (b) the total program cost, and (c) the cost per output of service. (Martin, 2001) The advantages to this type of budget program are similar to program budgets; with the difference being the concentration of quantity over quality. Being able to know how much a particular output costs gives managers a real picture how much is being spent to provide client services. If adjustments need to be made, they can do so as the program advances or declines in services rendered. This method addresses no t only how a budget will be broken down for departments, but also the efficiency of what departments are meeting their budgetary goals while serving the most clients (based on how outcomes are represented). Fixed costs are added into the budget line items. A disadvantage of performance budgets are that while they do show how many clients are services and at what cost, they do not concern themselves with quality. If quality of service is not a concern then it shows people as numbers, rather than as important beings we are supposed to serve. The other major disadvantage is that calculations can be difficult and require more computer input than the basic line-item type budget. While many calculations can be done by hand, many also need more complex programs to provide appropriate data. Program budgets are concerned with an agency’s activities rather than its expenditures. The cost per outcome is the main concentration of the financial manager and gives information about the success or failure of the program. This is perhaps the best type of budgeting for agency’s that need to know whether they should continue, reorganize, or discontinue their program. The major advantages to this type of budgeting are that it is easier to evaluate programs since costs are tied to results, priorities may be changed quickly and with a minimal amount of work, and programs are broken down into smaller, more manageable budget units. This type of budget concentrates of effectiveness, not just efficiency. The disadvantage is that it is difficult to get all to agree what an acceptable outcome will be for budgetary purposes. The fact exists that if an outcome is only defined as a specific ending, major positive changes in a client’s case may be overlooked as not an outcome. Another disadvantage is that the analysis can be time consuming and difficult. To understand the data which is produced, most people would have to have an accounting background or someone who can explain the reports to them. Fund-Raising—Traditional versus Non-Traditional Organizations from everywhere are begging for funding to keep their programs going and expand services they can offer to their clients. Traditional sources such as government grants, private donor grants (individual or corporate), annual support mailings, and the United Way may offer some assistance, but the reality is that money is a limited commodity and all agencies need more of it. While each type of traditional funding may allow only certain types of programs or projects which target specific groups based on acceptance criteria, there are others that give general funding. The process to receive these funds may involve grant writing, volunteers to send out mailers, and liaisons with other agencies; paperwork and attention to detail are very important in attaining these types of funding. Non-traditional methods arise from much different styles and perspectives. While the â€Å"chunks† of money may be smaller, they do have benefits that more traditional methods offer. We all hate telemarketers, but how would we feel about children from our church calling about a pizza sale to benefit their summer program? The pizzas could be bought in bulk under a discount program that companies offer and then picked up at the church on a given day. Most would probably spend money to help people they know earn money for a good cause. A second non-traditional method of fund-raising is to community rummage sale. Most people have lots of good â€Å"stuff† that they think has value, but have little time or inclination to have a yard sale. By donating these goods to an organization to sell at a community rummage sale, individuals may be given a donation credit on their taxes, clean out their garages, and help the agency make much needed money. Funds that are raised in this manner are not paperwork intensive (in fact, other than writing up posters, there is none) and funds are not required to be spent on an identified program or project. Conclusion After reviewing the financial documents and ratios of XYZ Corporation, it is clear that they are making solid business decision in how their money is spent and how revenue is raised. Most calculations show that their situation has improved since the initial reports of 2002. If history is any indicator of what will follow in the future, they should be able to sustain their growth and perhaps even expand. They have increased the number of clients served while at the same time keeping their budget under control. The only area that really needs improvement is the revenue dependency aspect of their budget. Being too dependent on one funder can spell disaster for any organization. XYZ has made headway in this department by getting the majority of their funds from two agencies instead of just one, but it would serve them to continue to diversify their revenue sources. Hopefully, this corporation will continue to provide quality services to their clientele far into the future and continue to remain solvent. References Martin, L. (2001). Financial management for human service administrators. Needham Heights, MA: Allyn Bacon. How to cite Analyzing Financial Statements, Papers

Impact of change in value of currency - Myassignmenthelp.Com

Question: Discuss about the Impact of change in value of currency. Answer: Introduction: The increase in the value of Australian dollar has influenced the nations economy. Though the appreciation in the Australian dollar can offer several benefits to the Australian economy there are certain negative impacts of the same. The research is undertaken to analyse the impact of strengthening of dollar value in respect to US dollar and to identify the impacts of such changes. The currency value of a country plays wide role in its development and hence the economy of the country is sensitive to such changes. Background: The value of Australian dollar has been lower than that of US dollar since last few years. However, it has currently been observed that Australian dollar is strengthened over the US dollar and will continue to rise in the next coming days. The Australian currency has exceeded the ceiling limit of USD 79 and it is yet expected to grow. In the current year the AUD has increased 9.9% against USD. The increment in the value was 1.5% overnight to USD 79.18 and ultimately climbing the peak at USD 79.43 (AFR, 2017. With the enhanced value of Australian dollar, the value of US dollar depreciates and also it leads to higher interest rates and commodity prices (The Conversation, 2017). Thus, as a result of strengthening of Australian dollar various socio economic factors issues may arise. From the figure depicting the movement of value of Australian dollar with respect to the US dollar as shown below, it is identified that the value is fluctuating more often in the last 2 years. The minimum value was reported in the beginning of year 2016 and the maximum price is reported in the mid of year 2017 after various fluctuations. Figure 1: Changes in the Australian dollar value as against US dollar Source: https://www.rba.gov.au/statistics/historical-data.html The increase in the Australian dollars value signifies that the value of revenue in currency of US or any other country has decreased from what it was initially. Due to which it has negative influence on certain sectors. The commodities or the services that have been valued in the Australian currency will become more expensive if value is converted into US dollars or in any other currency. This would lead to reduction in exports for the country since there is a lesser demand of such commodities and services in the foreign markets. It will negatively affect the profitability of the Australian producers since they have to reduce their prices accordingly. Moreover, the imports of the country will consequently be increased with the increase in value as it will be cheaper to purchase goods and services from the overseas market. Further, the tourism industry of Australia will also be influenced by the increased value of its currency. The strengthening of Australian dollar makes it more exp ensive and therefore the tourists may not find it economical to visit Australia as their holiday destinations. However, the citizens of Australia finds it more economical to visit other countries for the tourism purposes. Apart from the tourism sector, the education industry will also be influenced by the change in the value of Australian dollar. Since the Australian dollar is getting expensive, the students from across the world finds it unfeasible to take admissions in the Australian universities as the tuition fees as well the living expenses are not affordable to them. They rather move to the countries like US or Britain for their studies. In Australia, the education sector is recognised as one among the key contributors to the development of nations economy. The current trend of Australian dollar and US dollar has been shown in the following figure. Figure 2: Current trend of Australian dollar and US dollar Source: https://www.afr.com/personal-finance/shares/afr8simccarthy-20170806-gxqlxk Report: Generally, the strengthening of the countrys currency is enjoyed by the citizens of that particular country as if it the support provided to them internationally. However, it cannot always bring positive impacts on the countrys economy. There can be various implications of the change in the value of the currency for both the nation as well as the investors. The value of investors portfolio is directly impacted with the change in the value of currency of the country of which investors are holding securities. With the dollar strengthening in Australia, there are various sectors and units that are significantly impacted such as education sectors, export industries, mining industries, farmers and various businesses. It has become difficult in terms of funds for the international students to take pursue their careers in the Australian universities due to increased cost of living and tuition fees of the Australian curriculum. This factor has reduced the generation of revenue for Australian economy from the students all over the world. It will also affect the national students due to increased academic fees. It will not only influence the revenue of the country negatively but also the careers of the local students will be affected as they would not be in the position to pursue the courses of their own choices and calibre due to higher prices. The increased value of Australian currency will also impact the farmers of the country by making the exports more expensive. When their produces gets costly the foreign importers finds these products less attractive and to continue selling them in the overseas markets requires those farmers and producers to reduce their prices by cutting their profits thereupon. The mining industry of Australia has also experienced the impact of such dollar strengthening. The companies in Australia that mainly generates their revenues in US dollar are also affected by such currency appreciation. Since with the increase in value of Australian doll ar in respect to US dollar, the US dollar gets cheaper and as a consequence of which the those Australian companies are not able to make sufficient profits. Additionally, the debt of the businesses which have borrowed funds in the US currency is increased as they have to make more payment for the same debt. For most of the businesses it is quite easy to predict the influences of change in the value of Australian dollar. For instance, it is easy for the education sector to understand the impact of change in the value of Australian dollar. The indicators like reduced number of students enrolment to the Australian universities, increased demand for the scholarships and migration of Australian and also foreign students to the universities with cheaper tuition fees can make it apparent how education sector of the country get affected with the change in the dollar value. The increased value will result in the price rise of the commodities that are traded globally reducing the overall exports of the country. Also, with the price rise the Australian consumers switch to the imports of goods from outside Australia. Such practices leads to the problem of trade deficit for the country due to reduced generation of foreign exchange and excessive utilisation of collected foreign exchange. The complete research on the cause and effect of change in the value of Australian dollar can only make it possible to reach at a concrete decision. The above research makes it clear to improve the education and farming industry so as to improve the nations economy. The decision statement for the education sector can be like: How to encourage or attract foreign students towards the Australian universities for? An adequate response to this can improve the education industry of the country. On the other side, the decision statement of farming industry can be: What changes can bring favourable environment for the Australian farmers and to expand their market? The main aim of conducting this research is to figure out the cause and impact of the increased value of Australian dollar. The report is mainly drawn to identify as to how the education sector and the farmers of the country have been affected due to dollar strengthening in Australia. The research will help in finding ways of bringing more candidature to the Australian universities. To reach at the final solution, interviews and discussions can be undertaken. The research objective for the education sector can be taken as to determine the key criteria used by the international students to choose Australian universities. Similarly, in the areas of farmers industry, the main aim of this research is to determine the ways from which the farmers of the country could be benefited and their business risk could be eliminated. Therefore, the research objective in this area can be framed as: Identification of reasons why international products are preferred over the local products by the gener al people. Several surveys in these contexts can be undertaken and the major focus groups could be interviewed to find the ultimate solutions. There can be various options of improving the position of these sectors such as imposing duties on imports, promoting exports by providing various subsidies and incentives etc. Different hypotheses can be adopted under this research. A hypothesis is used to explain the research problem. It can either be a guess or a real output of the research study. However, these are not moral or ethical questions. Also, these questions are also not too general and not to specific. These questions are merely the future prediction of any related consequences of an issue. In relation to the education industry, the research is aimed to collect various data about the education sector of Australia such as the total number of students from outside Australia that are enrolling in the Australian universities, the curriculum courses they are opting etc. The hypothesis derived from the above research on the Australian dollar appreciation can be: With the reduction in the tuition fees, the number of enrolments of foreign students will increase. The countries where it is affordable for the students to bear the academic fees and living expenses, will be chosen by the students. The scholarship schemes can enable the students to select the courses of their own choices. The data in the areas of farming units and other businesses can be collected like the quantum of import and exports of the produced goods of the country in the previous years, the comparative data of change in the net revenue with the dollar appreciation, the demand of local and international products in the market, the change in the overall profitability of farmers with the change in Australian dollar value. Following hypothesis can be derived from the research: The sale of national products can be improved by the pricing policies of the local market. Production of new and unique commodities can support the farmers occupation. The quality of the product can influence the consumers of farmers produces as quality is the important criteria to select goods and services. Research questions also forms an integral part of business research. It helps in identifying the methods and guides throughout the research (Research Rundowns, 2017). On the basis of above formulate hypothesis, following research questions can be framed. This will allow the in depth examination of the issue involved in the research. Possible Research questions for education of foreign students: What factors can contribute to attract more students from outside Australia? How can the foreign students be influenced to take admissions to the Australian universities? What could be the key criteria that could be used by foreign students in deciding about their study plans in Australian universities? Do the changes in the value of Australian dollar influences the perception of foreign national students in deciding about the universities? Possible research questions for farming industry: To what extent the prices and the quality of the products influences the consumers choice. What are the factors that could change the demand of national products to the international products? Will there be any benefit or loss to the farmers with the change in dollar value in relation to the US dollar. The above research is undertaken using all the factual information and other relevant data. It is intended to identify the potential problems of dollar value appreciation and the possible solutions to the same. The impact of such change in the Australian dollar value is majorly focused on two sectors the education and farming sector. Hence no consideration to ethical issues is being given under it. Conclusion Recommendation: From the above research it can be concluded that there can be several implications of change in the value of the currency of the country. The appreciation of Australian dollar has also imposed direct or indirect influence to various sectors of the Australian economy. Though the strengthening of a currency shows strong economic position of the country to which the currency belongs but on the other side it has some negative implications. The countries may have to face few problems due to such increase in value. Thus, a proper research can help to deal with such economic situations. It is therefore recommended in the cases of education sector and farming sector to adopt both qualitative and quantitative research methods to improve and strengthened these sectors. The quantitative methods will help in extracting the true and factual information in the subject matter. The numerical and statistical data from these methods can offer better explanation of the issue involved. The quantitative data can be collected, analysed and interpreted with the help of figures and charts. On the other hand, qualitative methods are used to understand the human behaviour i.e. the responses of individuals to the change in the dollar value. The qualitative methods may include conducting personal interviews and questionnaire filling etc. The interviews of various students and education providers, farmers and producers can be conducted so as to understand the impact of change in dollar value in Australia and their consequences. Also, the methods and ways of dealing with the situations ca n be identified. References: AFR (2017). Retrieved from https://www.afr.com/markets/currencies/australian-dollar-consolidates-above-us79-mark-20170718-gxdyc9 Michael McCarthy, (2017). Australian Financial Review. Assessed on 13 august 2017 from https://www.afr.com/personal-finance/shares/afr8simccarthy-20170806-gxqlxk Research Rundowns, (2017). Assessed on august 2017 from https://researchrundowns.com/intro/writing-research-questions/ The Conversation,(2017). Retrieved from https://theconversation.com/explainer-what-a-strong-australian-dollar-actually-means-699