Attachment and bullying Essay Example | Topics and Well Written Essays - 4000 words

Attachment and bullying - Essay Example Informed consent was taken into consideration at the start of any research project (Shank, 2002). Consent is about participants making a reasonable choice to take part in the study, and, as such, their aspirations need to â€Å"fit† with the goals of the research (Mason, 1997). The researcher made sure that the participants were fully informed. In addition the researcher discussed the potential consent form with their supervisor and colleagues. The researcher also had the form submitted to the university’s research ethics committee. This highlighted to the researcher potential ambiguities in meaning, confusing sentences and missing information that are likely to invalidate the measures (Patton, 2000). It was predicted that the present study would extend understandings about gaining informed consent from participants, and would add to the debate of this issue within the social science research community. Hence, this study’s final thesis was to provide clear and concise information to the procedures for gaining participant consent, and also set out to contribute discourse on this topic, and to inform readers. Additionally, it was expected that the potential for this research to be published would contribute to legal and ethical issues relating to research with humans, as well as public accountability and encouraging the practice of reporting consent procedures to stimulate ethical debate (Mason, 1997). Informed consent requires the awareness of the researcher that participation is dependent on an individual’s understanding of the goals of the study, and what is expected of the participant. Informed consent ensured respect for the dignity of the participant (Mack et al., 2005). Coercion into participation was avoided at all costs, as the study requires that participation be voluntary (Penslar, 1995). Thus, informed consent was to ensure the well being of participants as its priority. Additionally,

Effect of Service Content Quality Essay Example for Free

Effect of Service Content Quality Essay Introduction: The growth of Internet Mediated Environment (IME) based services has changed the manner in which firms and consumers interact. This paper aims to provide a more comprehensive understanding of the role service quality dimensions play in developing service enjoyment and loyalty in IMEs. We are in the era of service-based economies. The services sector has grown to dominate economic activity in today’s advanced industrial economies. Interestingly, within the growing service-dominated economies, increased innovation in Information Technology (IT) has dramatically altered services conceptualization, development, delivery and consumption. By extending the definition of an electronic service, we define IME services as being mediated via information technology (IT) where the consumer interacts with an appropriate user interface such as web site, mobile phone, iPhone, PDA, iPad, virtual world environment, tablets, etc., in order to gain a consumption experience and pursue desired benefits for another entity or the entity itself (self-service). Innovations related to IT and novel Internet-based service delivery in IMEs and consumption are fueling extraordinary growth in demand for existing as well as new services. Problem Statement: The study is to investigate the some of the dimensions of online service content quality and service delivery quality such as navigation, visual appeal, timeliness, access, content customization and reliability leading to enjoyment and loyalty. Significance of the research: Both Information Systems (IS) and Marketing scholars have recognized this paradigmatic shift from the exchange of goods toward a service-centered model of exchange in which the consumer plays a pivotal role, specifically in the case of online services. In this context, there is an increasing emphasis on service quality rather than manufacturing quality regardless of the industry. A customer’s willingness to maintain a relationship with a firm is contingent on his or her perception of the benefits of high-quality service that provides a continuous flow of value. CHAPTER 2 REVIEW OF LITERATURE Review of Literature: Service Content quality: Service content quality is defined as the extent to which complete, accurate, and timely content is provided to online consumers during the interaction process with the user interface in the IME. The user interface is a critical component in the IME service experience. In the context of the online environment, the store layout and design particularly influences the consumer’s service consumption experience. To capture service content quality we have identified the following three antecedents based on the literature: visual appearance, navigation, and preview. These dimensions have been found to be important in the context of online services in past IS studies. Visual Appearance: A consumer’s perception of the visual appeal projected by the service is driven by the design, physical attractiveness, and beauty inherent to the service interface. Visual appearance in IMEs can be defined as an overall output of image or personality generated from website components such as text, style, graphics, colors, logos, themes and slogans. Websites with a more visually acceptable interface often result in greater service quality and can influence a consumer’s IME experience and ultimately his or her long-term service provider relationship. Consequently, the interface appearance is one of the most important aspects of the IME experience. Navigation: Consumers want and demand websites that are simply designed and easy to use. Ease of navigation has surfaced as a critical element, since the IME lacks most of the interactional human elements so vital in offline service delivery. Navigation challenges, such as getting lost is often associated with a consumer’s confusion, frustration, and anger, and thus negative experiences. To negate this danger, IME navigation features have been developed to prevent consumers from becoming lost. A considerable amount of freely available information, if it is well organized and easily accessed, is frequently mentioned by consumers as an important reason to interact with an IME. The ease of navigation in the IME is expected to enhance service content quality. Customized Preview: Customized preview is the ability to tailor products, services and the environment to individual customers. Preview is expected to influence loyalty towards the service by creating the perception of an increased choice set by enabling quick focus, signaling high quality and lead to a better match of what the customer actually wants. Service Delivery Quality: Service delivery quality is defined as the manner in which IME functionalities are made accessible to consumers via the service provider’s website as a delivery channel. IME service providers have realized that consumers are concerned with the service delivery process and outcome. The following dimensions of service delivery quality: accessibility, reliability, and timeliness are taken. Accessibility: Accessibility is related to the actions taken by the service provider to ensure no service interruption. More and more customers now look for company access and support via IMEs. Potential service failures impact future business because they weaken the customer-company bonds and perceptions of service quality. In this research, accessibility is defined as the level of efforts taken to minimize service disruptions. Reliability: In offline contexts, reliability is defined as the â€Å"ability to perform the promised service dependably and accurately†. Similarly, IME reliability is concerned with the delivery of the service in good condition, on time, and exactly as it was displayed. A study of online failures stated that consumers noted delivery issues as the most frequently stated problem. Consumers place significant emphasis on service outcome and service quality, which will suffer if a service provider fails to deliver as expected. Such failures can result in significant costs to the firm, such as lost customers and negative word of mouth. Consequently, service failure is a driving factor explaining customer switching behavior. Timeliness: One of the significant IME benefits is the near-time or immediate service delivery. IMEs lack most of the interactional human elements so vital to the traditional service experience which typically lead to service delivery lag times. In terms of online versus offline purchasing, online purchasers’ beneï ¬ t in the fact that they receive timely information directly from the website without having to seek a salesperson. Access speed and performance appear as critical to the assessment of quality in IMEs. Service Enjoyment: Just as shopping enjoyment is important in offline environments, it can be equally important in IMEs. Hirschman and Holbrook introduced the Hedonic Consumption concept which designates â€Å"those facets of consumer behavior that relate to the multisensory, fantasy and emotive aspects of one’s experience with products† to explain enjoyment’s role in the consumer experience. IS research has suggested that intrinsic enjoyment associated with website usage can positively impact a consumer’s web usage over time. Koufaris applied the model of flow and found that the emotional reaction to a website (intrinsic enjoyment) influenced the intention to return. Thus, service enjoyment is suggested to influence the IME consumer experience. Service Content Quality and Enjoyment: Service content quality is a critical component in the IME experience. In the context of the online environment, the store layout and design influences the consumer’s online activity and service consumption. In IMEs, the spatial layout and functionality are especially important since availability of direct human employee assistance is minimal. Mathwick, Malhotra, and Rigdon suggest that in online environments, the use of color, graphic layout and photographic quality combine to influence a desirable consumption experience. Éthier, Hadaya, Talbot, and Cadieux demonstrates that web site content quality has a significant positive impact on the cognitive appraisal including liking, joy, pride, dislike, and frustration. Van der Heijden found that perceived enjoyment affected intended and actual use of the website. Service Delivery Quality and Enjoyment: IME delivered services have increased convenience in terms of time, place and use. For example, consumers can now pay their bills online, setup automatic mortgage payments or track packages at any time of day. Therefore, service delivery quality pertains to the consumer-website interaction during the process when the consumer is looking for information, selecting from available options or carrying out a transaction. According to Luong, â€Å"Service delivery seems to imply service encounters that entail more intense and deliberate use of emotions.† Loyalty: Loyalty is yielded through the process of repeated interaction between consumers and the online service. Achieving customer loyalty is critical for IME service provider economic success. The fear in the online environment is that the inherent low switching costs enable competing online firms to be just a click away. Loyalty can be defined both behaviorally and attitudinally. Behaviorally, loyalty consists of repeated purchases of a brand, whereas attitudinally loyalty includes a degree of dispositional commitment in terms of some unique value associated with the brand. Perceived service quality has been suggested to be positively related to loyalty. According to Garbarino and Johnson, consumer perceived service enjoyment and commitment are believed to summarize consumer knowledge and guide subsequent loyalty actions. CHAPTER 3 RESEARCH METHODOLOGY Title: A study on the effect of service content quality and service delivery quality, leading to loyalty in online banking system. Objectives: Main Objective: To study the effect of antecedents of service quality leading to loyalty in online banking system pertaining to South Indian Bank Specific Objectives: * To study antecedents such as visual appeal, navigation and customized preview effect on online service content quality * To study antecedents such as accessibility, reliability and timeliness effect on online service delivery quality * To study service content quality and service delivery qualities effect on consumer’s perception of service enjoyment * To study service content quality and service delivery quality mediated by service enjoyment effect on consumer loyalty in banking websites.

Boundary Issues in Therapy: Case Study

Boundary Issues in Therapy: Case Study Critically analyse the actions of the therapist from the perspective of the BACP and BABCP codes of practice and from the perspective of boundary issues. The initial assessment of S revealed the presence of depressive symptoms, alcohol and substance use and poor coping skills, characterised by a chaotic household routine and difficulties managing her two children. Although limited information is available regarding the development of S’s current problems, it would appear that predisposing factors may include a history of physical abuse in her own family and pre-existing â€Å"low mood and irritability†. During the assessment, S described a vicious cycle of depressive feelings, negative automatic thoughts and avoidance behaviours, which appear to have maintained and exacerbated her current state. In addition to the disordered domestic situation previously mentioned, S depicted her relationship with her two young children as being something of a struggle, as she found their fighting with each other problematic and she stated that she â€Å"sometimes loses control† and slaps them â€Å"hard on their legs and handsâ € . Furthermore, S stated that she leaves her 11 year old child daughter to look after her 5 year old daughter. Whilst professing her wish for help, S also acknowledged her fear of losing her children. The counsellor articulated their wish to help S with her depression. In doing so, the counsellor is complying with fundamental principles of both BABCP and BACP guidelines, in terms of â€Å"aiming to resolve problems and promote well-being† (BABCP, 2007) and adhering to the â€Å"beneficence† principle (BACP, 2007). However, the counsellor did not, at this stage, expand upon any possible interventions which may be employed for S’s depression, nor did they explicate a plan to manage S’s alcohol and substance use. At this stage of therapy, it would be useful to begin the process of establishing a therapeutic alliance (Derisley and Reynolds, 2000), in terms of introducing mutually agreed goals and a shared formulation (Kirk, 1989). Such an alliance has been demonstrated to be positively associated with treatment participation and outcomes amongst alcoholics (Connors, DiClemente et al., 1997). Furthermore, this is congruent with the BACP principle of â€Å"a utonomy†, i.e. â€Å"the importance of the client’s commitment to participating in counseling or psychotherapy† and with the BABCP’s guideline of discussing and agreeing the aims and goals of interventions from the outset of therapy. The quality of empathy, an attribute described in BACP guidelines as one which counsellors and therapists should â€Å"aspire to† is not manifestly portrayed in the case study. An empathic therapist style has been associated with low levels of client resistance and with greater long-term change amongst individuals with addictive behaviours (Miller, Sovereign and Krege, 1989 cited in Miller and Rollnick, 1991). Accurate empathy has also been described as facilitating further disclosure of feelings and cognitions and thus, therapeutic collaboration (Marshall, 1996). Confidentiality within a therapeutic relationship is acknowledged as a crucial and implicit feature within BACP codes of practice. This is reflected in the principle of â€Å"fidelity†, i.e. â€Å"honouring the trust placed in a practitioner †¦ confidentiality is an obligation †¦.. any disclosure is restricted to furthering the purposes for which it was disclosed† (BACP, 2007). The BABCP also lists confidentiality within its guidelines for good practice, but is slightly less robust in its communication of this, stating that â€Å"information acquired by a worker is confidential within their understanding of the best interest of the service user and the law of the land† (BABCP, 2007). The counsellor working with S made the decision to break confidentiality due to their concerns about the welfare of S’s children and informs S that she will be requesting a social services assessment of the home situation. In view of S’s previous expression of her fear of losing her children, this information is highly likely to reinforce her anxieties and potentially risks alienating her from the therapeutic alliance and disengaging from any intervention. However, the clear dilemma facing the counsellor was acting upon the perceived risk to S’s children, whilst maintaining confidentiality and trust. Both BACP and BABCP codes of practice affirm that confidentiality must be within legal constraints. When elucidating the principle of â€Å"justice†, the BACP refers to â€Å"remaining alert to potential conflicts between legal and ethical obligations† and further to â€Å"be aware of and understand legal requirements and be legally accountable†. With regard to legal aspects of S’s case, the children’s act of 2004 continues to allow smacking as long as it does not cause visible marks. It is not clear whether S’s smacking of her daughters constitutes illegal activity, however of more concern is her admission that she â€Å"loses control† when slapping them. Also of concern is the information that S allows her 11 year old daughter to care for her 5 year old when she herself feels unable to cope. Whilst S does not actually leave the children alone in the house and therefore is not breaking the law, the emotional impact upon her children would be a potential issue requiring attention. Returning to the actions of the counsellor in this circumstance, it would be highly beneficial to obtain more information about the nature of S’s relationship with her daughters, including the frequency of her smacking them and a clearer impression of their routine, in order to establish the possibility of neglect. The BABCP code of practice states that the therapist should â€Å"minimize possible harm and maximize benefits whilst balancing these against any possible harmful effects to others† (BABCP, 2007) and this is echoed by the BACP, which draws attention to â€Å"situations in which clients pose a risk of causing serious harm to themselves or others†¦ the therapist should be alert to the possibility of conflicting responsibilities between those of their client, others and society† (BACP, 2007). Whilst the decision faced by the counsellor was a difficult one, a possible course of action would have been to declare the potential need to break confidentiality from the outset. Good practice guidelines typically incorporate an initial statement which refers to disclosures remaining confidential unless there is a risk of harm to the self or others (Jenkins, 1997; Bond, 2000) and apprising S of this possibility from the outset may have attenuated, to some extent, the impact o f learning that a social services assessment would be requested. One alternative course of action for the counsellor in this situation would have been to postpone a social services assessment until S had had an opportunity to implement the contract of behaviour regarding her children and the counsellor had sought supervision. There did not appear to be any urgency in S’s home situation, therefore it would seem reasonable to seek supervision prior to taking any immediate action. Both BACP and BABCP codes strongly dictate seeking supervision if â€Å"faced with a situation outside their competence† (BABCP, 2007) and paying â€Å"careful consideration to the limitations of their training and experience† (BACP, 2007). In terms of informing the GP of S’s overall problem issues, but keeping the substance and alcohol abuse confidential, this would appear to be consistent with guidelines of keeping communication between colleagues â€Å"purposeful† (BACP, 2007) and â€Å"relevant† (BABCP, 2007). The counsellor mentions working on strategies to reduce S’s behaviours around substance and alcohol abuse and, as previously mentioned, further clarification of this intervention would have been helpful. Cognitive therapy for substance abuse emphasises identifying and testing thoughts and images about using drugs, modifying beliefs that increase the risk of drug use, coping with drug cravings and providing relapse prevention (Beck et al., 1983; Marlett and Gordon, 1989). Illustrating this process with S may have ameliorated the formation of a working alliance, as well as providing her with greater information about the intervention process, thus increasing her â€Å"self-determinat ion† and â€Å"autonomy† (BACP, 2007). Furthermore, as S appeared to be at the â€Å"contemplation† stage of motivation to change (Prochaska and DiClemente, 1982, cited in Miller and Rollnick, 1991), an informative approach may have consolidated this state and enabled S to further move around the â€Å"wheel of change† into a state of determination or action. With regard to boundary issues in the case study, a clear example of how this may be problematic in the counsellor’s relationship with S is in the area of a dual relationship (Schapp et al., 1996). That is, the emergence of conflicting responsibilities relating to S being the client but her children’s welfare being a clear cause for concern contributed to a potentially disruptive, ambiguous boundary. In this case, the ethical dilemma was apparent and although the codes of practice referred to provide some guidance and principles for managing such difficulties, it has been noted that guidelines and standards inform rather than determine our ethical decisions (Gillon, 1986). As such, in dealing with a client with sole parental responsibility, this is the nature of the issues confronted by a counsellor. References Beck, A.T., Wright, F.D., Newman, C.F. and Liese, B.S., 1983. Cognitive Therapy of Substance Abuse. The Guildford Press. Bond, T., 2000. Standards and Ethics for Counselling in Action. London: Sage. British Association of Behavioural and Cognitive Psychotherapy, 2007. Guidelines for Good Practice of Behavioural and Cognitive Psychotherapy.  Available from: www.babcp.co.uk  [cited: 30 April, 2008] British Association of Counselling and Psychotherapy, 2007. Ethical Framework for Good Practice in Counselling and Psychotherapy.  Available from: http://www.counselling.co.uk  [cited: 30 April, 2008] Children’s Act, 2004. Chapter 31. London: HMSO. Connors, G.J., Carroll, K.M., DiClemente, C.C., Longabaugh, R. and Donovan, D.M., 1997. The therapeutic alliance and its relationship to alcohol treatment participation and outcome. Journal of Counselling and Clinical Psychology, 65 (4), pp. 582-598. Derisley, J. and Reynolds, S., 2000. The transtheoretical stages of change as a predictor of premature termination, attendance and alliance in psychotherapy. British Journal of Clinical Psychology, 39, pp. 371-382. Gillon, R., 1986. Philosophical Medical Ethics. New York: Wiley. Jenkins, P., 1997. Counselling, Psychotherapy and the Law. London: Sage. Kirk, J., 1989. Cognitive Behavioural Assessment. In, Hawton, K., Salkovskis, P., Kirk, J. and Clark, D.M. (Eds), 1989, Cognitive Behaviour Therapy for Psychiatric Problems: A Practical Guide. Oxford: Oxford University Press. Marlett, G.A. and Gordon, J.R. (Eds), 1989. Relapse Prevention: Maintenance Strategies in the Treatment of Addictive Behaviours. New York: Guildford. Marshall, S., 1996. The Characteristics of Cognitive Behaviour Therapy. In, Marshall, S. and Turnbull, J., 1996. Cognitive Behaviour Therapy: An Introduction to Theory and Practice. Balliere Tindall. Miller, W.R. and Rollnick, S., 1991. Motivational Interviewing: Preparing People to Change Addictive Behaviour. New York: Guildford. Miller, W.R., Sovereign, R.G. and Krege, B., 1989. The Check-up: A Model for Early Interventions in Addictive Behaviours, cited in, Miller, W.R. and Rollnick, S. (Eds.), 1991, Motivational Interviewing: Preparing People to Change Addictive Behaviour. New York: Guildford. Prochaska, J.O. and DiClemente, C.C., 1982. Transtheoretical therapy: toward a more integrative model of change, cited in Miller, W.R. and Rollnick, S., 1991. Motivational Interviewing: Preparing People to Change Addictive Behaviour. New York: Guildford.

Earth :: Essays Papers

Earth I heard of this place not too long ago. I can’t quite remember what it was called. It is a place where it is forever dark and it is ruled by something or someone extraordinarily powerful. In this place, humans walk alongside with gargoyles, beasts and ogres where humans are the inferiors. There is no sun or stars or moon, nor is there day or night. There is no democracy. Humans are the slaves and are treated like animals, men and women alike. Humans aren’t allowed to speak out, Laugh or even smile or they will be severely punished. They live in a nightmare society. The land is engulfed in darkness. There is no electricity, no roads, no transportation, no houses, no communication, no nothing. There is fire. That is all they have to bring light to the place. The beasts live in giant homes or shelters made of anything they can find. The beasts are absolutely horrid creatures. They are nothing like you or I have ever seen before, not even in horror films. They are not like anything you could ever even imagine. Their faces are mangled and deformed. They are decrepit figures who do not walk but drag themselves from place to place. Humans do not roam freely. They are shackled together by long chains that go on forever. They are pets. They do not get shelter and they barely receive enough food or water to survive. They are given the rotten leftovers and bones to pick at. When I speak of bones, I am talking about human bones. Not the bones of pig or cow, they do not exist. The beasts find humans very useful indeed. They believe that humans are extremely simple-minded which, in result, makes them good slaves. They tend to the crops and pick the fruit, which is all done in a very specific manner. If it is not done correctly, those slaves will be thrown into the pit. Humans are used to pull wagons and sleds. They build all of the huts and shelters needed for the beasts. They cook and clean and are used as personal slaves as well, if you know what I mean. When the humans become too old to use for physical labor, they are either eaten by the beasts or thrown to the pit for the rest of their lives. The beasts are very intelligent creatures. They would never want to run out of humans, so they had cages made.

Power of Cash Flows

The Power of Cash Flow Ratios EXECUTIVE SUMMARY CASH FLOW RATIOS ARE MORE RELIABLE indicators of liquidity than balance sheet or income statement ratios such as the quick ratio or the current ratio. LENDERS, RATING AGENCIES AND WALL STREET analysts have long used cash flow ratios to evaluate risk, but auditors have been slow to use them. SOME CASH FLOW RATIOS COMPARE THE RESOURCES A company can muster with its short-term commitments. OTHER CASH FLOW RATIOS MEASURE A COMPANYS ability to meet ongoing financial and operational commitments.THERE IS NO CONSENSUS ON THE DEFINITION OF NET free cash flow, although the authors suggest taking off-balance-sheet financing into account. AUDITORS CAN USE THE INSIGHTS uncovered by cash flow ratios to spotlight potential problem areas, thus helping them plan their audits more effectively. JOHN R. MILLS, CPA, PhD, is a professor in the Department of Accounting and CIS at the University of Nevada, Reno. His e-mail address is www. [email  protected] unr. edu1. Mills experience includes auditing and consulting in the gaming industry. JEANNE H.YAMAMURA, CPA, PhD, is an assistant professor in the accounting and CIS department at the university's Reno campus. Her e-mail address is www. [email  protected] edu2. Yamamura worked as an auditor overseas, including a stint in Papua, New Guinea. To fully understand a company's viability as an ongoing concern, an auditor would do well to calculate a few simple ratios from data on the clients cash flow statement (the statement of sources and uses of cash). Without that data, he or she could end up in the worst possible position for an auditor—having given a clean opinion on a client's financials just before it goes belly up.When it comes to liquidity analysis, cash flow information is more reliable than balance sheet or income statement information. Balance sheet data are static—measuring a single point in time—while the income statement contains many arbitrary noncas h allocations—for example, pension contributions and depreciation and amortization. In contrast, the cash flow statement records the changes in the other statements and nets out the bookkeeping artifice, focusing on what shareholders really care about: cash available for operations and investments.For years, credit analysts and Wall Street barracudas have been using ratios to mine cash flow statements for practical revelations. The major credit-rating agencies use cash flow ratios prominently in their rating decisions. Bondholders—especially junk bond investors—and leveraged buyout specialists use free cash flow ratios to clarify the risk associated with their investments. That's because, over time, free cash flow ratios help people gauge a company's ability to withstand cyclical downturns or price wars.Is a major capital expenditure feasible in a tough year? If the last time total cash got a hair below where it is now the company's capital structure had to be r evamped, the auditor should treat the deficient value like a loud buzzer. Many auditors and, to a lesser extent, corporate financial managers have been slow to learn how to use cash flow ratios. In our experience, auditors traditionally use either a balance sheet or a transaction cycles approach. Neither approach emphasizes cash or the statement of cash flows.While auditors do use the cash flow statement to verify balance sheet and income statement accounts and to trace common items to the cash flow statement, their use of ratios for cash-related analysis has been limited to the current ratio (current assets/current liabilities) or the quick ratio (current assets less inventory/current liabilities). According to an informal survey of Big 5 and other national accounting firms, even now their audit procedures have not changed in ways that take advantage of the information presented in the cash flow statement, even though that statement has been required for over a decade.The value of cash flow ratios was evident in the collapse of W. T. Grant. Traditional ratio analysis performed during the annual audit did not reveal the severe liquidity problems that resulted in a bankruptcy filing shortly thereafter. While W. T. Grant showed positive current ratios as well as positive earnings, in fact it had severely negative cash flows that rendered it unable to meet current debt and other commitments to creditors. Educators have not been emphasizing the cash flow statement either. Auditing textbooks commonly include only ratios based on the balance sheet and income statement with little or no discussion of cash ratios.The next generation of auditors needs to learn how to use cash flow ratios in audits because such measures are becoming increasingly important to the marketplace. Investors and others are relying on them. The cash flow ratios we find most useful fall into two general categories: ratios to test for solvency and liquidity and those that indicate the viability o f a company as a going concern. In the first, liquidity indicators, the most useful ratios are operating cash flow (OCF), funds flow coverage (FFC), cash interest coverage (CIC) and cash debt coverage (CDC).In the second category, ratios used to assess a company's strength on an ongoing basis, we like total free cash (TFC), cash flow adequacy (CFA), cash to capital expenditures and cash to total debt. Lenders, rating agencies and analysts use all of these. Auditors should know when and how to use them, too. The gaming industry expanded to 12 states from 2 between 1989 and 1995. During that time, many of the traditional casino corporations managed asset growth rates of 200% and more. Rapid expansion led to major problems, including bankruptcy, when revenues did not meet projections.As this examination of two gaming companies shows, cash flow analysis can help avoid business meltdowns, providing auditors and clients with an additional level of comfort in both planning the audit and ev aluating the strength of the going concern. Boomtown was a relatively young but successful Nevada company that went public in October 1992, with assets of $56 million. By 1995, its assets were up to $239 million, dropping to $206 million in 1996. Company operations grew from one casino in the local Nevada market to four properties in three states—Nevada, Louisiana and Mississippi.In the same period, Circus Circus was one of the largest and most profitable gaming corporations in the industry. Its properties, also all in Nevada at that time, included the Excalibur and the original Circus Circus in Las Vegas, the Colorado Bell and Edgewater in Laughlin and the Circus Circus in Reno. The company grew from total assets of $783 million in 1992 to over $2. 2 billion by 1996, including acquisitions. By the end of 1996, it had operations in three states—Nevada, Louisiana and Mississippi. Liquidity Assessment Exhibit 13, shows a variety of ratios calculated from the financial st atements of Boomtown and Circus Circus.The figures cover the period from 1992 to 1996, although Circus Circus was on a January 31 fiscal year while Boomtown used a fiscal year ending September 30. Look at the lines for the current ratio (current assets/ current liabilities) and the quick ratio (current assets less inventories/current liabilities) for each. Viewed through the lens of these traditional balance-sheet-based ratios, Boomtown appears to be stronger financially than Circus Circus. But this was not the case. Boomtown's current ratio was frequently well over 1. 00, even soaring to 4. 4 in 1993, while Circus Circus current ratio never strayed over 1. 32. Boomtown was able to maintain a higher quick ratio as well. Over the five years in question, Boomtown's current ratio showed fairly consistent improvement, a trend that would be reassuring to most auditors. Although the balance sheet ratios for both companies are fairly low, that is normal for the gaming industry. Casinos jus t don't carry much inventory—mostly perishable foods and the like. And gaming companies carry practically no receivables because gaming generally is a cash business.The traditional measures don't address operating cash flows or cash interest coverage directly, but auditors can use cash flow ratios to answer questions about their clients liquidity—Are these companies generating enough cash to cover their current liabilities? How many times does cash flow from operations cover interest expense? Running a Casino†¦ Image Boomtown's cash interest coverage was considerably weaker than that of Circus Circus, except in 1993, when Boomtown had no long-term debt. Circus Circus consistently maintained cash in excess of 5 times debt. Now look at the line for OCF.Over the interval shown, the Circus Circus OCF ratio slipped under 2. 00 only once, meaning that it generated enough cash to cover its current liabilities twice over—and even improved on that despite a rapid gr owth rate. The company's cash interest coverage ratio also was consistently high. Boomtown's cash flow ratios, however, might surprise an auditor relying solely on balance sheet ratios. Its OCF was consistently weaker than that of Circus Circus, even slipping into a negative position in 1994. Once Boomtown's OCF slipped below 1. 00, it was not generating enough cash to meet its current commitments.Accordingly, it had to find other sources for financing normal operations. An auditor relying solely on the quick and current ratios in this instance would have missed that important point. An auditor who bothered to calculate two other cash flow ratios—FFC and cash/current debt—would have gotten even more remarkable results. Because Circus Circus carried very little current debt, its cash covered current debt well over 175 times in every year, while Boomtown's cash didn't even cover current debt in 1994, and its cash/current debt coverage was in the single digits for three o f the other four years.More remarkably, Boomtown's FFC went negative in 1994 and again in 1996 and was consistently weaker than that of Circus Circus in every year. Accordingly, the conclusions an auditor might draw after looking at the cash flow ratios might differ sharply from his or her opinion based solely on balance sheet ratios. Going-Concern Analysis Traditionally, auditors have used the balance-sheet-based debt-to-equity ratio (total debt/total equity) and the times-interest-earned (EBIT/annual interest payments) ratio to examine a company's longer-term financial health (see exhibit 24).These measures do provide one perspective on the company's ability to carry its long-term debt obligations and its solvency. The traditional solvency ratios reveal big differences between Circus Circus and Boomtown. Although both companies expanded considerably in 1993 and 1994, the effects on each corporation's financial position were drastically different. Circus Circus showed a downward tr end in its traditional debt-to-equity ratio, an indicator of an increasingly strong balance sheet, while maintaining a fairly stable times-interest-earned ratio.After 1992, Boomtown's debt-to-equity ratio rose steadily, showing increasing reliance on outside borrowing. Its times-interest-earned ratio also weakened, even going negative twice. Cash flow ratios, however, provide an even clearer picture of each company's financial solvency. Consider the lines for TFC, two for each company—one based on actual capital expenditures and the other on estimated maintenance spending. Negative figures in 1993 reveal that Circus Circus needed to go outside to raise cash for capital expenditures in both 1993 and 1994.However, using a capital maintenance approach, figures consistently greater than 1. 0 show the company was clearly generating enough cash flow from operations to maintain its normal operations and to provide at least some funds for additional growth. But 1993 and 1994 were yea rs when total assets grew at 21% and 37%. Few companies could expand at this rate solely with internally generated funds from operations. Analysis of Boomtown's cash flow ratios unveils a very different kind of growth. Its TFC (maintenance) ratio slipped below 1. 0 for three years in a row.An auditor who notices that Boomtown wasn't able to fund normal operations from internal sources for three consecutive years has heard an alarm; however, the noise from the TFC (actual) ratio is even louder. Boomtown did not manage any of its growth from internally generated cash—it's TFC (actual) ratio never got above 1. 00! That can't go on forever. Now look at the total debt ratio line and the two cash flow adequacy (CFA) ratio lines for each company. The total debt ratio, to which credit-rating agencies and loan officers pay close attention, was quite stable for Circus Circus throughout.Boomtown's, which started out weaker, took one wild fluctuation way up and then collapsed. Looking at the CFA ratios, once again Circus Circus exhibits more than adequate funds for maintenance and sufficient internally generated cash for new capital investments in all but one year. The one exception was attributable to rapid growth. Boomtown's spectacularly negative ratios shout the company's need for substantial outside funding. Turning to the capital expenditures ratio lines, Boomtown was unable to generate enough cash internally to even maintain plant and equipment in 1994, despite more than doubling its total assets.Circus Circus, on the other hand, had plenty of cash for maintenance throughout and needed outside cash to fund growth only for a two-year interval. In fact, Boomtown's cash ratios do indeed reveal that drastic changes would have been needed for this company to survive on its own. It didn't. Boomtown was acquired by Hollywood Park, Inc. , on June 30, 1997. Boomtown also disposed of its Las Vegas property, which had generated continuing operating losses. Despite its earlier promise, Boomtown ran out of cash. Traditional ratios would not have provided sufficient warning, but cash flow ratios would have.Auditors who employ cash flow ratios to assess corporate liquidity and viability can help their clients spot trouble in time to take corrective action. HOW TO TEST SOLVENCY WITH CASH FLOW RATIOS Creditors and lenders began using cash flow ratios because those ratios give more information about a company's ability to meet its payment commitments than do traditional balance sheet working capital ratios such as the current ratio or the quick ratio. When a loan officer evaluates the risk she is taking by lending to a particular company, her greatest concern is whether the company can pay the loan back, with interest, on time.Traditional working capital ratios indicate how much cash the company had available on a single date in the past. Cash flow ratios, on the other hand, test how much cash was generated over a period of time and compare that to near -term obligations, giving a dynamic picture of what resources the company can muster to meet its commitments. Operating cash flow (OCF) Cash flow from operations Current liabilities Company's ability to generate resources to meet current liabilities Operating cash flow (OCF) ratio. The numerator of the OCF ratio consists of net cash provided by operating activities.This is the net figure provided by the cash flow statement after taking into consideration adjustments for noncash items and changes in working capital. The denominator is all current liabilities, taken from the balance sheet. Operating cash flow ratios vary radically, depending on the industry. For example, the gaming industry generates substantial operating cash flows due to the nature of its operations, while more capital-intensive industries, such as communications, generate substantially less. The gaming giant, Circus Circus, exhibited an OCF of 1. 37 for fiscal year l997 while the media king, Gannett, produced an OC F of 1. 148 for a similar period. In order to judge whether a company's OCF is out of line, an auditor should look at comparable ratios for the company's industry peers. (For further details, see the case study5. ) Funds flow coverage (FFC) EBITDA (Interest + Tax-adjusted* debt repayment + Tax-adjusted* preferred-dividends) Coverage of unavoidable expenditures *To adjust for taxes, divide by the complement of the tax rate. Funds flow coverage (FFC) ratio.The numerator of the FFC ratio consists of earnings before interest and taxes plus depreciation and amortization (EBITDA), which differs from operating cash flow. Operating cash flow includes cash paid out for interest and taxes, which EBITDA does not. The FFC ratio highlights whether the company can generate enough cash to meet these commitments (interest and taxes). Accordingly, interest and taxes are excluded from the numerator. The denominator consists of interest plus tax-adjusted debt repayment plus tax-adjusted preferred divi dends. To adjust for taxes, divide by the complement of the tax rate.All of the figures in the denominator are unavoidable commitments. An auditor can use the FFC ratio as a tool to evaluate the risk that a company will default on its most immediate financial commitments: interest payments, short-term debt and preferred dividends (if any). If the FFC ratio is at least 1. 0, the company can meet its commitments—but just barely. To survive in the long run, any company must have enough cash flow to maintain plant and equipment. To be really healthy, it should be able to reinvest cash for growth. Accordingly, if a company's FFC is less than 1. , the company must raise additional funds to meet current operating commitments. To avoid bankruptcy, it must keep raising fresh capital. Cash interest coverage Cash flow from operations + Interest paid + Taxes paid Interest paid Company's ability to meet interest payments Cash interest coverage ratio. The numerator of cash interest coverag e consists of cash flow from operations, plus interest paid plus taxes paid. The denominator includes all interest paid—short term and long term. The resultant multiple indicates the company's ability to make the interest payments on its entire debt load.A highly leveraged company will have a low multiple, and a company with a strong balance sheet will have a high multiple. Any company with a cash interest multiple less than 1. 0 runs an immediate risk of potential default. The company must raise cash externally to make its current interest payments. The cash interest coverage ratio is analogous to the old-fashioned coverage ratio (also known as the interest coverage ratio). However, where the numerator of the coverage ratio begins with earnings from the income statement, the numerator of the cash interest coverage ratio begins with cash from the cash flow statement.Cash interest coverage gives a more realistic indication of the company's ability to make the required interest payments. Earnings figures include all manner of noncash charges—depreciation, pension contributions, some taxes and stock options. A company with a low income-based coverage ratio may actually be able to meet its payment obligations, but the mask of noncash charges makes it difficult to see that. A cash-based coverage ratio gives a direct look at the cash available to pay interest. Cash current debt coverage Operating cash flow—cash dividends Current debtCompanys ability to repay its current debt Cash current debt coverage ratio. The numerator consists of retained operating cash flow—operating cash flow less cash dividends. The denominator is current debt—that is, debt maturing within one year. This is, again, a direct correlate of an earnings current debt coverage ratio, but more revealing because it addresses managements dividend distribution policy and its subsequent effect on cash available to meet current debt commitments. As with the cash interest coverage ratio, the current debt ratio indicates the company's ability to carry debt comfortably.The higher the multiple, the higher the comfort level. But like most other ratios, as long as the company is not insolvent, the appropriate level varies by industry characteristics. HOW TO USE CASH RATIOS AS A MEASURE OF FINANCIAL HEALTH Beyond questions of immediate corporate solvency, auditors need to measure a client's ability to meet ongoing financial and operational commitments and its ability to finance growth. How readily can the company repay or refinance its long-term debt? Will it be able to maintain or increase its current dividend to stockholders? How readily will it be able to raise new capital?Banks, credit-rating agencies and investment analysts understandably are very concerned with these questions. Accordingly, they have developed several ratios to provide answers to them. Auditors, who are more concerned about full disclosure, can use these same ratios to pinpoint area s for closer scrutiny when planning an audit. Capital expenditure Cash flow from operations Capital expenditures Company's ability to cover debt after maintenance or investment on plant and equipment Capital expenditure ratio. The numerator is cash flow from operations. The denominator is capital expenditures.A financially strong company should be able to finance growth. This ratio measures the capital available for internal reinvestment and for payments on existing debt. When the capital expenditure ratio exceeds 1. 0, the company has enough funds available to meet its capital investment, with some to spare to meet debt requirements. The higher the value, the more spare cash the company has to service and repay debt. As with all ratios, appropriate values vary by industry. Cyclical industries, such as housing and autos, may show more variation in this figure than noncyclical industries, such as pharmaceuticals and beverages.Also, a low figure is more understandable in a growth indu stry, such as technology, than in a mature industry, such as textiles. Total debt Cash flow from operations Total debt Company's ability to cover future debt obligations Total debt (cash flow to total debt) ratio. The numerator is cash flow from operations. The denominator is total debt—both long term and short term. Total cash flow to debt is of direct concern to credit-rating agencies and loan decision officers. This ratio indicates the length of time it will take to repay the debt, assuming all cash flow from operations is devoted to debt repayment.The lower the ratio, the less financial flexibility the company has and the more likely that problems can arise in the future. Auditors should take diminished financial flexibility into account when identifying high-risk audit areas during planning. NET FREE CASH FLOW RATIOS Other ratios that spotlight a company's viability as a going concern rely on a computation of net free cash flow. Net free cash flow (NFCF) is not yet well defined, although bankers are working to standardize these computations in a way that would facilitate comparisons across companies and across industries.However, at present, there are still many variations of net free cash flow. We propose a total free cash (TFC) ratio developed by First Interstate Bank of Nevada, which uses it to make loan decisions and loan covenant agreements. This TFC computation offers the advantage of incorporating the effects of off-balance-sheet financing—by taking into account operating lease and rental payments. Total free cash (TFC)†  (Net income + Accrued and capitalized interest expense + Depreciation and amortization + Operating lease and rental expense – Declared dividends – Capital expenditures) (Accrued and capitalized interest expense Operating lease and rental expense + Current portion of long-term debt + Current portion of capitalized lease obligations) Company's ability to meet future cash commitments †  These rat ios require computation of the company's net free cash flows. As net free cash flow can vary by company as well as by industry, the formulas should be considered as recommended rather than absolute. TFC ratio . The numerator of this ratio is the sum of net income, accrued and capitalized interest expense, depreciation and amortization and operating lease and rental expense less declared dividends and capital expenditures.The denominator is the sum of accrued and capitalized interest expense, operating lease and rental expense, the current portion of long-term debt and the current portion of long-term lease obligations. Varying definitions of capital expenditures can confuse the issue. Since different definitions change the value of free cash flow ratios, it is best to be clear about which definition the auditor is using and why it makes sense for a particular purpose. For example, if the auditor is trying to determine whether the company can maintain its present level of operations, the capital spending figure used hould exclude new investments and be limited to the amount of spending required to maintain operating assets. Sometimes maintenance spending is estimated at 2% of total assets, or up to 5% of property, plant and equipment. Industries with very long-lived capital assets may use smaller percentages to estimate maintenance spending. However, if the auditor is more interested in long-term growth potential, then actual capital expenditures from the cash flow statement should be used. Cash flow adequacy (CFA)†  (EBITDA – taxes paid – interest paid – capital expenditures) (Average annual debt maturities scheduled ver next 5 years) Company's credit quality †  These ratios require computation of the company's net free cash flows. As net free cash flow can vary by company as well as by industry, the formulas should be considered as recommended rather than absolute. Cash flow adequacy (CFA) ratio. The numerator is earnings before interest, taxes, depreciation and amortization (EBITDA) less taxes paid (cash taxes) less interest paid (cash interest) less capital expenditures (as qualified above). The denominator is the average of the annual debt maturities scheduled over the next five years.Cash flow adequacy helps smooth out some of the cyclical factors that pose problems with the capital expenditure ratio. It also makes allowances for the effects of a balloon payment. Companies with strong NFCF compared with upcoming debt obligations are better credit risks than companies that must use outside capital sources. Thus, a high CFA means high credit quality. KNOW YOUR CLIENT In order to fully understand where to set the levels at which the cash flow ratios discussed here should trigger deeper investigation, auditors need to understand their clients businesses and the industries in which they operate.As with any other ratio, an auditor should listen to the client's explanation of any unfavorable changes in cash r atios before becoming too alarmed. An auditor should know what cash concerns are critical to a company's business. We wouldn't suggest that a successful audit is just a matter of picking the right equations and plugging in the numbers. There are no absolutes. But properly applied, cash flow ratios can be revealing to auditors during the audit planning stages and can give the auditor a more accurate picture of the company. Auditors must ascertain whether the financial statements are fairly presented in accordance with GAAP.They must be satisfied with the accuracy of the transactions and balances summarized in the four financial statements and the related disclosures. Effective auditors can use cash flow ratios to improve their understanding of the cash concerns critical to the particular company and to plan the audit more effectively. References ^www. [email  protected] unr. edu (www. readability. com) ^www. [email  protected] edu (www. readability. com) ^Exhibit 1 (www. journalo faccountancy. com) ^exhibit 2 (www. journalofaccountancy. com) ^case study (www. journalofaccountancy. com)

Descartes Meditations essays

Descartes Meditations essays Descartes meditations are based on the epistemological theory of rationalism: that is if someone truly knows something then they could not possibly be mistaken. He provides solid arguments for what his meditations stand for, and how he obtained a clear and distinct perception of "innate" ideas. In his Meditations he comes to terms with three certainties: the existence of the mind as the thing that thinks, the body as an extension, and God as the Supreme Being. Descartes is interested in the certainty of his existence and the existence of other people and things. Descartes argues that knowledge is acquired through awareness and experience. Using this approach, Descartes moves through doubt to certainty of his existence. He asks himself various questions about the certainty of his existence and solves them through clear thought and logic. Using this method Descartes establishes doubts to be truths, and he establishes that he does indeed exist. In this paper, I will show how Descartes moves through doubt to certainty. I will explain how Descartes uses the cogito, proves the existence of God and what that means to his existence. I will also discuss the general rules of truth that Descartes establishes. In the First Meditation Descartes begins to examine what is certain and what is doubtful. Descartes wants to establish that his knowledge is certain and not doubtful. He states, I had accepted many false opinions as being true, and that what I had based on such insecure principles could only be most doubtful and uncertain; so that I had to undertake seriously once in my life to rid myself of all opinions I had adopted up to then, and to begin, and to begin afresh from the foundations, if I wished to establish something firm and constant in the sciences. By this Descartes means that he wishes to establish a foundation for his knowledge based on certainty instead of doubt. Descartes first looks at the senses. This is important ...