Week 1 Discussion 1 Classmate Response Guided Response: Respond to at least two of your fellow students’ and to your instructor’s posts in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words and be respectful of others’ opinions and beliefs that differ from your own. Support your position by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum. Below there are two of my classmate’s discussion that needs I need to response to their names are Jocelyn Harnett and Audris Hung Jocelyn Harnett Both capitalism and socialism are social, political, and economic philosophies. There are pros and cons of each approach and many countries have implemented a mixed level of each philosophy. The economic system of capitalism creates a society in which private entities own all factors of production including the individual that own their labor. This type of system promotes competition and uses competition as a driving force of innovation. Competition occurs between owners of supply and this helps improve efficiencies as well as keep prices moderate. The incentive of capitalism is to maximize profit. In a capitalistic society goods and services are distributed based on supply and demand and the government intervenes only to maintain fairness and protect the free market. Advantages of capitalism include production of the best products at the best prices, and innovation. Disadvantages of capitalism include a lack of resources for the people in society who do not contribute such as the elderly, disables, and children, and also the philosophy fails to promote equality of opportunity. Hong Kong is an example of a capitalistic country based on several factors including "lack of corruption, low debt levels, and protection of property rights" (Amadeo, 2020, pp13). Socialism is composed of social ownership of the means of production, distribution, and exchange, and also includes the political theories associated with these systems. This means everything is owned and regulated by the community as a whole and the intention is to create equality for everyone. "Socialists assume that the basic nature of people is cooperative. They believe that this basic nature hasn't yet emerged in full because capitalism has forced people to be competitive" (Amadeo, 2020, pp2). Socialism promotes a society in which everyone receives a share based on how much they have contributed and values the collective well-being of the entire population over individuals. Advantages associated with socialism include basic needs provided for the entire society, eliminates poverty, and natural resources are preserved. Disadvantages of socialism include the fact that the philosophy is based on human cooperation and ignores competition which means there is no reward for being ent ...

1. Week 1 Discussion 1 Classmate Response
Guided Response: Respond to at least two of your fellow
students’ and to your instructor’s posts in a substantive manner
and provide information or concepts that they may not have
considered. Each response should have a minimum of 100 words
and be respectful of others’ opinions and beliefs that differ from
your own. Support your position by using information from the
week’s readings. You are encouraged to post your required
replies earlier in the week to promote more meaningful and
interactive discourse in this discussion forum.
Below there are two of my classmate’s discussion that needs I
need to response to their names are Jocelyn Harnett and Audris
Hung
Jocelyn Harnett
Both capitalism and socialism are social, political, and
economic philosophies. There are pros and cons of each
approach and many countries have implemented a mixed level
of each philosophy.
The economic system of capitalism creates a society in which
private entities own all factors of production including the
individual that own their labor. This type of system promotes
competition and uses competition as a driving force of
innovation. Competition occurs between owners of supply and
this helps improve efficiencies as well as keep prices moderate.
The incentive of capitalism is to maximize profit. In a
capitalistic society goods and services are distributed based on
supply and demand and the government intervenes only to
maintain fairness and protect the free market. Advantages of
capitalism include production of the best products at the best
prices, and innovation. Disadvantages of capitalism include a
lack of resources for the people in society who do not contribute

2. such as the elderly, disables, and children, and also the
philosophy fails to promote equality of opportunity. Hong Kong
is an example of a capitalistic country based on several factors
including "lack of corruption, low debt levels, and protection of
property rights" (Amadeo, 2020, pp13).
Socialism is composed of social ownership of the means of
production, distribution, and exchange, and also includes the
political theories associated with these systems. This means
everything is owned and regulated by the community as a whole
and the intention is to create equality for everyone. "Socialists
assume that the basic nature of people is cooperative. They
believe that this basic nature hasn't yet emerged in full because
capitalism has forced people to be competitive" (Amadeo, 2020,
pp2). Socialism promotes a society in which everyone receives a
share based on how much they have contributed and values the
collective well-being of the entire population over individuals.
Advantages associated with socialism include basic needs
provided for the entire society, eliminates poverty, and natural
resources are preserved. Disadvantages of socialism include the
fact that the philosophy is based on human cooperation and
ignores competition which means there is no reward for being
entrepreneurial. An example of a country with a socialist system
is Norway. "The state on behalf of the people, own a large
percentage of the economy. It spends a large portion on
education, housing, and public welfare. A large percentage of
its works are unionized, granting them greater power" (Amadeo,
2020, pp19).
Capitalism and socialism are currently being spotlighted in U.S.
politics because the economy has faced many challenges. For
most of history Americans agreed that capitalism and a free
market economy were the best system. However, new age
Americans doubt this consensus. The U.S. government is not
entirely capitalistic and there are many social systems in place
such as social security, welfare, armed forces benefits, etc.
Capitalism creates wealth inequality inherently due to the focus
on a free market that promotes competition. Wealth inequality

3. limits diversity and thus the playing field is not level and this
means minorities may not be accounted for or represented
equally. This is not always a bad outcome, however many
governments utilize both capitalism and socialism to generate a
better balance and eliminate major inequalities.
References:
Amadeo, K. (2020). Socialism and Its Characteristics, Pros,
Cons, Examples, and Types. Retrieved from:
https://www.thebalance.com/socialism-types-pros-cons-
examples-3305592
Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D.
A. (2018). Macroeconomics: Private and public choice (16th
ed.). Retrieved from https://www.cengage.com
Tamny, J. (2015). Popular economics: What the Rolling Stones,
Downton Abbey, and LeBron James can teach you about
economics. Retrieved from https://www.redshelf.com
Audris Hung
1. Define capitalism and socialism and provide examples of
countries for both structures.
Capitalism is an economic system characterized by private
ownership of the means of production, especially in the
industrial sector. The creation of goods and services is based on
supply and demand in the general market, known as a market
economy, rather than through central planning known as a
planned economy or command economy (Gwartney et al.,
2018). Capitalism stands in contrast to a government-controlled
economy, where the government controls the prices of the
market and supply and demand. Examples of capitalist countries
are United States, Canada, Switzerland, Germany, Denmark, and
South Korea (Chappelow, 2020).
Socialism is a populist economic and political system based on
public ownership (also known as collective or joint ownership)
of the means of production. Those means include the machinery,

4. tools, and factories used to produce goods that aim to directly
satisfy human needs (Gwartney et al., 2018). In a purely
socialist system, all legal production and distribution decisions
are made by the government, and individuals rely on the state
for everything from food to healthcare. The government
determines the output and pricing levels of these goods and
services. Examples of socialist countries are Venezuela, Cuba,
Angola, and North Korea (Kenton, 2020).
2. Next, discuss why capitalism and socialism are currently
being spotlighted in U.S. politics giving the pros and cons to
each organizational structure. Be sure to be specific and provide
supporting facts, not just opinions
There are two different views in the country at the moment,
some belief in continuing capitalism, and some are bringing the
ideas of socialism. Proponents of capitalism assure us we have
only two choices: capitalism (big business) or socialism (big
government). It seems like the country is divided between which
one can be better. President Trump is the view as a capitalist,
and Bernie Sanders from the democratic party classified himself
as a "democratic socialist." The future elections for President
are coming, and having two contrast views has created some
controversy. Even though Bernie Sanders, a self-described
"Democratic socialist," has generated strong support for his
presidential campaign, Americans' image of socialism is no
better now than it was six years ago. Thirty-five percent of
Americans have a favorable view of the term socialism, similar
to what was found in 2012 and 2010. The 60% who have a
pleasant view of capitalism is also unchanged from six years
ago. Americans retain very positive images of small business,
entrepreneurs, and free enterprise. A little more than half have a
favorable view of big business, and less than half have a
positive view of the federal government (Newport, 2020).
Capitalism
Pros: Capitalism is a market-driven economy. The state does not
intervene in the marketplace, leaving it up to market forces to

5. shape society and life. Capitalism depends on the enforcement
of private property rights, which provide incentives for
investment in and productive use of productive capital
(Chappelow, 2020).
Cons: the emphasis on efficiency takes priority over equality,
which is of little concern to the capitalist system. The argument
is that inequality is the driving force that encourages
innovation, which then pushes economic development. In a
capitalist economy, the state does not directly employ the
workforce. This can lead to unemployment during times of
economic recession (Momoh, 2020).
Socialism
Pros: Socialists contend that shared ownership of resources and
central planning provides an equal distribution of goods and
services and a more equitable society. Socialism offers a
reduction of relative poverty, a welfare state which provides a
minimum basic income for those who are unemployed, sick or
unable to work, maintains a basic living standard for the poorest
in society, and helps to reduce relative poverty (Kenton, 2020).
Cons: The primary concern of the socialist model, in contrast, is
an equitable redistribution of wealth and resources from the rich
to the poor, out of fairness, and to ensure "an even playing
field" in opportunity and outcome. To achieve this, the state
intervenes in the labor market. In fact, in a socialist economy,
the country is the primary employer. During times of economic
hardship, the socialist state can order hiring, so there is full
employment even if workers are not performing tasks that are
particularly in demand from the market (Momoh, 2020.
3. Finally, address the question: Does capitalism create wealth
inequality, and is this necessarily an adverse outcome?
The capitalist economy is unconcerned about equitable
arrangements. The argument is that inequality is the driving
force that encourages innovation, which then pushes economic
development. It is not an adverse outcome because it looks to
promote healthy competition in the country (Chappelow, 2020).
One argument against capitalism is that income and wealth

6. inequality is that it allows the rich to dominate in the arena of
positional goods. The primary concern of the socialist model is
the redistribution of wealth and resources from the rich to the
poor, out of fairness, and to ensure equality in opportunity and
equality of outcome (Kling, 2020).
References
Chappelow, J. (2020, April 6). Capitalism Definition. Retrieved
from https://www.investopedia.com/terms/c/capitalism.asp
Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D.
A. (2018). Macroeconomics: Private and public choice (16th
ed.). https://www.cengage.com
Kenton, W. (2020, April 6). What Is Socialism? Retrieved from
https://www.investopedia.com/terms/s/socialism.asp
Kling, A. (2020, April 6). Capitalism and Inequality. Retrieved
from
https://www.econlib.org/library/Columns/y2016/Klingcapitalism
.html
Momoh, O. (2020, March 14). Capitalism vs. Socialism: What is
the Difference? Retrieved from
https://www.investopedia.com/ask/answers/020915/what-are-
differences-between-capitalism-and-socialism.asp
Newport, F. (2020, January 6). Americans' Views of Socialism,
Capitalism Are Little Changed. Retrieved
from https://news.gallup.com/poll/191354/americans-views-
socialism-capitalism-little-changed.aspx
Week 1 Discussion 2 Classmate Response
Guided Response: Respond to at least two of your fellow
students debating the opposite viewpoint or further support
expressed facts. Additionally, respond to any instructor posts.
Your replies should be substantive and provide information or
concepts that they may not have considered. Each response
should have a minimum of 100 words and be respectful of

7. others’ opinions and beliefs that differ from your own. Support
your position by using information from the week’s readings.
You are encouraged to post your required replies earlier in the
week to promote more meaningful and interactive discourse in
this discussion forum.
Below there are two of my classmate’s discussion that needs I
need to response to their names are Lisa Schreiner and Jason
Stack
Lisa Schreiner
Minimum wage is the base or floor hourly rate paid to an
employee for time worked. This rate is set at the federal level,
and in some cases, increased further at the state level. For
example, the current federal minimum wage is $7.25 per hour,
yet the Massachusetts minimum wage is $12.75 per hour, and
Rhode Island is $10.50 per hour. Looking at this from an
employee’s view, I am traveling to Mass for a job paying $2.25
per hour more living so close to the state border (although RI is
so small, you can travel across the state in about 30 minutes).
My first job in RI paid $3.85 per hour, the minimum wage in
1985.
Throughout the years, minimum wage increases continue to be a
point of contention for people supporting the increases, and
those against the increases. I believe there needs to be a balance
between increasing the minimum wage and keeping it at a level
the economy or businesses can support. As authorities move to
increase minimum wage towards $15 per hour, I begin to hold
the position of opposition.
A high minimum wage does not secure jobs for people, it only
provides people with jobs at a higher hourly rate (PragerU,
2014). The businesses unable to support paying this rate, with
make adjustments or go out of business further increasing
unemployment. Adjustments may include higher prices to cover
increases in cost, reducing labor staff, reducing hours for

8. current staff, decreasing training expenses, and ultimately,
hiring fewer employees than they would have (PagerU, 2014). A
decrease in hours for current staff can also mean a decrease in
benefits such as insurance, holiday pay, and vacation time.
Decreasing training for staff can lead to safety issues, health
code violations, and unsatisfied consumers driving down profits
as sales fall and fines rise. The job market will flood with
applicants looking for work and less jobs available due to the
cost of employing folks. Un-skilled workers will have a
difficult time gaining experience through employment without
opportunities available. If I were a business and had a choice
between hiring someone with experience or someone without
experience for the same rate of pay, the person with experience
wins out every time.
According to PragerU (2017), “a 2014 Congressional Budget
Office study reflects just a $10 minimum wage would cost half
a million jobs as businesses terminate employees, researchers at
the Harvard Business School found that each $1 increase in the
minimum wage results in a 4-10% increase in the likelihood of
restaurants closing, and the cost of all workers will have to go
up” (para 9). Robots and machinery will continue to replace
humans, putting more folks out of work. Kiosk ordering already
replaced staff in McDonald’s locations and check in’s at doctor
offices now flow through an automated system. All of these
scenarios will increase unemployment, decrease businesses, and
detrimentally effect the economy.
References
Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D.
A. (2018). Macroeconomics: Private and public choice (16th
ed.). https://www.cengage.com (Links to an external site.)
PragerU. (2014, October 27). What’s the right minimum
wage? (Links to an external site.) (Links to an external
site.) [Video file]. https://www.prageru.com/videos/whats-right-
minimum-wage (Links to an external site.)
PragerU. (2017, Aug 21). Who does a $15 minimum wage

9. help? (Links to an external site.) (Links to an external
site.) [Video file]. https://www.prageru.com/videos/who-does-
15-minimum-wage-help
Jason Stack
Minimum Wage Discussion
Minimum wage increase has been a cyclical discussion
since its inception. According to Gwartney, Stroup, Sobel, &
Macpherson (2018), the minimum wage passed in 1938 within
the Fair Labor Standards Act (pg. 4-2d). Since that time, it has
undergone several increases that provide statistical data used to
predict what future increases would result. Although there is
some debate as to the effects of the most current proposed
increase to 15 UDS/hour, as suggest by Gwartney et al. (2018),
the majority of economists believe that it would have more
negative effects than positive (pg. 4-2d). Therefore, I have
compiled a list of pros and cons for the proposed increase in the
minimum wage.
Pro's
Con's
Increase of Income for Minimum wage workers
Employers reducing hours to compensate
Employees that retain MW jobs after increase gain added skills
and experience.
Employers reducing total number of MW Jobs
Increase in the pricing of goods or services
Reduction of MW workers benefits
Less effective than other anti-poverty programs
Another possible resolution, other than a federally
mandated minimum wage increase, could be localized city and
state increases based upon the local cost of living studies.
Klassen (2019), describes this as a "Living Wage" and some

10. states and cities have already enacted it on top of the national
minimum wage rate. Also, a study done by the Washington State
University concluded that a wage increase at the state level
would be beneficial to 97% of low-skilled workers despite long-
standing conventional arguments of economists (Klassen, 2019).
Once again, we see a contrasting view among American
economists and statistical data, but there are other cases
throughout the world.
The United States is not the only country that debates
whether a minimum wage is more beneficial to workers rather
than letting the market dictate wages as it does most pricing.
According to Bruttel (2019), Germany did not institute a
minimum wage until 2015 (pg.1). Although the hourly wages
were significantly increased, the overall monthly increase was
far less substantial due to the reduction of contractually agreed-
upon hours (Bruttel, 2019, pg.1). Therefore the same theories
developed in the United States over the decades of increases to
minimum wage, studies of the results, gathered statistical data,
and many economist's warnings were played out once again in
Germany.
Thanks,
Jason Stack
Reference
Bruttel, O. (2019). The Effects of the New Statutory Minimum
Wage in Germany: A First
Assessment of the Evidence. Journal for Labour Market
Research, 53(1), 1–13.
Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D.
A. (2018).
Macroeconomics: Private and public choice (16th ed.).
https://www.cengage.com
Klassen, J. (2019). Minimum Wage. Salem Press Encyclopedia.

11. Week 1 Discussion 1 Classmate Response
Guided Response: Review the posts from your classmates and
respond to at least two. Compare and contrast the points you
and your classmates made regarding the usefulness and purpose
of the statement of cash flows. Each response should have a
minimum of 100 words.
Below there are two of my classmate’s discussion that needs I
need to response to their names are Madelin Mejia and Kenyatta
Clinkscales
Madelin Mejia
Statements of cash flows is an analysis of the money that is
circulating in the company. The analysis shows the money that
the company is acquiring from its ongoing operations, as well as
the money that the company is spending in order to operate their
business (Block, Hirt & Danielsen, 2019). There are three
primary sections found in this statement. They are cash flows
from operating activities or the money collected from the
continuous business activities, investing activities, or the funds
used to purchase or sell capital assets and financing activities,
which is the money the company uses to run operations (Block,
Hirt & Danielsen, 2019).
Statement of cash flows produces useful information because it
shows all the money that is available in order to run the
company, additionally, to the potential money that the company
will earn in the short term (Block, Hirt & Danielsen, 2019). It is
essential for companies to have this information because the
money will determine whether the company has enough capital
to continue with ongoing operations. The statement of cash
flows is useful when making business decisions. It allows the
company to know where it stands, if it is in an excellent
economic position to continue investing money and running
transactions, or if the company is not running so well and could

12. need a loan or save money to continue their business.
Deere & Company' Financial Statement
Operating activities in millions:
Inflow: Net income = $1635.9
Outflow: Trade, notes, and financial receivables = $2,731.3
Investing activities in millions:
Inflow: Collections of receivables = $9,175.3
Outflow: Cost of receivables acquired = $8,886.7
Financing activities in millions:
Inflow: Short-term borrowing = $1,570.4 & Long-term
borrowing: $4,232.2
References:
Block, S. B., Hirt, G.A., & Danielson, B. E. (2019).
Foundations of Financial Management (17th ed.). Retrieved
from https://www.vitalsource.com/ (Links to an external site.)
John Deere. (n.d.). Investor Relations (Link to an external site.)
Retrieved from https://investor.deere.com (Links to an external
site.)
Kenyatta Clinkscales
List the three primary sections found in the statement of cash
flows:
The three primary sections found in the statement of cash flows
are: Cash flows from operating activities, cash flows from
investing activities, and cash flows from financing activities.
Explain how the statement of cash flows provides useful
information that is not available in the other financial
statements.
Other financial statements are normally based on the accrual
method of accounting, in which revenues and expenses are
recognized as they occur, rather than when cash actually
changes hands.

13. Examine how this information can be useful when making
business decisions.
The primary advantage of accrual accounting is that it allows us
to match revenues and expenses in the period in which they
occur in order to appropriately measure profit (Block, Hirt, &
Danielsen, 2019).
Looking at the financial statement you downloaded for Deere &
Company in Part 1, identify the major inflows and outflows of
cash for each section of the statement of cash flows.Cash Flows
from Operating Activities
Net income: $1,635
Asset Changes: 2,731Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to
sales) 9,175.3
Proceeds from the sale of equipment on operating leases
$823.4Cash Flows from Financing Activities
Increase in total short-term borrowings 1,570.4
Proceeds from long-term borrowings 4,232.2
Payments of long-term borrowings (3,426.8)
References
Block, S. B., Hirt, G. A., & Danielsen, B. R.
(2019). Foundations of financial management. New York: Irwin.
(17th ed.). Retrieved from https://www.vitalsource.com/
Week 1 Discussion 2 Classmate Response
Guided Response: Review the posts from your classmates and
respond to at least two. Compare and contrast the points you
and your classmates made regarding the use of key indicators
when making investment decisions. Each response should have
a minimum of 100 words.
Below there are two of my classmate’s discussion that needs I

14. need to response to their names are James Varughese and
Gabriela Santos
James Varughese
List the key metrics you would consider before purchasing stock
in a company.
The two key metrics that I would consider before purchasing
stock in a company would be the profitability of the
organization and the potential of the products/services offered
by the organization. I believe in long term investments and for
me, it is critical that the organization is profitable and offers
valuable products/services which will ensure that my investment
will stay lucrative in the long run.
List and explain the components of the ratios that would be the
most important for you to analyze before making an investment
decision. Explain why you selected the ratios above.
Profit margin, Return on Equity and Debt to total assets (Block,
Hirt, & Danielsen, 2019) are the components of the ratios that I
would analyze before making the investment decision.
Profit margin: it is a way to measure the amount of money the
business makes from its products/services; it is also an indicator
of an organization's financial health and its growth potential
(Investopedia, 2020). This means that organization has
products/services which has value and credibility among to
customer to be successful. It gives me the confidence that I will
have returns on my investment.
Return on Equity: it is a measure of an organization’s ability to
generate income from the available equity (Wikipedia, 2020). It
gives me an understanding of how well the business is
performing and I can compare businesses to evaluate the
efficiency of an organization to make my investment decisions.
Debt to total assets: it is an indicator of the organization’s
financial strength and also gives an indication of the amount of
debt an organization is carrying to run the business (Averkamp,
2020). For me it critical that the organization is financially
stable to put my trust and make investments in it.

15. Reference:
Averkamp, H. (2020). Accounting Coach. What is the debt to
total assets ratio?: Retrieved from
https://www.accountingcoach.com/blog/debt-to-total-assets-
ratio
Block, S. B., Hirt, G. A., & Danielsen, B. R.
(2019). Foundations of financial management (17th ed.).
Retrieved from https://www.vitalsource.com/
Investopedia. (2020, April 5). Profit Margin. Retrieved from
https://www.investopedia.com/terms/p/profitmargin.asp
Wikipedia. (2020, March 26). Return on equity. Retrieved from
https://en.wikipedia.org/wiki/Return_on_equity
Gabriela Santos
ThursdayApr 9 at 11:02pm
Manage Discussion Entry
Hi Class,
I must admit that going into this class my knowledge and
understanding of a company's financial standing are limited and
mostly based on the hit show Shark Tank. The show evaluates a
company's numbers in an effort to gain an investor. Obviously,
the show's goal is entertainment, not education. Even so, as I
read this chapter, I found my mind going back to that show and
the tidbits I do know. Key metrics when considering to invest
can be different to investors, but it's a good idea to be very
knowledgeable before choosing to invest in anything.
Personally, I want to know how good the company is at "paying
back" the money they take in. For that, I would look at the
return on equity and debt utilization ratios. I want to know how
much return current stockholders are receiving and how much
debt the company is paying back.
Profitability ratios show how much money is being made on
sales, assets, and investments. The main component of
profitability is net profit. Net profit is compared to expenses.
The bigger the ratio, the more the money is paying off. Asset

16. utilization ratios evaluate inventory in comparison to sales in a
given time period. The main component of these ratios involves
time and speed. Liquidity ratios measure how fast a company
can its duties when they are due. Components include assets and
liabilities. Lastly, debt utilization ratios measure debt compared
to assets (Block, Hirt, & Danielson, 2019).
I selected all the ratios above because it's important to look at
the entire picture of a company, not just some key figures.
Financial statements are important and they give us key figures,
but they tell a picture together. The Ten Commandments of
Analysis article advises not to just even look at financial
statements or figures, and to always to be very knowledgeable
(Beaver & Horngren, 1991). Even billionaires on tv shows lose
money on deals!
References:
Beaver, W. H., & Horngren, J. E. (1991). Ten Commandments
of Financial Statement Analysis. Financial Analysts
Journal, 47(1), 9–20.
Block, S. B., Hirt, G. A., & Danielsen, B. R.
(2019). Foundations of financial management. New York: Irwin.
(17th ed.). Retrieved from https://www.vitalsource.com/