This document provides instructions and examples for properly formatting an academic paper according to APA style guidelines. It discusses the layout and formatting of title pages, abstracts, body text, citations, references pages, and includes examples of each section. Key points covered include using Times New Roman 12-point font, 1-inch margins, double spacing, and the proper formatting of in-text citations, references, headings, block quotes, and running heads. The document aims to teach students how to set up their papers and properly incorporate and cite outside sources.
1 Forbes School of Business APA Style Standards The.docxmercysuttle
1
Forbes School of Business APA Style Standards
These standards are excerpted from the 6
th
edition of the Publication Manual of the American
Psychological Association, published in 2010. These standards are intended to provide an
overview of APA formatting necessary for Ashford University writing assignments.
Standard 1: Manuscript Elements
o Manuscript Format
Left, top, bottom, and right margins should be 1 inch.
Paper is prepared in Times New Roman, 12-point font and is double-spaced
throughout.
Page numbers are Arabic numerals in the upper right corner of each page, ½
inch from the top, and are consecutive from the title page through any
appendices. Preliminary pages contain numbers in lowercase Roman
numerals.
o Title Page
Requirements (in order):
A Running Head
o The term “Running head: YOUR TITLE” appears on first page
(i.e. Title Page) in the header. All subsequent pages contain
YOUR TITLE, but do not include the words “Running head,”
which is only for the title page.
o The running head needs to be left justified and on the same line
as the page number throughout the document.
o The running head can be the title of the manuscript or a
shortened version of it.
Title
o The title should concisely reflect the main idea of the
manuscript.
o The title should be typed with initial capitalizations for nouns,
verbs, adjectives, and any prepositions five or more letters in
length.
o The title should be centered between the left and right margins,
and positioned in the upper half of the page.
o Recommended title length: no more than 12 words.
Student Name
Course Name and Number
Instructor
Submission Date
o Abstract
2
An abstract is a brief comprehensive summary of the contents of the
manuscript and it allows readers to survey the contents of the manuscript
quickly.
An abstract should only be included if the manuscript is longer than 15-double
spaced pages, excluding the title page and reference page.
Abstract length should range from 150–250 words.
The abstract should be the second page of the manuscript (after the title page).
The label Abstract should appear with initial capitalization and lowercase
letters, centered, at the top of the page, like a title.
The abstract should be a single paragraph without paragraph indentation.
o The Introduction
Begins on a new page (page 2 [or page 3 if an abstract is included]) and the
full title of the paper is centered one inch from the top of the page with initial
capitalizations and lowercase letters (not underlined, boldfaced, or italicized)
and is double-spaced above the first paragraph of text.
A manuscript must open with an introduction that presents the thesis, the
statement of purpose, the argument, or the specific problem under study.
There should be no heading labeling it the “Introduction.”
o The Body
This is the main part of ...
APA Scavenger HuntAll of the answers can be found in the Unive.docxarmitageclaire49
APA Scavenger Hunt
All of the answers can be found in the University of the XYZ Writing Style Guide 2013.
1. What does APA stand for?
2. Where should you place page numbers?
3. What is University of XYZ view of plagiarism?
4. What is a “running header”?
5. How do you cite your references?
6. When creating a reference page, in what order do you put the citations?
7. How do you cite a website?
8. What is the point of a title page?
9. How do you cite a book with more than one author?
10. What font style and size should you use?
Bonus question: How will instructors figure out if you have used cites that may have caused plagiarism?
Table of Contents
Introduction
Chapter 1 – Formatting Your Paper
Title Page Running Headers Font Styles Spacing
Margins
Page Numbers Section Headings Abbreviations Numbers Reference Page
Chapter 2 – Documenting Your Sources
Avoiding Plagiarism Citing your Sources
Direct Quotes Long Quotes
Book Citations & References Book with One Author Book with Two Authors
Book with Multiple Authors
Online Database Articles and/or Websites Citations & References Article or Journal from an Online Database with an Author Article or Journal from an Online Database without an Author
Chapter 3 – Resources Chapter 4 – Sample Paper
Introduction
University of the Potomac recognizes the need to set a standard for the writing style of the academic papers assigned in the various courses offered through the college. To meet this need, the University of the Potomac Writing Style Guide was created to assist students in properly formatting their papers for college level writing. This guide is written to give examples of APA style and is based on the Publication Manuel of the American Psychological Association
· sixth edition. While not every situation that may arise in your writing is covered in this guide, additional resources are listed in Chapter 3 to help answer additional questions.
Chapter 1 – Formatting Your Paper
The following guidelines will help you properly format your papers and are based on the American Psychological Association (APA) 6th edition publication. Remember, these are guidelines. For a complete review of the requirements for APA please visit www.APAstyle.org
Title Page
The Title Page is the first page of your paper. The following information should be on it and this information needs to be centered.
Title of Paper Your Name Course Name Date
Running Headers
Each page should have an abbreviated title of the paper placed within the margin. This should be placed starting at the upper left corner of each page.
Font Styles
Font should be either “Times New Roman” or “Ariel”. Font Size should be 12 point.
Spacing
Set the spacing between lines to “Double Spaced”. Paragraphs should be indented 5 spaces.
Use two spaces after the end of a sentence.
Margins
Margins should be set as 1 inch on all sides (Left, Top, Right, Bottom) of the paper. Text should be “Left Justified”.
Page Numbe.
This module is designed to show the basic elements of APA style .docxjuliennehar
This module is designed to show the basic elements of APA style writing and provide examples of appropriate APA guidelines
Sixth Edition of the APA Manual
APA Style and Formatting
American Public University System
American
Military
UniversityAmerican
Public
University
Updated 12/09
APA Style and Formatting
This module is designed to show the basic elements of APA style writing and provide examples of appropriate APA guidelines; however, it is not intended as an exhaustive reference guide.
(Sixth Edition - 2010)
Why Use APA?
APA writing style is used to assist in the formatting and organization of written work for the presentation of ideas
APA rules permit uniformity of many styles to one consistent style
APA (Sixth Edition – effective 2010) has broadened its audience since it is consulted not only by psychologists but also by students & researchers in many fields such as business, education, social work, nursing and many other behavioral and social sciences
Basic APA paper consist of:
The title page
Abstract (optional – ask instructor)
Text of the paper
Reference page
The Title Page
APA requires five basic elements to your title page:
Note: We require you also
add course, professor name
and date – See next slide.
Running head: TITLE OF PAPER 1
Title of Paper
Author's Name
American Public University
2. Title should typed in upper and lower letters, centered and positioned in the upper half of page
Running head is aligned on the left margin on the same line as page number (page number is flush right margin). Should read “Running head: <space> Notice the Running head is flush left and the page number is flush right on the same line. They are permanent. (NOTE: “Running head:” should appear before the short title in the header on the title page only. Thereafter, the short title should appear in the header on its own appearing on each page of the paper with only page numbers changing). The title should be no more than 12 words in length and should not contain abbreviations. All letters of the title are capitalized. Headers must be PERMANENT. The Title page is always page 1. “Running head:” should appear before the short title in the header on the title page only. Thereafter, the short title should appear in the header on its own.
The Cover Page (or Title Page) is always page 1.
3. Author’s Name
4. Institution affiliation
#5: Sixth Edition requires an author’s note which is not needed for essay papers.
Elements of the header
Elements of the running head:
Make sure the words Running head are written out.
The word Running is capitalized, but the word head is not.
Place a colon (:) following the word head.
The running head title (not to exceed 50 characters, including spaces and punctuation) is written in all capital letters.
The number of the page should be on the same line flush right.
See 8.03 APA Manual (Sixth Edition)
6
Title
The title is typed in u ...
IMPROVED SUCROSE INVERSIONCreate improvement in the process fo.docxwilcockiris
IMPROVED SUCROSE INVERSION
Create improvement in the process for converting sucrose to glucose and fructose. Sucrose inversion is the process of converting sucrose to a mixture of equimolar amounts of its component monosaccharides, glucose and fructose, via a hydrolysis reaction. The product "invert sugar" is a valuable sweetener with wide applications.
Three primary commercial methods of sucrose inversion are: acid hydrolysis, enzymatic hydrolysis and ion exchange resin system. Each faces its respective challenges. Improvements are desired that allow efficient and cost-effective sucrose inversion for the production of invert sugar of high purit to be used in the food and beverage industry.
Keywords: sucrose, invert sugar, glucose, fructose, hydrolysis, acid, enzyme, invertase, ion exchange.
Running head: A SHORT TITLE FOR YOUR PAPER 1
Your Fully Explanatory Title: In About a Dozen Words or so
Your Professional Name
Course # and Assignment ?
____________________ University
A SHORT TITLE FOR YOUR PAPER 2
Abstract
Here, with no indentation at all, summarize your study and its results in 100 to 150 words. Focus
less on your intentions or the importance of your topic than the work you did and the results you
found. The truth is that some people never read the full paper; they just read the abstract or
executive summary and use the body of the paper as if it were an extended footnote. So make
sure this abstract tells the whole story. This, like everything else in your paper without
exception, is in 12-point Times Roman font, double-spaced, with one-inch margins in all
directions. Please note that the title “Abstract” (like the title “References” and the title of your
paper) is not bolded. Only headings and sub-headings are bolded.
A SHORT TITLE FOR YOUR PAPER 3
Your Fully Explanatory Title
Your paper begins right away with an introduction, but without the title “Introduction,”
which is never used in APA. New to the 6
th
edition of the Publication Manual, we are putting
two spaces after each sentence. This is natural for many of us and is a welcomed change from
the previous instruction to leave only one space. Every page, including the first page, has a short
title at the left and a simple page number, flush right. On the first page only, that short title is
preceded by “Running head:” All of that is placed within the one-inch margin (i.e., one-half inch
below the top of the paper).
Be sure to use TAB to move to positions such as the right margin, or to make a half-inch
indent. It is not enough to hit Space over and over until you get there. That may look right, but it
is not robust. Any change in the document will disrupt it. The abstract, main body, and reference
sections each begin on a brand new page. This is accomplished in Microsoft Word by using
Control-Enter. It is not enough to keep hitting Enter until the page advances, because any change
in t.
1 Forbes School of Business APA Style Standards The.docxmercysuttle
1
Forbes School of Business APA Style Standards
These standards are excerpted from the 6
th
edition of the Publication Manual of the American
Psychological Association, published in 2010. These standards are intended to provide an
overview of APA formatting necessary for Ashford University writing assignments.
Standard 1: Manuscript Elements
o Manuscript Format
Left, top, bottom, and right margins should be 1 inch.
Paper is prepared in Times New Roman, 12-point font and is double-spaced
throughout.
Page numbers are Arabic numerals in the upper right corner of each page, ½
inch from the top, and are consecutive from the title page through any
appendices. Preliminary pages contain numbers in lowercase Roman
numerals.
o Title Page
Requirements (in order):
A Running Head
o The term “Running head: YOUR TITLE” appears on first page
(i.e. Title Page) in the header. All subsequent pages contain
YOUR TITLE, but do not include the words “Running head,”
which is only for the title page.
o The running head needs to be left justified and on the same line
as the page number throughout the document.
o The running head can be the title of the manuscript or a
shortened version of it.
Title
o The title should concisely reflect the main idea of the
manuscript.
o The title should be typed with initial capitalizations for nouns,
verbs, adjectives, and any prepositions five or more letters in
length.
o The title should be centered between the left and right margins,
and positioned in the upper half of the page.
o Recommended title length: no more than 12 words.
Student Name
Course Name and Number
Instructor
Submission Date
o Abstract
2
An abstract is a brief comprehensive summary of the contents of the
manuscript and it allows readers to survey the contents of the manuscript
quickly.
An abstract should only be included if the manuscript is longer than 15-double
spaced pages, excluding the title page and reference page.
Abstract length should range from 150–250 words.
The abstract should be the second page of the manuscript (after the title page).
The label Abstract should appear with initial capitalization and lowercase
letters, centered, at the top of the page, like a title.
The abstract should be a single paragraph without paragraph indentation.
o The Introduction
Begins on a new page (page 2 [or page 3 if an abstract is included]) and the
full title of the paper is centered one inch from the top of the page with initial
capitalizations and lowercase letters (not underlined, boldfaced, or italicized)
and is double-spaced above the first paragraph of text.
A manuscript must open with an introduction that presents the thesis, the
statement of purpose, the argument, or the specific problem under study.
There should be no heading labeling it the “Introduction.”
o The Body
This is the main part of ...
APA Scavenger HuntAll of the answers can be found in the Unive.docxarmitageclaire49
APA Scavenger Hunt
All of the answers can be found in the University of the XYZ Writing Style Guide 2013.
1. What does APA stand for?
2. Where should you place page numbers?
3. What is University of XYZ view of plagiarism?
4. What is a “running header”?
5. How do you cite your references?
6. When creating a reference page, in what order do you put the citations?
7. How do you cite a website?
8. What is the point of a title page?
9. How do you cite a book with more than one author?
10. What font style and size should you use?
Bonus question: How will instructors figure out if you have used cites that may have caused plagiarism?
Table of Contents
Introduction
Chapter 1 – Formatting Your Paper
Title Page Running Headers Font Styles Spacing
Margins
Page Numbers Section Headings Abbreviations Numbers Reference Page
Chapter 2 – Documenting Your Sources
Avoiding Plagiarism Citing your Sources
Direct Quotes Long Quotes
Book Citations & References Book with One Author Book with Two Authors
Book with Multiple Authors
Online Database Articles and/or Websites Citations & References Article or Journal from an Online Database with an Author Article or Journal from an Online Database without an Author
Chapter 3 – Resources Chapter 4 – Sample Paper
Introduction
University of the Potomac recognizes the need to set a standard for the writing style of the academic papers assigned in the various courses offered through the college. To meet this need, the University of the Potomac Writing Style Guide was created to assist students in properly formatting their papers for college level writing. This guide is written to give examples of APA style and is based on the Publication Manuel of the American Psychological Association
· sixth edition. While not every situation that may arise in your writing is covered in this guide, additional resources are listed in Chapter 3 to help answer additional questions.
Chapter 1 – Formatting Your Paper
The following guidelines will help you properly format your papers and are based on the American Psychological Association (APA) 6th edition publication. Remember, these are guidelines. For a complete review of the requirements for APA please visit www.APAstyle.org
Title Page
The Title Page is the first page of your paper. The following information should be on it and this information needs to be centered.
Title of Paper Your Name Course Name Date
Running Headers
Each page should have an abbreviated title of the paper placed within the margin. This should be placed starting at the upper left corner of each page.
Font Styles
Font should be either “Times New Roman” or “Ariel”. Font Size should be 12 point.
Spacing
Set the spacing between lines to “Double Spaced”. Paragraphs should be indented 5 spaces.
Use two spaces after the end of a sentence.
Margins
Margins should be set as 1 inch on all sides (Left, Top, Right, Bottom) of the paper. Text should be “Left Justified”.
Page Numbe.
This module is designed to show the basic elements of APA style .docxjuliennehar
This module is designed to show the basic elements of APA style writing and provide examples of appropriate APA guidelines
Sixth Edition of the APA Manual
APA Style and Formatting
American Public University System
American
Military
UniversityAmerican
Public
University
Updated 12/09
APA Style and Formatting
This module is designed to show the basic elements of APA style writing and provide examples of appropriate APA guidelines; however, it is not intended as an exhaustive reference guide.
(Sixth Edition - 2010)
Why Use APA?
APA writing style is used to assist in the formatting and organization of written work for the presentation of ideas
APA rules permit uniformity of many styles to one consistent style
APA (Sixth Edition – effective 2010) has broadened its audience since it is consulted not only by psychologists but also by students & researchers in many fields such as business, education, social work, nursing and many other behavioral and social sciences
Basic APA paper consist of:
The title page
Abstract (optional – ask instructor)
Text of the paper
Reference page
The Title Page
APA requires five basic elements to your title page:
Note: We require you also
add course, professor name
and date – See next slide.
Running head: TITLE OF PAPER 1
Title of Paper
Author's Name
American Public University
2. Title should typed in upper and lower letters, centered and positioned in the upper half of page
Running head is aligned on the left margin on the same line as page number (page number is flush right margin). Should read “Running head: <space> Notice the Running head is flush left and the page number is flush right on the same line. They are permanent. (NOTE: “Running head:” should appear before the short title in the header on the title page only. Thereafter, the short title should appear in the header on its own appearing on each page of the paper with only page numbers changing). The title should be no more than 12 words in length and should not contain abbreviations. All letters of the title are capitalized. Headers must be PERMANENT. The Title page is always page 1. “Running head:” should appear before the short title in the header on the title page only. Thereafter, the short title should appear in the header on its own.
The Cover Page (or Title Page) is always page 1.
3. Author’s Name
4. Institution affiliation
#5: Sixth Edition requires an author’s note which is not needed for essay papers.
Elements of the header
Elements of the running head:
Make sure the words Running head are written out.
The word Running is capitalized, but the word head is not.
Place a colon (:) following the word head.
The running head title (not to exceed 50 characters, including spaces and punctuation) is written in all capital letters.
The number of the page should be on the same line flush right.
See 8.03 APA Manual (Sixth Edition)
6
Title
The title is typed in u ...
IMPROVED SUCROSE INVERSIONCreate improvement in the process fo.docxwilcockiris
IMPROVED SUCROSE INVERSION
Create improvement in the process for converting sucrose to glucose and fructose. Sucrose inversion is the process of converting sucrose to a mixture of equimolar amounts of its component monosaccharides, glucose and fructose, via a hydrolysis reaction. The product "invert sugar" is a valuable sweetener with wide applications.
Three primary commercial methods of sucrose inversion are: acid hydrolysis, enzymatic hydrolysis and ion exchange resin system. Each faces its respective challenges. Improvements are desired that allow efficient and cost-effective sucrose inversion for the production of invert sugar of high purit to be used in the food and beverage industry.
Keywords: sucrose, invert sugar, glucose, fructose, hydrolysis, acid, enzyme, invertase, ion exchange.
Running head: A SHORT TITLE FOR YOUR PAPER 1
Your Fully Explanatory Title: In About a Dozen Words or so
Your Professional Name
Course # and Assignment ?
____________________ University
A SHORT TITLE FOR YOUR PAPER 2
Abstract
Here, with no indentation at all, summarize your study and its results in 100 to 150 words. Focus
less on your intentions or the importance of your topic than the work you did and the results you
found. The truth is that some people never read the full paper; they just read the abstract or
executive summary and use the body of the paper as if it were an extended footnote. So make
sure this abstract tells the whole story. This, like everything else in your paper without
exception, is in 12-point Times Roman font, double-spaced, with one-inch margins in all
directions. Please note that the title “Abstract” (like the title “References” and the title of your
paper) is not bolded. Only headings and sub-headings are bolded.
A SHORT TITLE FOR YOUR PAPER 3
Your Fully Explanatory Title
Your paper begins right away with an introduction, but without the title “Introduction,”
which is never used in APA. New to the 6
th
edition of the Publication Manual, we are putting
two spaces after each sentence. This is natural for many of us and is a welcomed change from
the previous instruction to leave only one space. Every page, including the first page, has a short
title at the left and a simple page number, flush right. On the first page only, that short title is
preceded by “Running head:” All of that is placed within the one-inch margin (i.e., one-half inch
below the top of the paper).
Be sure to use TAB to move to positions such as the right margin, or to make a half-inch
indent. It is not enough to hit Space over and over until you get there. That may look right, but it
is not robust. Any change in the document will disrupt it. The abstract, main body, and reference
sections each begin on a brand new page. This is accomplished in Microsoft Word by using
Control-Enter. It is not enough to keep hitting Enter until the page advances, because any change
in t.
Running head TITLE1PAGE 2FIRST PART OF TITLETi.docxtoltonkendal
Running head: TITLE
1
PAGE
2
FIRST PART OF TITLE
Title: In Two Parts
First Name Last Name
Name of College /University
Full Essay Title
This is what I call a skeleton paper, which provides a visual overview of how properly formatted papers should look. This skeleton paper follows the format set forth by the American Psychological Association (APA), which is now in its sixth edition, published in 2010. APA formatting and citations are described in your textbook, the DK Handbook, beginning on page 395. There are several variations that you will see in other online sources – be careful as many of these sources include out of date information. The OWL at Purdue is a good online resource to supplement your textbook and the course materials. The content of this document tells how to create a template for Word document.
Margins
APA requires the margins to be set at 1” all around. To set the margins, click “Format,” “Document” and click on “Margins.” Set all the top, bottom, left, and right margins at 1”.
Spacing
The entire paper is double spaced. At no point should you have extra spaces between paragraphs or sections; this includes the reference page.
Titles
APA papers must have a title, which is neither underlined, in all caps, in quotes, in a larger or different font, bolded, or in italics. Here are some examples:
Revolutionary Diagnostics: Seeing with Sound Waves
Waldorf Education: Head, Heart and Hands
Fat Tax: Force-Feeding Healthy Choices
Center the title in the top half of your cover page, hit enter once and type your full legal name. Hit enter once more, type the name of the college you attend. Your title page information is complete. A note about titles: notice that it is possible to make a clear assumption of the topic and goal of the paper simply based on the title. The topic is before the colon, the goal is after the colon.
Header
Now you need to add the header. Setting the header is not an easy task, as the header is different in the first page than it is in the rest of the essay. Go to “Page Setup” and click on “Different First Page.” Now go to the Header on the title page and type in Running head: TITLE, then tab over the to the left and type in 1 (Example Running head: REVOLUTIONARY DIAGNOSTICS. Now go to the header in page two, type in the TITLE on the left (Example: REVOLUTIONARY DIAGNOSTICS, tab over to the right and put in the page number by clicking “Insert,” “Page Number.” You will need to adjust the page number formatting so that it starts at page 2. Yep, that was confusing. That’s why I did it for you in this document. You are welcome.
After the Title Page
You are now ready to move on to the content of the paper. Do not hit enter 20 times to get to the next page. Simply click “Insert,” select “Break,” “Page Break” and you will be on a new page.
Oh look, here we are on a new page. You can see that the smarty-pants computer has already decided to number this as page 3.
Font and Sections T ...
Running head: RULES FOR CREATING A RESEARCH 1
Rules for Creating a Research Paper
Using Correct 6
th
Edition APA Formatting
Author’s Full Name
Rasmussen College
Author Note
This research is being submitted on September 15, 2009 for John Smith's ENC1100 course at
Rasmussen College by Jane Doe.
Insert page number.
After the running head, enter 8 times. Click the “Center” button.
Type the title of your paper, which should be more than two or three words.
These lines should be double-spaced.
If you have a long title, you may type it on
two lines.
For the Running head, type in part of your title in ALL
CAPS after the words “Running head”. Left-justify the
text in the header.
Running head: RULES FOR CREATING A RESEARCH 2
Rules for Creating a Research Paper Using Correct 6
th
Edition APA Formatting
An APA formatted paper is created using one-inch margins at the top, bottom, left, and
right sides. APA papers are always double spaced. Paragraphs are indented ½ inch. Just type the
TAB key once. The body of your paper consists of the information you researched on your
paper’s topic in order to support your own position or thesis.
If the information in your paper is not your own original thought, you need to include an
in-text citation and a references page to give credit to the original author of the idea. Your paper
should include direct quotes and paraphrasing. You will notice in this paper, there are several
different types of in-text citations, and they have been created using correct APA formatting for
in-text citations.
Types of In-Text Citations
In-text citations are used when you paraphrase, summarize, or otherwise refer to
information you’ve learned during your research. The first two in-text citations in this paper are
examples of how to set up in-text citations when you’re paraphrasing, summarizing, or referring
to the information from a source rather than copying text word for word. They demonstrate how
to give credit to the author. For the first type of citation, place the author’s last name and the year
of publication at the end of the sentence in parenthesis (Reed, 2005). Notice the comma and
space after the author’s name and notice the period for the sentence is after the final parentheses.
Another variation is when you use the author’s name at the beginning of the sentence. In the
following sentence, you will notice that Mary Nelson’s last name only appears at the beginning
of the sentence; therefore, the in-text citation immediately follows her name. According to
Nelson (2005), the use of APA formatting for in-text citations is very easy to complete.
The paper begins with the full title of the paper.
In-text
citation
for first
type of
para-
phrase
quote.
In-text
citation
for
second
type of
para-
phrase
quote.
Example
of first
level
heading.
Running head: RULES FOR C.
Running head TITLE OF PAPER1TITLE OF PAPER5Title .docxtoltonkendal
Running head: TITLE OF PAPER 1
TITLE OF PAPER 5
Title of Your Essay
Your Name
Course Number & Title
Instructor's Name
Month, Day, Year
Title of Your Essay
Start the first paragraph here. It should introduce your reader to the subject you are writing about, as well as your particular position or claim. To learn more about what an introduction should include and what to include in a conclusion, please see the following resource: Introductions & Conclusions. Please read about thesis statements on our Ashford Writing Center website: Thesis Statements. Other helpful tools on our website are the Thesis Generator and Moving from Prompt to Thesis.
The Writing Process
Spend time planning your paper. Before you can create your first paragraph, consider these “pre-writing” tips. A good practice is to brainstorm ideas and decide how to express the main idea or thesis. Once you have a rough idea of what you want to say or argue, create an outline or list to help you organize the evidence you plan to present. For longer papers, include sub-headings or levels of heading. You can use this template to help you format your paper.
Writing the Body Paragraphs
Each paragraph of your assignment should be clear and easy to follow. We have several good resources to help you write a strong paragraph, such as How to Write a Good Paragraph and the P.I.E. Paragraph Structure.
Using Citations Correctly
In addition to being well-written, each paragraph should include an in-text citation to all ideas, references, or quotations that are from outside sources and research. The Ashford Writing Center provides many resources to help you follow correct citation style (primarily APA) and gives lessons and examples of how to paraphrase and cite sources. The APA Key Elements page is a good place to start.
Using Tables, Graphs, Images, and Appendices
For some papers and reports, you may choose to add a table, graph, or image
within the body of the draft. Or you may choose to include an appendix at the end of your paper. These can help to provide a visual representation of data or other information that you wish to relay to your reader. Follow this guidance to understand when and how to use these features.
References
The following are commonly used references. Please fill in the required information, and if you need more help, see the AWC References page. References are listed in alphabetical order.
Ashford Textbook (Online edition): *
Author, A. (Year published). Title of book: Subtitle of book (edition, if other than the first) [Electronic version]. Retrieved from from URL
Example:
Witt, G. A., & Mossler, R. A. (2010). Adult development and life assessment [Electronic version]. Retrieved from https://content.ashford.edu/books/4
Online Journal Article (such as from the Ashford Library):**
Author, A. (Year Published). Article title. Journal Name, Volume(Issue), page range. doi:# or Retrieved from journal’s homepage URL
**When including a UR ...
SimulationArrival Interval Distribution Random Number Lower LimitR.docxjennifer822
SimulationArrival Interval Distribution Random Number Lower LimitRange Upper LimitArrival Gap MinuteProbability0.1301010.23113120.27325330.19547340.15748950.0990996Service Time Distribution Random Number Lower LimitRange Upper LimitService Time (minutes)Probability0.1901910.17203820.16395630.15577340.11748650.08879660.0397997Customer NumberRandom NumberArrival GapRandom NumberService TimeArrive TimeService StartService EndTime in SystemTime on HoldTime Server IdlePercent UtilizationSummary for This Trial Run Average:maximums198672794339052482265430657547273891129448110299811857112992313455514962152813
Grand Canyon University
American Psychological Association [APA] Style Guide for WritingIntroduction
Students of Grand Canyon University (GCU) are required to use the guidelines provided by the Publication Manual of the American Psychological Association (6th ed.) for preparing written assignments, except where otherwise noted. GCU has made APA templates and other resources available within the Student Success Center; therefore, students are not required to purchase the APA manual.
PLEASE NOTE:
The curriculum materials (Syllabus, Lectures/Readings, Resources, etc.) created and provided by GCU in the online or Web-enhanced modalities are prepared using an editorial format that relies on APA as a framework but that modifies some formatting criteria to better suit the nature and purpose of instructional materials. Students and faculty are advised that GCU course materials do not adhere strictly to APA format and should not be used as examples of correct APA format when preparing written work for class.
APA Format and Style
General
Academic writing, which is independent thought supported by reliable and relevant research, depends on the ability to integrate and cite the sources that have been consulted. Use APA style for all references, in-text citations, formatting, etc.
Write in first- and second-person sparingly, if ever. This means, avoid using I, we, and you; instead, use he, she, and they. Do not use contractions.Paper Format
1) Use standard-sized paper of 8.5″ x 11″.
2) Margins should be 1″ all around (top, bottom, left, right).
3) Use Times New Roman 12-point font.
4) For emphasis, use italics (not quotation marks, bold, etc.).
5) Double-space.
6) Align the text flush left. Organization
The basic organization of an APA-style paper includes the title page, abstract, body, and reference section, though students are encouraged to follow any specific directions given in their Overview assignment.
Title Page
The title page includes four elements that should be centered in the middle of the page: title, author byline, institutional affiliation followed by the course prefix and number (e.g., Grand Canyon University: PSY 351), and date of submission. Please note that even though APA does not require the date on a title page, it is a requirement for GCU papers.
Being the first page, the title page is where to set up your page header, which include.
Rough draft check:MLA parenthetical and in text citationskhornberger
This slideshow is designed to help students check whether they have included the necessary citations within their paper and also attempts to help them ensure that they are properly formatted using MLA Style.
Consolidated Portfolio - Structure Marking Guide.docxConsolidated Portfolio - Structure & Marking Guide
There are many possible approaches, and it is the intention to test how well the students are at tackling the problem. In real life (as you probably know) a project manager is frequently confronted with the need to write a report and structuring the report for the audience is always a tricky thing to do.
However, a way of tackling the consolidated portfolio is to do the following: -
1. Introduction and summary of outcomes
1. Itemise each learning outcome: -
1. LO1
0. Summary
0. Evidence
1. LO2
1. Summary
1. Evidence
1. … etc.
1. Discussion and Conclusion
1. References
1. Appendix of the weeks
4. Week 1
4. Week 2
4. ... etc.
Without going overboard then when formatted bullets 1 to 3 above will be most likely 8 to 10 pages. It might be more, but it should not be less. Each LO would contain two to three paragraphs. The important thing is to say in the LO section how the student achieved the LO. This is done through the summary and the evidence that points to each week in the appendix.
In the course profile students are encouraged to imagine they are going before an interview panel and had been asked to show them how they could meet the job criteria (learning outcomes). So, as a prerequisite they had to prepare a paper for them.
The marking criteria can often be encapsulated into a four stage criteria: -
1. Does the section or topic meet all of the basic learning requirements relevant of the course, such as knowledge of fundamental concepts and performance of basic skills; demonstrates sufficient quality of performance to be considered satisfactory or adequate or competent or capable in relation to the learning outcomes of the assignment? (25%)
1. Does the section or topic reflect an ability to use and apply fundamental concepts and skills of the course, going beyond mere replication of content knowledge or skill to show understanding of key ideas, awareness of their relevance, some use of analytical skills, and some originality or insight? (50%)
1. Does the section or topic demonstrate awareness and understanding of deeper and less obvious aspects of the course, such as ability to identify and debate critical issues or problems, ability to solve non-routine problems, ability to adapt and apply ideas to new situations, and ability to invent and evaluate new ideas? (75%)
1. Has the section or topic been presented with imagination, originality or flair, based on proficiency in all the relevant learning outcomes of the course; work is interesting or surprisingly exciting, challenging, well read or scholarly? (100%)
This criterion is ADDITIVE. In other words, the last item (4) is inclusive of the previous ones (1, 2, and 3). If you feel that a student did most of 4 then you might give them 25% of the overall mark for the first criteria and then 25% of the overall mark for the second criteria and then 25% of the overall mark for.
Running head SAMPLE PAPER 1 A Sample Paper for the Purpos.docxjeanettehully
Running head: SAMPLE PAPER 1
A Sample Paper for the Purpose of Correct Formatting
Student Name
Liberty University
Per the Publication Manual of the American Psychological Association (APA; 6th edition), double-space the
entire paper (p. 229), except with charts or tables. Do not add any extra spacing. Use Times New Roman,
12-point font. Do not use bold except for headings as necessary (see page 62 of your APA manual).
Margins are set for 1" on top, bottom, and sides. All page references will be to the APA manual, 6th edition.
Add two spaces after punctuation at the end of each sentence, except in the reference list, for the sake of
readability (pp. 87-88). The header on the cover page is different from the headers on the rest of the paper.
Only the cover page header includes the words Running head (without the italics; p. 41). The header is flush
left but the page numbers are flush right (see bottom of p. 229). Make sure the header font is the same as the
rest of the paper. Handouts on how to format the cover page (as well as other handouts) are available on the
Online Writing Center’s webpage: http://www.liberty.edu/index.cfm?PID=17176, and a superb YouTube
video demonstration that provides visualized step-by-step instructions for setting a paper up in proper APA
format is available at https://www.youtube.com/watch?v=KUjhwGmhDrI
Note: Comments inside boxes are not part of the formatting of the paper. Section or page number references
to the APA manual are denoted in parentheses throughout. Most citations within the body of this paper are
fictional, for instructional purposes only, but are also included in the reference list for illustrative purposes of
correlating citations in the body of the paper with resources in the reference list.
. Note: Center the following information in the top half of the page: title, your name, and school name (2.01, p.
23; 41). Some professors require the course title and section, the instructor’s name, and the date; add those on
the lines beneath the required title page information. Do not use contractions in formal papers—in either the
title or the body of the paper (i.e., use “do not” rather than “don’t”). Titles should include no more than 12
words. Titles use upper and lowercase letters (i.e., “title case;” 20.1, p. 23; see also 4.15 on pp. 101-102).
Prepared by Christy Owen, Brian Aunkst, and Dr. Carmella O’Hare. Last updated June 28, 2016.
http://www.liberty.edu/index.cfm?PID=17176
https://www.youtube.com/watch?v=KUjhwGmhDrI
SAMPLE PAPER 2
Abstract
Begin your abstract at the left margin (2.04 on p. 27; see also p. 229). This is the only paragraph
that should not be indented. Unless otherwise instructed, APA recommends an abstract be
between 150–250 words (p. 27). It should not contain any citations or direct quotes. This should
be a tight, concise summary of the main points in your paper, not a step-by-step of what you plan
to ...
8620 Spectrum Center Blvd.
San Diego, CA 92123
FORBES SCHOOL OF BUSINESS
STYLE STANDARDS
These standards are excerpted from the 6th edition of the Publication Manual of the American Psychological
Association, published in 2010. These standards are intended to provide an overview of APA formatting necessary for
the Forbes School of Business, writing assignments.
Standard 1: Manuscript Elements
o Manuscript Format
Left, top, bottom, and right margins should be 1 inch.
Paper is prepared in Times New Roman, 12-point font and is double-spaced throughout.
Page numbers are Arabic numerals in the upper right corner of each page, ½ inch from the
top, and are consecutive from the title page through any appendices.
Preliminary pages contain numbers in lowercase Roman numerals.
o Title Page
Requirements (in order):
A Running Head
The phrase “Running head: YOUR TITLE” appears on first page (i.e. Title
Page) in the header. All subsequent pages contain YOUR TITLE, but do
not include the words “Running head,” which is only for the title page.
The running head needs to be left justified and on the same line as the page
number throughout the document.
The running head can be the title of the manuscript or a shortened version
of it.
Title
The title should concisely reflect the main idea of the manuscript.
The title should be typed with initial capitalizations for nouns, pronouns,
verbs, adjectives, and any prepositions five or more letters in length.
The title should be centered between the left and right margins, and
positioned in the upper half of the page.
Recommended title length: no more than 12 words.
Student Name
Course Name and Number
Instructor
Submission Date: Month Date, Year
Abstract
An abstract is a brief comprehensive summary of the contents of the manuscript and
it allows readers to survey the contents of the manuscript quickly.
An abstract should only be included if the manuscript is longer than 15-double
spaced pages, excluding the title page and reference list page.
Abstract length should range from 150–250 words.
The abstract should be the second page of the manuscript (after the title page).
The label Abstract should appear with initial capitalization and lowercase letters,
centered, at the top of the page, like a title.
8620 Spectrum Center Blvd.
San Diego, CA 92123
The abstract should be a single paragraph without paragraph indentation.
The Introduction
Begins on a new page (page 2 [or page 3 if an abstract is included]) and the full title
of the paper is centered one inch from the top of the page with initial capitalizations
and lowercase letters (not underlined, boldfaced, or italicized) and is double-spaced
above the first paragraph of text.
A manuscript must open with an introduction that presents the thesis, the statement
of purpose, the argument, or the specifi.
Sample Summaries of Emily Raine’s Why Should I Be Nice to You.docxagnesdcarey33086
Sample Summaries of Emily Raine’s “Why Should I Be Nice to You”
Sample Summary 1
Most people at some point in their life have worked in the service industry. This particular
industry can be quite satisfying whether it be working in fine dining, as a cocktail waitress, or at a local
diner, but for Emily Raine, who had done all of these things, the only place she ever felt “whipped” was
working as a barista at one of largest specialty coffee chains in the world (358). Raine is bothered by
how the café industry has set up the impersonal server/customer relationship and feels the best way to
solve the issue is be to “be rude” (365). In 2005, Raine expanded in an essay that appeared in the
online journal, Bad Subjects, on her frustration within the service industry and what good service really
means.
Good service in the coffee industry does not require much skill these days. Most people are
usually talking on their cell phone while ordering their daily coffee and pastry while also paying and then
out as fast as they walked into the café probably not even noticing or acknowledging any interaction
with the people serving. The coffee sector has recognized this and has set up the counters as linear
coffee bars that act the same as an assembly line. The workers are trained and assigned specific jobs in
the coffee preparing process, such as taking the order, handling the money, making the drink, to
delivery. This makes the interaction with the customer very limited, mostly just seconds. This is where
Raine feels some of the problem with the customer and server interaction. Although this is the most
effective and efficient way of working, Raine describes productive work as “dreary and repetitive” (359).
Since the 1960’s companies have been branding themselves with the quality of having “good
service” distinguishing them from the rest of the competition. Raines explains that in good service there
is an exchange between two parties: “the ‘we’ that gladly serves and the ‘you’ that happily receives,”
but also a third party, the boss, which is the ultimate decider on exactly what good service will be (360).
Companies in the service industry must market their products on servers’ friendliness; therefore
it is monitored and controlled from the people on top. Raine notes that cafés “layouts and management
styles” help create a cozy atmosphere that plays a factor in good service, but in a way that will not
disrupt the output (361). In Raine’s essay, she gives the example of an employee Starbucks has
branded; “The happy, wholesome perfume-free barista” (361). She points out that the company offers
workers stock options, health insurance, dental plans, as well as other perks of discounts and giveaways,
while also using moving personal accounts from workers who “never deemed corporate America could
care so much” (362). Raines also adds that the company does not give into unionization and although
the company pay.
SAMPLEExecutive Summary The following report is an evalua.docxagnesdcarey33086
SAMPLE:
Executive Summary
The following report is an evaluation of multiple facets of the Uruguayan economy, its overall investment attractiveness, and feasibility of doing business. After conducting research and analysis on the country in areas such as legal frameworks, fiscal policy, trade relations, infrastructure, housing, and monetary policy, Uruguay proves to be an economy of strong opportunity when evaluated against its regional/continental partners, but with significant and pressing challenges that would place the nation lower when considered at a global level. The national government and political system are proven to be stable, offering legal protections and investment frameworks that are comparable to developed economies. As a member of MERCOSUR and independently, Uruguay has ratified trade agreements, particularly with developed nations and Latin America, in a variety of structures, namely goods, services, investment promotion and protection, public procurement, and double taxation avoidance. The country offers valuable exports, and derives its imports significantly from MERCOSUR members in which people, goods, and currency are permitted to move freely. Uruguay has shown strong numbers in growth, particularly GDP and unemployment rate. Having reacted appropriately to an economic and banking crisis in the early 2000s, Uruguay was one of the few countries that was not significantly impacted by the 2008-09 economic crisis. The housing market has also seen considerable growth and looks to continue growing as the level of foreign direct investment in construction increases. Challenges that have limited the country and are foreseeable as continuing to limit Uruguay’s attractiveness include a public banking system that offers limited access to credit, undesired volatility in prime rate lending, seemingly unsustainable fiscal policy, and a lack of coordination in monetary and exchange rate policies. Given the widespread availability and transparency of information on the country and having taken all these factors into consideration, we determine Uruguay to be one of best investment opportunities in terms of a Latin American scope, but as still significantly behind developed economies. A total score of 30.5 points out of a possible 55 was assigned.
Description and Analysis of Each Measured Attribute
A.1 Government Expenditure, Tax System, Rule of Law, and Education System - 2/5; This ranking reflects Uruguay’s controlled government spending and competitive tax rate. The tax free zones are a great way to incentivize companies to operating in Uruguay. However, it does take into account the difficult experiences that corporations undergo in paying taxes. Uruguay benefits from a mature democracy with a stable political system and independent judiciary system. Uruguay has a well-established education system that provides free education and equal access to all students through the university level. However, the socioeconomic gap become.
Sample Student Industry AnalysisExecutive SummaryCom.docxagnesdcarey33086
Sample Student Industry Analysis
Executive Summary
Company Description
Seg and Cycle the City is a Koblenz, Germany based company specializing in offering rentals for recreational vehicles (Segways, bikes, tandems and inline skates), guiding and informational services to mainly tourists, locals and their visitors, students or for event entertainment purposes. The company will begin operations in April, 2010, as a Limited Liability Company (Unternehmensgesellschaft). The company will take advantage of the increasing popularity of Segway scooters: two-wheeled, self-balancing electric vehicles invented by Dean Kamen in 2001, as a new, more exiting and relaxing alternative to walking tours for tourists to enjoy the sights and atmosphere of the city. Also, the company will provide high quality MP3 Audio-City Guides to capture the large number of visitors who are more independent-minded, not willing to participate in guiding services offered by the tourism board of Koblenz and thereby gain significant market share.
Mission Statement
“Seg and Cycle the City is a speciality tour operator committed to providing a unique, entertaining, memorable and educational experience of the city that meets the needs of both kinds of tourists: those who seek a guided experience and those who are more independent minded.
We will take pride in doing our best to present our city tour in a memorable way and leave our customers with the image that Koblenz is a place to go back to. We will achieve this by building strong personal relationships with our customers during our guided tours and by suggesting journeys for the individual exploration.
As an advocate for sustainability, we want to promote the use of environmentally friendly transportation devices and, thereby, improve the image of our beloved city. We will also fulfil this mission of sustainability by providing an affordable opportunity for college students to rent a bike.”
Industry Analysis & Trends
The services provided by Seg and Cycle the City as a player in the service industry are affected by the developments in the recreational and sports equipment rental trade and by developments in the city and bike tourism industry in Germany, Rhineland Palatinate and, specifically, Koblenz.
Size and Growth
The personal service industry in Germany generally shows a stable performance with relatively stable revenue regardless of the difficult economic situation. A high employment rate, increased wages, and a decreasing inflation rate have increased disposable income, which especially benefits the leisure industry (German Chamber of Commerce e.V).The following graph shows that the service industry (blue line), as the leading sector concerning economic added value in the Koblenz (including surrounding communities) underwent major growth compared to other main sectors from 1992 to 2005. Since 2004, growth rate appears to be stable and rather low, but remains in a leading position.
Travel Germany, Rhineland-Pa.
More Related Content
Similar to Running head SHORTENED TITLE1SHORTENED TITLE 6.docx
Running head TITLE1PAGE 2FIRST PART OF TITLETi.docxtoltonkendal
Running head: TITLE
1
PAGE
2
FIRST PART OF TITLE
Title: In Two Parts
First Name Last Name
Name of College /University
Full Essay Title
This is what I call a skeleton paper, which provides a visual overview of how properly formatted papers should look. This skeleton paper follows the format set forth by the American Psychological Association (APA), which is now in its sixth edition, published in 2010. APA formatting and citations are described in your textbook, the DK Handbook, beginning on page 395. There are several variations that you will see in other online sources – be careful as many of these sources include out of date information. The OWL at Purdue is a good online resource to supplement your textbook and the course materials. The content of this document tells how to create a template for Word document.
Margins
APA requires the margins to be set at 1” all around. To set the margins, click “Format,” “Document” and click on “Margins.” Set all the top, bottom, left, and right margins at 1”.
Spacing
The entire paper is double spaced. At no point should you have extra spaces between paragraphs or sections; this includes the reference page.
Titles
APA papers must have a title, which is neither underlined, in all caps, in quotes, in a larger or different font, bolded, or in italics. Here are some examples:
Revolutionary Diagnostics: Seeing with Sound Waves
Waldorf Education: Head, Heart and Hands
Fat Tax: Force-Feeding Healthy Choices
Center the title in the top half of your cover page, hit enter once and type your full legal name. Hit enter once more, type the name of the college you attend. Your title page information is complete. A note about titles: notice that it is possible to make a clear assumption of the topic and goal of the paper simply based on the title. The topic is before the colon, the goal is after the colon.
Header
Now you need to add the header. Setting the header is not an easy task, as the header is different in the first page than it is in the rest of the essay. Go to “Page Setup” and click on “Different First Page.” Now go to the Header on the title page and type in Running head: TITLE, then tab over the to the left and type in 1 (Example Running head: REVOLUTIONARY DIAGNOSTICS. Now go to the header in page two, type in the TITLE on the left (Example: REVOLUTIONARY DIAGNOSTICS, tab over to the right and put in the page number by clicking “Insert,” “Page Number.” You will need to adjust the page number formatting so that it starts at page 2. Yep, that was confusing. That’s why I did it for you in this document. You are welcome.
After the Title Page
You are now ready to move on to the content of the paper. Do not hit enter 20 times to get to the next page. Simply click “Insert,” select “Break,” “Page Break” and you will be on a new page.
Oh look, here we are on a new page. You can see that the smarty-pants computer has already decided to number this as page 3.
Font and Sections T ...
Running head: RULES FOR CREATING A RESEARCH 1
Rules for Creating a Research Paper
Using Correct 6
th
Edition APA Formatting
Author’s Full Name
Rasmussen College
Author Note
This research is being submitted on September 15, 2009 for John Smith's ENC1100 course at
Rasmussen College by Jane Doe.
Insert page number.
After the running head, enter 8 times. Click the “Center” button.
Type the title of your paper, which should be more than two or three words.
These lines should be double-spaced.
If you have a long title, you may type it on
two lines.
For the Running head, type in part of your title in ALL
CAPS after the words “Running head”. Left-justify the
text in the header.
Running head: RULES FOR CREATING A RESEARCH 2
Rules for Creating a Research Paper Using Correct 6
th
Edition APA Formatting
An APA formatted paper is created using one-inch margins at the top, bottom, left, and
right sides. APA papers are always double spaced. Paragraphs are indented ½ inch. Just type the
TAB key once. The body of your paper consists of the information you researched on your
paper’s topic in order to support your own position or thesis.
If the information in your paper is not your own original thought, you need to include an
in-text citation and a references page to give credit to the original author of the idea. Your paper
should include direct quotes and paraphrasing. You will notice in this paper, there are several
different types of in-text citations, and they have been created using correct APA formatting for
in-text citations.
Types of In-Text Citations
In-text citations are used when you paraphrase, summarize, or otherwise refer to
information you’ve learned during your research. The first two in-text citations in this paper are
examples of how to set up in-text citations when you’re paraphrasing, summarizing, or referring
to the information from a source rather than copying text word for word. They demonstrate how
to give credit to the author. For the first type of citation, place the author’s last name and the year
of publication at the end of the sentence in parenthesis (Reed, 2005). Notice the comma and
space after the author’s name and notice the period for the sentence is after the final parentheses.
Another variation is when you use the author’s name at the beginning of the sentence. In the
following sentence, you will notice that Mary Nelson’s last name only appears at the beginning
of the sentence; therefore, the in-text citation immediately follows her name. According to
Nelson (2005), the use of APA formatting for in-text citations is very easy to complete.
The paper begins with the full title of the paper.
In-text
citation
for first
type of
para-
phrase
quote.
In-text
citation
for
second
type of
para-
phrase
quote.
Example
of first
level
heading.
Running head: RULES FOR C.
Running head TITLE OF PAPER1TITLE OF PAPER5Title .docxtoltonkendal
Running head: TITLE OF PAPER 1
TITLE OF PAPER 5
Title of Your Essay
Your Name
Course Number & Title
Instructor's Name
Month, Day, Year
Title of Your Essay
Start the first paragraph here. It should introduce your reader to the subject you are writing about, as well as your particular position or claim. To learn more about what an introduction should include and what to include in a conclusion, please see the following resource: Introductions & Conclusions. Please read about thesis statements on our Ashford Writing Center website: Thesis Statements. Other helpful tools on our website are the Thesis Generator and Moving from Prompt to Thesis.
The Writing Process
Spend time planning your paper. Before you can create your first paragraph, consider these “pre-writing” tips. A good practice is to brainstorm ideas and decide how to express the main idea or thesis. Once you have a rough idea of what you want to say or argue, create an outline or list to help you organize the evidence you plan to present. For longer papers, include sub-headings or levels of heading. You can use this template to help you format your paper.
Writing the Body Paragraphs
Each paragraph of your assignment should be clear and easy to follow. We have several good resources to help you write a strong paragraph, such as How to Write a Good Paragraph and the P.I.E. Paragraph Structure.
Using Citations Correctly
In addition to being well-written, each paragraph should include an in-text citation to all ideas, references, or quotations that are from outside sources and research. The Ashford Writing Center provides many resources to help you follow correct citation style (primarily APA) and gives lessons and examples of how to paraphrase and cite sources. The APA Key Elements page is a good place to start.
Using Tables, Graphs, Images, and Appendices
For some papers and reports, you may choose to add a table, graph, or image
within the body of the draft. Or you may choose to include an appendix at the end of your paper. These can help to provide a visual representation of data or other information that you wish to relay to your reader. Follow this guidance to understand when and how to use these features.
References
The following are commonly used references. Please fill in the required information, and if you need more help, see the AWC References page. References are listed in alphabetical order.
Ashford Textbook (Online edition): *
Author, A. (Year published). Title of book: Subtitle of book (edition, if other than the first) [Electronic version]. Retrieved from from URL
Example:
Witt, G. A., & Mossler, R. A. (2010). Adult development and life assessment [Electronic version]. Retrieved from https://content.ashford.edu/books/4
Online Journal Article (such as from the Ashford Library):**
Author, A. (Year Published). Article title. Journal Name, Volume(Issue), page range. doi:# or Retrieved from journal’s homepage URL
**When including a UR ...
SimulationArrival Interval Distribution Random Number Lower LimitR.docxjennifer822
SimulationArrival Interval Distribution Random Number Lower LimitRange Upper LimitArrival Gap MinuteProbability0.1301010.23113120.27325330.19547340.15748950.0990996Service Time Distribution Random Number Lower LimitRange Upper LimitService Time (minutes)Probability0.1901910.17203820.16395630.15577340.11748650.08879660.0397997Customer NumberRandom NumberArrival GapRandom NumberService TimeArrive TimeService StartService EndTime in SystemTime on HoldTime Server IdlePercent UtilizationSummary for This Trial Run Average:maximums198672794339052482265430657547273891129448110299811857112992313455514962152813
Grand Canyon University
American Psychological Association [APA] Style Guide for WritingIntroduction
Students of Grand Canyon University (GCU) are required to use the guidelines provided by the Publication Manual of the American Psychological Association (6th ed.) for preparing written assignments, except where otherwise noted. GCU has made APA templates and other resources available within the Student Success Center; therefore, students are not required to purchase the APA manual.
PLEASE NOTE:
The curriculum materials (Syllabus, Lectures/Readings, Resources, etc.) created and provided by GCU in the online or Web-enhanced modalities are prepared using an editorial format that relies on APA as a framework but that modifies some formatting criteria to better suit the nature and purpose of instructional materials. Students and faculty are advised that GCU course materials do not adhere strictly to APA format and should not be used as examples of correct APA format when preparing written work for class.
APA Format and Style
General
Academic writing, which is independent thought supported by reliable and relevant research, depends on the ability to integrate and cite the sources that have been consulted. Use APA style for all references, in-text citations, formatting, etc.
Write in first- and second-person sparingly, if ever. This means, avoid using I, we, and you; instead, use he, she, and they. Do not use contractions.Paper Format
1) Use standard-sized paper of 8.5″ x 11″.
2) Margins should be 1″ all around (top, bottom, left, right).
3) Use Times New Roman 12-point font.
4) For emphasis, use italics (not quotation marks, bold, etc.).
5) Double-space.
6) Align the text flush left. Organization
The basic organization of an APA-style paper includes the title page, abstract, body, and reference section, though students are encouraged to follow any specific directions given in their Overview assignment.
Title Page
The title page includes four elements that should be centered in the middle of the page: title, author byline, institutional affiliation followed by the course prefix and number (e.g., Grand Canyon University: PSY 351), and date of submission. Please note that even though APA does not require the date on a title page, it is a requirement for GCU papers.
Being the first page, the title page is where to set up your page header, which include.
Rough draft check:MLA parenthetical and in text citationskhornberger
This slideshow is designed to help students check whether they have included the necessary citations within their paper and also attempts to help them ensure that they are properly formatted using MLA Style.
Consolidated Portfolio - Structure Marking Guide.docxConsolidated Portfolio - Structure & Marking Guide
There are many possible approaches, and it is the intention to test how well the students are at tackling the problem. In real life (as you probably know) a project manager is frequently confronted with the need to write a report and structuring the report for the audience is always a tricky thing to do.
However, a way of tackling the consolidated portfolio is to do the following: -
1. Introduction and summary of outcomes
1. Itemise each learning outcome: -
1. LO1
0. Summary
0. Evidence
1. LO2
1. Summary
1. Evidence
1. … etc.
1. Discussion and Conclusion
1. References
1. Appendix of the weeks
4. Week 1
4. Week 2
4. ... etc.
Without going overboard then when formatted bullets 1 to 3 above will be most likely 8 to 10 pages. It might be more, but it should not be less. Each LO would contain two to three paragraphs. The important thing is to say in the LO section how the student achieved the LO. This is done through the summary and the evidence that points to each week in the appendix.
In the course profile students are encouraged to imagine they are going before an interview panel and had been asked to show them how they could meet the job criteria (learning outcomes). So, as a prerequisite they had to prepare a paper for them.
The marking criteria can often be encapsulated into a four stage criteria: -
1. Does the section or topic meet all of the basic learning requirements relevant of the course, such as knowledge of fundamental concepts and performance of basic skills; demonstrates sufficient quality of performance to be considered satisfactory or adequate or competent or capable in relation to the learning outcomes of the assignment? (25%)
1. Does the section or topic reflect an ability to use and apply fundamental concepts and skills of the course, going beyond mere replication of content knowledge or skill to show understanding of key ideas, awareness of their relevance, some use of analytical skills, and some originality or insight? (50%)
1. Does the section or topic demonstrate awareness and understanding of deeper and less obvious aspects of the course, such as ability to identify and debate critical issues or problems, ability to solve non-routine problems, ability to adapt and apply ideas to new situations, and ability to invent and evaluate new ideas? (75%)
1. Has the section or topic been presented with imagination, originality or flair, based on proficiency in all the relevant learning outcomes of the course; work is interesting or surprisingly exciting, challenging, well read or scholarly? (100%)
This criterion is ADDITIVE. In other words, the last item (4) is inclusive of the previous ones (1, 2, and 3). If you feel that a student did most of 4 then you might give them 25% of the overall mark for the first criteria and then 25% of the overall mark for the second criteria and then 25% of the overall mark for.
Running head SAMPLE PAPER 1 A Sample Paper for the Purpos.docxjeanettehully
Running head: SAMPLE PAPER 1
A Sample Paper for the Purpose of Correct Formatting
Student Name
Liberty University
Per the Publication Manual of the American Psychological Association (APA; 6th edition), double-space the
entire paper (p. 229), except with charts or tables. Do not add any extra spacing. Use Times New Roman,
12-point font. Do not use bold except for headings as necessary (see page 62 of your APA manual).
Margins are set for 1" on top, bottom, and sides. All page references will be to the APA manual, 6th edition.
Add two spaces after punctuation at the end of each sentence, except in the reference list, for the sake of
readability (pp. 87-88). The header on the cover page is different from the headers on the rest of the paper.
Only the cover page header includes the words Running head (without the italics; p. 41). The header is flush
left but the page numbers are flush right (see bottom of p. 229). Make sure the header font is the same as the
rest of the paper. Handouts on how to format the cover page (as well as other handouts) are available on the
Online Writing Center’s webpage: http://www.liberty.edu/index.cfm?PID=17176, and a superb YouTube
video demonstration that provides visualized step-by-step instructions for setting a paper up in proper APA
format is available at https://www.youtube.com/watch?v=KUjhwGmhDrI
Note: Comments inside boxes are not part of the formatting of the paper. Section or page number references
to the APA manual are denoted in parentheses throughout. Most citations within the body of this paper are
fictional, for instructional purposes only, but are also included in the reference list for illustrative purposes of
correlating citations in the body of the paper with resources in the reference list.
. Note: Center the following information in the top half of the page: title, your name, and school name (2.01, p.
23; 41). Some professors require the course title and section, the instructor’s name, and the date; add those on
the lines beneath the required title page information. Do not use contractions in formal papers—in either the
title or the body of the paper (i.e., use “do not” rather than “don’t”). Titles should include no more than 12
words. Titles use upper and lowercase letters (i.e., “title case;” 20.1, p. 23; see also 4.15 on pp. 101-102).
Prepared by Christy Owen, Brian Aunkst, and Dr. Carmella O’Hare. Last updated June 28, 2016.
http://www.liberty.edu/index.cfm?PID=17176
https://www.youtube.com/watch?v=KUjhwGmhDrI
SAMPLE PAPER 2
Abstract
Begin your abstract at the left margin (2.04 on p. 27; see also p. 229). This is the only paragraph
that should not be indented. Unless otherwise instructed, APA recommends an abstract be
between 150–250 words (p. 27). It should not contain any citations or direct quotes. This should
be a tight, concise summary of the main points in your paper, not a step-by-step of what you plan
to ...
8620 Spectrum Center Blvd.
San Diego, CA 92123
FORBES SCHOOL OF BUSINESS
STYLE STANDARDS
These standards are excerpted from the 6th edition of the Publication Manual of the American Psychological
Association, published in 2010. These standards are intended to provide an overview of APA formatting necessary for
the Forbes School of Business, writing assignments.
Standard 1: Manuscript Elements
o Manuscript Format
Left, top, bottom, and right margins should be 1 inch.
Paper is prepared in Times New Roman, 12-point font and is double-spaced throughout.
Page numbers are Arabic numerals in the upper right corner of each page, ½ inch from the
top, and are consecutive from the title page through any appendices.
Preliminary pages contain numbers in lowercase Roman numerals.
o Title Page
Requirements (in order):
A Running Head
The phrase “Running head: YOUR TITLE” appears on first page (i.e. Title
Page) in the header. All subsequent pages contain YOUR TITLE, but do
not include the words “Running head,” which is only for the title page.
The running head needs to be left justified and on the same line as the page
number throughout the document.
The running head can be the title of the manuscript or a shortened version
of it.
Title
The title should concisely reflect the main idea of the manuscript.
The title should be typed with initial capitalizations for nouns, pronouns,
verbs, adjectives, and any prepositions five or more letters in length.
The title should be centered between the left and right margins, and
positioned in the upper half of the page.
Recommended title length: no more than 12 words.
Student Name
Course Name and Number
Instructor
Submission Date: Month Date, Year
Abstract
An abstract is a brief comprehensive summary of the contents of the manuscript and
it allows readers to survey the contents of the manuscript quickly.
An abstract should only be included if the manuscript is longer than 15-double
spaced pages, excluding the title page and reference list page.
Abstract length should range from 150–250 words.
The abstract should be the second page of the manuscript (after the title page).
The label Abstract should appear with initial capitalization and lowercase letters,
centered, at the top of the page, like a title.
8620 Spectrum Center Blvd.
San Diego, CA 92123
The abstract should be a single paragraph without paragraph indentation.
The Introduction
Begins on a new page (page 2 [or page 3 if an abstract is included]) and the full title
of the paper is centered one inch from the top of the page with initial capitalizations
and lowercase letters (not underlined, boldfaced, or italicized) and is double-spaced
above the first paragraph of text.
A manuscript must open with an introduction that presents the thesis, the statement
of purpose, the argument, or the specifi.
Sample Summaries of Emily Raine’s Why Should I Be Nice to You.docxagnesdcarey33086
Sample Summaries of Emily Raine’s “Why Should I Be Nice to You”
Sample Summary 1
Most people at some point in their life have worked in the service industry. This particular
industry can be quite satisfying whether it be working in fine dining, as a cocktail waitress, or at a local
diner, but for Emily Raine, who had done all of these things, the only place she ever felt “whipped” was
working as a barista at one of largest specialty coffee chains in the world (358). Raine is bothered by
how the café industry has set up the impersonal server/customer relationship and feels the best way to
solve the issue is be to “be rude” (365). In 2005, Raine expanded in an essay that appeared in the
online journal, Bad Subjects, on her frustration within the service industry and what good service really
means.
Good service in the coffee industry does not require much skill these days. Most people are
usually talking on their cell phone while ordering their daily coffee and pastry while also paying and then
out as fast as they walked into the café probably not even noticing or acknowledging any interaction
with the people serving. The coffee sector has recognized this and has set up the counters as linear
coffee bars that act the same as an assembly line. The workers are trained and assigned specific jobs in
the coffee preparing process, such as taking the order, handling the money, making the drink, to
delivery. This makes the interaction with the customer very limited, mostly just seconds. This is where
Raine feels some of the problem with the customer and server interaction. Although this is the most
effective and efficient way of working, Raine describes productive work as “dreary and repetitive” (359).
Since the 1960’s companies have been branding themselves with the quality of having “good
service” distinguishing them from the rest of the competition. Raines explains that in good service there
is an exchange between two parties: “the ‘we’ that gladly serves and the ‘you’ that happily receives,”
but also a third party, the boss, which is the ultimate decider on exactly what good service will be (360).
Companies in the service industry must market their products on servers’ friendliness; therefore
it is monitored and controlled from the people on top. Raine notes that cafés “layouts and management
styles” help create a cozy atmosphere that plays a factor in good service, but in a way that will not
disrupt the output (361). In Raine’s essay, she gives the example of an employee Starbucks has
branded; “The happy, wholesome perfume-free barista” (361). She points out that the company offers
workers stock options, health insurance, dental plans, as well as other perks of discounts and giveaways,
while also using moving personal accounts from workers who “never deemed corporate America could
care so much” (362). Raines also adds that the company does not give into unionization and although
the company pay.
SAMPLEExecutive Summary The following report is an evalua.docxagnesdcarey33086
SAMPLE:
Executive Summary
The following report is an evaluation of multiple facets of the Uruguayan economy, its overall investment attractiveness, and feasibility of doing business. After conducting research and analysis on the country in areas such as legal frameworks, fiscal policy, trade relations, infrastructure, housing, and monetary policy, Uruguay proves to be an economy of strong opportunity when evaluated against its regional/continental partners, but with significant and pressing challenges that would place the nation lower when considered at a global level. The national government and political system are proven to be stable, offering legal protections and investment frameworks that are comparable to developed economies. As a member of MERCOSUR and independently, Uruguay has ratified trade agreements, particularly with developed nations and Latin America, in a variety of structures, namely goods, services, investment promotion and protection, public procurement, and double taxation avoidance. The country offers valuable exports, and derives its imports significantly from MERCOSUR members in which people, goods, and currency are permitted to move freely. Uruguay has shown strong numbers in growth, particularly GDP and unemployment rate. Having reacted appropriately to an economic and banking crisis in the early 2000s, Uruguay was one of the few countries that was not significantly impacted by the 2008-09 economic crisis. The housing market has also seen considerable growth and looks to continue growing as the level of foreign direct investment in construction increases. Challenges that have limited the country and are foreseeable as continuing to limit Uruguay’s attractiveness include a public banking system that offers limited access to credit, undesired volatility in prime rate lending, seemingly unsustainable fiscal policy, and a lack of coordination in monetary and exchange rate policies. Given the widespread availability and transparency of information on the country and having taken all these factors into consideration, we determine Uruguay to be one of best investment opportunities in terms of a Latin American scope, but as still significantly behind developed economies. A total score of 30.5 points out of a possible 55 was assigned.
Description and Analysis of Each Measured Attribute
A.1 Government Expenditure, Tax System, Rule of Law, and Education System - 2/5; This ranking reflects Uruguay’s controlled government spending and competitive tax rate. The tax free zones are a great way to incentivize companies to operating in Uruguay. However, it does take into account the difficult experiences that corporations undergo in paying taxes. Uruguay benefits from a mature democracy with a stable political system and independent judiciary system. Uruguay has a well-established education system that provides free education and equal access to all students through the university level. However, the socioeconomic gap become.
Sample Student Industry AnalysisExecutive SummaryCom.docxagnesdcarey33086
Sample Student Industry Analysis
Executive Summary
Company Description
Seg and Cycle the City is a Koblenz, Germany based company specializing in offering rentals for recreational vehicles (Segways, bikes, tandems and inline skates), guiding and informational services to mainly tourists, locals and their visitors, students or for event entertainment purposes. The company will begin operations in April, 2010, as a Limited Liability Company (Unternehmensgesellschaft). The company will take advantage of the increasing popularity of Segway scooters: two-wheeled, self-balancing electric vehicles invented by Dean Kamen in 2001, as a new, more exiting and relaxing alternative to walking tours for tourists to enjoy the sights and atmosphere of the city. Also, the company will provide high quality MP3 Audio-City Guides to capture the large number of visitors who are more independent-minded, not willing to participate in guiding services offered by the tourism board of Koblenz and thereby gain significant market share.
Mission Statement
“Seg and Cycle the City is a speciality tour operator committed to providing a unique, entertaining, memorable and educational experience of the city that meets the needs of both kinds of tourists: those who seek a guided experience and those who are more independent minded.
We will take pride in doing our best to present our city tour in a memorable way and leave our customers with the image that Koblenz is a place to go back to. We will achieve this by building strong personal relationships with our customers during our guided tours and by suggesting journeys for the individual exploration.
As an advocate for sustainability, we want to promote the use of environmentally friendly transportation devices and, thereby, improve the image of our beloved city. We will also fulfil this mission of sustainability by providing an affordable opportunity for college students to rent a bike.”
Industry Analysis & Trends
The services provided by Seg and Cycle the City as a player in the service industry are affected by the developments in the recreational and sports equipment rental trade and by developments in the city and bike tourism industry in Germany, Rhineland Palatinate and, specifically, Koblenz.
Size and Growth
The personal service industry in Germany generally shows a stable performance with relatively stable revenue regardless of the difficult economic situation. A high employment rate, increased wages, and a decreasing inflation rate have increased disposable income, which especially benefits the leisure industry (German Chamber of Commerce e.V).The following graph shows that the service industry (blue line), as the leading sector concerning economic added value in the Koblenz (including surrounding communities) underwent major growth compared to other main sectors from 1992 to 2005. Since 2004, growth rate appears to be stable and rather low, but remains in a leading position.
Travel Germany, Rhineland-Pa.
SAMPLING MEAN DEFINITION The term sampling mean is.docxagnesdcarey33086
SAMPLING MEAN:
DEFINITION:
The term sampling mean is a statistical term used to describe the properties of statistical
distributions. In statistical terms, the sample mean from a group of observations is an
estimate of the population mean . Given a sample of size n, consider n independent random
variables X1, X2... Xn, each corresponding to one randomly selected observation. Each of these
variables has the distribution of the population, with mean and standard deviation . The
sample mean is defined to be
WHAT IT IS USED FOR:
It is also used to measure central tendency of the numbers in a database. It can also be said that
it is nothing more than a balance point between the number and the low numbers.
HOW TO CALCULATE IT:
To calculate this, just add up all the numbers, then divide by how many numbers there are.
Example: what is the mean of 2, 7, and 9?
Add the numbers: 2 + 7 + 9 = 18
Divide by how many numbers (i.e., we added 3 numbers): 18 ÷ 3 = 6
So the Mean is 6
SAMPLE VARIANCE:
DEFINITION:
The sample variance, s2, is used to calculate how varied a sample is. A sample is a select number
of items taken from a population. For example, if you are measuring American people’s weights,
it wouldn’t be feasible (from either a time or a monetary standpoint) for you to measure the
weights of every person in the population. The solution is to take a sample of the population, say
1000 people, and use that sample size to estimate the actual weights of the whole population.
WHAT IT IS USED FOR:
The sample variance helps you to figure out the spread out in the data you have collected or are
going to analyze. In statistical terminology, it can be defined as the average of the squared
differences from the mean.
HOW TO CALCULATE IT:
Given below are steps of how a sample variance is calculated:
• Determine the mean
• Then for each number: subtract the Mean and square the result
• Then work out the mean of those squared differences.
To work out the mean, add up all the values then divide by the number of data points.
First add up all the values from the previous step.
But how do we say "add them all up" in mathematics? We use the Roman letter Sigma: Σ
The handy Sigma Notation says to sum up as many terms as we want.
• Next we need to divide by the number of data points, which is simply done by
multiplying by "1/N":
Statistically it can be stated by the following:
•
• This value is the variance
EXAMPLE:
Sam has 20 Rose Bushes.
The number of flowers on each bush is
9, 2, 5, 4, 12, 7, 8, 11, 9, 3, 7, 4, 12, 5, 4, 10, 9, 6, 9, 4
Work out the sample variance
Step 1. Work out the mean
In the formula above, µ (the Greek letter "mu") is the mean of all our values.
For this example, the data points are: 9, 2, 5, 4, 12, 7, 8, 11, 9, 3, 7, 4, 12, 5, 4, 10, 9, 6, 9, 4
The mean is:
(9+2+5+4+12+7+8+11+9+3+7+4+12+5+4+10+9+6+9+4) / 20 = 140/20 = 7
So:
µ.
SAMPLING MEANDEFINITIONThe term sampling mean is a stati.docxagnesdcarey33086
SAMPLING MEAN:
DEFINITION:
The term sampling mean is a statistical term used to describe the properties of statistical distributions. In statistical terms, the sample meanfrom a group of observations is an estimate of the population mean. Given a sample of size n, consider n independent random variables X1, X2... Xn, each corresponding to one randomly selected observation. Each of these variables has the distribution of the population, with mean and standard deviation. The sample mean is defined to be
WHAT IT IS USED FOR:
It is also used to measure central tendency of the numbers in a database. It can also be said that it is nothing more than a balance point between the number and the low numbers.
HOW TO CALCULATE IT:
To calculate this, just add up all the numbers, then divide by how many numbers there are.
Example: what is the mean of 2, 7, and 9?
Add the numbers: 2 + 7 + 9 = 18
Divide by how many numbers (i.e., we added 3 numbers): 18 ÷ 3 = 6
So the Mean is 6
SAMPLE VARIANCE:
DEFINITION:
The sample variance, s2, is used to calculate how varied a sample is. A sample is a select number of items taken from a population. For example, if you are measuring American people’s weights, it wouldn’t be feasible (from either a time or a monetary standpoint) for you to measure the weights of every person in the population. The solution is to take a sample of the population, say 1000 people, and use that sample size to estimate the actual weights of the whole population.
WHAT IT IS USED FOR:
The sample variance helps you to figure out the spread out in the data you have collected or are going to analyze. In statistical terminology, it can be defined as the average of the squared differences from the mean.
HOW TO CALCULATE IT:
Given below are steps of how a sample variance is calculated:
· Determine the mean
· Then for each number: subtract the Mean and square the result
· Then work out the mean of those squared differences.
To work out the mean, add up all the values then divide by the number of data points.
First add up all the values from the previous step.
But how do we say "add them all up" in mathematics? We use the Roman letter Sigma: Σ
The handy Sigma Notation says to sum up as many terms as we want.
· Next we need to divide by the number of data points, which is simply done by multiplying by "1/N":
Statistically it can be stated by the following:
·
· This value is the variance
EXAMPLE:
Sam has 20 Rose Bushes.
The number of flowers on each bush is
9, 2, 5, 4, 12, 7, 8, 11, 9, 3, 7, 4, 12, 5, 4, 10, 9, 6, 9, 4
Work out the sample variance
Step 1. Work out the mean
In the formula above, μ (the Greek letter "mu") is the mean of all our values.
For this example, the data points are: 9, 2, 5, 4, 12, 7, 8, 11, 9, 3, 7, 4, 12, 5, 4, 10, 9, 6, 9, 4
The mean is:
(9+2+5+4+12+7+8+11+9+3+7+4+12+5+4+10+9+6+9+4) / 20 = 140/20 = 7
So:
μ = 7
Step 2. Then for each number: subtract the Mean and square the result
This is t.
sampleReportt.docx
Power Electronics
Contents Comment by adtaylor: This table of contents is clear and precise: I can see the flow of ideas and were the report will go
1.1 Introduction 2
1.2 Aim 2
1.3 Objectives 2
2.1 Diode Origins 3
2.1.1 Early Diodes 3
2.1.2 Thermionic Diodes 3-4
2.1.3 Crystal Diodes 4
2.2 Diode Fundamentals 5
2.2.1 Semiconductors 5
2.2.2 Doping 5-6
2.2.3 PN Junctions 6
2.2.4 Forward and Reverse Bias 7
2.3 Diode Operation 8
2.3.1 PN Junction Diode 8
2.3.2 Diode DC Operation 9
2.3.3 Diode AC Operation 10
2.4 Full Wave Bridge Rectification 11
2.4.1 Bridge Configuration 11
2.4.2 Diode Conduction Pairing 11
2.5 Three Phase Full Wave Bridge Rectification 12
2.5.1 Bridge Configuration 12
2.5.2 Diode Conduction Sequence 12-14
2.5.3 Output Voltage and current characteristics 14-15
3 Lab Report 16
3.1 Lab Report Objectives 16
3.2 Lab Report important notes 16
3.3 Output Signal 17
3.4 Output Signal (D1 removed) 18
3.5 Output Signal (D5 removed) 19
3.6 Output Signal (D6 removed) 20
4 Results, Comparisons and Discussions 21-22
5 Conclusions 23
6 References 24
1.1 Introduction
1. Rectifiers are electrical devices that convert an AC supply into a DC output through a process known as rectification. The theory of rectification has been around for over one hundred years, when early discoveries uncovered the unidirectional current flow (polarity dependent) in vacuum valves and crystal (solid state) devices. These devices were known as rectifiers; however the naming convention was changed in 1919 to diode. The name diode was derived from the Greek words ‘dia’ (through) and ‘ode’ (path). Comment by adtaylor: I don’t really think this sort of thing is necessary: the project report is supposed to be on investigating these devices or technology, not its 100 year old history.
When the marker sees this sort of thing, the first thing that springs to mind is that the student is padding out their report. It is very clear when this happens
2. Diodes are commonly known as switching devices; however due to there complex non-linear voltage and current characteristics, there applications have become numerous depending on the PN junction construction. Some special diode applications are as follows: Comment by adtaylor: This is good in an introduction, giving the reader some background on the device and what it does: this is the objective of this report after all
a. Voltage regulator (Zener diodes),
b. Tuners (Varactor diodes),
c. RF oscillators (Tunnel diodes), and
d. Light emitters (LED’s).
1.2 Aim
1. To observe the operation of a three phase uncontrolled rectifier circuit with a purely resistive load. Comment by adtaylor: This aim i.
SAMPLE Project (Answers and explanations are in red)I opened t.docxagnesdcarey33086
SAMPLE Project (Answers and explanations are in red)
I opened the Week 1 Project from Doc Sharing.
Projects
Project 1: Working With the Data Editor.
Downloading Statdisk
1) First go to the website at www.statdisk.org and then scroll down to the bottom of the page to download
the Statdisk program version 11.1.0. by clicking on the windows or the MAC version.
I went to www.statdisk.org and downloaded the statdisk 11.1.0 windows version.
Download Statdisk Version 11.1.0
Statdisk 11.1.0 Windows 2K, XP, Vista
Statdisk 11.1.0 OSX
See the included ReadMe.txt file for details.
Open A Saved Data File
2) After you have opened the Statdisk program, go to Datasets and then Elementary Stats, 9th Edition.
Open the file named SUGAR. The data will appear in column 1 in the Sample Editor.
I opened the statdisk program, went to Datasets, then Elementary Stats, 9th edition and opened the Sugar file.
Copy and Paste a Data File
3) Make a copy of the data values listed in column 1. Paste the data files into column 2. Re-name the title
of column 2 to COPY.
I went to Copy and then selected column 1. I then selected copy. Then I clicked on Paste and chose column 2. I then had 2 identical columns of the Sugar data.
Sorting Data Values
4) Make another copy of the data values listed in column 1 and paste those into column 3. Then sort only
the data values in column 3. Label the column SORT.
I selected Copy and clicked on column 1 and then pasted them into column 3. I clicked on Sort and then selected column 3.
Entering a Set of Data Values
5) Manually enter all of the data values listed below into column 4 in the Statdisk editor. Type all of the data values into the one column in vertical fashion like the other data values are listed in the other columns. It does not matter what order you input the data values. Label the data values with the name of IQ.
I typed the following data into column 4.
83
56
43
65
74
28
88
77
74
51
65
46
55
66
35
75
54
63
74
48
37
57
37
62
32
48
43
52
52
61
80
75
54
45
44
60
65
44
33
32
41
52
38
62
74
74
46
37
37
39
6) What are some of the problems that could occur when entering data values into a statistics technology
editor?
Problems that could occur when entering data values into a statistics technology editor include ………………………………………………………………………..
Sample Transformation
7) Go to the Data menu then select Sample Transformations to add 100 to all of the data values in column 4 and then paste them into column 5.
I went to the Data menu and ……………………………………………………………………………..
Classifying Variables
8) Would the grams of sugar data in column 1 be considered a sample or a population?
The grams of sugar data in column 1 would be considered a ……………..
9) State whether the sugar variable is qualitative or quantitative?
The sugar variable is ……………………………..
10) State whether the sugar variable is discrete, continuous or neither?.
Sample Questions to Ask During an Informational Interview .docxagnesdcarey33086
Sample Questions to Ask During an Informational Interview
You will not have time to ask all of the questions that you will want to ask the interviewee. Remember to
focus on the ones you feel will be most useful to you personally. Pick10-15 to use as a guideline but leave
room for the possibility that other questions will develop from your conversation.
x What is your job like?
o A typical day?
o What do you do? What are the duties/functions/responsibilities of your job?
o What kind of problems do you deal with?
o What kinds of decisions do you make?
o What percentage of your time is spent doing what?
o How does the time use vary? Are there busy and slow times or is the work activity fairly
constant?
x Why did this type of work interest you and how did you get started?
x How did you get your job? What jobs and experiences have led you to your present position?
x Can you suggest some ways a student could obtain this necessary experience?
x What are the most important personal satisfactions and dissatisfactions connected with your
occupation? What part of this job do you personally find most satisfying? Most challenging?
What do you like and not like about working in this industry?
x What things did you do before you entered this occupation?
o Which have been most helpful?
o What other jobs can you get with the same background?
x What are the various jobs in this field or organization?
x Why did you decide to work for this company?
x What do you like most about this company?
x How does your company differ from its competitors?
x Are you optimistic about the company’s future and your future with the company?
x What does the company do to contribute to its employees’ professional development?
x How does the company make use of technology for internal communication and outside
marketing?
x What sorts of changes are occurring in your occupation?
x How does a person progress in your field? What is a typical career path in this field or
organization?
o What is the best way to enter this occupation?
o What are the advancement opportunities?
o What are the major qualifications for success in this occupation?
x What are the skills that are most important for a position in this field?
x What particular skills or talents are most essential to be effective in your job? How did you learn
these skills? Did you enter this position through a formal training program? How can I evaluate
whether or not I have the necessary skills for a position such as yours?
x How would you describe the working atmosphere and the people with whom you work?
x What can you tell me about the corporate culture?
x Is there flexibility related to dress, work hours, vacation schedule, place of residence, etc.?
x What work-related values are strongest in this type of work (security, high income, variety,
independence)?
x If you job progresses as you like, what would be the next step in your career?
Kori Ryerson
Though these a.
Sample Table.pdfTopic RatingPatients Goal Able to walk .docxagnesdcarey33086
Sample Table.pdf
Topic Rating
Patient's Goal Able to walk to work instead of drive -
Gender M -
Age 24 -
height (in) 72 -
weight (lbs) 200 -
Circumference waist (in) 45 high
Table 1 Health Assessment
Value
exercise physiol.docx
I have to complete a lab in exercise physiology course..
Learning Objectives
· Health Related Physical Fitness Testing and Interpretation
· Exercise Assessment
· Anthropometric Data - height, weight, BMI, body composition
· Cardiorespiratory Fitness
I have lab report for this course, I only need you to take care of THE RESULTS SECTION.
-------------
Results – 25% – (approximately 1-2 pages)
Present in a clear, concise, logical manner the results of the data you are given and must calculate, compared to
norms listed in the texts and other resources you may select depending on which of the three lab reports you are
completing. Present the information in tables only.
----------------------
in the attachments you will see all info needed about the lab report and what you need to know about the results.
Lab Patients Fall 2014.xlsx
John JamesFALL 2014 BIO345OL.1 Patient Data SetJohn JamesTopicValueGoalExercise, lose weight, stop smokingHistory/personalsmokes socially 1/2 pk per week, does not exercise, works long hours as a produce managerHistory/familyfather died of MI age 60, he answered yes on the PAR-Q and complains of a sore right knee from a sports injury 10 yrs ago,Medicationatorvastatin, tylenol for knee painGenderMAge40height (in) 70weight (lbs)200Circumference waist (in)40Skinfolds (mm)ChestAbdomenThigh253215HR/resting80BP/resting138/84Cholesterol (mg·dL-1)242LDL Cholesterol162HDL Cholesterol58Triglycerides202*********************** EVERYTHING BELOW THIS IS FOR LAB 2 and 3 *************************
Sarah SmithFALL 2014 BIO345OL.1 Patient Data SetSarah SmithTopicValueGoalExercise to lose weight, get strongerHistory/personaldoes not exercise, teacherHistory/familyFather hypertension, obese; Mother overweightMedicationAviane, alprazolamGenderFAge30height (in) 64weight (lbs)147Circumference waist (in)34Skinfolds (mm)tricepssuprailiacthigh241820HR/resting72BP/resting124/80Cholesterol (mg·dL-1)198LDL Cholesterol132HDL Cholesterol39Triglycerides148*********************** EVERYTHING BELOW THIS IS FOR LAB 2 and 3 *************************
Larry LevineFALL 2014 BIO345OL.1 Patient Data SetLarry LevineTopicValueGoalrun a 10k without stoppingHistory/personalsoftware engineer, Gym exercise 3x/wk elliptical and weightsHistory/familyFather has Type II Diabetes Mellitus; Mother overweight mild hypertensionMedicationnoneGenderMAge30height (in) 69weight (lbs)172Circumference waist (in)39Skinfolds (mm)ChestAbdomenThigh183022HR/resting78BP/resting124/82Cholesterol (mg·dL-1)188LDL Cholesterol110HDL Cholesterol43Triglycerides152*********************** EVERYTHING BELOW THIS IS FOR LAB 2 and 3 *************************
Alice AmesFALL 2014 BIO345OL.1 Patient Data SetAlice AmesTopicValueGoalSet up a routine that she c.
SAMPLE QUESTIONExercise 1 Consider the functionf (x,C).docxagnesdcarey33086
SAMPLE QUESTION:
Exercise 1: Consider the function
f (x,C)=
sin(C x)
Cx
(a) Create a vector x with 100 elements from -3*pi to 3*pi. Write f as an inline or anonymous function
and generate the vectors y1 = f(x,C1), y2 = f(x,C2) and y3 = f(x,C3), where C1 = 1, C2 = 2 and
C3 = 3. Make sure you suppress the output of x and y's vectors. Plot the function f (for the three
C's above), name the axis, give a title to the plot and include a legend to identify the plots. Add a
grid to the plot.
(b) Without using inline or anonymous functions write a function+function structure m-file that does
the same job as in part (a)
SAMPLE LAB WRITEUP:
MAT 275 MATLAB LAB 1 NAME: __________________________
LAB DAY and TIME:______________
Instructor: _______________________
Exercise 1
(a)
x = linspace(-3*pi,3*pi); % generating x vector - default value for number
% of pts linspace is 100
f= @(x,C) sin(C*x)./(C*x) % C will be just a constant, no need for ".*"
C1 = 1, C2 = 2, C3 = 3 % Using commans to separate commands
y1 = f(x,C1); y2 = f(x,C2); y3 = f(x,C3); % supressing the y's
plot(x,y1,'b.-', x,y2,'ro-', x,y3,'ks-') % using different markers for
% black and white plots
xlabel('x'), ylabel('y') % labeling the axis
title('f(x,C) = sin(Cx)/(Cx)') % adding a title
legend('C = 1','C = 2','C = 3') % adding a legend
grid on
Command window output:
f =
@(x,C)sin(C*x)./(C*x)
C1 =
1
C2 =
2
C3 =
3
(b)
M-file of structure function+function
function ex1
x = linspace(-3*pi,3*pi); % generating x vector - default value for number
% of pts linspace is 100
C1 = 1, C2 = 2, C3 = 3 % Using commans to separate commands
y1 = f(x,C1); y2 = f(x,C2); y3 = f(x,C3); % function f is defined below
plot(x,y1,'b.-', x,y2,'ro-', x,y3,'ks-') % using different markers for
% black and white plots
xlabel('x'), ylabel('y') % labeling the axis
title('f(x,C) = sin(Cx)/(Cx)') % adding a title
legend('C = 1','C = 2','C = 3') % adding a legend
grid on
end
function y = f(x,C)
y = sin(C*x)./(C*x);
end
Command window output:
C1 =
1
C2 =
2
C3 =
3
Joe Bob
Mon lab: 4:30-6:50
Lab 3
Exercise 1
(a) Create function M-file for banded LU factorization
function [L,U] = luband(A,p)
% LUBAND Banded LU factorization
% Adaptation to LUFACT
% Input:
% A diagonally dominant square matrix
% Output:
% L,U unit lower triangular and upper triangular such that LU=A
n = length(A);
L = eye(n); % ones on diagonal
% Gaussian Elimination
for j = 1:n-1
a = min(j+p.
Sample PowerPoint Flow Week 5Select a current product with which.docxagnesdcarey33086
Sample PowerPoint Flow Week 5
Select a current product with which you are familiar, and pitch a new Integrated Marketing Communication plan (IMC) to your client.
Create a Microsoft PowerPoint presentation of 8-10 slides that includes the following components:
· Identify any considerations you will need to employ to build and maintain the brand and customer loyalty.
· Make a recommendation for an integrated marketing communications program. Include at least three of the five communication channels (Advertising, Sales Promotion, Personal Selling, Direct Marketing, Public Relations).
· First state who the target market is that you are communicating with
· Next discuss each channel of communication individually that you have selected and explain your rationale. State what the purpose of the channel is, give your objectives, and explain the strategy or how you will use this to accomplish the objectives.
-PowerPoint Outline-
Integrated Marketing Communication plan (IMC)
· Background on the product
· Target Market (describe)
· Choose at least 3 Marketing Communications to fit best with your product (most important component is that you can distinguish between the three)
1. Advertising (the purpose of advertising, explain that you know what it is)
· Purpose
· Objectives
· Strategy (How will you do this? TV, Radio, Mag, Internet)
2. Sales Promotion
· Purpose
· Objectives
· (
Only choose 3 of these Marketing Communications
)Strategy
3. Personal Selling
· Purpose
· Objectives
· Strategy
4. Direct Marketing
· Purpose
· Objectives
· Strategy
5. Public Relations
· Purpose
· Objectives
· Strategy
Please remember to include: Identify any considerations you will need to employ to build and maintain the brand and customer loyalty. (Beginning on the Background slide)
(
Remember: Identify any considerations you will need to employ to build and maintain the brand and customer loyalty.
)
Integrated Marketing Communicaitons Plan (title slide)
Background
Background of the product
Communication 3
Target Market
Communication 1
Communication 2
Purpose
Objective
Strategy
Purpose
Objective
Strategy
Purpose
Objective
Strategy
Introduction
.
Sample Of assignmentIntroductionComment by Jane Summers Introd.docxagnesdcarey33086
Sample Of assignment
Introduction Comment by Jane Summers: Introduction – The first part of your essay should describe what happened, what did you do, what was your role and what was the role of others involved? In this section you also need to make clear what the ethical issue was and why it was an issue. This section should be short, concise and factual. There is no need for emotion or feelings at this point.
The purpose of this paper is to reflect upon an ethical issue that arose in my law firm. The paper discusses what happened, what the ethical issues were, how I felt at the time, how I went about dealing with these ethical issues including what ethical approach I subconsciously took, what caused me to take that approach and what ethical approach I would take if I was in the position again. I conclude with what I learnt from the reflective process.
In 2009 a lady, Fiona, and her grandfather, Paul, attended my law firm. Fiona said Paul and her grandmother, Mary, owned a house. They were worried that Fiona’s mother, Christine, (an apparent drug user) was going to try and force the grandparents into signing the house over to her and then evict the grandparents out of the house.
Fiona indicated they had mutually agreed that to protect the grandparents from the anticipated actions of Christine, the grandparents would gift the house to Fiona. Fiona, as owner of the house and presumably someone, whom Christine couldn’t stand over, would then let them stay in the house until they died.
Fiona told me that Mary was in hospital, very ill and slowly losing her mental capacity. They wanted the transfer of house to take place urgently. Based on what Fiona and Paul said, I drafted the necessary documents and the house was transferred into Fiona’s name.
There were three ethical issues. Firstly, should I accept the word of Fiona that Christine would try to force the grandparents out of the house; after all it could be Fiona herself who was out to deceive her grandparents.
Secondly, should I make enquiries about Mary’s mental capacity, perhaps even attend the hospital? However, as I was told this was an urgent matter, I prepared the documents immediately to be taken to Mary for signing.
Finally, should I have persuaded Fiona to get her own lawyer to avoid any conflict, after all I was there to look after the interests of the grandparents? Comment by Jane Summers: This introduction is concise, explains the scenario, identifies the ethical issues that were present and does not attach a value judgement or emotion to the information.
Feelings and Emotions Comment by Jane Summers: This next section is where you describe how you felt about the issue. You should discuss what were you thinking at the time, and perhaps the emotional state you were in when taking the actions you took or after the event occurred.
I had various feelings and thoughts about this issue at the time. Initially, I was sceptical of what I was being told by Fiona. It was hard for me.
Sample Access Control Policy1.Purpose2.Scope3.Pol.docxagnesdcarey33086
Sample Access Control Policy
1. Purpose
2. Scope
3. Policy
Access control policy
Who and how is authorisation for access to systems and business applications granted?User access
How is access to information systems to be granted (eg passwords etc)?
Who is responsible for monitoring and reviewing access rights?
Who is responsible for removing and notifying of redundant User IDs and accounts and what is the process?
Who is responsible for granting access to systems utilities and privilege management?
How is access and use of systems utilities monitored?User responsibilities
How are users to be educated and made aware of access responsibilities?
What are users’ responsibilities for access and passwords?Network access
Who is responsible for authorising network access (both internally and external connections)?
What is the process for enforced network paths, user authentication for external connection, Node authentication, use of remote diagnostic ports?
How will network domains and groups be segregated?
What network connection controls will be in place – eg. times, type and size of file transfers to external source?Operating system access
How is automatic terminal identification used to authenticate connections to specific locations and portable equipment?
What is the secure logon and logoff process for access?
Are there restrictions on connection times in place?
How will passwords be issued and managed – what are the rules for passwords?
How will systems utilities’ use be controlled? Application access
Who authorises application access eg read, write?
What is the process for authorising access to information when systems share resources, eg. two separate systems are integrated to form a third application or system?Monitoring system access
What system events will be logged, eg. date, IP address, User-IDs, unsuccessful logins, alerts from intrusion detection systems (firewall)?
When and who will review and monitor system logs? And where are they stored?Mobile computing and telecommuting
Outline Agency policy for each type of mobile device – eg. physical storage, personal usage, protection of information held on the device, access mechanisms (eg password), virus protection, backup.
Policy on use of computer equipment for telecommuting, eg. authorisation process, system access, physical security, etc.
Template - Access Control Policy Page 1 of 2 June 06
.
SAMPLE GED 501 RESEARCH PAPERTechnology Based Education How.docxagnesdcarey33086
SAMPLE GED 501 RESEARCH PAPER
Technology Based Education: How can theories of learning and/or development be used to guide the use of technology in schools?
Introduction
Twenty first century learning environment is no longer a goal, but an educational reality. We are deep into the midst of a paradigm shift that spans across our entire globe. The technology we live with as a society has exponentially grown at an increasingly rapid rate. This is illustrated from the integration of computers in every facet of our lives. This includes televisions, phones, cars, and even coffee makers which all contain a microprocessor, they all think. Even more startling is how connected we all are. Access to information is available at a finger’s touch. We can connect to people, we can shop, and ask for directions from anywhere at any time. We are tethered to the world by social media such as Facebook. Google has mapped out the entire earth. We can send a text message from the middle of Antarctica. Even more startling is how corporations and the government collects data as they track our ever movement as we go online. All this is reflected upon education, which mirrors this new 21st century society. No longer is the classroom isolated from the world, but it too is connected. Learning technology is critical more than ever because it impacts skills and productivity (Hall, 2011) for both the student and the teacher.
Background
Incorporating technology into the classroom has been around since computers were invented, but it has been only recently been the norm in the last few years. This revolution no more pointedly reflected in our education system, than it is today. Johri (2011) states that although digital information technologies in education has become commonplace, there are few guiding frameworks or theories that explains the relationship between technology and learning practices. Bennett and Oliver (2011) share that view. Research has focused on practical implementation versus the theory and application of the technology. They explained once theories are developed, a better understanding of effective technology based pedagogy would occur.
Technology in Education
I believe however, all the theorists play well with technology. Technology is merely a tool. Its strength is the ability to facilitate. John Dewey is a prime example. He believed in “learning by doing”. With an iPad there is an App where by students are able to see the stars and the constellation. With the use of satellites and GPS held within the piece of technology, students are able to view exact locations of stars. Where the iPad is directed in the sky, the stars would be in that location on the handheld screen, no telescope necessary. The students interact with the material to gain knowledge.
This is further illustrated by this second example. The best way to learn about Mayan pyramids is to actually visit one in Central America. With the use of laptops, students can connect to the Discove.
Sample Action Research Report 1 Effect of Technol.docxagnesdcarey33086
Sample Action Research Report 1
Effect of Technology on Enthusiasm for Learning Science
Jane L. Hollis
Lake City Middle School
Lake City, Florida
ABSTRACT
The effect of technology on students’ enthusiasm for learning science (both at school and
away from school) was investigated. Pre- and post-student and parent surveys, student and
parent written comments, and teacher observations were used to record changes in enthusi-
asm for learning science during a six-week study period.
In this study, I investigated how the integration of technology into my middle school
science curriculum would impact my students’ enthusiasm for learning science. Enthusiasm
for learning science can be defined as the students’ eagerness to participate in science activi-
ties in the classroom, as well as away from school. My motivation for focusing on technol-
ogy was twofold. First, I have had an interest in integrating technology into my students’
studies of science for some time. Secondly, the funding for technological equipment and
software recently became available. During the 1993–1994 school year, my school was
awarded a $115,000 incentive grant to purchase equipment and software and to train
teachers in the use of this software and technological equipment. One of the stipulations of
the grant was that the equipment and software must be for student use.
According to Calvert (1994), American education is a system searching for solutions.
Our children drop out, fail to sustain interest in learning, and perform below capacity. Some
have argued that television is the culprit. Others have argued that computers may be the
answer.
Today’s middle school students have grown up in a technological world with television,
electronic toys, video games, VCRs, cellular phones, and more. They are accustomed to
receiving and processing information through multi-sensory sources.
I wanted to bring technology into my classroom and incorporate it into my science
curriculum using multimedia computer presentations. Barbara ten Brink (1993) noted, “. . .
students look to us [teachers] to prepare them for an increasingly technological world.
Fortunately, with videodiscs, we are meeting the challenge by delivering curriculums in
ways that engage, motivate, and thrill our students.” In this study my students had an
opportunity to use assorted multimedia technology as they explored a segment of a middle
school science curriculum.
THEORETICAL FRAMEWORKS
Learning is an extremely complex human process. During my twenty-four years of teaching
I have used many strategies to enhance student learning and to teach new concepts. I am still
not convinced that I thoroughly understand how children learn. Yet, at this point, I do
believe children learn through experiences. They build on past experiences and previous
knowledge to process new concepts. As children redefine old understandings of concepts
and integrate new experiences into thei.
Sample Case with a report Dawit Zerom, Instructor Cas.docxagnesdcarey33086
Sample Case with a report
Dawit Zerom, Instructor
Case Study: Ft. Myers Home Sales
Due to a crisis in subprime lending, obtaining a mortgage has become difficult even for
people with solid credit. In a report by the Associated Press (August 25, 2007), sales of
existing homes fell for a 5th consecutive month, while home prices dropped for a record
12th month in July 2007. Mayan Horowitz, a research analyst for QuantExperts, wishes to
study how the mortgage crunch has impacted the once booming market of Florida. He
collects data on the sale price (in $1, 000s) of 25 single-family homes in Fort Myers,
Florida, in January 2007 and collects another sample in July 2007. For a valid
comparison, he samples only three bedroom homes, each with 1,500 square feet or less of
space on a lot size of 10, 000 square feet or less.
Excel data are available in Titanium page.
Use the sample information (appropriate descriptive statistics) to address the following
aspects. Your report should not exceed one page.
1. Compare the mean and median in each of the two sample periods.
2. Compare the standard deviation and coefficient of variation in each of the two sample
periods. Also incorporate quartiles.
3. Discuss significant changes in the housing market in Fort Myers over the 6-month
period.
Sample Case with a report
Dawit Zerom, Instructor
Sample Report
The steady stream of dismal housing market statistics lately is a clear indication that the national
real estate market is in a serious crisis. The uncertainty is also forcing lenders to slow down on
their lending, and as a result obtaining a mortgage is becoming increasingly difficult even for
people with solid credit. In light of this situation, Mayan Horowitz conducts a small study to
learn if the national trend also affects the once booming market of Florida by focusing on Fort
Myers, Florida. To see the trend of the housing market over a 6-month period, he obtains price of
25 single family homes in January 2007 and another comparable 25 single family homes in July
2007. Table 1 below shows the most relevant descriptive analysis.
The average home price in January of 2007 was $231, 080 versus $182, 720 in July of the same
year. That is about a 21% drop in the average home price. Also in January, half of the homes
sold for more than $205,000, versus only $180,000 in July (see the median). Since the mean is
more effected by outliers (in this case, a few relatively high prices), the median is an appropriate
measure of central location.
While measures of central location typically represent where the data clusters, these measures do
not relay information about the variability in the data. Both the standard deviation and the
coefficient of variation are higher in January indicating that home prices were more dispersed in
January. Further, while 25% of the houses were sold at the price of $158, 000 or less in Janua.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Running head SHORTENED TITLE1SHORTENED TITLE 6.docx
1. Running head: SHORTENED TITLE1
SHORTENED TITLE 6
Paper Title
Author
Name of the University
Abstract
The abstract is written in block format, meaning that the start of
the paragraph is not indented. It begins on the next line
following the Abstract heading and should not be more than 250
words. As an undergraduate, it is suggested that you verify the
length of the abstract with your instructor (it is usually a FULL
paragraph), but a graduate student must adhere to the 120 to
250 word abstract. The Abstract heading should NOT be in
2. bold. All numbers in an abstract should be typed as digits and
not as words unless they are at the beginning of a sentence. The
abstract is a one-paragraph summary of the most important
elements of the paper. This is an example of what an abstract
looks like in a paper. Remember, it takes a minimum of 5
sentences to make a paragraph.
Title of Paper
The title of the paper is centered on the first line of the third
page and is in uppercase and lowercase letters. Do not italicize
the title, bold it, or put it in quotes. The introductory paragraph
begins on the line following the title of the paper. The entire
paper, including the title page, abstract, body, and references,
should be double-spaced. The before/after spacing should be
set on zero and the margins should be one inch.
In order to give proper credit to the ideas and words of others,
any outside sources used in the body of the paper must be
documented by citing the author(s) and copyright date of the
source(s). This is called a citation. Each citation must have a
corresponding full source reference on the references page that
follows the body of the paper. As noted by Stevens (2008), a
signal phrase “signals to the reader that either a direct quote or
a paraphrase is about to follow” (p.43). This is an in-text
citation. As in this example, when the name of the author is
3. part of the sentence, the year of the publication appears in
parentheses directly following the author’s name, e.g., Stevens
(2008). When the author of a source is not mentioned in the
sentence, both the author and year of publication appear in
parentheses (Stevens, 2008). This is a parenthetical citation. If
a work has two authors, both authors are cited in each citation
to that source. For a citation of a source with two authors, use
the last names of both authors separated by an ampersand (&).
When no author is listed, use the title. If the title is extremely
long, one may shorten it to the first 4 words of the title and
place them in quotation marks. If the headings are too long to
use in your in-text citation use a shortened version in quotation
marks like this: (Lorraine, 2009, “Stock market trends,” para.
56). When there isn’t any publication date is listed, use the
abbreviation n.d., which stands for no date. When a direct
quote is taken from a source with page numbers, such as a book,
magazine, or newspaper, include the page number as part of the
citation. If the quote is fewer than 40 words, it should be
enclosed in double quotation marks and should be incorporated
into the formal structure of the sentence.
If the quotation that you are using is more than 40 words long,
you must use a block quotation. This is a block paragraph. In a
block paragraph, you should not use any quotations at all unless
they are needed to indicate a quotation within the original text.
(“APA Block Quotation,” n.d.) Note: Citations that start with
titles are in quotes and the title can be shortened but should also
be in quotes to designate that it is a title.
If you have a direct quote but your source does not have page
numbers but does give paragraph numbers then you would give
the paragraph number to show where you found your quote. It
would look like this: (Franklin, 2009, para. 9). If there are not
any page numbers or paragraph numbers but headings are given,
then give the heading and the number of the paragraph that
follows it. You will need to count the paragraphs yourself since
the numbers are not given. The would look like this: (Franklin,
2009, Past Research section, para. 9).
4. The references section begins on a new page. The heading is
centered on the first line of the new page. It is not in bold, not
in italics, nor underlined. The references, which are double
spaced, have a hanging indent and begin on the line following
the references heading. Entries are organized alphabetically by
whatever comes first in the reference (author last name or first
word of title). Go to the next page to see an example of a
reference page.
References
APA block quotation. (n.d.). Retrieved from
http://www.rpi.edu/web/writingcenter
/wc_web/school/apa_block_quotation.htm
Cuddy, M. F., & Fisher, E. R. (2010). Investigation of the roles
of gas-phase CF2 molecules and F atoms during fluorocarbon
plasma processing of Si and ZrO2 substrates. Journal Of
Applied Physics, 108(3), 033303. doi:10.1063/1.3467776
If there isn’t any doi, according to AIU, you are to take the
URL to the home page and say Retrieved from. Here is a hint:
When you are in the school library; click on the hyperlink that
is the Source. The URL to the publisher is there and one does
not have to search the web.
Stevens, J.R. (2008). The signal phrase. Retrieved from
http://www.englishdiscourse.org/
signal.html
Let me help you with setting up your homework in a paper
format. You need to have the correct APA font…Times New
Roman 12 point. You need the correct margins…1 Inch. You
need the correct before/after spacing (both set on zero) and line
spacing (double spaced). These 5 things have an effect on the
deliverable size. The before/after spacing does not have an
5. effect if the assignment states that only a certain amount of
words are required; but does have an effect if the assignment
calls for a certain amount of pages. Let me tell you how to
check this and set it up. Look at the top of the page and you
will see your font and size of font. Look in the titles at the
bottom of the ribbon. Click on the font (you will see the word
font and then go to the right and click on the small box). I box
will open up. Make sure that font says times new roman, font
style says regular and the size is 12 point. Then in MS 2003
and 2007 just click on default. If you have 2010, click on set as
default and then the second bubble that will carry this over to
all your papers. Now you have the font and the size of the font.
Click on page layout. Now click on margins. Make sure it says
1 inch all the way around. You are still in page layout and now
click on the small box to the right of the word Paragraph. Make
sure it is set with the following: Alignment Left Outline level
Body text Indentation left and right should both be zero
.Special should be none Under spacing you will see before and
after, and line spacing. Your before/after should both be set on
zero. The line spacing should be double. Now, you are set up to
write your paper. Smile.
Let me help you with making a running head. I am going to
teach you how to do this. I am going to take you through this
step by “baby step” smile. 1) Open up your MS word. 2)
Put your cursor in the heading and left quick twice REALLY
FAST. Keep trying if you do not get it to open, smile. This is
the easy way to open it up. 3) Make sure that the header is in
Times New Roman 12 point. 4) Look at the top, It now has a
new section called Header and Footer Tools and the word
Design below it. 5) To the left of the name Design, look at the
section that says “Different First Page”. Make SURE that it
does NOT have a check mark. 6) Now look to the left and you
will see an icon that says “Page Number”. Click on the down
arrow and choose “Top of Page” and then choose “Plain Number
3”. 7) The number 1 will show up on the right side of your
6. paper. Your curser will be to the left of the number. 8) Type
the shortened Running head. That means if the title of the paper
is The Joy of Theory, type that. Only 50 spaces can be used in
the running head so if your title is long, use the first 3 or 4
words. These words are all in caps. It would look like this:
THE JOY OF THEORY 9) When you have finished typing you
will notice that the words are on the left and the number is on
the right of the curser. Good. Now, hold down your space bar
and it will move the words to the left and the number will stay
on the right. If you go too far, it will be on two lines. Do not
worry. All you did was to put spaces in there so just hit your
backspace until it is back on one line. 10) Even though it has
your title and the page number 1, this is really page 2 to the end
of the paper. What you do next will turn it into page 2. Now,
don’t freak out. It will disappear but it is only putting it on
your second page. 11) Look up again at the section that says
“Different First Page”. Put a check mark in there (click it) and
the whole thing will disappear. 12) Now you are still on the
title page and all you do on this page is type. Put the words
Running head: and then the shortened title you put on page
two. Type it in. Remember, all in caps. Then hit the tab (once
or twice to move the cursor over to the right and type the
number one. 13) To get out, look to the right at the red box that
says Close Header and Footer. Click on it. You are now ready
to go.
C H A P T E R 3
Analysis of Financial
Statements
7. To guide or not to guide, that is the question. Or at least it’s the
questionmany companies are wrestling with regarding earnings
forecasts.Should a company provide earnings estimates to
investors? In 2006,
Best Buy answered this question by announcing that it would no
longer
provide quarterly earnings forecasts. It’s no coincidence that
Best Buy’s
decision came shortly after its actual earnings came in just 2
cents below
the forecast, yet its stock price fell by 12%. Coca-Cola,
Motorola, and
Citigroup are among the growing number of companies that no
longer
provide quarterly earnings forecasts.
Virtually no one disputes that investors need as much
information as
possible to accurately evaluate a company, and academic studies
show
that companies with greater transparency have higher
valuations. However,
greater disclosure often brings the possibility of lawsuits if
investors have
reason to believe that the disclosure is fraudulent. Although the
Private
Securities Litigation Reform Act of 1995 helped prevent
“frivolous”
lawsuits, many companies still chose not to provide information
directly to
all investors. Instead, before 2000, many companies provided
earnings
information to brokerage firms’ analysts, and the analysts then
forecast
their own earnings expectations. In 2000 the SEC adopted Reg
FD
8. (Regulation Fair Disclosure), which prevented companies from
disclosing
information only to select groups, such as analysts. Reg FD led
many
companies to begin providing quarterly earnings forecasts
directly to the
public, and a survey by the National Investors Relations
Institute showed
that 95% of respondents in 2006 provided either annual or
quarterly
earnings forecasts, up from 45% in 1999.
Two trends are now in evidence. First, the number of companies
reporting
quarterly earnings forecasts is falling, but the number reporting
annual
forecasts is increasing. Second, many companies are providing
other types of
forward-looking information, including key operating ratios
plus qualitative
information about the company and its industry. Ratio analysis
can help
investors use such information, so keep that in mind as you read
this chapter.
Sources: Adapted from Joseph McCafferty, “Guidance Lite,”
CFO, June 2006, 16–17, and William F. Coffin
and Crocker Coulson, “Is Earnings Guidance Disappearing in
2006?” 2006, White Paper, available at http://www
.ccgir.com/ccgir/white_papers/pdf/Earnings%20Guidance%2020
06.pdf.
87
2011 Cengage Learning. All Rights Reserved. May not be
9. scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Financial statement analysis involves (1) comparing a firm’s
performance with that of
other firms in the same industry and (2) evaluating trends in the
firm’s financial posi-
tion over time. Managers use financial analysis to identify
situations needing atten-
tion; potential lenders use financial analysis to determine
whether a company is
creditworthy; and stockholders use financial analysis to help
predict future earnings,
dividends, and free cash flow. As we explain in this chapter,
there are similarities and
differences among these uses.1
3.1 FINANCIAL ANALYSIS
When we perform a financial analysis, we conduct the following
steps.
Gather Data
The first step in financial analysis is to gather data. As we
discussed in Chapter 2,
financial statements can be downloaded from many different
Web sites. One of
our favorites is Zacks Investment Research, which provides
financial statements in
Intrinsic Value and Analysis of Financial Statements
The intrinsic value of a firm is determined by the present
value of the expected future free cash flows (FCF)
when discounted at the weighted average cost of capital
10. (WACC). This chapter explains how to use financial state-
ments to evaluate a company’s profitability, required capi-
tal investments, business risk, and mix of debt and equity.
Value = + … ++
FCF1 FCF∞
(1 + WACC)1
FCF2
(1 + WACC)2 (1 + WACC)∞
Free cash flow
(FCF)
Market interest rates
Firm’s business riskMarket risk aversion
Firm’s debt/equity mixCost of debt
Cost of equity
Weighted average
cost of capital
(WACC)
Required investments
in operating capital
Net operating
profit after taxes −
=
11. 1Widespread accounting fraud has cast doubt on whether all
firms’ published financial statements can be
trusted. New regulations by the SEC and the exchanges, as well
as new laws enacted by Congress, have
improved oversight of the accounting industry and increased the
criminal penalties on management for
fraudulent reporting.
resource
The textbook’s Web site
contains an Excel file that
will guide you through the
chapter’s calculations.
The file for this chapter is
Ch03 Tool Kit.xls, and we
encourage you to open
the file and follow along
as you read the chapter.
WWW
See http://www.zacks.com
for a source of standard-
ized financial statements.
88 Part 1: Fundamental Concepts of Corporate Finance
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
a standardized format. If you cut and paste financial statements
from Zacks into a
12. spreadsheet and then perform a financial analysis, you can
quickly repeat the analysis
on a different company by simply pasting that company’s
financial statements into
the same cells as the original company’s statements. In other
words, there is no
need to reinvent the wheel each time you analyze a company.
Examine the Statement of Cash Flows
Some financial analysis can be done with virtually no
calculations. For example, we
always look to the statement of cash flows first, particularly the
net cash provided
by operating activities. Downward trends or negative net cash
flow from operations
almost always indicate problems. The statement of cash flows
section on investing
activities shows whether the company has made a big
acquisition, especially when
compared with the prior years’ net cash flows from investing
activities. A quick look
at the section on financing activities also reveals whether or not
a company is issuing
debt or buying back stock; in other words, is the company
raising capital from inves-
tors or returning it to them?
Calculate and Examine the Return on Invested Capital
After examining the statement of cash flows, we calculate the
return on invested cap-
ital (ROIC) as described in Chapter 2. The ROIC provides a
vital measure of a firm’s
overall performance. If ROIC is greater than the company’s
weighted average cost of
capital (WACC), then the company usually is adding value. If
ROIC is less than
13. WACC, then the company usually has serious problems. No
matter what ROIC tells
us about the firm’s overall performance, it is important to
examine specific areas
within the firm, and for that we use ratios.
Begin Ratio Analysis
Financial ratios are designed to extract important information
that might not be ob-
vious simply from examining a firm’s financial statements. For
example, suppose
Firm A owes $5 million of debt while Firm B owes $50 million
of debt. Which com-
pany is in a stronger financial position? It is impossible to
answer this question with-
out first standardizing each firm’s debt relative to total assets,
earnings, and interest.
Such standardized comparisons are provided through ratio
analysis.
We will calculate the 2010 financial ratios for MicroDrive Inc.,
using data from the
balance sheets and income statements given in Table 3-1. We
will also evaluate the
ratios in relation to the industry averages. Note that dollar
amounts are in millions.
3.2 LIQUIDITY RATIOS
As shown in Table 3-1, MicroDrive has current liabilities of
$310 million that must
be paid off within the coming year. Will it have trouble
satisfying those obligations?
Liquidity ratios attempt to answer this type of question: We
discuss two commonly
used liquidity ratios in this section.
14. The Current Ratio
The current ratio is calculated by dividing current assets by
current liabilities:
Current ratio ¼ Current assets
Current liabilities
resource
See Ch03 Tool Kit.xls for
all calculations.
Chapter 3: Analysis of Financial Statements 89
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
¼ $1; 000
$310
¼ 3:2
Industry average ¼ 4:2
Current assets normally include cash, marketable securities,
accounts receivable,
and inventories. Current liabilities consist of accounts payable,
short-term notes
payable, current maturities of long-term debt, accrued taxes,
and other accrued
expenses.
MicroDr ive Inc.: Balance Sheets and Income Statements for
Years Ending
15. December 31 (Mi l l ions of Dol lars, Except for Per Share
Data)
TABLE 3-1
ASSETS 2010 2009 LIABILITIES AND EQUITY 2010 2009
Cash and equivalents $ 10 $ 15 Accounts payable $ 60 $ 30
Short-term investments 0 65 Notes payable 110 60
Accounts receivable 375 315 Accruals 140 130
Inventories 615 415 Total current liabilities $ 310 $ 220
Total current assets $1,000 $ 810 Long-term bondsa 754 580
Net plant and equipment 1,000 870 Total liabilities $1,064 $
800
Preferred stock (400,000 shares) 40 40
Common stock (50,000,000 shares) 130 130
Retained earnings 766 710
Total common equity $ 896 $ 840
Total assets $2,000 $1,680 Total liabilities and equity $2,000
$1,680
2010 2009
Net sales $3,000.0 $2,850.0
Operating costs excluding depreciation and amortizationb
2,616.2 2,497.0
Earnings before interest, taxes, depreciation, and amortization
(EBITDA) $ 383.8 $ 353.0
Depreciation 100.0 90.0
Amortization 0.0 0.0
Depreciation and amortization $ 100.0 $ 90.0
Earnings before interest and taxes (EBIT, or operating income)
$ 283.8 $ 263.0
Less interest 88.0 60.0
16. Earnings before taxes (EBT) $ 195.8 $ 203.0
Taxes (40%) 78.3 81.2
Net income before preferred dividends $ 117.5 $ 121.8
Preferred dividends 4.0 4.0
Net income $ 113.5 $ 117.8
Common dividends $ 57.5 $ 53.0
Addition to retained earnings $ 56.0 $ 64.8
Per-Share Data
Common stock price $ 23.00 $ 26.00
Earnings per share (EPS) $ 2.27 $ 2.36
Book value per share (BVPS) $ 17.92 $ 16.80
Cash flow per share (CFPS) $ 4.27 $ 4.16
aThe bonds have a sinking fund requirement of $20 million a
year.
bThe costs include lease payments of $28 million a year.
90 Part 1: Fundamental Concepts of Corporate Finance
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
MicroDrive has a lower current ratio than the average for its
industry. Is this good or
bad? Sometimes the answer depends on who is asking the
question. For example, sup-
pose a supplier is trying to decide whether to extend credit to
MicroDrive. In general,
17. creditors like to see a high current ratio. If a company is getting
into financial difficulty,
it will begin paying its bills (accounts payable) more slowly,
borrowing from its bank,
and so on, so its current liabilities will be increasing. If current
liabilities are rising faster
than current assets then the current ratio will fall, and this could
spell trouble. Because
the current ratio provides the best single indicator of the extent
to which the claims of
short-term creditors are covered by assets that are expected to
be converted to cash fairly
quickly, it is the most commonly used measure of short-term
solvency.
Now consider the current ratio from the perspective of a
shareholder. A high cur-
rent ratio could mean that the company has a lot of money tied
up in nonproductive
assets, such as excess cash or marketable securities. Or perhaps
the high current ratio
is due to large inventory holdings, which might well become
obsolete before they can
be sold. Thus, shareholders might not want a high current ratio.
An industry average is not a magic number that all firms should
strive to maintain—in
fact, some very well-managed firms will be above the average,
while other good firms will
be below it. However, if a firm’s ratios are far removed from
the averages for its industry,
this is a red flag, and analysts should be concerned about why
the variance occurs. For
example, suppose a low current ratio is traced to low
inventories. Is this a competitive
advantage resulting from the firm’s mastery of just-in-time
18. inventory management, or is
it an Achilles’ heel that is causing the firm to miss shipments
and lose sales? Ratio analysis
doesn’t answer such questions, but it does point to areas of
potential concern.
The Quick, or Acid Test, Ratio
The quick, or acid test, ratio is calculated by deducting
inventories from current
assets and then dividing the remainder by current liabilities:
Quick; or acid test; ratio ¼ Current assets − Inventories
Current liabilities
¼ $385
$310
¼ 1:2
Industry average ¼ 2:1
A liquid asset is one that trades in an active market and hence
can be converted
quickly to cash at the going market price. Inventories are
typically the least liquid of
a firm’s current assets; hence they are the current assets on
which losses are most
likely to occur in a bankruptcy. Therefore, a measure of the
firm’s ability to pay off
short-term obligations without relying on the sale of inventories
is important.
The industry average quick ratio is 2.1, so MicroDrive’s 1.2
ratio is low in compari-
son with other firms in its industry. Still, if the accounts
receivable can be collected, the
company can pay off its current liabilities without having to
19. liquidate its inventory.
Self-Test Identify two ratios that are used to analyze a firm’s
liquidity position, and write out
their equations.
What are the characteristics of a liquid asset? Give some
examples.
Which current asset is typically the least liquid?
A company has current liabilities of $800 million, and its
current ratio is 2.5. What is
its level of current assets? ($2,000 million) If this firm’s quick
ratio is 2, how much
inventory does it have? ($400 million)
Chapter 3: Analysis of Financial Statements 91
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website, in whole or in part.
3.3 ASSET MANAGEMENT RATIOS
Asset management ratios measure how effectively a firm is
managing its assets. If a
company has excessive investments in assets, then its operating
capital will be unduly
high, which will reduce its free cash flow and ultimately its
stock price. On the other
hand, if a company does not have enough assets then it will lose
sales, which will hurt
profitability, free cash flow, and the stock price. Therefore, it is
important to have
the right amount invested in assets. Ratios that analyze the
different types of assets
are described in this section.
20. Evaluating Inventories: The Inventory Turnover Ratio
The inventory turnover ratio is defined as sales divided by
inventories:
Inventory turnover ratio ¼ Sales
Inventories
¼ $3;000
$615
¼ 4:9
Industry average ¼ 9:0
As a rough approximation, each item of MicroDrive’s inventory
is sold out and re-
stocked, or “turned over,” 4.9 times per year.2
MicroDrive’s turnover of 4.9 is much lower than the industry
average of 9.0. This
suggests that MicroDrive is holding too much inventory. High
levels of inventory
add to net operating working capital (NOWC), which reduces
FCF, which leads to
lower stock prices. In addition, MicroDrive’s low inventory
turnover ratio makes us
wonder whether the firm is actually holding obsolete goods not
worth their stated
value.3
Note that sales occur over the entire year, whereas the inventory
figure is mea-
sured at a single point in time. For this reason, it is better to use
an average inventory
measure.4 If the firm’s business is highly seasonal, or if there
has been a strong up-
21. ward or downward sales trend during the year, then it is
especially useful to make
some such adjustment. To maintain comparability with industry
averages, however,
we did not use the average inventory figure.
2“Turnover” is a term that originated many years ago with the
old Yankee peddler who would load up his
wagon with goods and then go off to peddle his wares. If he
made 10 trips per year, stocked 100 pans, and
made a gross profit of $5 per pan, his annual gross profit would
be (100)($5)(10) = $5,000. If he “turned
over” (i.e., sold) his inventory faster and made 20 trips per
year, then his gross profit would double, other
things held constant. So, his turnover directly affected his
profits.
3A problem arises when calculating and analyzing the inventory
turnover ratio. Sales are stated at market
prices, so if inventories are carried at cost, as they generally
are, then the calculated turnover overstates
the true turnover ratio. Therefore, it would be more appropriate
to use cost of goods sold in place of sales
in the formula’s numerator. However, established compilers of
financial ratio statistics such as Dun &
Bradstreet use the ratio of sales to inventories carried at cost.
To develop a figure that can be compared
with those published by Dun & Bradstreet and similar
organizations, it is necessary to measure inventory
turnover with sales in the numerator, as we do here.
4Preferably, the average inventory value should be calculated
by summing the monthly figures during the
year and dividing by 12. If monthly data are not available, one
can add the beginning and ending annual
figures and divide by 2. However, most industry ratios are
calculated as shown here, using end-of-year
values.
22. 92 Part 1: Fundamental Concepts of Corporate Finance
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Evaluating Receivables: The Days Sales Outstanding
Days sales outstanding (DSO), also called the “average
collection period” (ACP), is
used to appraise accounts receivable, and it is calculated by
dividing accounts receivable
by average daily sales to find the number of days’ sales that are
tied up in receivables.5
Thus, the DSO represents the average length of time that the
firm must wait after mak-
ing a sale before receiving cash, which is the average collection
period. MicroDrive has
46 DSO, well above the 36-day industry average:
DSO ¼ Days sales
outstanding
¼ Receivables
Average sales per day
¼ Receivables
Annual sales=365
¼ $375
$3;000=365
¼ $375
23. $8:2192
¼ 45:6 days ≈ 46 days
Industry average ¼ 36 days
MicroDrive’s sales terms call for payment within 30 days. The
fact that 46 days of
sales are outstanding indicates that customers, on average, are
not paying their bills
THE GLOBAL ECONOMIC CRISIS
The Price is Right! (Or Wrong!)
How much is an asset worth if no one is buying or sell-
ing? The answer to that question matters because an
accounting practice called “mark to market” requires
that some assets be adjusted on the balance sheet to
reflect their “fair market value.” The accounting rules
are complicated, but the general idea is that if an asset
is available for sale, then the balance sheet would be
most accurate if it showed the asset’s market value.
For example, suppose a company purchased $100 mil-
lion of Treasury bonds and the value of those bonds
later fell to $90 million. With mark to market, the com-
pany would report the bonds’ value on the balance
sheet as $90 million, not the original purchase price of
$100 million. Notice that marking to market can have a
significant impact on financial ratios and thus on inves-
tors’ perception of a firm’s financial health.
But what if the assets are mortgage-backed securi-
ties that were originally purchased for $100 million?
As defaults increased during 2008, the value of such se-
curities fell rapidly, and then investors virtually stopped
trading them. How should the company report them? At
the $100 million original price, at a $60 million price that
24. was observed before the market largely dried up, at $25
million when a hedge fund in desperate need for cash
to avoid a costly default sold a few of these securities,
or at $0, since there are no current quotes? Or should
they be reported at a price generated by a computer
model or in some other manner?
The answer to this question has vital implications for
the global financial crisis. In early 2009, Congress, the
SEC, FASB, and the U.S. Treasury all are working to
find the right answers. If they come up with a price
that is too low, it could cause investors mistakenly to
believe that some companies are worth much less
than their intrinsic values, and this could trigger runs
on banks and bankruptcies for companies that might
otherwise survive. But if the price is too high, some
“walking dead” or “zombie” companies could linger
on and later cause even larger losses for investors, in-
cluding the U.S. government, which is now the largest
investor in many financial institutions. Either way, an
error in pricing could perhaps trigger a domino effect
that might topple the entire financial system. So let’s
hope the price is right!
5It would be better to use average receivables, but we have used
year-end values for comparability with
the industry average.
Chapter 3: Analysis of Financial Statements 93
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website, in whole or in part.
25. on time. As with inventory, high levels of accounts receivable
cause high levels of
NOWC, which hurts FCF and stock price.
A customer who is paying late may well be in financial trouble,
in which case
MicroDrive may have a hard time ever collecting the receivable.
Therefore, if the trend
in DSO has been rising but the credit policy has not been
changed, steps should be taken
to review credit standards and to expedite the collection of
accounts receivable.
Evaluating Fixed Assets: The Fixed Assets Turnover Ratio
The fixed assets turnover ratio measures how effectively the
firm uses its plant and
equipment. It is the ratio of sales to net fixed assets:
Fixed assets turnover ratio ¼ Sales
Net fixed assets
¼ $3;000
$1;000
¼ 3:0
Industry average ¼ 3:0
MicroDrive’s ratio of 3.0 is equal to the industry average,
indicating that the firm is using
its fixed assets about as intensively as are other firms in its
industry. Therefore, Micro-
Drive seems to have about the right amount of fixed assets in
relation to other firms.
A potential problem can exist when interpreting the fixed assets
26. turnover ratio. Recall
from accounting that fixed assets reflect the historical costs of
the assets. Inflation has
caused the current value of many assets that were purchased in
the past to be seriously
understated. Therefore, if we were comparing an old firm that
had acquired many of its
fixed assets years ago at low prices with a new company that
had acquired its fixed
assets only recently, we would probably find that the old firm
had the higher fixed assets
turnover ratio. However, this would be more reflective of the
difficulty accountants
have in dealing with inflation than of any inefficiency on the
part of the new firm. You
should be alert to this potential problem when evaluating the
fixed assets turnover ratio.
Evaluating Total Assets: The Total Assets Turnover Ratio
The total assets turnover ratio is calculated by dividing sales by
total assets:
Total assets turnover ratio ¼ Sales
Total assets
¼ $3;000
$2;000
¼ 1:5
Industry average ¼ 1:8
MicroDrive’s ratio is somewhat below the industry average,
indicating that the com-
pany is not generating a sufficient volume of business given its
total asset investment.
Sales should be increased, some assets should be sold, or a
27. combination of these steps
should be taken.
Self-Test Identify four ratios that are used to measure how
effectively a firm is managing its
assets, and write out their equations.
What problem might arise when comparing different firms’
fixed assets turnover ratios?
A firm has annual sales of $200 million, $40 million of
inventory, and $60 million of
accounts receivable. What is its inventory turnover ratio? (5)
What is its DSO based
on a 365-day year? (109.5 days)
94 Part 1: Fundamental Concepts of Corporate Finance
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website, in whole or in part.
3.4 DEBT MANAGEMENT RATIOS
The extent to which a firm uses debt financing, or financial
leverage, has three im-
portant implications: (1) By raising funds through debt,
stockholders can maintain
control of a firm without increasing their investment. (2) If the
firm earns more on
investments financed with borrowed funds than it pays in
interest, then its share-
holders’ returns are magnified, or “leveraged,” but their risks
are also magnified. (3)
Creditors look to the equity, or owner-supplied funds, to
provide a margin of safety,
so the higher the proportion of funding supplied by
28. stockholders, the less risk cred-
itors face. Chapter 15 explains the first two points in detail,
while the following ratios
examine leverage from a creditor’s point of view.
How the Firm is Financed: Total Liabilities to Total Assets
The ratio of total liabilities to total assets is called the debt
ratio, or sometimes the
total debt ratio. It measures the percentage of funds provided by
current liabilities
and long-term debt:
Debt ratio ¼ Total liabilities
Total assets
¼ $310þ $754
$2;000
¼ $1;064
$2;000
¼ 53:2%
Industry average ¼ 40:0%
Creditors prefer low debt ratios because the lower the ratio, the
greater the cushion
against creditors’ losses in the event of liquidation.
Stockholders, on the other hand,
may want more leverage because it magnifies their return, as we
explain in Section
3.8 when we discuss the Du Pont model.
MicroDrive’s debt ratio is 53.2% but its debt ratio in the
previous year was 47.6%,
which means that creditors are now supplying more than half
the total financing. In
29. addition to an upward trend, the level of the debt ratio is well
above the industry av-
erage. Creditors may be reluctant to lend the firm more money
because a high debt
ratio is associated with a greater risk of bankruptcy.
Some sources report the debt-to-equity ratio, defined as:
Debt-to-equity ratio ¼ Total liabilities
Total assets − Total liabilities
¼ $310þ $754
$2;000 − ð$310þ $754Þ ¼
$1;064
$936
¼ 1:14
Industry average¼ 0:67
The debt-to-equity ratio and the debt ratio contain the same
information but present
that information slightly differently.6 The debt-to-equity ratio
shows that Micro-
Drive has $1.14 of debt for every dollar of equity, whereas the
debt ratio shows that
53.2% of MicroDrive’s financing is in the form of liabilities.
We find it more
6The debt ratio and debt-to-equity ratios are simply
transformations of each other:
Debt-to-equity ¼ Debt ratio
1�Debt ratio and Debt ratio ¼
Debt-to-equity
30. 1þDebt-to-equity
Chapter 3: Analysis of Financial Statements 95
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website, in whole or in part.
intuitive to think about the percentage of the firm that is
financed with debt, so we
usually use the debt ratio. However, the debt-to-equity ratio is
also widely used, so
you should know how to interpret it.
Sometimes it is useful to express debt ratios in terms of market
values. It is easy to
calculate the market value of equity, which is equal to the stock
price multiplied by
the number of shares. MicroDrive’s market value of equity is
$23(50) = $1,150. Often
it is difficult to estimate the market value of liabilities, so many
analysts define the
market debt ratio as
Market debt ratio ¼ Total liabilities
Total liabilitiesþMarket value of equity
¼ $1;064
$1;064þ ð$23 × 50Þ ¼
$1;064
$2;214
31. ¼ 48:1%
MicroDrive’s market debt ratio in the previous year was 38.1%.
The big increase
was due to two major factors: Liabilities increased and the stock
price fell. The
stock price reflects a company’s prospects for generating future
cash flows, so a de-
cline in stock price indicates a likely decline in future cash
flows. Thus, the market
debt ratio reflects a source of risk that is not captured by the
conventional book
debt ratio.
If you use a debt ratio that you did not calculate yourself, be
sure to find out
how the ratio was defined. Some sources provide the ratio of
long-term debt to total
assets, and some provide the ratio of all debt to equity, so be
sure to check your
source’s definition.
Ability to Pay Interest: Times-Interest-Earned Ratio
The times-interest-earned (TIE) ratio, also called the interest
coverage ratio, is
determined by dividing earnings before interest and taxes (EBIT
in Table 3-1) by the
interest expense:
Times-interest-earned ðTIEÞ ratio ¼ EBIT
Interest expense
¼ $283:8
$88
¼ 3:2
32. Industry average ¼ 6:0
The TIE ratio measures the extent to which operating income
can decline before
the firm is unable to meet its annual interest costs. Failure to
meet this obligation can
bring legal action by the firm’s creditors, possibly resulting in
bankruptcy. Note that
earnings before interest and taxes, rather than net income, is
used in the numerator.
Because interest is paid with pre-tax dollars, the firm’s ability
to pay current interest
is not affected by taxes.
MicroDrive’s interest is covered 3.2 times. The industry
average is 6, so
MicroDrive is covering its interest charges by a relatively low
margin of safety.
Thus, the TIE ratio reinforces the conclusion from our analysis
of the debt
ratio that MicroDrive would face difficulties if it attempted to
borrow additional
funds.
96 Part 1: Fundamental Concepts of Corporate Finance
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Ability to Service Debt: EBITDA Coverage Ratio
The TIE ratio is useful for assessing a company’s ability to
meet interest charges on its
debt, but this ratio has two shortcomings: (1) Interest is not the
33. only fixed financial
charge—companies must also reduce debt on schedule, and
many firms lease assets
and thus must make lease payments. If they fail to repay debt or
meet lease payments,
they can be forced into bankruptcy. (2) EBIT does not represent
all the cash flow avail-
able to service debt, especially if a firm has high depreciation
and/or amortization
charges. The EBITDA coverage ratio accounts for these
deficiencies:7
EBITDA coverage ratio ¼ EBITDAþ Lease payments
Interestþ Principal paymentsþ Lease payments
¼ $383:8þ $28
$88þ $20þ $28¼
$411:8
$136
¼ 3:0
Industry average ¼ 4:3
MicroDrive had $383.8 million of earnings before interest,
taxes, depreciation, and
amortization (EBITDA). Also, lease payments of $28 million
were deducted while
calculating EBITDA. That $28 million was available to meet
financial charges; hence
it must be added back, bringing the total available to cover
fixed financial charges to
$411.8 million. Fixed financial charges consisted of $88 million
of interest, $20 mil-
lion of sinking fund payments, and $28 million for lease
34. payments, for a total of $136
million.8 Therefore, MicroDrive covered its fixed financial
charges by 3.0 times.
However, if EBITDA declines then the coverage will fall, and
EBITDA certainly
can decline. Moreover, MicroDrive’s ratio is well below the
industry average, so
again the company seems to have a relatively high level of debt.
The EBITDA coverage ratio is most useful for relatively short-
term lenders such
as banks, which rarely make loans (except real estate-backed
loans) for longer than
about 5 years. Over a relatively short period, depreciation-
generated funds can be
used to service debt. Over a longer time, those funds must be
reinvested to maintain
the plant and equipment or else the company cannot remain in
business. Therefore,
banks and other relatively short-term lenders focus on the
EBITDA coverage ratio,
whereas long-term bondholders focus on the TIE ratio.
Self-Test How does the use of financial leverage affect current
stockholders’ control position?
Explain the following statement: “Analysts look at both balance
sheet and income
statement ratios when appraising a firm’s financial condition.”
Name three ratios that are used to measure the extent to which a
firm uses financial
leverage, and write out their equations.
A company has EBITDA of $600 million, interest payments of
$60 million, lease pay-
ments of $40 million, and required principal payments (due this
year) of $30 million.
What is its EBITDA coverage ratio? (4.9)
35. 7Different analysts define the EBITDA coverage ratio in
different ways. For example: some omit the lease
payment information; others “gross up” principal payments by
dividing them by 1 – T since these pay-
ments are not tax deductions and hence must be made with
after-tax cash flows. We included lease pay-
ments because for many firms they are quite important, and
failing to make them can lead to bankruptcy
just as surely as can failure to make payments on “regular”
debt. We did not gross up principal payments
because, if a company is in financial difficulty, then its tax rate
will probably be zero; hence the gross up is
not necessary whenever the ratio is really important.
8A sinking fund is a required annual payment designed to
reduce the balance of a bond or preferred stock
issue.
Chapter 3: Analysis of Financial Statements 97
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
3.5 PROFITABILITY RATIOS
Profitability is the net result of a number of policies and
decisions. The ratios exam-
ined thus far provide useful clues as to the effectiveness of a
firm’s operations, but the
profitability ratios go on to show the combined effects of
liquidity, asset manage-
ment, and debt on operating results.
Net Profit Margin
36. The net profit margin, which is also called the profit margin on
sales, is calculated
by dividing net income by sales. It gives the profit per dollar of
sales:
Net profit margin ¼
Net income available to
common stockholders
Sales
¼ $113:5
$3;000
¼ 3:8%
Industry average ¼ 5:0%
MicroDrive’s net profit margin is below the industry average of
5%, but why is this
so? Is it due to inefficient operations, high interest expenses, or
both?
Instead of just comparing net income to sales, many analysts
also break the income
statement into smaller parts to identify the sources of a low net
profit margin. For
example, the operating profit margin is defined as
Operating profit margin ¼ EBIT
Sales
The operating profit margin identifies how a company is
performing with respect to
its operations before the impact of interest expenses is
considered. Some analysts drill
even deeper by breaking operating costs into their components.
37. For example, the
gross profit margin is defined as
Gross profit margin ¼ Sales − Cost of goods sold
Sales
The gross profit margin identifies the gross profit per dollar of
sales before any other
expenses are deducted.
Rather than calculate each type of profit margin here, later in
the chapter we will
use common size analysis and percent change analysis to focus
on different parts of
the income statement. In addition, we will use the Du Pont
equation to show how
the ratios interact with one another.
Sometimes it is confusing to have so many different types of
profit margins. To
help simplify the situation, we will focus primarily on the net
profit margin through-
out the book and simply call it the “profit margin.”
Basic Earning Power (BEP) Ratio
The basic earning power (BEP) ratio is calculated by dividing
earnings before in-
terest and taxes (EBIT) by total assets:
98 Part 1: Fundamental Concepts of Corporate Finance
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
38. Basic earning power ðBEPÞ ratio ¼ EBIT
Total assets
¼ $283:8
$2;000
¼ 14:2%
Industry average ¼ 17:2%
This ratio shows the raw earning power of the firm’s assets
before the influence of
taxes and leverage, and it is useful for comparing firms with
different tax situations
and different degrees of financial leverage. Because of its low
turnover ratios and
low profit margin on sales, MicroDrive is not getting as high a
return on its assets
as is the average company in its industry.9
Return on Total Assets
The ratio of net income to total assets measures the return on
total assets (ROA)
after interest and taxes. This ratio is also called the return on
assets and is defined as
follows:
The World Might be Flat, but Global Accounting is Bumpy!
The Case of IFRS versus FASB
In a flat world, distance is no barrier. Work flows to
where it can be accomplished most efficiently, and cap-
ital flows to where it can be invested most profitably. If
a radiologist in India is more efficient than one in the
United States, then images will be e-mailed to India
for diagnosis; if rates of return are higher in Brazil,
39. then investors throughout the world will provide fund-
ing for Brazilian projects. One key to “flattening” the
world is agreement on common standards. For exam-
ple, there are common Internet standards so that users
throughout the world are able to communicate.
A glaring exception to standardization is in account-
ing. The Securities and Exchange Commission (SEC) in
the United States requires firms to comply with stan-
dards set by the Financial Accounting Standards Board
(FASB). But the European Union requires all EU-listed
companies to comply with the International Financial
Reporting Standards (IFRS) as defined by the Interna-
tional Accounting Standards Board (IASB).
IFRS tends to rely on general principles, whereas
FASB standards are rules-based. As the recent ac-
counting scandals demonstrate, many U.S. compa-
nies have been able to comply with U.S. rules while
violating the principle, or intent, underlying the rules.
The United States is likely to adopt IFRS, or a slightly
modified IFRS, but the question is “When?” The SEC
estimated that a large company is likely to incur
costs of up to $32 million when switching to IFRS.
So even though a survey by the accounting firm
KPMG indicates that most investors and analysts fa-
vor adoption of IFRS, the path to adoption is likely to
be bumpy.
Sources: See the Web sites of the IASB and the FASB, http://
www.iasb.org.uk and http://www.fasb.org. Also see David
M. Katz and Sarah Johnson, “Top Obama Advisers Clash on
Global Accounting Standards,” January 15, 2009, at http://
www.cfo.com; and “Survey Favors IFRS Adoption,” Febru-
ary 3, 2009, at http://www.webcpa.com.
40. 9Notice that EBIT is earned throughout the year, whereas the
total assets figure is an end-of-the-year
number. Therefore, it would be better, conceptually, to calculate
this ratio as EBIT/(Average assets)
= EBIT/[(Beginning assets + Ending assets)/2]. We have not
made this adjustment because the published
ratios used for comparative purposes do not include it.
However, when we construct our own comparative
ratios, we do make this adjustment. The same adjustment would
also be appropriate for the next two ra-
tios, ROA and ROE.
Chapter 3: Analysis of Financial Statements 99
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Return on
total assets
¼ ROA ¼
Net income available to
common stockholders
Total assets
¼ $113:5
$2;000
¼ 5:7%
Industry average ¼ 9:0%
MicroDrive’s 5.7% return is well below the 9% average for the
41. industry. This low
return is due to (1) the company’s low basic earning power and
(2) high interest costs
resulting from its above-average use of debt; both of these
factors cause MicroDrive’s
net income to be relatively low.
Return on Common Equity
The ratio of net income to common equity measures the return
on common equity
(ROE):
Return on
common equity
¼ ROE ¼
Net income available to
common stockholders
Common equity
¼ $113:5
$896
¼ 12:7%
Industry average ¼ 15:0%
Stockholders invest to earn a return on their money, and this
ratio tells how well they
are doing in an accounting sense. MicroDrive’s 12.7% return is
below the 15% in-
dustry average, but not as far below as its return on total assets.
This somewhat bet-
ter result is due to the company’s greater use of debt, a point
that we explain in detail
later in the chapter.
42. Self-Test Identify and write out the equations for four
profitability ratios.
Why is the basic earning power ratio useful?
Why does the use of debt lower ROA?
What does ROE measure?
A company has $200 billion of sales and $10 billion of net
income. Its total assets are
$100 billion, financed half by debt and half by common equity.
What is its profit
margin? (5%) What is its ROA? (10%) What is its ROE? (20%)
Would ROA increase if
the firm used less leverage? (Yes) Would ROE increase? (No)
3.6 MARKET VALUE RATIOS
Market value ratios relate a firm’s stock price to its earnings,
cash flow, and book
value per share. Market value ratios are a way to measure the
value of a company’s
stock relative to that of another company.
Price/Earnings Ratio
The price/earnings (P/E) ratio shows how much investors are
willing to pay per
dollar of reported profits. MicroDrive’s stock sells for $23, so
with an earnings per
share (EPS) of $2.27 its P/E ratio is 10.1:
100 Part 1: Fundamental Concepts of Corporate Finance
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
43. Price=earnings ðP=EÞ ratio ¼ Price per share
Earnings per share
¼ $23:00
$2:27
¼ 10:1
Industry average ¼ 12:5
Price/earnings ratios are higher for firms with strong growth
prospects, other things
held constant, but they are lower for riskier firms. Because
MicroDrive’s P/E ratio is
below the average, this suggests that the company is regarded as
being somewhat
riskier than most, as having poorer growth prospects, or both. In
early 2009, the av-
erage P/E ratio for firms in the S&P 500 was 12.54, indicating
that investors were
willing to pay $12.54 for every dollar of earnings.
Price/Cash Flow Ratio
Stock prices depend on a company’s ability to generate cash
flows. Consequently, in-
vestors often look at the price/cash flow ratio, where cash flow
is defined as net in-
come plus depreciation and amortization:
Price=cash flow ratio ¼ Price per share
Cash flow per share
¼ $23:00
$4:27
¼ 5:4
Industry average ¼ 6:8
44. MicroDrive’s price/cash flow ratio is also below the industry
average, once again
suggesting that its growth prospects are below average, its risk
is above average,
or both.
The price/EBITDA ratio is similar to the price/cash flow ratio,
except the price/
EBITDA ratio measures performance before the impact of
interest expenses and
taxes, making it a better measure of operating performance.
MicroDrive’s EBITDA
per share is $383.8/50 = $7.676, so its price/EBITDA is
$23/$7.676 = 3.0. The indus-
try average price/EBITDA ratio is 4.6, so we see again that
MicroDrive is below the
industry average.
Note that some analysts look at other multiples as well. For
example, depending
on the industry, some may look at measures such as price/sales
or price/customers.
Ultimately, though, value depends on free cash flows, so if
these “exotic” ratios do
not forecast future free cash flow, they may turn out to be
misleading. This was
true in the case of the dot-com retailers before they crashed and
burned in 2000,
costing investors many billions.
Market/Book Ratio
The ratio of a stock’s market price to its book value gives
another indication of how
investors regard the company. Companies with relatively high
rates of return on eq-
45. uity generally sell at higher multiples of book value than those
with low returns.
First, we find MicroDrive’s book value per share:
Chapter 3: Analysis of Financial Statements 101
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Book value per share ¼ Common equity
Shares outstanding
¼ $896
50
¼ $17:92
Now we divide the market price by the book value to get a
market/book (M/B)
ratio of 1.3 times:
Market=book ratio ¼ M=B ¼ Market price per share
Book value per share
¼ $23:00
$17:92
¼ 1:3
Industry average ¼ 1:7
Investors are willing to pay relatively little for a dollar of
MicroDrive’s book value.
The average company in the S&P 500 had a market/book ratio
46. of about 2.50 in
early 2009. Since M/B ratios typically exceed 1.0, this means
that investors are willing
to pay more for stocks than their accounting book values. The
book value is a record
of the past, showing the cumulative amount that stockholders
have invested, either
directly by purchasing newly issued shares or indirectly through
retaining earnings.
In contrast, the market price is forward-looking, incorporating
investors’ expectations
of future cash flows. For example, in early 2009 Alaska Air had
a market/book ratio
of only 0.81, reflecting the airline industry’s problems, whereas
Apple’s market/book
ratio was 3.45, indicating that investors expected Apple’s past
successes to continue.
Table 3-2 summarizes MicroDrive’s financial ratios. As the
table indicates, the
company has many problems.
Self-Test Describe three ratios that relate a firm’s stock price to
its earnings, cash flow, and
book value per share, and write out their equations.
What does the price/earnings (P/E) ratio show? If one firm’s
P/E ratio is lower than
that of another, what are some factors that might explain the
difference?
How is book value per share calculated? Explain why book
values often deviate from
market values.
A company has $6 billion of net income, $2 billion of
depreciation and amortization,
$80 billion of common equity, and 1 billion shares of stock. If
47. its stock price is $96
per share, what is its price/earnings ratio? (16) Its price/cash
flow ratio? (12) Its mar-
ket/book ratio? (1.2)
3.7 TREND ANALYSIS, COMMON SIZE ANALYSIS,
AND PERCENTAGE CHANGE ANALYSIS
Trends give clues as to whether a firm’s financial condition is
likely to improve or
deteriorate. To do a trend analysis, you examine a ratio over
time, as shown in
Figure 3-1. This graph shows that MicroDrive’s rate of return
on common equity
has been declining since 2007, even though the industry average
has been relatively
stable. All the other ratios could be analyzed similarly.
In a common size analysis, all income statement items are
divided by sales and
all balance sheet items are divided by total assets. Thus, a
common size income state-
102 Part 1: Fundamental Concepts of Corporate Finance
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
MicroDr ive Inc.: Summary of F inancial Rat ios (Mi l l ions of
Dol lars)TABLE 3-2
RATIO FORMULA CALCULATION RATIO
INDUSTRY
AVERAGE COMMENT
48. Liquidity
Current
Current assets
Current liabilities
$1;000
$310
¼ 3.2 4.2 Poor
Quick
Current assets − Inventories
Current liabilities
$385
$310
¼ 1.2 2.1 Poor
Asset Management
Inventory turnover
Sales
Inventories
$3;000
$615
¼ 4.9 9.0 Poor
Days sales outstanding
(DSO)
49. Receivables
Annual sales=365
$375
$8:219
¼ 45.6 36.0 Poor
Fixed assets turnover
Sales
Net fixed assets
$3;000
$1;000
¼ 3.0 3.0 OK
Total assets turnover
Sales
Total assets
$3;000
$2;000
¼ 1.5 1.8 Poor
Debt Management
Debt ratio
Total liabilities
Total assets
$1;064
50. $2;000
¼ 53.2% 40.0% High (risky)
Times-interest-earned
(TIE)
Earnings before interest and taxes ðEBITÞ
Interest charges
$283:8
$88
¼ 3.2 6.0 Low (risky)
EBITDA coverage
EBITDAþ Lease pmts:
Interestþ Principal payments þ Lease pmts:
$411:8
$136
¼ 3.0 4.3 Low (risky)
Profitability
Profit margin on sales
Net income available to common stockholders
Sales
$113:5
$3;000
¼ 3.8% 5.0% Poor
51. Basic earning power
(BEP)
Earnings before interest and taxes ðEBITÞ
Total assets
$283:8
$2;000
¼ 14.2% 17.2% Poor
Return on total assets
(ROA)
Net income available to common stockholders
Total assets
$113:5
$2;000
¼ 5.7% 9.0% Poor
Return on common
equity (ROE)
Net income available to common stockholders
Common equity
$113:5
$896
¼ 12.7% 15.0% Poor
Market Value
Price/earnings (P/E)
52. Price per share
Earnings per share
$23:00
$2:27
¼ 10.1 12.5 Low
Price/cash flow
Price per share
Cash flow per share
$23:00
$4:27
¼ 5.4 6.8 Low
Market/book (M/B)
Market price per share
Book value per share
$23:00
$17:92
¼ 1.3 1.7 Low
Chapter 3: Analysis of Financial Statements 103
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
53. ment shows each item as a percentage of sales, and a common
size balance sheet
shows each item as a percentage of total assets.10 The
advantage of common size
analysis is that it facilitates comparisons of balance sheets and
income statements
over time and across companies.
Common size statements are easy to generate if the financial
statements are in a
spreadsheet. In fact, if you obtain your data from a source that
uses standardized
financial statements, then it is easy to cut and paste the data for
a new company
over your original company’s data, and all of your spreadsheet
formulas will be valid
for the new company. We generated Figure 3-2 in the Excel file
Ch03 Tool Kit.xls.
Figure 3-2 shows MicroDrive’s 2009 and 2010 common size
income statements,
along with the composite statement for the industry. (Note:
Rounding may cause ad-
dition/subtraction differences in Figures 3-2, 3-3, and 3-4.)
MicroDrive’s EBIT is
slightly below average, and its interest expenses are slightly
above average. The net
effect is a relatively low profit margin.
Figure 3-3 shows MicroDrive’s common size balance sheets
along with the industry
composite. Its accounts receivable are significantly higher than
the industry average, its
inventories are significantly higher, and it uses much more debt
than the average firm.
In percentage change analysis, growth rates are calculated for
54. all income statement
items and balance sheet accounts relative to a base year. To
illustrate, Figure 3-4 contains
MicroDrive’s income statement percentage change analysis for
2010 relative to 2009. Sales
increased at a 5.3% rate during 2010, but EBITDA increased by
8.7%. This “good news”
was offset by a 46.7% increase in interest expense. The
significant growth in interest
expense caused growth in net income to be negative. Thus, the
percentage change analy-
sis points out that the decrease in net income in 2010 resulted
almost exclusively from an
increase in interest expense. This conclusion could be reached
by analyzing dollar
F IGURE 3-1 Rate of Return on Common Equity, 2006–2010
0.0%
4.0%
8.0%
12.0%
16.0%
Industry
MicroDrive
2006 2007 2008 2009 2010
ROE
(%)
55. 10Some sources of industry data, such as Risk Management
Associates (formerly known as Robert Morris
Associates), are presented exclusively in common size form.
resource
See Ch03 Tool Kit.xls.
104 Part 1: Fundamental Concepts of Corporate Finance
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
amounts, but percentage change analysis simplifies the task. We
apply the same type of
analysis to the balance sheets (see the file Ch03 Tool Kit.xls),
which shows that invento-
ries grew at a whopping 48.2% rate. With only a 5.3% growth in
sales, the extreme
growth in inventories should be of great concern to
MicroDrive’s managers.
Self-Test What is a trend analysis, and what important
information does it provide?
What is common size analysis?
What is percentage change analysis?
F IGURE 3-2 MicroDrive Inc.: Common Size Income Statement
Net sales
Operating costs
Earnings before interest, taxes, depr. & amort. (EBITDA)
60. Accounts receivable
Inventories
Total current assets
Net plant and equipment
Total assets
Accounts payable
Notes payable
Accruals
Total current liabilities
Long-term bonds
Total liabilities
Preferred stock
Total common equity
Total liabilities and equity
Liabilities and equity
185
186
187
188
189
190
191
192
193
194
195
196
61. 197
198
199
200
201
202
203
204
205
206
resource
See Ch03 Tool Kit.xls for
details.
Chapter 3: Analysis of Financial Statements 105
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
3.8 TYING THE RATIOS TOGETHER:
THE DU PONT EQUATION
In ratio analysis, it is sometimes easy to miss the forest for all
the trees. The Du
Pont equation provides a framework that ties together a firm’s
profitability, asset
efficiency, and use of debt. The return on assets (ROA) can be
expressed as the profit
margin multiplied by the total assets turnover ratio:
62. ROA ¼ Profit margin × Total assets turnover
¼ Net income
Sales
×
Sales
Total assets
(3-1)
For MicroDrive, the ROA is
ROA = 3.8% × 1.5 = 5.7%
MicroDrive made 3.8%, or 3.8 cents, on each dollar of sales,
and its assets were
turned over 1.5 times during the year. Therefore, the company
earned a return of
5.7% on its assets.
To find the return on equity (ROE), multiply the ROA by the
equity multiplier,
which is the ratio of assets to common equity:
Equity multiplier ¼ Total assets
Common equity
(3-2)
Firms that have a lot of leverage (i.e., a lot of liabilities or
preferred stock) have a
high equity multiplier because the assets are financed with a
relatively smaller
amount of equity. Therefore, the return on equity (ROE)
63. depends on the ROA and
the use of leverage:
F IGURE 3-4 MicroDrive Inc.: Income Statement Percentage
Change Analysis
Base Year = 2009
Percent
Change in
2010
5.3%
4.8%
8.7%
11.1%
7.9%
46.7%
(3.5%)
(3.5%)
(3.5%)
0.0%
(3.7%)
Net sales
Operating costs
Earnings before interest, taxes, depr. & amort. (EBITDA)
Depreciation and amortization
Earnings before interest and taxes (EBIT)
Less interest
64. Earnings before taxes (EBT)
Taxes (40%)
Net income before preferred dividends
Preferred dividends
Net income available to common stockholders
213
214
215
216
217
218
219
220
221
222
223
224
225
226
resource
See Ch03 Tool Kit.xls for
details.
106 Part 1: Fundamental Concepts of Corporate Finance
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65. scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
ROE ¼ ROA × Equity multiplier
¼ Net income
Total assets
×
Total assets
Common equity
(3-3)
MicroDrive’s ROE is
ROE ¼ 5:7% × $2;000=$896
¼ 5:7% × 2:23
¼ 12:7%
Combining Equations 3-1 and 3-3 gives the extended, or
modified, Du Pont equation,
which shows how the profit margin, the total assets turnover
ratio, and the equity
multiplier combine to determine the ROE:
ROE ¼ ðProfit marginÞðTotal assets turnoverÞðEquity
multiplierÞ
¼ Net income
Sales
×
Sales
66. Total assets
×
Total assets
Common equity
(3-4)
For MicroDrive, we have
ROE ¼ ð3:8%Þð1:5Þð2:23Þ
¼ 12:7%
The insights provided by the Du Pont model are valuable, and
the model can be used
for “quick and dirty” estimates of the impact that operating
changes have on returns. For
example, holding all else equal, if MicroDrive can implement
lean production techniques
and increase to 1.8 its ratio of sales to total assets, then its ROE
will improve to
(3.8%)(1.8)(2.23) = 15.25%. For a more complete “what if”
analysis, most companies
use a forecasting model such as the one described in Chapter
12.
Self-Test
Explain how the extended, or modified, Du Pont equation can be
used to reveal the
basic determinants of ROE.
What is the equity multiplier?
A company has a profit margin of 6%, a total asset turnover
ratio of 2, and an equity
multiplier of 1.5. What is its ROE? (18%)
67. 3.9 COMPARATIVE RATIOS AND BENCHMARKING
Ratio analysis involves comparisons. A company’s ratios are
compared with those of
other firms in the same industry—that is, with industry average
figures. However, like
most firms, MicroDrive’s managers go one step further: they
also compare their ratios
with those of a smaller set of the leading computer companies.
This technique is called
benchmarking, and the companies used for the comparison are
called benchmark
companies. For example, MicroDrive benchmarks against five
other firms that its man-
agement considers to be the best-managed companies with
operations similar to its own.
Many companies also benchmark various parts of their overall
operation against top
companies, whether they are in the same industry or not. For
example, MicroDrive has a
division that sells hard drives directly to consumers through
catalogs and the Internet. This
division’s shipping department benchmarks against L.L.Bean,
even though they are in dif-
ferent industries, because L.L.Bean’s shipping department is
one of the best. MicroDrive
wants its own shippers to strive to match L.L.Bean’s record for
on-time shipments.
Chapter 3: Analysis of Financial Statements 107
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
68. Comparative ratios are available from a number of sources,
including Value Line, Dun
and Bradstreet (D&B), and the Annual Statement Studies
published by Risk Management
Associates, which is the national association of bank loan
officers. Table 3-3 reports se-
lected ratios from Reuters for Apple and its industry, revealing
that Apple has a much
higher profit margin and lower debt ratio than its peers.
Each data-supplying organization uses a somewhat different set
of ratios designed for
its own purposes. For example, D&B deals mainly with small
firms, many of which are
proprietorships, and it sells its services primarily to banks and
other lenders. Therefore,
D&B is concerned largely with the creditor’s viewpoint, and its
ratios emphasize current
assets and liabilities, not market value ratios. So, when you
select a comparative data
source, you should be sure that your own emphasis is similar to
that of the agency whose
ratios you plan to use. Additionally, there are often definitional
differences in the ratios
presented by different sources, so before using a source, be sure
to verify the exact defi-
nitions of the ratios to ensure consistency with your own work.
Self-Test Differentiate between trend analysis and comparative
ratio analysis.
What is benchmarking?
3.10 USES AND LIMITATIONS OF RATIO ANALYSIS
Ratio analysis provides useful information concerning a
company’s operations and fi-
69. nancial condition, but it has limitations that necessitate care and
judgment. Some po-
tential problems include the following.
Comparat ive Rat ios for Apple Inc., the Computer Hardware
Indust ry,
the Technology Sector, and the S&P 500
TABLE 3-3
RATIO APPLE
COMPUTER
HARDWARE
INDUSTRYa
TECHNOLOGY
SECTORb S&P 500
P/E ratio 15.92 7.88 8.75 17.93
Market to book 3.60 3.12 2.90 6.84
Price to tangible book 3.70 4.41 3.87 8.73
Price to cash flow 14.30 6.70 4.58 12.01
Net profit margin 14.88 3.32 4.92 11.18
Quick ratio 2.43 1.86 1.97 1.04
Current ratio 2.46 2.21 2.36 1.28
Long-term debt to equity 0.00 20.05 18.28 151.80
Total debt to equity 0.00 30.32 27.38 197.45
Interest coverage (TIE)c — 0.15 1.12 31.97
Return on assets 14.89 4.07 4.90 8.05
Return on equity 27.19 8.27 7.68 19.09
Inventory turnover 49.90 12.99 3.09 9.71
Asset turnover 1.00 0.37 0.46 0.79
aThe computer hardware industry is composed of fifty firms,
including IBM, Dell, Apple, SunMicrosystems, Gateway, and
70. Silicon Graphics.
bThe technology sector contains eleven industries, including
communications equipment, computer hardware, computer
networks,
semiconductors, and software and programming.
cApple had more interest income than interest expense.
Source: Adapted from http://www.investor.reuters.com, January
17, 2009.
WWW
To find quick information
about a company, go to
http://www.investor
.reuters.com. Here you can
find company profiles,
stock price and share
information, and several
key ratios.
108 Part 1: Fundamental Concepts of Corporate Finance
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
1. Many large firms operate different divisions in different
industries, and for such
companies it is difficult to develop a meaningful set of industry
averages. There-
fore, industry averages are more applicable to small, narrowly
focused firms than
to large, multidivisional ones.
71. 2. To set goals for high-level performance, it is best to
benchmark on the industry
leaders’ ratios rather than the industry average ratios.
3. Inflation may have badly distorted firms’ balance sheets—
reported values are often
substantially different from “true” values. Further, because
inflation affects depre-
ciation charges and inventory costs, reported profits are also
affected. Thus, infla-
tion can distort a ratio analysis for one firm over time or a
comparative analysis of
firms of different ages.
4. Seasonal factors can also distort a ratio analysis. For
example, the inventory
turnover ratio for a food processor will be radically different if
the balance
sheet figure used for inventory is the one just before versus the
one just after
the close of the canning season. This problem can be minimized
by using
monthly averages for inventory (and receivables) when
calculating turnover
ratios.
5. Firms can employ “window dressing” techniques to make
their financial state-
ments look stronger. To illustrate, suppose a company takes out
a 2-year loan in
late December. Because the loan is for more than one year, it is
not included in
current liabilities even though the cash received through the
loan is reported as a
current asset. This improves the current and quick ratios and
72. makes the year-end
balance sheet look stronger. If the company pays the loan back
in January, then
the transaction was strictly window dressing.
6. Companies’ choices of different accounting practices can
distort comparisons. For
example, choices of different inventory valuation and
depreciation methods affect
financial statements differently, making comparisons among
companies less mean-
ingful. As another example, if one firm leases a substantial
amount of its produc-
tive equipment, then its assets may appear low relative to sales
(because leased
assets often do not appear on the balance sheet) and its debt
may appear low (be-
cause the liability associated with the lease obligation may not
be shown as debt).11
In summary, conducting ratio analysis in a mechanical,
unthinking manner is
dangerous, but when ratio analysis is used intelligently and with
good judgment, it
can provide useful insights into a firm’s operations and identify
the right questions
to ask.
Ratio Analysis on the Web
A great source for comparative ratios is http://www
.investor.reuters.com. You have to register to use the
site, but registration is free. Once you register and log in,
select Stocks; enter a company’s ticker symbol, select the
Symbol ratio button, and then click the Go button. This
73. brings up a table with the stock quote, company informa-
tion, and additional links. Select Ratios, which brings up a
page with a detailed ratio analysis for the company and
includes comparative ratios for other companies in the
same sector, the same industry, and the S&P 500.
11This may change when FASB and IASB complete their joint
project on leasing. But it may be a while
before this happens; in early 2009, the estimated project
completion date was 2011. See http://
72.3.243.42/project/leases.shtml for updates.
Chapter 3: Analysis of Financial Statements 109
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Self-Test List several potential problems with ratio analysis.
3.11 LOOKING BEYOND THE NUMBERS
Sound financial analysis involves more than just calculating and
comparing ratios—
qualitative factors must be considered. Here are some questions
suggested by the
American Association of Individual Investors (AAII).
1. To what extent are the company’s revenues tied to one key
customer or to one
key product? To what extent does the company rely on a single
supplier? Reliance
on single customers, products, or suppliers increases risk.
2. What percentage of the company’s business is generated
74. overseas? Companies
with a large percentage of overseas business are exposed to risk
of currency
exchange volatility and political instability.
3. What are the probable actions of current competitors and the
likelihood of
additional new competitors?
4. Do the company’s future prospects depend critically on the
success of products
currently in the pipeline or on existing products?
5. How does the legal and regulatory environment affect the
company?
Self-Test What are some qualitative factors that analysts should
consider when evaluating a
company’s likely future financial performance?
Summary
This chapter explained techniques used by investors and
managers to analyze finan-
cial statements. The key concepts covered are listed below.
• Liquidity ratios show the relationship of a firm’s current
assets to its current
liabilities and thus its ability to meet maturing debts. Two
commonly used
liquidity ratios are the current ratio and the quick, or acid test,
ratio.
• Asset management ratios measure how effectively a firm is
managing its assets.
These ratios include inventory turnover, days sales outstanding,
fixed assets
75. turnover, and total assets turnover.
• Debt management ratios reveal (1) the extent to which the firm
is financed
with debt and (2) its likelihood of defaulting on its debt
obligations. They
include the debt ratio, the times-interest-earned ratio, and the
EBITDA
coverage ratio.
• Profitability ratios show the combined effects of liquidity,
asset management,
and debt management policies on operating results. They
include the net profit
margin (also called the profit margin on sales), the basic
earning power ratio,
the return on total assets, and the return on common equity.
• Market value ratios relate the firm’s stock price to its
earnings, cash flow, and
book value per share, thus giving management an indication of
what investors
think of the company’s past performance and future prospects.
These include the
price/earnings ratio, the price/cash flow ratio, and the
market/book ratio.
• Trend analysis, in which one plots a ratio over time, is
important because it reveals
whether the firm’s condition has been improving or
deteriorating over time.
• The Du Pont system is designed to show how the profit margin
on sales, the
assets turnover ratio, and the use of debt all interact to
determine the rate of
76. 110 Part 1: Fundamental Concepts of Corporate Finance
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website, in whole or in part.
return on equity. The firm’s management can use the Du Pont
system to analyze
ways of improving performance.
• Benchmarking is the process of comparing a particular
company with a group
of similar successful companies.
Ratio analysis has limitations, but when used with care and
judgment it can be very
helpful.
Questions
(3–1) Define each of the following terms:
a. Liquidity ratios: current ratio; quick, or acid test, ratio
b. Asset management ratios: inventory turnover ratio; days sales
outstanding
(DSO); fixed assets turnover ratio; total assets turnover ratio
c. Financial leverage ratios: debt ratio; times-interest-earned
(TIE) ratio; coverage
ratio
d. Profitability ratios: profit margin on sales; basic earning
power (BEP) ratio; return
77. on total assets (ROA); return on common equity (ROE)
e. Market value ratios: price/earnings (P/E) ratio; price/cash
flow ratio; market/
book (M/B) ratio; book value per share
f. Trend analysis; comparative ratio analysis; benchmarking
g. Du Pont equation; window dressing; seasonal effects on
ratios
(3–2) Financial ratio analysis is conducted by managers, equity
investors, long-term cred-
itors, and short-term creditors. What is the primary emphasis of
each of these groups
in evaluating ratios?
(3–3) Over the past year, M. D. Ryngaert & Co. has realized an
increase in its current ratio
and a drop in its total assets turnover ratio. However, the
company’s sales, quick
ratio, and fixed assets turnover ratio have remained constant.
What explains these
changes?
(3–4) Profit margins and turnover ratios vary from one industry
to another. What differ-
ences would you expect to find between a grocery chain such as
Safeway and a steel
company? Think particularly about the turnover ratios, the
profit margin, and the
Du Pont equation.
(3–5) How might (a) seasonal factors and (b) different growth
rates distort a comparative
ratio analysis? Give some examples. How might these problems
be alleviated?
78. (3–6) Why is it sometimes misleading to compare a company’s
financial ratios with those of
other firms that operate in the same industry?
Self-Test Problems
Solution
s Appear in Appendix A
(ST–1)
Debt Ratio
Argent Corporation had earnings per share of $4 last year, and
it paid a $2 divi-
dend. Total retained earnings increased by $12 million during
the year, and book
value per share at year-end was $40. Argent has no preferred
stock, and no new
common stock was issued during the year. If Argent’s year-end
debt (which
equals its total liabilities) was $120 million, what was the
company’s year-end
debt/assets ratio?
Chapter 3: Analysis of Financial Statements 111
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
(ST–2)
Ratio Analysis
The following data apply to Jacobus and Associates (millions of
dollars):
Jacobus has no preferred stock—only common equity, current
liabilities, and long-
term debt.
a. Find Jacobus’s (1) accounts receivable, (2) current liabilities,
(3) current assets,
(4) total assets, (5) ROA, (6) common equity, and (7) long-term
debt.
b. In part a, you should have found Jacobus’s accounts
receivable = $111.1 million.
If Jacobus could reduce its DSO from 40.55 days to 30.4 days
while holding
80. other things constant, how much cash would it generate? If this
cash were used
to buy back common stock (at book value), thus reducing the
amount of common
equity, how would this affect (1) the ROE, (2) the ROA, and (3)
the ratio of total
debt to total assets?
Problems Answers Appear in Appendix B
EASY PROBLEMS 1–5
(3–1)
Days Sales Outstanding
Greene Sisters has a DSO of 20 days. The company’s average
daily sales are $20,000.
What is the level of its accounts receivable? Assume there are
365 days in a year.
(3–2)
Debt Ratio
Vigo Vacations has an equity multiplier of 2.5. The company’s
assets are financed with some
combination of long-term debt and common equity. What is the
81. company’s debt ratio?
(3–3)
Market/Book Ratio
Winston Washers’s stock price is $75 per share. Winston has
$10 billion in total as-
sets. Its balance sheet shows $1 billion in current liabilities, $3
billion in long-term
debt, and $6 billion in common equity. It has 800 million shares
of common stock
outstanding. What is Winston’s market/book ratio?
(3–4)
Price/Earnings Ratio
A company has an EPS of $1.50, a cash flow per share of $3.00,
and a price/cash flow
ratio of 8.0. What is its P/E ratio?
(3–5)
ROE
Needham Pharmaceuticals has a profit margin of 3% and an
equity multiplier of 2.0.
82. Its sales are $100 million and it has total assets of $50 million.
What is its ROE?
INTERMEDIATE PROBLEMS
6–10
(3–6)
Du Pont Analysis
Donaldson & Son has an ROA of 10%, a 2% profit margin, and
a return on equity equal
to 15%.What is the company’s total assets turnover? What is the
firm’s equity multiplier?
(3–7)
Current and Quick
Ratios
Ace Industries has current assets equal to $3 million. The
company’s current ratio is
1.5, and its quick ratio is 1.0. What is the firm’s level of current
liabilities? What is
the firm’s level of inventories?
83. Cash and marketable securities $ 100.00
Fixed assets $ 283.50
Sales $1,000.00
Net income $ 50.00
Quick ratio 2.0
Current ratio 3.0
DSO 40.55 days
ROE 12%
112 Part 1: Fundamental Concepts of Corporate Finance
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
(3–8)
Profit Margin and Debt
Ratio
Assume you are given the following relationships for the
Clayton Corporation:
84. Sales/total assets 1.5
Return on assets (ROA) 3%
Return on equity (ROE) 5%
Calculate Clayton’s profit margin and debt ratio.
(3–9)
Current and Quick
Ratios
The Nelson Company has $1,312,500 in current assets and
$525,000 in current liabili-
ties. Its initial inventory level is $375,000, and it will raise
funds as additional notes pay-
able and use them to increase inventory. How much can
Nelson’s short-term debt (notes
payable) increase without pushing its current ratio below 2.0?
What will be the firm’s
quick ratio after Nelson has raised the maximum amount of
short-term funds?
(3–10)
Times-Interest-Earned
85. Ratio
The Manor Corporation has $500,000 of debt outstanding, and it
pays an interest
rate of 10% annually: Manor’s annual sales are $2 million, its
average tax rate is
30%, and its net profit margin on sales is 5%. If the company
does not maintain a
TIE ratio of at least 5 to 1, then its bank will refuse to renew
the loan and bank-
ruptcy will result. What is Manor’s TIE ratio?
CHALLENGING PROBLEMS
11–14
(3–11)
Balance Sheet Analysis
Complete the balance sheet and sales information in the table
that follows for Hoff-
meister Industries using the following financial data:
Debt ratio: 50%
Quick ratio: 0.80
Total assets turnover: 1.5
86. Days sales outstanding: 36.5 daysa
Gross profit margin on sales: (Sales – Cost of goods sold)/Sales
= 25%
Inventory turnover ratio: 5.0
aCalculation is based on a 365-day year.
Balance Sheet
Cash Accounts payable
Accounts receivable Long-term debt 60,000
Inventories Common stock
Fixed assets Retained earnings 97,500
Total assets $300,000 Total liabilities and equity
Sales Cost of goods sold
(3–12)
Comprehensive Ratio
Calculations
The Kretovich Company had a quick ratio of 1.4, a current ratio
of 3.0, an inventory
turnover of 6 times, total current assets of $810,000, and cash
and marketable securities
87. of $120,000. What were Kretovich’s annual sales and its DSO?
Assume a 365-day year.
(3–13)
Comprehensive Ratio
Analysis
Data for Morton Chip Company and its industry averages
follow.
a. Calculate the indicated ratios for Morton.
b. Construct the extended Du Pont equation for both Morton and
the industry.
c. Outline Morton’s strengths and weaknesses as revealed by
your analysis.
d. Suppose Morton had doubled its sales as well as its
inventories, accounts receiv-
able, and common equity during 2010. How would that
information affect the
validity of your ratio analysis? (Hint: Think about averages and
the effects of
rapid growth on ratios if averages are not used. No calculations
are needed.)
88. Chapter 3: Analysis of Financial Statements 113
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Morton Chip Company: Balance Sheet as of December 31, 2010
(Thousands of Dol lars)
Cash $ 77,500 Accounts payable $129,000
Receivables 336,000 Notes payable 84,000
Inventories 241,500 Other current liabilities 117,000
Total current assets $655,000 Total current liabilities $330,000
Net fixed assets 292,500 Long-term debt 256,500
Common equity 361,000
Total assets $947,500 Total liabilities and equity $947,500
Morton Chip Company: Income Statement for Year Ended
December
31, 2010 (Thousands of Dol lars)
89. Sales $1,607,500
Cost of goods sold 1,392,500
Selling, general, and administrative expenses 145,000
Earnings before interest and taxes (EBIT) $ 70,000
Interest expense 24,500
Earnings before taxes (EBT) $ 45,500
Federal and state income taxes (40%) 18,200
Net income $ 27,300
Ratio Morton Industry Average
Current assets/Current liabilities 2.0
Days sales outstandinga 35.0 days
Sales/Inventory 6.7
Sales/Fixed assets 12.1
Sales/Total assets 3.0
Net income/Sales 1.2%
Net income/Total assets 3.6%
Net income/Common equity 9.0%
Total debt/Total assets 60.0%
aCalculation is based on a 365-day year.
90. (3–14)
Comprehensive Ratio
Analysis
The Jimenez Corporation’s forecasted 2011 financial statements
follow, along with
some industry average ratios.
a. Calculate Jimenez’s 2011 forecasted ratios, compare them
with the industry average
data, and comment briefly on Jimenez’s projected strengths and
weaknesses.
b. What do you think would happen to Jimenez’s ratios if the
company initiated
cost-cutting measures that allowed it to hold lower levels of
inventory and
substantially decreased the cost of goods sold? No calculations
are necessary:
Think about which ratios would be affected by changes in these
two
accounts.
114 Part 1: Fundamental Concepts of Corporate Finance
91. 2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
J imenez Corporat ion: Forecasted Balance Sheet as of
December 31, 2011
Assets
Cash $ 72,000
Accounts receivable 439,000
Inventories 894,000
Total current assets $1,405,000
Fixed assets 431,000
Total assets $1,836,000
Liabilities and Equity
Accounts and notes payable $ 432,000
Accruals 170,000
Total current liabilities $ 602,000
Long-term debt 404,290
92. Common stock 575,000
Retained earnings 254,710
Total liabilities and equity $1,836,000
J imenez Corporat ion: Forecasted Income Statement for 2011
Sales $4,290,000
Cost of goods sold 3,580,000
Selling, general, and administrative expenses 370,320
Depreciation 159,000
Earnings before taxes (EBT) $ 180,680
Taxes (40%) 72,272
Net income $ 108,408
Per Share Data
EPS $ 4.71
Cash dividends per share $ 0.95
P/E ratio 5
Market price (average) $ 23.57
Number of shares outstanding 23,000
Industry Financial Ratios (2010)a
Quick ratio 1.0
93. Current ratio 2.7
Inventory turnoverb 7.0
Days sales outstandingc 32 days
Fixed assets turnoverb 13.0
Total assets turnoverb 2.6
Return on assets 9.1%
Return on equity 18.2%
Debt ratio 50.0%
Profit margin on sales 3.5%
P/E ratio 6.0
Price/Cash flow ratio 3.5
aIndustry average ratios have been constant for the past 4 years.
bBased on year-end balance sheet figures.
cCalculation is based on a 365-day year.
Chapter 3: Analysis of Financial Statements 115
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
SPREADSHEET PROBLEM
94. (3-15)
Build a Model: Ratio
Analysis
Start with the partial model in the file Ch03 P15 Build a
Model.xls from the textbook’s
Web site. Joshua & White (J&W) Technologies’s financial
statements are also shown
below. Answer the following questions. (Note: Industry average
ratios are provided in
Ch03 P15 Build a Model.xls.)
a. Has J&W’s liquidity position improved or worsened?
Explain.
b. Has J&W’s ability to manage its assets improved or
worsened? Explain.
c. How has J&W’s profitability changed during the last year?
d. Perform an extended Du Pont analysis for J&W for 2009 and
2010. What do
these results tell you?
e. Perform a common size analysis. What has happened to the
composition (that is,
95. percentage in each category) of assets and liabilities?
f. Perform a percentage change analysis. What does this tell you
about the change
in profitability and asset utilization?
Joshua & White Technologies: December 31 Balance Sheets
(Thousands of Dol lars)
Assets 2010 2009
Liabil i t ies
& Equity 2010 2009
Cash and cash
equivalents $ 21,000 $ 20,000 Accounts payable $ 33,600 $
32,000
Short-term
investments 3,759 3,240 Accruals 12,600 12,000
Accounts
receivable 52,500 48,000 Notes payable 19,929 6,480
Inventories 84,000 56,000
Total current
liabilities $ 66,129 $ 50,480
96. Total current
assets $161,259 $127,240
Long-term
debt 67,662 58,320
Net fixed assets 218,400 200,000 Total liabilities $133,791
$108,800
Total assets $379,659 $327,240 Common stock 183,793 178,440
Retained
earnings 62,075 40,000
Total common
equity $245,868 $218,440
Total liabilities
& equity $379,659 $327,240
Joshua & White Technologies December 31 Income Statements
(Thousands of Dol lars)
2010 2009
Sales $420,000 $400,000
Expenses excluding depr. & amort. 327,600 320,000
97. EBITDA $ 92,400 $ 80,000
Depreciation and amortization 19,660 18,000
EBIT $ 72,740 $ 62,000
resource
116 Part 1: Fundamental Concepts of Corporate Finance
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
2010 2009
Interest expense 5,740 4,460
EBT $67,000 $57,540
Taxes (40%) 26,800 23,016
Net income $40,200 $34,524
Common dividends $18,125 $17,262
98. Other Data 2010 2009
Year-end stock price $ 90.00 $ 96.00
Number of shares (Thousands) 4,052 4,000
Lease payment (Thousands of Dollars) $20,000 $20,000
Sinking fund payment (Thousands of Dollars) $ 0 $ 0
THOMSON ONE Business School Edition Problem
Use the Thomson ONE—Business School Edition online
database to work this chapter’s questions.
ANALYSIS OF FORD’S FINANCIAL STATEMENTS WITH
THOMSON ONE—BUSINESS SCHOOL EDITION
Use Thomson ONE to analyze Ford Motor Company. Enter
Ford’s ticker symbol
(F) and select GO. By selecting the tab at the top labeled
Financials, you can find
Ford’s key financial statements for the past several years. At the
Financials screen
on the second line of tabs, select the Fundamental Ratios tab. If
you then select the
SEC Database Ratios from the pull-down menu, you can select
either annual or
quarterly ratios.
99. Under annual ratios, there is an in-depth summary of Ford’s
various ratios over
the past three years.
Click on the Peers tab (on the first line of tabs) near the top of
the screen for a
summary of financial information for Ford and a few of its
peers. If you click on the
Peer Sets tab (second line of tabs), you can modify the list of
peer firms. The default
setup is “Peers set by SIC Code.” To obtain a comparison of
many of the key ratios
presented in the text, just click on Financials (second line of
tabs) and select Key Fi-
nancial Ratios from the drop-down menu.
Thomson ONE—BSE Discussion Questions
1. What has happened to Ford’s liquidity position over the past
3 years? How does
Ford’s liquidity compare with its peers? (Hint: You may use
both the peer key fi-
nancial ratios and liquidity comparison to answer this question.)
2. Take a look at Ford’s inventory turnover ratio. How does this
100. ratio compare
with its peers? Have there been any interesting changes over
time in this mea-
sure? Do you consider Ford’s inventory management to be a
strength or a
weakness?
3. Construct a simple Du Pont analysis for Ford and its peers.
What are Ford’s
strengths and weaknesses relative to its competitors?
Chapter 3: Analysis of Financial Statements 117
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Mini Case
The first part of the case, presented in Chapter 2, discussed the
situation of Computron In-
dustries after an expansion program. A large loss occurred in
2010, rather than the expected
101. profit. As a result, its managers, directors, and investors are
concerned about the firm’s
survival.
Donna Jamison was brought in as assistant to Fred Campo,
Computron’s chairman, who
had the task of getting the company back into a sound financial
position. Computron’s 2009
and 2010 balance sheets and income statements, together with
projections for 2011, are shown
in the following tables. The tables also show the 2009 and 2010
financial ratios, along with in-
dustry average data. The 2011 projected financial statement data
represent Jamison’s and
Campo’s best guess for 2011 results, assuming that some new
financing is arranged to get the
company “over the hump.”
Jamison must prepare an analysis of where the company is now,
what it must do to regain its
financial health, and what actions should be taken. Your
assignment is to help her answer the
following questions. Provide clear explanations, not yes or no
answers.
102. a. Why are ratios useful? What three groups use ratio analysis
and for what reasons?
b. Calculate the 2011 current and quick ratios based on the
projected balance sheet and
income statement data. What can you say about the company’s
liquidity position in
2009, 2010, and as projected for 2011? We often think of ratios
as being useful (1) to
managers to help run the business, (2) to bankers for credit
analysis, and (3) to stock-
holders for stock valuation. Would these different types of
analysts have an equal inter-
est in the liquidity ratios?
c. Calculate the 2011 inventory turnover, days sales outstanding
(DSO), fixed assets turn-
over, and total assets turnover. How does Computron’s
utilization of assets stack up
against that of other firms in its industry?
Balance Sheets
2009 2010 2011E
Assets
104. Note: “E” denotes “estimated”; the 2011 data are forecasts.
118 Part 1: Fundamental Concepts of Corporate Finance
2011 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
d. Calculate the 2011 debt, times-interest-earned, and EBITDA
coverage ratios. How does
Computron compare with the industry with respect to financial
leverage? What can you
conclude from these ratios?
e. Calculate the 2011 profit margin, basic earning power (BEP),
return on assets (ROA),
and return on equity (ROE). What can you say about these
ratios?
f. Calculate the 2011 price/earnings ratio, price/cash flow ratio,
and market/book ratio.
Do these ratios indicate that investors are expected to have a
105. high or low opinion of the
company?
Income Statements
2009 2010 2011E
Sales $3,432,000 $5,834,400 $7,035,600
Cost of goods sold 2,864,000 4,980,000 5,800,000
Other expenses 340,000 720,000 612,960
Depreciation 18,900 116,960 120,000
Total operating costs $3,222,900 $5,816,960 $6,532,960
EBIT $ 209,100 $ 17,440 $ 502,640
Interest expense 62,500 176,000 80,000
EBT $ 146,600 ($ 158,560) $ 422,640
Taxes (40%) 58,640 (63,424) 169,056
Net income $ 87,960 ($ 95,136) $ 253,584
Other Data
Stock price $ 8.50 $ 6.00 $ 12.17
Shares outstanding 100,000 100,000 250,000
EPS $ 0.880 ($ 0.951) $ 1.014
DPS $ 0.220 0.110 0.220