Powder by Tobias Wolff Essay - 801 Words

Powder Powder, a short story written by Tobias Wolff, is about a boy and his father on a Christmas Eve outing. As the story unfolds, it appears to run deeper than only a story about a boy and his father on a simple adventure in the snow. It is an account of a boy and his father’s relationship, or maybe the lack of one. Powder is narrated by a grown-up version of the boy. In this tale, the roles of the boy and his father emerge completely opposite than what they are supposed to be but may prove to be entirely different from the reader’s first observation. The father’s character begins to develop with the boy’s memory of an outing to a nightclub to see the jazz legend, Thelonius Monk. This is the first sign of the father’s†¦show more content†¦He likes to plan far in advance even to the point of bothering his teachers for future homework assignments and numbering his clothes on hangers so the schedule of wear is equal. It is very common for children to exhibit some controlling behavior like the boy in the story because it gives the child a small piece of control in their own life. (Brain Psychics) This is due to the lack of control on their parents’ relationship and the inability to control separation and divorce. This is quite believable and allows the reader to relate to this situation, especially if a divorced single parent or one who was a child that grew up in a divorced home. The first feeling of this story is that the boy and his father struggle with their relationship, but as it unfolds, the reader sees how they do care for each other. It also becomes easier to spot the difficulties of communicating within a broken family. The father does a fine job to of turning the boy’s scheduling obsessions into a positive for the boy by noting it as one of his strong points. This story also paints the picture of a father who would not give up on regaining his time with his son. It shows the father desperately trying to rectify the mistrust issues he created because he stated to the boy when they were sitting in the diner after the highway patrol redirected them away from the snow-covered route home that she would never forgive him if he did not get the boy home forShow MoreRelatedPowder by Tobias Wolff Analysis Essay661 Words   |  3 PagesPowder â€Å"Powder† is a story written by Tobias Wolff in 1996 staged in the mid to late 1950’s about a boy and his father skiing at Mount Baker on Christmas Eve and what it takes them to get back home in time for dinner. The father and his wife are on the edge of breaking up, although she is still angry about him taking their son to see Telonious Monk she lets them go. He promises hand over heart to keep him safe during the Mount Baker ski trip and get him home on time. Through the story the fatherRead MoreEssay about Tobias Wolff1522 Words   |  7 PagesTobias Wolff Tobias Wolff, a boy of a troubled childhood, and a very tough father. Tobias Wolff had no intentions of being a writer from the start; it just seemed to of popped into his life. The Amazing part about this writer is that he was not supported by anyone but himself. His father was against everything that he did, and his brother, Geoffrey, also a writer would always take his fathers side, leaving Tobias on a side of his own. â€Å"I wasn’t fair, I always took my father’s side.† Said GeoffreyRead MoreTobias Wolff s `` Dirty Realism `` Essay1040 Words   |  5 PagesChallenging readers morals and making stories interesting to read is an extremely challenging task to accomplish, but the author Tobias Wolff manages to achieve this. Wolff uses shifts in tone and point of view to his advantage in many of his stories bringing a reader along a carefully crafted pathway of emotions that help to further the meaning of the story.   Ã‚  Ã‚   Tobias Wolff would have never been successful in his short stories had it not been for his childhood.   He lived in Washington state with hisRead MoreThe, By Tobias Wolff And Reunion985 Words   |  4 Pagesothers, the food, and the laughter shared with one another. As where others decide to stick to themselves and just wait till it’s all over. In the Short stories, â€Å"Powder† written by Tobias Wolff and â€Å"Reunion† by John Cheever Our main characters both learn something about their fathers and themselves. The short story â€Å"Power† by Tobias Wolff, is a first person story about a boy’s trip with his father on Christmas eve. His mother and father have been considering a divorce for quite sometimes and so hisRead MoreComparison of Two Short Stories by Tobias Wolff and T.C Boyle1263 Words   |  6 Pagesshort stories Powder by Tobias Wolff and If the River was Whiskey by T.C. Boyle, which both feature father-son relationships that are placed under a large amount of stress. There are many similarities and differences between these two relationships that are not apparent upon just a cursory glance. A father can be completely inconsiderate of his sons needs or try his best to meet them and still create turmoil within the relationship. After reading Wolffs short story Powder, one can concludeRead MoreAnalysis Of The Poem The Oysters By Tobias Wolff956 Words   |  4 Pagesto feel disgusted. When he is crying for oysters, two gentlemen drag him to the restaurant to let him eat oysters. In the end, he gets to eat oysters, but it does not make him satisfied, in fact, it makes him sick. On the other hand, â€Å"Powder,† written by Tobias Wolff, takes a place in the modern state of Washington. The author begins with the story by telling that the father and his son go to Mount Baker for skiing. The father has a difficult relationship with his wife that they are about to breakRead MoreLiterary Analysis : A Literary Analysis Of Essay1749 Words   |  7 Pagesshe expected it to be. In the two short stories â€Å"Reunion† and â€Å"Powder† written by John Cheever and Tobias Wolff demonstrates the unique bonding between a father and son’s relationship, point of view and conflict to covey to the readers that every son and father’s relationship it’s like any unoriginal father and son relationship among with its pitfalls and ever lasting memories. As we first learned about Powder written Tobias Wolff, were told that the point of view of the story is told being inRead MoreSymbols Of Short Stories For Thematic Enhancement848 Words   |  4 PagesIdentity The most sure way in which quest for identity is proclaimed is through rebellion. People need to be recognized and it disheartens them if such does not happen because of their identity. Tobias Wolff does a good work of portraying symbols and objects representing that theme in his story â€Å"powder†. As much as the story emphasizes on the theme of â€Å"living in the moment†, we see that the characters: an almost divorcing couples with one son, all struggling for attention, not in a creepy way butRead MoreContrast of Antagonists in Goodbye, My Brother and Powder1713 Words   |  7 PagesCheevers Goodbye, My Brother and Tobias Wolffs Powder, the point of view of the narration is limited to one person. Known as first-person narration, the story is told from the I perspective and the reader only can understand the story from the narrators point of view. Because of first-person narration, the reader is provided with easy access to the main characters thoughts, allowing only a glimpse of the antagonists in Goodbye, My Brother and Powder, portraying a flat character. The

Developing Financial Projections Free Essays

PUBLIC COMPANY MANAGEMENT SERVICES WHITE PAPER Developing Financial Projections for NonFinance People This White Paper gives you the tools to answer the two most important questions any business must ask: â€Å"Are you financially prepared to begin? Are we able to sustain ourselves? † You’ll learn: What’s on financial statements and how they get there How to develop and understand income statements How to set up and read balance sheets How to use common formulas to evaluate cash flow How to create a budget using standard guidelines How to read and evaluate income projections How to develop your own financial projections through a â€Å"fill in the blanks† approach† How to accurately determine the value of your idea or business This memorandum is provided by Public Company Management Services for educational purposes only and is not intended and should not be construed as legal advice. 2004  © Public Company Management Services 5770 El Camino Road. Las Vegas, NV 89118 Phone: (702) 222-9076 http://www. We will write a custom essay sample on Developing Financial Projections or any similar topic only for you Order Now pubcowhitepapers. com http://www. pcms-team. com http://www. foreigncompanylisting. com http://www. gopublictoday. com A Budget and Financial Worksheet Overview Managers must ask, ‘is the business financially prepared to begin/continue’? Understanding basic budgeting guidelines, income projection statements, balance sheets and common formulas to evaluate cash flow help ensure successful operations. This financial knowledge significantly impacts a company’s short term and long term success. START-UP BUDGET personnel (costs prior to opening) legal/professional fees occupancy licenses/permits equipment insurance supplies advertising/promotions salaries/wages accounting income utilities payroll expenses An operating budget is prepared when you are actually ready to open for business. The operating budget will reflect your priorities in terms of how you spend your money, the expenses you will incur and how you will meet those expenses (income). Your operating budget also should include money to cover the first three to six months of operation. It should allow for the following expenses. OPERATING BUDGET   personnel insurance rent depreciation loan payments advertising/promotions legal/accounting miscellaneous expenses supplies payroll expenses Developing Projections www. publiccompanywhitepapers. om 14001 May 20,2003 †¢ †¢ †¢ †¢ †¢ salaries/wages utilities dues/subscriptions/fees taxes repairs/maintenance Other questions that you will need to consider are: †¢ What type of accounting system will your use? Is it a single entry or dual entry system? †¢ What are your sales and profit goals for the coming year? If a franchise, will the franchisor set your sales and profit goals? Or, will he or she expect you to reach and retain a certain sales level and profit margin? †¢ What financial projections will you need to include in your business plan? †¢ What kind of inventory control system will you use? Sample balance sheets, income projections (profit and loss statements) and cash flow statements are included below along with detailed instructions for completing same. INCOME PROJECTION STATEMENT Total net sales (revenues) Costs of sales Gross profit Gross profit margin Controllable expenses Salaries/wages Payroll expenses Legal/accounting Advertising Automobile Office supplies Dues/Subscriptions Utilities Miscellaneous Total controllable expenses Fixed expenses Rent Depreciation Utilities Insurance License/permits Loan payments Miscellaneous Total fixed expenses Total expenses Net profit (loss) before taxes Taxes Net profit (loss) after taxes INSTRUCTIONS FOR INCOME PROJECTIONS STATEMENT The income projections (profit and loss) statement is valuable as both a planning tool and a key management tool to help control business operations. It enables you to develop a preview of the amount of income generated each month and for the business year, based on reasonable predictions of monthly levels of sales, costs and expenses. As monthly or quarterly projections are developed and entered into the income projections statement, they can serve as definite goals for controlling the business operation. As actual operating results become known each month, they should be recorded for comparison with the monthly projections. A completed income statement allows you to compare actual figures with projections and to take steps to correct any problems. Industry Percentage In the industry percentage column, enter the percentages of total sales (revenues) that are standard for your industry, which are derived by dividing Costs/expenses items x 100% These percentages can be obtained from various sources, such as trade associations, accountants or banks. Industry figures serve as a useful bench mark against which to compare cost and expense estimates that you develop for your firm. Compare the figures in the industry percentage column to those in the annual percentage column. Total Net Sales (Revenues) Determine the total number of units of consulting service you realistically expect to sell each period (per month or quarter) in each area of your business at the prices you expect to get. Use this step to create the projections to review your pricing practices. †¢ Exclude any revenue that is not strictly related to the business. Cost of Sales The key to calculating your cost of sales is that you do not overlook any costs that you have incurred. Calculate cost of sales of all services used to determine total net sales. Do not overlook transportation or travel costs if you’re working at a distance. Also include all direct labor. Gross Profit Subtract the total cost of sales from the total net sales to obtain gross profit. Gross Profit Margin The gross profit is expressed as a percentage of total sales (revenues). It is calculated by dividing gross profits by total net sales Controllable (also known as Variable) Expenses   Salary expenses-Base pay plus overtime. Payroll expenses-Include paid vacations, sick leave, health insurance, unemployment insurance and social security taxes – may or may not be applicable. Outside services-Include costs of subcontracts, overflow work and special or one-time services. Supplies-Services and items purchased for use in the business. Repair and maintenance-Regular maintenance and repair. Advertising-Include desired sales volume and classified directory advertising expenses. Car delivery and travel-Include charges if personal car is used in business, including parking, tools, buying trips, etc. Accounting and legal-Outside professional services. Fixed Expenses Rent-List only real estate used in business. Depreciation-Amortization of capital assets like computers. Utilities-Water, heat, light, etc. Insurance-Fire or liability on property or products. Include workers’ compensation. Loan repayments-Interest on outstanding loans. Miscellaneous-Unspecified; small expenditures without separate accounts. Net Profit (loss) (before taxes) Subtract total expenses from gross profit. Taxes – Include inventory and sales tax, excise tax, real estate tax, etc. Net Profit (loss) (after taxes) Subtract taxes from net profit (before taxes) Annual Total – For each of the sales and expense items in your income projection statement, add all the monthly or quarterly figures across the table and put the result in the annual total column. Annual Percentage Calculate the annual percentage by dividing Annual total x 100% Sample INSTRUCTIONS FOR BALANCE SHEET Figures used to compile the balance sheet are taken from the previous and current balance sheet as well as the current income statement. The income statement is usually attached to the balance sheet. The following text covers the essential elements of the balance sheet. At the top of the page fill in the legal name of the business, the type of statement and the day, month and year. Assets List anything of value that is owned or legally due the business. Total assets include all net values. These are the amounts derived when you subtract depreciation and amortization from the original costs of acquiring the assets. Current Assets Cash-List cash and resources that can be converted into cash within 12 months of the date of the balance sheet (or during one established cycle of operation). Include money on hand and demand deposits in the bank, e. g. , checking accounts and regular savings accounts. Petty cash-If your business has a fund for small miscellaneous expenditures, include the total here. Accounts receivable-The amounts due from customers in payment for merchandise or services. Inventory-Includes raw materials on hand, work in progress and all finished goods, either manufactured or purchased for resale. Short-term investments-Also called temporary investments or marketable securities, these include interest- or dividend-yielding holdings expected to be converted into cash within a year. List stocks and bonds, certificates of deposit and time-deposit savings accounts at either their cost or market value, whichever is less. Prepaid expenses-Goods, benefits or services a business buys or rents in advance. Examples are office supplies, insurance protection and floor space. Long-term Investments Also called long-term assets, these are holdings the business intends to keep for at least a year and that typically yield interest or dividends. Included are stocks, bonds and savings accounts earmarked for special purposes. Fixed Assets Also called plant and equipment. Includes all resources a business owns or acquires for use in operations and not intended for resale. Fixed assets may be leased. Depending on the leasing arrangements, both the value and the liability of the leased property may need to be listed on the balance sheet. Land-List original purchase price without allowances for market value. †¢ Buildings †¢ Improvements †¢ Equipment †¢ Furniture an Computers †¢ Automobile/vehicles Liabilities Current Liabilities List all debts, monetary obligations and claims payable within 12 months or within one cycle of operation. Typically they include the following: †¢ Accounts payable-Amounts owed to suppliers for goods and services purchased in connection with business operations. Notes payable-The balance of principal due to pay off short-term debt for borrowed funds. Also includes the current amount due of total balance on notes whose terms exceed 12 months. Interest payable-Any accrued fees due for use of both short- and long-term borrowed capital and credit extended to the business. †¢ Taxes payable-Amounts estimated by an accountant to have been incurred during the accounting period. †¢ Payroll accrual-Salaries and wages currently owed. Long-term Liabilities Notes payable-List notes, contract payments or mortgage payments due over a period exceeding 12 months or one cycle of operation. They are listed by outstanding balance less the current position due. Net worth Also called owner’s equity, net worth is the claim of the owner(s) on the assets of the business. In a proprietorship or partnership, equity is each owner’s original investment plus any earnings after withdrawals. Total Liabilities and Net Worth The sum of these two amounts must always match that for total assets. MONTHLY CASH FLOW PROJECTION 1. Cash on hand (beginning month) 2. Cash receipts †¢ †¢ †¢ †¢ †¢ (a) Cash sales (b) Collections from credit accounts (c) Loan or other cash injections (specify) 3. Total cash receipts (2a+2b+2c=3) 4. Total cash available (Before cash out) (1+3) 5. Cash paid out †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ a) purchases (merchandise) (b) Gross wages (excludes withdrawals) (c) Payroll expenses (taxes, etc. ) (d) Outside services (e) Supplies (office and operating) (f) Repairs and maintenance (g) Advertising (h) Car, delivery and travel (i) Accounting and legal (j) Rent (k) Telephone (l) Utilities (m) Insurance (n) Taxes (real estate, etc. ) (o) Interest (p) Other expenses (specify each) (q) Miscellaneous (unspecified) (r) Subtotal (s) Loan principal payment †¢ †¢ †¢ †¢ †¢ †¢ (t) Capital purchases (specify) (u) Other start-up costs (v) Reserve and/or escrow (specify) (w) Owner’s withdrawal 6. Total cash paid out (5a through 5w) . Cash position (end of month) (4 minus 6) †¢ †¢ Essential operating data (non-cash flow information) †¢ A. Sales volume (dollars) †¢ B. Accounts receivable †¢ (end on month) †¢ C. Bad debt (end of †¢ month) †¢ D. Inventory on hand (end †¢ of month) †¢ E. Accounts payable (end †¢ of month) INSTRUCTIONS FOR MONTHLY CASH FLOW PROJECTION 1. Cash on hand (beginning of month) — Cash on hand same as (7), Cash position, pervious month 2. Cash receipts (a) Cash sales-All cash sales. Omit credit sales unless cash is actually received (b) Gross wages (including withdrawals)-Amount to be expected from all accounts. (c) Loan or other cash injection-Indicate here all cash injections not shown in 2(a) or 2(b) above. 3. Total cash receipts (2a+2b+2c=3) 4. Total cash available (before cash out)(1+3) 5. Cash paid out (a) Purchases (merchandise)–Merchandise for resale or for use in product (paid for in current month). (b) Gross wages (including withdrawals)-Base pay plus overtime (if any) (c) Payroll expenses (taxes, etc. )– Include paid vacations, paid sick leave, health insurance, unemployment insurance, (this might be 10 to 45% of 5(b)) (d) Outside services-This could include outside labor and/or material for pecialized or overflow work, including subcontracting (e) Supplies (office and operating)–Items purchased for use in the business (not for resale) (f) Repairs and maintenance-Include periodic large expenditures such as painting or decorating (g) Advertising-This amount should be adequate to maintain sales volume (h) Car, delivery and travel-If personal car is used, charge in this column, include parking (i) Accounting and legal-Outside services, including, for example, bookkeeping (j) Rent-Real estate only (See 5(p) for other rentals) †¢ (k) Telephone (l) Utilities-Water, heat, light and/or power (m) Insurance-Coverage on business property and products (fire, liability); also worker’s compensation, fidelity, etc. Exclude executive life (include in 5(w)) (n) Taxes (real estate, etc. )– Plus inventory tax, sales tax, excise tax, if applicable †¢ (o) Interest-Remember to add interest on loan as it is injected (See 2 © above) (p) Other expenses (specify each) Unexpected expenditures may be included here as a safety factorEquipment expenses during the month should be included ere (non-capital equipment) When equipment is rented or leased, record payments here (q) Miscellaneous (unspecified)–Small expenditures for which separate accounts would be practical (r) Subtotal-This subtotal indicates cash out for op (s) Loan principal payment-Include payment on all loans, including vehicle and equipment purchases on time payment (t) Capital purchases (specify)–Nonexpensed (depreciable) expenditures such as equipment, building purchases on time payment (u) Other start-up costs-Expenses incurred prior to first month projection and paid for after startup (v) Reserve and/or escrow (specify) Example: insurance, tax or equipment escrow to reduce impact of large periodic payments (w) Owner’s withdrawals-Should include payment for such things as owner’s income tax, social security, health insurance, executive life insurance premiums, etc. 6. Total cash paid out (5a through 5w) 7. Cash position (end on month) (4 minus 6)-Enter this amount in (1) Cash on hand following monthEssential operating data (non-cash flow information)-This is basic information necessary for proper planning and for proper cash flow projection. Also with this data, the cash flow can be evolved and shown in the above form. A. Sales volume (dollars)–This is a very important figure and should be estimated carefully, taking into account size of facility and employee output as well as realistic anticipated sales (actual sales, not orders received). B. Accounts receivable (end of month)-Previous unpaid credit sales plus current month’s credit sales, less amounts received current month (deduct â€Å"C† below) C.Bad debt (end on month)– Bad debts should be subtracted from (B) in the month anticipated D. Inventory on hand (end on month)– Last month’s inventory plus merchandise received and/or manufactured current month minus amount sold current month E. Accounts payable (end of month) Previous month’s payable plus current month’s payable minus amount paid during month. F. Depreciation-Established by your accountant, or value of all your equipment divided by useful life (in months) as allowed by Internal Revenue Service How to cite Developing Financial Projections, Essay examples Developing Financial Projections Free Essays PUBLIC COMPANY MANAGEMENT SERVICES WHITE PAPER Developing Financial Projections for NonFinance People This White Paper gives you the tools to answer the two most important questions any business must ask: â€Å"Are you financially prepared to begin? Are we able to sustain ourselves? † You’ll learn: †¢ What’s on financial statements and how they get there †¢ How to develop and understand income statements †¢ How to set up and read balance sheets †¢ How to use common formulas to evaluate cash flow †¢ How to create a budget using standard guidelines †¢ How to read and evaluate income projections †¢ How to develop your own financial projections through a â€Å"fill in the blanks† approach† †¢ How to accurately determine the value of your idea or business This memorandum is provided by Public Company Management Services for educational purposes only and is not intended and should not be construed as legal advice. 2004  © Public Company Management Services 5770 El Camino Road. Las Vegas, NV 89118 Phone: (702) 222-9076 http://www. We will write a custom essay sample on Developing Financial Projections or any similar topic only for you Order Now pubcowhitepapers. com http://www. pcms-team. com http://www. foreigncompanylisting. com http://www. gopublictoday. com A Budget and Financial Worksheet Overview Managers must ask, ‘is the business financially prepared to begin/continue’? Understanding basic budgeting guidelines, income projection statements, balance sheets and common formulas to evaluate cash flow help ensure successful operations. This financial knowledge significantly impacts a company’s short term and long term success. START-UP BUDGET †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ personnel (costs prior to opening) legal/professional fees occupancy licenses/permits equipment insurance supplies advertising/promotions salaries/wages accounting income utilities payroll expenses An operating budget is prepared when you are actually ready to open for business. The operating budget will reflect your priorities in terms of how you spend your money, the expenses you will incur and how you will meet those expenses (income). Your operating budget also should include money to cover the first three to six months of operation. It should allow for the following expenses. OPERATING BUDGET †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ personnel insurance rent depreciation loan payments advertising/promotions legal/accounting miscellaneous expenses supplies payroll expenses Developing Projections www. publiccompanywhitepapers. om 14001 May 20,2003 †¢ †¢ †¢ †¢ †¢ salaries/wages utilities dues/subscriptions/fees taxes repairs/maintenance Other questions that you will need to consider are: †¢ What type of accounting system will your use? Is it a single entry or dual entry system? †¢ What are your sales and profit goals for the coming year? If a franchise, will the franchisor set your sales and profit goals? Or, will he or she expect you to reach and retain a certain sales level and profit margin? †¢ What financial projections will you need to include in your business plan? †¢ What kind of inventory control system will you use? Sample balance sheets, income projections (profit and loss statements) and cash flow statements are included below along with detailed instructions for completing same. INCOME PROJECTION STATEMENT †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Total net sales (revenues) Costs of sales Gross profit Gross profit margin Controllable expenses Salaries/wages Payroll expenses Legal/accounting Advertising Automobile Office supplies Dues/Subscriptions Utilities Miscellaneous Total controllable expenses Fixed expenses Rent Depreciation Utilities Insurance License/permits Loan payments Miscellaneous †¢ Total fixed expenses Total expenses Net profit (loss) before taxes Taxes †¢ Net profit (loss) after taxes INSTRUCTIONS FOR INCOME PROJECTIONS STATEMENT The income projections (profit and loss) statement is valuable as both a planning tool and a key management tool to help control business operations. It enables you to develop a preview of the amount of income generated each month and for the business year, based on reasonable predictions of monthly levels of sales, costs and expenses. As monthly or quarterly projections are developed and entered into the income projections statement, they can serve as definite goals for controlling the business operation. As actual operating results become known each month, they should be recorded for comparison with the monthly projections. A completed income statement allows you to compare actual figures with projections and to take steps to correct any problems. Industry Percentage In the industry percentage column, enter the percentages of total sales (revenues) that are standard for your industry, which are derived by dividing Costs/expenses items x 100% These percentages can be obtained from various sources, such as trade associations, accountants or banks. Industry figures serve as a useful bench mark against which to compare cost and expense estimates that you develop for your firm. Compare the figures in the industry percentage column to those in the annual percentage column. Total Net Sales (Revenues) Determine the total number of units of consulting service you realistically expect to sell each period (per month or quarter) in each area of your business at the prices you expect to get. Use this step to create the projections to review your pricing practices. †¢ Exclude any revenue that is not strictly related to the business. Cost of Sales The key to calculating your cost of sales is that you do not overlook any costs that you have incurred. Calculate cost of sales of all services used to determine total net sales. Do not overlook transportation or travel costs if you’re working at a distance. Also include all direct labor. Gross Profit Subtract the total cost of sales from the total net sales to obtain gross profit. Gross Profit Margin The gross profit is expressed as a percentage of total sales (revenues). It is calculated by dividing gross profits by total net sales Controllable (also known as Variable) Expenses †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Salary expenses-Base pay plus overtime. Payroll expenses-Include paid vacations, sick leave, health insurance, unemployment insurance and social security taxes – may or may not be applicable. Outside services-Include costs of subcontracts, overflow work and special or one-time services. Supplies-Services and items purchased for use in the business. Repair and maintenance-Regular maintenance and repair. Advertising-Include desired sales volume and classified directory advertising expenses. Car delivery and travel-Include charges if personal car is used in business, including parking, tools, buying trips, etc. Accounting and legal-Outside professional services. Fixed Expenses †¢ †¢ †¢ †¢ †¢ †¢ †¢ Rent-List only real estate used in business. Depreciation-Amortization of capital assets like computers. Utilities-Water, heat, light, etc. Insurance-Fire or liability on property or products. Include workers’ compensation. Loan repayments-Interest on outstanding loans. Miscellaneous-Unspecified; small expenditures without separate accounts. Net Profit (loss) (before taxes) †¢ Subtract total expenses from gross profit. †¢ Taxes – Include inventory and sales tax, excise tax, real estate tax, etc. Net Profit (loss) (after taxes) †¢ Subtract taxes from net profit (before taxes) Annual Total – For each of the sales and expense items in your income projection statement, add all the monthly or quarterly figures across the table and put the result in the annual total column. Annual Percentage †¢ Calculate the annual percentage by dividing Annual total x 100% Sample BALANCE SHEET A ssets Current assets Cash $_______ Petty cash $_______ Accounts receivable $_______ Inventory $_______ Short-term investment $_______ Prepaid expenses $_______ Long-term investment $_______ Fixed assets Land $_______ Buildings $_______ Improvements $_______ Equipment $_______ Furniture $_______ Automobile/vehicles $_______ Other assets †¢ †¢ †¢ †¢ 1. $_______ 2. $_______ 3. $_______ 4. $_______ †¢ Total assets $______ Liabilities Current Liabilities Accounts payable $______ Notes payable $______ Interest payable $______ Taxes payable Federal income tax $______ State income tax $______ Self-employment tax $______ Sales tax (SBE) $______ Property tax $______ Payroll accrual $______ Long-term liabilities Notes payable $______ Total liabilities $______ Net worth (owner equity) $______ Proprietorship or Partnership (name’s) equity $_____ (name’s) equity $_____ or †¢ Corporation Capital stock $_____ Surplus paid in $_____ Retained earnings $_____ Total net worth $_____ †¢ Total liabilities and †¢ total net worth $_____ (Total assets will always equal total liabilities and total net worth) _______________________________________________ INSTRUCTIONS FOR BALANCE SHEET Figures used to compile the balance sheet are taken from the previous and current balance sheet as well as the current income statement. The income statement is usually attached to the balance sheet. The following text covers the essential elements of the balance sheet. At the top of the page fill in the legal name of the business, the type of statement and the day, month and year. Assets List anything of value that is owned or legally due the business. Total assets include all net values. These are the amounts derived when you subtract depreciation and amortization from the original costs of acquiring the assets. Current Assets †¢ †¢ †¢ †¢ †¢ †¢ Cash-List cash and resources that can be converted into cash within 12 months of the date of the balance sheet (or during one established cycle of operation). Include money on hand and demand deposits in the bank, e. g. , checking accounts and regular savings accounts. Petty cash-If your business has a fund for small miscellaneous expenditures, include the total here. Accounts receivable-The amounts due from customers in payment for merchandise or services. Inventory-Includes raw materials on hand, work in progress and all finished goods, either manufactured or purchased for resale. Short-term investments-Also called temporary investments or marketable securities, these include interest- or dividend-yielding holdings expected to be converted into cash within a year. List stocks and bonds, certificates of deposit and time-deposit savings accounts at either their cost or market value, whichever is less. Prepaid expenses-Goods, benefits or services a business buys or rents in advance. Examples are office supplies, insurance protection and floor space. Long-term Investments Also called long-term assets, these are holdings the business intends to keep for at least a year and that typically yield interest or dividends. Included are stocks, bonds and savings accounts earmarked for special purposes. Fixed Assets Also called plant and equipment. Includes all resources a business owns or acquires for use in operations and not intended for resale. Fixed assets may be leased. Depending on the leasing arrangements, both the value and the liability of the leased property may need to be listed on the balance sheet. Land-List original purchase price without allowances for market value. †¢ Buildings †¢ Improvements †¢ Equipment †¢ Furniture an Computers †¢ Automobile/vehicles Liabilities Current Liabilities List all debts, monetary obligations and claims payable within 12 months or within one cycle of operation. Typically they include the following: â⠂¬ ¢ Accounts payable-Amounts owed to suppliers for goods and services purchased in connection with business operations. †¢ Notes payable-The balance of principal due to pay off short-term debt for borrowed funds. Also includes the current amount due of total balance on notes whose terms exceed 12 months. Interest payable-Any accrued fees due for use of both short- and long-term borrowed capital and credit extended to the business. †¢ Taxes payable-Amounts estimated by an accountant to have been incurred during the accounting period. †¢ Payroll accrual-Salaries and wages currently owed. Long-term Liabilities Notes payable-List notes, contract payments or mortgage payments due over a period exceeding 12 months or one cycle of operation. They are listed by outstanding balance less the current position due. Net worth Also called owner’s equity, net worth is the claim of the owner(s) on the assets of the business. In a proprietorship or partnership, equity is each owner’s original investment plus any earnings after withdrawals. Total Liabilities and Net Worth The sum of these two amounts must always match that for total assets. __________________________________________________ MONTHLY CASH FLOW PROJECTION 1. Cash on hand (beginning month) 2. Cash receipts †¢ †¢ †¢ †¢ †¢ (a) Cash sales (b) Collections from credit accounts (c) Loan or other cash injections (specify) 3. Total cash receipts (2a+2b+2c=3) 4. Total cash available (Before cash out) (1+3) 5. Cash paid out †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ a) purchases (merchandise) (b) Gross wages (excludes withdrawals) (c) Payroll expenses (taxes, etc. ) (d) Outside services (e) Supplies (office and operating) (f) Repairs and maintenance (g) Advertising (h) Car, delivery and trav el (i) Accounting and legal (j) Rent (k) Telephone (l) Utilities (m) Insurance (n) Taxes (real estate, etc. ) (o) Interest (p) Other expenses (specify each) (q) Miscellaneous (unspecified) (r) Subtotal (s) Loan principal payment †¢ †¢ †¢ †¢ †¢ †¢ (t) Capital purchases (specify) (u) Other start-up costs (v) Reserve and/or escrow (specify) (w) Owner’s withdrawal 6. Total cash paid out (5a through 5w) . Cash position (end of month) (4 minus 6) †¢ †¢ Essential operating data (non-cash flow information) †¢ A. Sales volume (dollars) †¢ B. Accounts receivable †¢ (end on month) †¢ C. Bad debt (end of †¢ month) †¢ D. Inventory on hand (end †¢ of month) †¢ E. Accounts payable (end †¢ of month) INSTRUCTIONS FOR MONTHLY CASH FLOW PROJECTION †¢ †¢ †¢ †¢ †¢ †¢ 1. Cash on hand (beginning of month) — Cash on hand same as (7), Cash position, pervious month 2. Cash receipts †¢ (a) Cash sales-All cash sales. Omit credit sales unless cash is actually received †¢ (b) Gross wages (including withdrawals)-Amount to be expected from all accounts. (c) Loan or other cash injection-Indicate here all cash injections not shown in 2(a) or 2(b) above. 3. Total cash receipts (2a+2b+2c=3) 4. Total cash available (before cash out)(1+3) 5. Cash paid out †¢ (a) Purchases (merchandise)–Merchandise for resale or for use in product (paid for in current month). †¢ (b) Gross wages (including withdrawals)-Base pay plus overtime (if any) †¢ (c) Payroll expenses (taxes, etc. )– Include paid vacations, paid sick leave, health insurance, unemployment insurance, (this might be 10 to 45% of 5(b)) †¢ (d) Outside services-This could include outside labor and/or material for pecialized or overflow work, including subcontracting †¢ (e) Supplies (office and operating)–Items purchased for use in the business (not for resale) †¢ (f) Repairs and maintenance-Include periodic large expenditures such as painting or decorating †¢ (g) Advertising-This amount should be adequate to maintain sales volume †¢ (h) Car, delivery and travel-If personal car is used, charge in this column, include parking †¢ (i) Accounting and legal-Outside services, including, for example, bookkeeping †¢ (j) Rent-Real estate only (See 5(p) for other rentals) †¢ (k) Telephone †¢ (l) Utilities-Water, heat, light and/or power (m) Insurance-Coverage on business property and products (fire, liability); also worker’s compensation, fidelity, etc. Exclude executive life (include in 5(w)) †¢ (n) Taxes (real estate, etc. )– Plus inventory tax, sales tax, excise tax, if applicable †¢ (o) Interest-Remember to add interest on loan as it is injected (See 2 © above) †¢ (p) Other expenses (specify each) _________________________________________ _____________________________________ Unexpected e xpenditures may be included here as a safety factor________________________________________ Equipment expenses during the month should be included ere (non-capital equipment)__________________________ When equipment is rented or leased, record payments here †¢ (q) Miscellaneous (unspecified)–Small expenditures for which separate accounts would be practical †¢ (r) Subtotal-This subtotal indicates cash out for op †¢ (s) Loan principal payment-Include payment on all loans, including vehicle and equipment purchases on time payment †¢ (t) Capital purchases (specify)–Nonexpensed (depreciable) expenditures such as equipment, building purchases on time payment †¢ (u) Other start-up costs-Expenses incurred prior to first month projection and paid for after startup (v) Reserve and/or escrow (specify)– Example: insurance, tax or equipment escrow to reduce impact of large periodic payments †¢ (w) Owner’s withdrawals-Should include paymen t for such things as owner’s income tax, social security, health insurance, executive life insurance premiums, etc. †¢ 6. Total cash paid out (5a through 5w) †¢ 7. Cash position (end on month) (4 minus 6)-Enter this amount in (1) Cash on hand following monthEssential operating data (non-cash flow information)-This is basic information necessary for proper planning and for proper cash flow projection. Also with this data, the cash flow can be evolved and shown in the above form. †¢ A. Sales volume (dollars)–This is a very important figure and should be estimated carefully, taking into account size of facility and employee output as well as realistic †¢ †¢ †¢ †¢ †¢ anticipated sales (actual sales, not orders received). B. Accounts receivable (end of month)-Previous unpaid credit sales plus current month’s credit sales, less amounts received current month (deduct â€Å"C† below) C. Bad debt (end on month)– Bad debts should be subtracted from (B) in the month anticipated D. Inventory on hand (end on month)– Last month’s inventory plus merchandise received and/or manufactured current month minus amount sold current month E. Accounts payable (end of month) Previous month’s payable plus current month’s payable minus amount paid during month. F. Depreciation-Established by your accountant, or value of all your equipment divided by useful life (in months) as allowed by Internal Revenue Service How to cite Developing Financial Projections, Papers

Risk Management Concepts and Guidance

Question: Discuss about the Risk Management for Concepts and Guidance. Answer: Introduction The report covers lecture presented by a guest speaker. It introduces to various project management concepts, tools, principles, and techniques employed in running of project activities. During the lecture the presentation covered items represented in a project management plan. The contents included; project scope statement, project deliverables, project costs, quality management, time management, communication management, project management risks and issues (Burke, 2013). The coverage of the lecture was an important exposure to project management best practices. In any profession it is important to have a guest speaker who can represent what the industry may need. The speaker will also become a professional mentor that others may wish to follow. It further defines who a project manager, and what is its role. The report is written in order to understand the background of project management, and link knowledge gained with that of an expert. It further provides an opportunity to discus s professionally on a written forum. Background Of Report The knowledgeable guest speaker was Mr. Harpreet Singh a well-known project manager from one of the company in town. The guest speaker boosts more than 15 years in the area of project management. The speaker has participated in many projects has leading consultant. The speaker holds a masters degree in project management currently pursuing a doctorate degree in project policy planning, design and implementation. Having accepted to provide talk on project management the speaker is a leading role model having mentored several persons and interns. It was a privilege to host an eloquent, knowledgeable guest speaker as Mr. Harpreet Singh. The introduction of the lecture was important in providing background of project. The speaker was able to clearly define reasons why any person may wish to become a project manager. Some of the reasons given included; one becomes a project manager in order to fix problems, lead and manage a number of criterias like quality and performance, it helps one to be exposed to project environment to allow several interactions. A study of project can expose individual to new ideas and concepts that can be useful in management of different projects. A project will not deem to be successful when it lacks a goal to achieve. The discussion from the speaker provides some of the characteristics of a project that makes it unique from other disciplines. From the guest speaker notes discussions of the characteristics of a project manager was provided. Some of the characteristics mentioned included: it is social oriented, it is not boring, it creates growth, and brings control of various activities. The speaker was able to provide in addition means in which persons wishing to be project managers can do. Some of the ways included; planning ones career, identification of project management mentors, changing attitude and accepting joining the profession, and lastly one need to carry out research to establish importance of project management. In addition individuals should be able to understand the types of projects that are available to be managed. The speaker was able to explain techniques, tools, methods and issues related to project management practice and career. The speaker explained the opportunity in which individuals can choose project management profession. The lecture covered time period in which a project manager is expected to work, project durations, qualifications to obtain a project management job, criteria for successful projects, and lastly the speaker was able to explain different types of careers that one can land too. According to the speaker the project is any activity that entails the five functions of management (planning, organizing, directing, staffing, controlling). The five functions represent the main activities of a project within the project life cycle. The project must pass through the activities to be implemented. In addition the speaker was able to explain what a project management plan entails by mentioning parts of it this included: project scope, plans for quality, communication, human resources, risks, leadership, and budgets. The first part of a project plan is the project scope. It is a composition of items that clearly defines project boundaries of things to achieve and not achieve (Stark, 2015). It defines what need to be planned by project managers. The project scope if documented well provides a project charter that can act as a communication tool to various users. Other parts of the project scope according to the speaker included: project goal, objectives, project case, deliverables, list of requirements, and milestones to achieve project activities. Any project manager need to start by writing a project scope that will be beneficial in jump starting any project. Other benefits of project scope include; it defines what need to be achieved, help in measuring success, and help manage the triple three constraints of time, quality and costs. A key component that the speaker mentioned found in project scope is the project deliverables. It clearly explains the tangible and intangible activities expected of a project to be accomplished. It is a useful component in a project in setting out what is to be achieved. According to the speaker the project deliverable is important because; employees can understand what they are working on, helps in assigning and allocation of duties, help in coming up with communication plans, and it can help in budget formulation. The speaker was able to discuss how management of costs and budget creation in projects (Hwang Ng, 2013). Project costs revolve on a number of aspects form paying professional compensations, land acquisitions, equipments purchases, and other running expenses. A good project manager will need to have a list of estimates of costs in budget form to be able to meet the needs of the project. A budget will be created from various guidelines and informations. It is notable that budgets need to pay what is supposed to pay, determine what need to be achieved, should be specific to project deliverables and scope, should be participative in nature, and need to get stakeholders approvals before it used. The budget is useful in allocation of resources, defining project boundaries, a monitoring and control tool (Mir Pinnington, 2014). Project managers should be flexible enough to ensure that budget is utilized and changes to it are factored where possible. One of the triple three constraints in a project is regarding project quality (Hillier Hillier, 2013). Quality is everyones work in a project and every one should work to ensure that it is achieved. The speaker clearly was able to discuss issues that were related to quality. During the presentation, quality was defined as the criteria in which activities, materials and functions are measured upon (Taylan, Bafail, Abdulaal Kabli, 2014). The output to quality is excellence. Any project managers need to achieve three components when planning for quality (Snyder, 2014). They need to do quality planning by ensuring correct project specifications are followed for materials and processes. In addition they need to assure that quality has been achieved, and is being maintained. Lastly, they need to do quality control by ensuring there are proper mechanisms and procedures in which quality can be measured, and corrective measures taken. Quality in projects is important in ensuring satisfactio n of customers and success of a project is being achieved. Project management teams need to consider time as a useful resource (Heldman, 2015). They need to take proper consideration and initiatives when planning for it. During the presentation the speaker defined time as durations required to accomplish a specified task/subtask or project phase. It is important that a project manager clearly defines the starting and end times of a project. In a project they need to define proper timelines for various activities shown in the work breakdown structure. The allocation of time will enable tracking of events and allocation of resources (Pemsel, Wiewiora, 2013). In project management there are several time scheduling techniques that a project manager can chose upon. They can decide to choose optimistic, pessimistic, or most likely time depending on the suitability of each project. Time management is important in projects because it enables to have a clear balance of project costs, quality and achievements in projects. To ensure effective stakeholder participation takes place communication should be a basic component (Verzuh, 2015). According to the guest speaker communication can be defines as a systematic process in which information is planned and then disseminated to the relevant users either at different intervals. The guest speaker further noted that during communication a project manager need to have done stakeholder analysis to identify the types of stakeholders (internal, external, primary, secondary or positive) that will help them decide on the levels of engagement with them. Any project is measured on the success of how it was able to engage its stakeholders. Engagement should cover both in management, board and client levels. Communication plan in projects will be a useful tool to avoid conflicts and increase sustainability of projects. Every project is faced with the challenge of risks and uncertainties (Pritchard PMP, 2014). Risks according to the guest speaker represent things that might happen or issues that have happened. Any project manager needs to be aware of such risks and provide mitigation measures in ensuring that they are dealt with. Project risks are important because they define the weak points, situations that need strengthening, or challenges that pose to occur. It is important then for project management teams to employ mitigation strategies to them. Any effective risk management strategy should be proactive which can identify risk and provide early signs and mitigation solutions before it occurs (Gido Clements, 2014). The guest speaker further noted that having a clear risk management plan creates risk awareness and preparedness reducing effects resulting from them. Project management teams need to plan for risks early enough (Meredith, Mantel Shafer, 2013). A project manager is expected to provide leadership in projects (Kerzner, 2013). According to the guest speaker leadership is addressed on a number of dimensions. A good project leader should motivate and inspire employees to achieve the intended targets (Gido Clements, 2014). The guest speaker did further note that the leadership style adopted should be one that can be acceptable and accommodative to all. Having clear reporting lines and governance techniques is important in ensuring that project success is achieved. A good reporting line will clearly define roles and responsibilities of each project team member. Other leadership skills expected of a project managers were discussed including those of engaging everyone, allowing negotiations where necessary, focusing on customer needs, and using professional tools that can make life better (Lientz Rea, 2016). In the interactive session the guest speaker was able to answer some of the questions. The guest speaker discussed on some of the common mistakes that occur in projects to be lack of planning, not assigning or delegating duties, micro management, lack of stakeholder engagement, and poor or lack reporting activities. It was noted that creation of plans is ideally important during project implementation to avoid any kind of mishaps. A visual summary of triple three constraints of time, quality, and cost guided by vision, strategies and tasks closed the presentation. To ensure success in projects a good manager need to utilize them to provide guidelines of achieving objectives (Heagney, 2016). Conclusion A number of notable knowledge and skills were obtained from the guest presentation. For any project manager to be successful the focus should be on planning, design, implementation, and execution. A good project plan covering scope, deliverables, communication, risks, quality, leadership management, time, budget and human resources need to be formulated. The presentation was supported with illustration real data of the actual work done in projects for examples table of budgets, risks and communication. The report further provided avenues for those wishing to join project management professional field by providing suggestions and guidelines to follow. In summarized form the guest speaker report provided reasons, roles, working structure and challenges originating from project management work. It provided a clear picture in which project manager can apply when implementing project in ideal situations. References lists Burke, R., 2013. Project management: planning and control techniques.New Jersey, USA Gido, J. and Clements, J., 2014.Successful project management. Nelson Education Heagney, J. (2016).Fundamentals of project management. AMACOM Div American Mgmt Assn Heldman, K., 2015.PMP Project Management Professional Exam Deluxe Study Guide: Updated for the 2015 Exam. John Wiley Sons Hillier, F. and Hillier, M., 2013.Introduction to management science. McGraw-Hill Higher Education Hwang, B.G. and Ng, W.J., 2013. Project management knowledge and skills for green construction: Overcoming challenges.International Journal of Project Management,31(2), pp.272-284 Lientz, B. and Rea, K., 2016.Breakthrough technology project management. Routledge Macbeth, D. K., Project Management Institute. (2012). Procurement and supply in projects: Misunderstood and under-researched. Newtown Square, Pa: Project Management Institute Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2013.Project management in practice. Wiley Global Education Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project management performance and project success.International Journal of Project Management,32(2), pp.202-217 Kerzner, H., 2013.Project management: a systems approach to planning, scheduling, and controlling. John Wiley Sons Snyder, C.S., 2014. A Guide to the Project Management Body of Knowledge: PMBOK () Guide. Project Management Institute. Verzuh, E., 2015.The fast forward MBA in project management. John Wiley Sons Pemsel, S. and Wiewiora, A., 2013. Project management office a knowledge broker in project-based organisations.International Journal of Project Management,31(1), pp.31-42 Pritchard, C.L. and PMP, P.R., 2014.Risk management: concepts and guidance. CRC Press. Stark, J., 2015. Product lifecycle management. InProduct Lifecycle Management(pp. 1-29). Springer International Publishing Taylan, O., Bafail, A.O., Abdulaal, R.M. and Kabli, M.R., 2014. Construction projects selection and risk assessment by fuzzy AHP and fuzzy TOPSIS methodologies.Applied Soft Computing,17, pp.105-116