Environmental Management for Sustainable Development Biofuel

Question: Describe about the Report of Environmental Management for Sustainable Development on Biofuel. Answer: Introduction: Biofuel can be designated as the fuels, which are immediately derived from the living matter. It can be produced directly from flora, and indirectly from farming, commercial, household, and/or manufacturing wastes. In the context of increased cost of fossil fuels, the production of the biofuel seems to be the best probable solution today. The economic as well as the environmental concerns (emission of green house gases, global warming, air and water pollution and many others) are compelling the nations to establish legal mandates and governmental assistance to promote the use of biofuel. Here, in the brief span of this report the author has discussed the mandates regarding biofuel of two successful producer countries of the same. The countries are: France and Philippines. France: The geography: France or the French republic is a sovereign state of Western Europe. The total area of the country can be estimated as 643,801 sq km; 551,500 sq km (The World Factbook Central Intelligence Agency, 2016). The natural resources of the the metropolitan France are mainly coal, iron ore, bauxite, zinc, uranium, antimony, arsenic, potash, feldspar, fluorspar, gypsum, timber, arable land, fish. Gold deposits, petroleum, kaolin, niobium, tantalum, clay can also be found in the French Guiana (The World Factbook Central Intelligence Agency, 2016). However, the country is facing a few grave environmental issues like, forest damage due to acid rain, massive air pollution due to industrial as well as vehicle emissions. On the other hand, France is also facing the threat of water pollution from urban and agricultural waste. Demography: The total population of the country was 66,736,000 in 2015 (The World Factbook Central Intelligence Agency, 2016). The majority of the population (38.31%) comes under the age group of 25 to 54. Various ethnic groups and the oversees people are residing in the country and they are from diversified religious background (The World Factbook Central Intelligence Agency, 2016). Figure 1: Map of France Source: (The World Factbook Central Intelligence Agency, 2016) Economy: The economy of France is diversified. It is a capitalist country. However, the social and economic equity is being maintained with the help of people oriented laws, social spending and tax policies. The total GDP of the country was $2.647 trillion in 2015 (The World Factbook Central Intelligence Agency, 2016). The HDI of the country is very high, which is 0.888. However, the countrys unemployment rate is increasing and the GDP growth rate is not very satisfactory (The World Factbook Central Intelligence Agency, 2016). The biofuel industry and mandates of France: France can be identified as the second largest consumer of the biofuels among the EU countries. As mentioned by the ministry of industry of France, the consumption has increased by 62.7% in the recent years. In the market of biofuel, biodiesel holds the largest share. The indisputable biodiesel trader within Europe is the French corporationDiester Industrie. It is manufacturing almost 2 million tons of the fuel every year. In the market of bioethanol, Tros, the agro-industrial company of France is increasing its production capacity. In the legal boundary, it can be discerned that the EURenewable Energy DirectiveandFuel Quality Directive have bound the country. However, France has not implemented any legislation, which promotes the renewable energy. As a member of EU, the country has to abide by the regulations like, Directive 98/70/EC, Directive 2003/17/EC, Directive 2003/30/EC and others, of the European Directives and Regulations on biofuels. (Doumax et al., 2014). On the other hand, as a member of CEN (European Committee for Standardization), France has replaced its own domestic legal standards by the standards mentioned by CEN without any modification. Figure 2: The EU biofuel mandates (Source: Kelly, 2012) However, France is following a number of legal and economic incentives to encourage the production and marketing of biofuel. The French government has launched Plan climat in 2004 to meet the specifications of Kyoto protocol. As mentioned by Chakravorty Hubert, (2013), the climate plan stated that France would meet the goal of 5.75% biofuel usage in 2010. On the other hand, the country had a law, which provided internal tax exemption on a few petroleum products (TIPP). Later biodiesel got 100% and bio-ethanol got 80% TIPP exemption. Moreover, the implementation of the Plan vhicules propres in 2003, which was related to promoting sustainable transportation, has influenced the production and marketing of biofuel in the country (Charles et al., 2013). The country is also following the strategy of tax reduction for encouraging the production of biofuel in the country. The economic challenges of biofuel to France: France is encouraging the domestic production of biofuel largely. However, there are a few economic challenges regarding the use of biofuel, which the country is facing today. Such economic challenges are as following: High production cost: As opined by Smeets et al., (2014), in spite of all the benefits related to the use of biofuels, it cannot be ignored that they involve a high production cost in the present market. As France is promoting the use and export of biofuel in the domestic as well as the international market, the product cost will be substantially high in future. Monoculture in farming: As discussed by according to Chakravorty et al., (2016) the European Common Agricultural Policy (CAP), France is using the set aside lands for the production of biofuel. However, the production of biofuel is likely to restrict the opportunity of agricultural expansion. As opined by Louhichi et al., (2012), monoculture can be referred as a process of cultivating the same plants for an extended period, rather than cultivating a variety of crops. It decreases the nutrients level and restricts production power of the land. Thus, it is creating an economic threat to the agricultural sector of France. The tax benefits: As discussed by Timilsina, (2014) the governmental tax benefits and financial incentives provided to the producers of biofuel are lowering the national earning. As mentioned by Martinet, (2013) it has reduced the national income of the country. Thus, the promotion of bio fuel production is creating a financial challenge to France. The economic opportunities of using biofuel for France: The advancement is the automotive sector: The recent advancement in the domestic as well as international automotive sector is creating an economic opportunity to the country. On the other hand, the country is providing financial and tax benefits for the usage of biofuel. The Plan vhicules propres was aimed to promote sustainable transportation (Azad et al., 2015). Hence, this encouragement of the biofuel use will provide an economic growth to the industry as well as the country. Bright future of the biofuel industry: As discussed by Timilsina Shrestha, (2014), the recent trend of environmental consciousness over the world is encouraging the usage of the eco friendly substances in every sector of life. On the other hand, the growing usage of the biofuel and its non-polluting nature can be helpful for the countrys economic growth in the long-run. Economic outcome: Reduced dependence on the foreign oil: As opined by Cochran, (2015), not every country is rich in the storage of petroleum. However, the locally grown plans and the production of domestic biofuel have reduced the countrys dependence onpetroleum. As mentioned by Farine et al., (2012) the cost of crude oil is continuously raising, in such a context, providing an alternate option to the energy market can provide the country a great potential for economic development. Economic security: As discussed by Banse et al., (2014) France do not have any source of fossil fuel. Hence, importing crude oil was creating a huge dent in the economy. Starting to shift towards biofuel is saving a huge amount of money. Thus, the advancement of the biofuel industry is strengthening the economy. Employment opportunity: As discussed by Doumax et al., (2014) France is facing an issue with falling employment rate. On the other hand, the unemployment rate is substantially increasing in France. In such a context, the growth of the biofuel industry is creating a great horizon for employment. On the other hand, the growth of this particular industry is providing the French economy a great level of economic sustainability, which is in turn creating opportunity for employment. Viability of the biofuel mandates: As mentioned by Cansino et al., (2012) with the encouragement in the production of biofuel through various mandates, the country has experienced increased level of agricultural income in certain sector. On the other hand, the mandates have helped the country to reduce its dependence on the foreign energy sources. However, the mandates regarding biofuel are providing a huge range of tax benefits to the produces. It is in turn, hurting the national income of the country. Moreover, most of the producers are the capitalists. Hence, by providing support to them is being oppressive to the non-privileged group of the country. Moreover, the production of the biofuel has also led the country to experience increased food price. The EU mandates are helping the country to achieve its goal of environment preservation. The countries like France, which are industrially advanced, must concentrate on the land usage of biofuel production. It is important to control the food price. However, as discussed by Timilsina, (2014), the country is the second largest consumer of biofuel among the EU countries. Hence, the biofuel mandates are being helpful for the country to be independent regarding the energy sources. These above discussed mandates have helped some of the French companies to earn a substantial portion of foreign dollars. Hence, it can be concluded that the biofuel mandates are being economically sustainable to the country. Philippines: Geography: Philippines or the Republic of the Philippines is a island country in south east Asia. It comprises 7641 islands. The total area of the country is 300,000 sq km and the water body is stretched around 1,830 sq km. The natural resources of the country can be identified as timber, petroleum, nickel, cobalt, silver, gold, salt, copper. It has 25.9% forest in its total landscape (The World Factbook Central Intelligence Agency, 2016). The country is facing some environmental issues like, unrestrained deforestation mainly in watershed locations; soil erosion; air and water contamination in chief town centers; coral reef depletion; mounting pollution in the coastal mangrove swamps which are vital fish reproduction cites (The World Factbook Central Intelligence Agency, 2016). Figure 3: Map of Philippines (Source: The World Factbook Central Intelligence Agency, 2016) Economy: The country is now experiencing total $793.193 billion GDP as well as $2,978 per capita income. In addition, the country has a medium HDI level, which is 0.668 (The World Factbook Central Intelligence Agency, 2016). The country is suffering from the issue of huge import of the fossil fuel; however, the dependence has reduced in the few previous years. As opined by Wahid et al., (2015) the country is a developing economy and the unemployment rates is decreasing. Demography: The population of the country has been estimated as almost 100,998,376 in 2015. The majority of the population (36.72%) belongs to the age group of 25 to 54 years. The ethnic groups of the country are Tagalog, Cebuano, Ilocano and many more. The official language of the country is Filipino and English (The World Factbook Central Intelligence Agency, 2016). The biofuel industry of Philippines: The government of the country is typically helping the investors to play in the market of biofuel. It has provided a substantial growth to the market. The country is now producing 14,500 barrels per day of biofuel. The main players of the countrys biofuel market are Metrohm AG, Pyry Energy, GreenGold Ray Energies, Inc. (GRYE) and many others. The mandates regarding biofuel: As mentioned by Katz, (2012), the country has launched Biofuels Act of 2006, which is aimed to develop and exploit renewable power, to diminish lethal and greenhouse gas effects, to reduce the Philippines dependence on the imported energy sources or fuels and to augment the opportunity of rural employment and profits. As mentioned by Georges, J. (2012), this law mandated the integration of 1% biodiesel in diesel and 5% bioethanol in gasoline within 2009. The country also has the Renewable Energy Act of 2008. This particular act is providing a number of encouraging incentives to the use and production and biofuel. These are: duty free incorporation of related machinery for 10 years, income tax exemption for seven years for commercial operation, cash incentives to the developers, 10% corporate tax, tax exemptions for carbon credits, and many more (Morales, 2013). On the other hand, as mentioned by Acosta et al., (2013), in 2009, the Department of Energy announced 12 products for Coconut Methyl Ester (CME) for biodiesel with a total production capacity of 395,620,165 liters and the Sugar Regulatory Administration (SRA) has accredited two producers of bioethanol (from sugarcane) with a total production capacity of 39 million liters per year. Thus, the country is encouraging the usage and production of biofuel (Kelly, 2012). The economic challenges The food-fuel conflict: The country is a developing economy. Agriculture can be identified as the major source of domestic income. In such a context, encouragement to the production of biofuel may debar the agricultural production and the related income of the country (Ackrill 2014). This threat of loss of agricultural income can be identified as an economic challenge of the usage of biofuel (Morales, 2013). Moreover, the use of cultivable land for the production of biofuel may cause a threat to the production of food crops in Philippines. Capital-intensive program: Production of biofuel is a capital-intensive program. The government is encouraging the production of biofuel even in the cost of reduced national income. Philippines is a developing country. Such tax benefits is creating huge liability to the government (Acosta et al., 2014). With increased production of biofuel the country will face this particular economic challenge. The cost of biofuel: As mentioned by Menguita-Feranil, (2013) biofuel is more expensive than the fossil fuels in the current market. According to Urbanchuk, (2012) biodiesel is about $0.27 per liter more expensive than the diesel equivalent. It is posing a threat to the market of biofuel in Philippines. The economic opportunities: The governmental support: As discussed in the Biofuel Act, 2006, the government is providing a substantial support to the production and usage of the biofuel. It has encouraged the market growth of the fuel. As the Act has specified the blend percentages, the fuel production houses are trying to follow it. This has created the demand of the biofuel in the domestic market. The huge demand in the local market: As discussed earlier, because of the Governmental encouragement, the demand of biofuel has been created. As mentioned by Shi Goto, (2013) the market of Philippines can be characterized by a substantial demand-supply gap. The local market is facing a lack of supply of biofuel. Hence, if the companies, which are playing in this market, can address this supply gap they can earn a huge rate of profit. Figure 4: Fuel consumption in Philippines Source: Morales, (2013) Export of surplus production: As stated by Acosta et al., (2014) the country is experiencing surplus production of biofuel mainly biodiesel. With the increased demand of the biofuel in the international market, a sheer opportunity of exporting biodiesel has been emerged to Philippines. The country can expert biofuel and earn foreign dollar. By exporting biofuel to the American countries, Philippines can experience a substantial leverage in its export sector. The outcomes of the biofuel mandates: The likely economic outcomes of the biofuel mandates can be as followed: Poverty reduction and rural development: As opined by Yamaguchi et al., (2013) poverty reduction can be identified as one of the crucial objectives of promoting sustainable development. The increased usage and production of biofuel can help in increasing the income opportunity, as it requires intensive labor force for the production of the crops. On the other hand, as discussed by Wahid et al., (2015) the increased production of biofuel will utilize the previously unused lands; it will increase the income opportunity of the landholders. Moreover, by creating likelihood of opening the fuel refining infrastructure the government can ensure increased income opportunity in the rural sectors. Thus, the mandates regarding biofuel will be helpful for the rural economy of the country. Reduced import: Import of fossil fuels is has made the country typically dependent on the foreign lands for energy sources. As mentioned by Katz, (2012), the demand for foreign fossil fuel and related products has reached the approximate level of 106.5 million barrels of fuel oil in 2004. It provides a clear picture of the countrys dependence. As stated by Morales, (2013) in terms of foreign exchange, the importations volume has reached an equivalent to roughly US$ 3.8 billion of currency outflow. To respond to this scenario, the government passed the Republic Act No. 9367 in 2007. It has reduced the dependence of the country to a great range. Increased opportunity of employment: As discussed by Acosta et al., (2014) with the increased investment in the biofuel industry, will ensure employment opportunity both in the rural as well as urban sector. As discussed previously, the country is facing a high unemployment rate. However, it is gradually decreasing with the advancement in the biofuel market. The viability of biofuel mandate: As opined by Banse et al., (2014) a decrease in the import level was expected while laying the biofuel mandates in the country. Now, it can be declared that the country has achieved this goal of lowering the outflow of domestic currency regarding energy sources. Moreover, with the biofuel mandates the country has achieved a growth in the rural economy. Philippines can be identified as one of the developing economies of the world. Now, the advancement in the rural economy is crucially important for such countries. On the other hand, the increased production of biofuel has provided the country a substantial future opportunity of income through export of biofuel. With the increased usage of biofuel in the international scenario, the country has opened a door to the future income. Moreover, as the country has a substantial part of coastal land, the mandates are being helpful in producing a better quantity and quality of biofuel. Hence, it can be concluded that the biofuel mandates are be ing sustainable for Philippines. Compare and contrast between France and Philippines: Both the countries are following well-structured mandates and legal regulations regarding the use, production and blend of biofuel. However, Philippines are following mostly its own regulations whereas France is mainly following the EU declarations. Both the countries are reaping the profit of biofuel production and usage. As described by Banse et al., (2014) the use of biofuel is providing them energy independence and security. However, as opined by Wahid et al., (2015) being a developing nation, Philippines is gaining more than that of France. The biofuel mandates are helping it to uplift its rural population whereas; France has to look for utilizing the unused lands in the country. Both the countries are earning foreign money through biofuel export. However, Philippines is experiencing a surplus of production of biofuel and thus exporting the excess. On the other hand, France is still struggling to mitigate the domestic demand of the biofuel. As described by Kumar et al., (2013) Philippines is correctly utilizing its status of a developing nation by promoting the production of biofuel. The tax benefit to the producers is cutting down the national income of France. However, this particular strategy is helping Philippines to encourage the industrial sector. Australian market: Now, if a review on the biofuel market of Australia can be done, it can be noticed that in 2014, the average annual production of the country was almost 800 million ton liter (Cochran, (2013). The biofuel market of Australia is continuously increasing. As opined by Puri et al., (2012) usage of biofuel will be economically viable for Australia. Figure 5: Gasoline sales report of Australia in 2015 (Source: Cochran, 2013) The mandates: The Biofuel excise policy talks abot providing excise benefits to the production of biofuels. As mentioned by Rajcaniova et al., (2015) in 2011, the government has provided effective excise free statusfor the next 10 years to some renewable fuels like (ethanol, biodiesel and renewable diesel). On the other hand, the government is also providing fuel tax benefits to some companies, which are using biofuel for their industrial operation. Such tax benefits can also be claimed in the usage of biofuel in the heavy vehicles. Various state governments have also provided some encouraging regulations. However, the governmental regulation imposes 10% cap on the concentration of fuel ethanol blends. Recently, the government is providing excise exemption to the domestically produced ethanol until 30th July, 2021 (Shi Goto, 2013). The government is also providing capital grants to the produces. The drives: The drives, which motivated the Australian Government to opt for laying down the biofuel mandates, can be identified as followed: The increased demand for energy: As opined by Cochran, (2013), with the development of the economy as well as the industrial activities, the demand of energy sources is continuously increasing. Moreover, the countries like Australia are continuously facing the issue of energy demand regarding the transport activities (road, air and water). Hence, the government of Australia though about encouraging the usage and production of biofuel by introducing a few mandates regarding this. Reduction of green house gases: As opined by Timilsina, (2014), the civilized and economically advanced countries need to focus on reducing the level of green house gases in the world. Australia has already signed the pact titled East Asian Energy Security Pact. Through this pact the national authorities has decided to uphold the expansion of biofuel to lessen the dependence on the fossil fuel and encourage cleaner sources of energy within the country as well as the international energy market. The increased anxiety regarding the green house gases and the threat of global warming has driven the country to promote biofuel. Increased cost of fossil fuel: The whole world is facing this particular issue. As the fossil fuels are the only sources of energy in the current circumstances, the cost of it is continuously increasing (Acosta et al., 2014). Moreover, the countries those do not have any source of fossil fuels are being dependent on the foreign imports. Hence, the national authority of Australia has concentrated on the production of biofuel by considering it a potential source of future energy requirements. The recommendations: Reviewing the cases of the two above discussed countries, the followings can be recommended: The nation needs to lay down mandates regarding the import of the fossil fuels. By promoting the domestic production of biofuel, Philippines and France have gained fuel security. Australia needs to focus on reducing its import of the fossil fuel by mandates and thus create demand of the domestically produced biofuel. Mandates should be made on establishing the oil production houses in the rural sector. It will encourage the rural economy of Australia. As followed by France, Australia can use its used lands for production of biofuel. The government needs to specify the blending targets to the transportation industry. It will increase the usage of biofuel in the domestic market. The country can use the strategy of promoting the infant industries like Philippines. It will encourage the production of biofuel within the country. Conclusion: From this above discussion, it can be concluded that the countries like France and Philippines has gained substantial economic as well as environmental growth by promoting biofuel. Environment is growing concern today. Hence, to reduce the threat of ecological degradation the nations needs to be more conscious regarding the production of biofuel. Legal mandates can be helpful in this regard. Countries need to focus on promoting the use and production of this green fuel. References: Ackrill, R., Kay, A. (2014). Biofuels Policy Challenges. InThe Growth of Biofuels in the 21st Century(pp. 180-217). 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Rajcaniova, M., Ciaian, P., Drabik, D. (2015). International Policies on Bioenergy and Biofuels. InIndustrial Crops(pp. 381-406). Springer New York. Shi, X., Goto, S. (2013). Harmonizing biodiesel fuel standards in East Asia: Motivations, progress and challenges.Applied energy,105, 217-222. Smeets, E., Tabeau, A., van Berkum, S., Moorad, J., van Meijl, H., Woltjer, G. (2014). The impact of the rebound effect of the use of first generation biofuels in the EU on greenhouse gas emissions: A critical review.Renewable and Sustainable Energy Reviews,38, 393-403. The World Factbook Central Intelligence Agency. 2016.Cia.gov. Retrieved 8 August 2016, from https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html Timilsina, G. R. (2014). Biofuels in the long-run global energy supply mix for transportation.Philosophical Transactions of the Royal Society of London A: Mathematical, Physical and Engineering Sciences,372(2006), 20120323. Timilsina, G. R. (2014). 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Accounting and Financial Reporting of Wesfarmers and Woolworths

Question: Discuss about the Financial Reporting of Wesfarmers and Woolworths. Answer: Introduction Wesfarmers Established in 1914 as Western Australian Farmers cooperative, they have reached to find its place among the biggest listed companies in Australia. Their diverse business include the departmental stores, supermarkets, fertilisers and energy, safety products, home improvements and office supplies. The main objectives of the company are to provide the satisfactory return to their shareholders. They aim to attain this objective through: Fulfilling the requirements of the customers by providing services and goods on professional and competitive basis. Delivering safe working environment for the employees with good rewards for performance and opportunity for further improvements. Giving importance to the protection of environment in which they operate Operating with integrity and honesty while dealing outside as well as inside the company. Their organizational structure reveals that they have 94 executives and 9 subsidiaries named as Bunnings, Coles Group, Target Australia, Wesfarmer chemicals (Kleenheat and CSBP), officeworks, Wesfarmers resources and Wesfarmers Industrial and Safety. During 2016, they have achieved the following things: They reduced the frequency rate of total recordable injury by 15.2% They worked to promote the diversity in the workplace and over 3300 employees were recognized as indigenous They improved the transparency under the audit program for over 3200 factories under the supply chain They were able to reduce the green house gas emissions by over 2% during the last year (Wesfarmers.com.au 2017). Woolworths On 22nd February 1878, 1st store of Woolworth was established by Frank Winfield as Woolworths great five cent store. They are one of the biggest supermarkets among Australia and accounts for 80% of the market share of Australia. Among the various products they deal with, the drink business includes BWS and Dan Murphys main objective is to deliver the convenience and best value to their customers. They are better known for selling the grocery items. However, they also deal with sales of DVDs, magazines, stationary items and currently having more than 1000 stores in Australia itself. Their main aim is to become the most preferable brand for the customers and to achieve that they have the below mentioned strategies: Building a tem and store-led culture for the customers Creating the sustainable momentum for sales of foods Becoming the lean retailer by system excellence and end-to-end procedure Empowering the portfolio business to increase the shareholders worth Develop their drink business to deliver convenience and value to the customers. Their organizational structure reveals that they have 77 executives and 5 subsidiaries named as Big W, Progressive enterprise, EziBuy, Dan Murphys and Endeavour Drinks. Among others, few notable achievements by Woolworth are as follows: They were the 1st to establish the system of best before and sell by through providing their customers with the indication of the probable time at which the good swill be reached to them They were the 1st to achieve the organic growth of the commercial crop cotton. They were the 1st to remove as much preservatives and additives as possible from the foods they deal with (Woolworths Online 2017). Identification and evaluation of financing sources Capital Structure: Wesfarmers Liabilities Amount Amount Current liabilities Trade and other payables $ 6,491.00 Interest bearing loans and borrowings $ 1,632.00 Income tax payable $ 29.00 Provisions $ 1,861.00 Derivatives $ 160.00 Other $ 251.00 Total current liabilities $ 10,424.00 Non-current liabilities Interest bearing loans and borrowings $ 5,871.00 Provisions $ 1,554.00 Derivatives $ 81.00 Other $ 104.00 Total non-current liabilities $ 7,610.00 Total liabilities $ 18,034.00 Equities Amount Amount Issued capital $21,937.00 Reserved shares $ -28.00 Retained earnings $ 874.00 Reserves $ 166.00 Total equities $ 22,949.00 Capital structure Amount of total capital $ 40,983.00 Amount of debt $ 18,034.00 Amount if equity $ 22,949.00 Debt portion (%) 44% Equity portion 56% From the above table it can be identified that the amount of capital for Wesfarmers worth $ 40,983 million. Out of the total capital, $ 18,034 that is 44% has been raised through debt and $22,949 that is 56% has been raised through equity. Further, the leverage ratio of the company that is, (Total debt/total assets) = ($22,949 / $40,983) = 44%. It states that for every dollar of the asset of the company, it has to raise $0.44 of debt (Wesfarmers.com.au 2017). Analysis of debt The debt of the company is generally raised in name of Wesfarmers and is associated with corporate guarantee. If the debt is directly raised by the joint venture or subsidiary then that will have a separate arrangement for security. The facilities associated with the bank debt funds are subjected to the threshold limit of interest coverage ratio and minimum leverage. Normally the secured debt cannot be more than a specific % of total assets. However, the set % can exceed in some specific cases like acquisition (Wesfarmers.com.au 2017). Analysis of equity The ordinary shares of Wesfarmers are fully paid and do not have any par value. Each share carries one voting vote and is entitled to receive dividends. The shares do not carry any conditions or special terms that can affect the capital entitlements or the income of the company and are simply classified under equity. The reserved shares are the ordinary shares that were repurchased by the company and are held for the purpose of future use. Woolworths Liabilities Amount Amount Current liabilities Trade and other payables $ 6,266.10 Borrowings $ 490.70 Current tax payable $ 39.50 Provisions $ 1,873.50 Liabilities associated with assets held for sale $ 202.60 Other financial liabilities $ 120.30 Total current liabilities $ 8,992.70 Non-current liabilities Borrowings $ 3,870.90 Provisions $ 1,382.40 Other $ 294.50 Other financial liabilities $ 179.80 Total non-current liabilities $ 5,727.60 Total liabilities $ 14,720.30 Equities Amount Amount Issued capital $ 5,347.00 Reserved shares $ -94.80 Retained earnings $ 3,124.50 Reserves $ 93.90 Total equities $ 8,470.60 Capital structure Amount of total capital $ 23,190.90 Amount of debt $ 14,720.30 Amount if equity $ 8,470.60 Debt portion (%) 63% Equity portion 37% From the above table it can be identified that the amount of capital for Woolworth worth $ 23,190 million. Out of the total capital, $ 14,720 that is 63% has been raised through debt and $8,470 that is 37% has been raised through equity. Further, the leverage ratio of the company that is, (Total debt/total assets) = ($14,720 / $23,502.20) = 63%. It states that for every dollar of the asset of the company, it has to raise $0.63 of debt (Woolworths Online 2017). Analysis of debt The financial arrangements are made through the bank loan and the company is able to draw the loan at any time with the associated lending agreements. Further, the bank overdraft facilities can be drawn at any time. The borrowings of the company are initially recognised at the fair value less attributable transactional costs. Consequently, the borrowings are recognised and recorded at amortised cost. The difference between redemption value and cost are recognised under the consolidated statement for profit and loss during the period of borrowing. Analysis of equity Holders of the ordinary shares are enable to get receive the dividends and are entitled to one vote for each share at the meeting of the shareholders. In the occasion of winding-up the ordinary shareholders will stand only after fulfilment of dues of the creditors and all other shareholders and are entitled for the proceeds from the liquidation (Woolworths Online 2017). Ratio analysis Ratio analysis Ratio Formula Wesfarmers Woolworths Amount Result Amount Result Liquidity and efficiency Current ratio Current assets 9,684 0.93 7427.00 0.83 Current liabilities 10,424 8992.70 Accounts receivable turnover Net sales 65,981 27.89 58275.50 70.68 Average accounts receivable 2,366 824.55 Profitability Return on asset ratio Net Income 407 1.00 -1234.80 -5.25 Total assets 40,783 23502.20 Return on sales Net income 407 0.62 -1234.80 -2.12 Sales 65,981 58275.50 Solvency Debt ratio Total liabilities 17,834 0.44 14720.30 0.63 Total assets 40,783 23502.20 Equity ratio Total equity 22,949 0.56 8781.90 0.37 Total assets 40,783 23502.20 From the above table it is recognised that the current ratio of both the companies are less than 1, which indicates that both the firms are facing problems in paying-off their current dues. However, the current ratio of Wesfarmers is slightly better at 0.93 as compared to that of Woolworths 0.83 (Arkan et al. 2016). On the other hand, the account receivable turnover of Woolworth is far better than Wesfarmers as they are able to collect their receivables up to 71 times as compared to 27 times of Wesfarmers. However, as Woolworths was not able to generate any positive income during 2016, their return on asset as well as return on sales both are negative as compared to the 0.62% return on sales of Wesfarmers (Arrozio, Gonzales and da Silva 2016). Out of the total capital of Wesfarmers, 44% has been raised through debt and 56% has been raised through equity and for Woolworths, 63% has been raised through debt and 37% has been raised through equity. As Woolworths were not able to generate any positive earning, it can be said that the financial position of Wesfarmers is better as compared to that of Woolworth (Delen, Kuzey and Uyar 2013). Financial reporting framework The consolidated financial statements of both the companies are prepared on the basis of the Corporation Act 2001, international financial reporting standards, Australianaccounting standards and interpretations and are complied with the applicable laws. The Consolidated Financial Statements are prepared based on the Australian dollars and are rounded-off to the nearest tenth of a million dollars (unless otherwise stated as per ASIC Class Order 98/100 (Luke 2016). The Financial Statements are prepared on historical cost method except for available for sale derivative financial assets that are measured at fair value and some other comprehensive income and liabilities are transacted at fair value, as explained in theaccounting policies. Theaccounting policies are consistently applied to the periods under consideration for the financial statements, unless otherwise stated. Both the companies prepare their financial statement on the same basis as they both are registered with the Australi an stock exchange and are in the similar business (Humphrey, ODwyer and Unerman 2014). Conclusion and recommendation From the above discussion, it can be concluded that the capital structure of the companies are different from each other as out of the total capital Wesfarmers raised 44% through debt while Woolworths raised 63% through debt. The ideal capital structure for an organization is one third equity and two third debt as the cost of debt is normally lower as compared to equity and moreover, debt does not have any right to the profits of the company. Therefore, Wesfarmers are suggested to finance their assets through more of debt rather than equities. Further, as the average receivable ratio of Wesfarmers is too low, they are suggested to improve their receivable ratio through proper measures. References Arkan, T., Barburski, J., Bolek, M., Gostkowska-Drzewicka, M., Homa, M., Mo?cibrodzka, M., Mizio?ek, T., Zaremba, A., Olbry?, J., Mursztyn, M. and Osiichuk, D., 2016. The Importance of Financial Ratios in Predicting Stock Price Trends: A Case Study in Emerging Markets.Finanse. Rynki Finansowe. Ubezpieczenia, (1 (79) Rynek kapita?owy i zarz?dzanie warto?ci?), pp.13-26. Arrozio, M.M., Gonzales, A. and da Silva, F.L., 2016. Changes in the financial ratios of the wholesale and retail sector companies arising from the newAccounting of the operating lease.revista eniac pesquisa,5(2), pp.139-159. Delen, D., Kuzey, C. and Uyar, A., 2013. Measuring firm performance using financial ratios: A decision tree approach.Expert Systems with Applications,40(10), pp.3970-3983. Humphrey, C., ODwyer, B. and Unerman, J., 2014. The rise of integrated reporting: understanding attempts to institutionalize a new reporting framework.Centre for Social Environmental Accounting Research (CSEAR), St Andrews. Luke, B., 2016. Measuring and Reporting on Social Performance: From Numbers and Narratives to a Useful Reporting Framework for Social Enterprises.Social and Environmental Accountability Journal,36(2), pp.103-123. Wesfarmers.com.au. (2017). Home. [online] Available at: https://www.wesfarmers.com.au/ [Accessed 19 May 2017]. Woolworths Online. (2017). Woolworths Supermarket - Buy Groceries Online. [online] Available at: https://www.woolworths.com.au/ [Accessed 19 May 2017].

What Everyone Else Does When It Comes to Process Essay Topics Medicine and What You Should Do Different

What Everyone Else Does When It Comes to Process Essay Topics Medicine and What You Should Do Different The essay topics are categorized in various groups only for the ease of readers. In most instances, essays normally have three sections including an introduction, the principal body, and a conclusion. It is not very easy to compose a how-to essay. Tackling medical argumentative essay topics is never a simple job. A methodical strategy is necessary to compose a process essay. You never understand what your next assignment in college is going to be, and it is sometimes a persuasive essay as well as several other forms of essays. Finally, you're trying to persuade the reader your proposal isn't only viable, but one worth pursuing. Going through the rubric presented by your professor will offer you a very good idea of how to start writing the essay and factors to consider like length and topic limitation. When you haven't already mastered the process, it'll be tough to learn and compose all at one time. Just make certain it's a PROCESS! Apparently, every procedure differs. Instead, you can imagine unconventional processes. You also have to understand the many inputs and outputs of each process, and the way the output from 1 step is applicable in another step. The role of maintaining an outline is to ensure and pay attention to the crucial info, steps and methods that were extracted by you about the specific process essay topic. When you choose the procedure you need to concentrate on, you then need to earn a list of steps necessary to attain the aims of the activity. The way the structural design procedure is carried out from start to complete. Life After Process Essay Topics Medicine There are lots of theories about how to compose such texts and you'll be able to say that all of them have something which is going to be the reality. Just select the category which suits you best and tackle because many topics as possible. Of course, when you were given a very clear endeavor to write on a certain topic you won't need to wreck your brains searching for something exciting and crucial to dwell on. N aturally, it's not a simple job to do, because it's tough to change others' opinions. Remember how much detail describing the procedure will ask that you have. An easy step-by-step site setup guide is a fantastic way to talk about your wisdom and ideas with the world. If you've already started your own Etsy business and you've been successful enough to guide others, then it's probably advisable to talk about your expertise and experience. Describe how to trouble shoot and that which you have to do so as to fix a selection of issues. Drafting a process essay can occasionally prove to be intricate and somewhat confusing for a great deal of factors. Therefore, you need to be certain that the introduction is brief and right to the point to catch the readers' interest. Although you can give a concise history about the topic, it's often not advised, and it's preferred to go direct to the process description. Based on the topic that you've chosen, you might vary the sort of presentation that you opt for. The point is to entice readers to your composition, so they can keep on reading through the lines further. As you finalize your topic choice, remember to settle on a process you've completed many occasions and that you may explain to another person. Everyone needs to learn how to modify a Facebook setting at some time in their lives. You already are aware that the whole issue is in your own thoughts. Proposal essays are typical in company and science classes and professions, but are also beneficial for a variety of unique disciplines. It's thus vital for students to go through medical school essays examples to obtain a notion of what it is that they are predicted to do. To get the absolute most from the education essay topics, explore the many resources about the problem you're writing about. Definitions of Process Essay Topics Medicine The expense of healthcare is just one of the most vital issues. If you're in the work search process, we'll gladly allow you to compose an e ye-catching CV and even compose an intriguing cover letter that will immediately attract your upcoming employer's interest. You might have to conduct an extensive research and propose your own remedy to the current issue. To keep your company healthy you require a steady stream of customers coming through your doors.

The Manufacture Of Military Munitions And The Development Of A Home Ma

? The manufacture of military munitions and the development of a home market were critical underpinnings of the first industrial revolution in Britain. Military manufacturing supported by the British Government contributed directly to technological innovation and spurred industrialization. This is because the companies that choose to fulfill the government contracts to make military munitions found money could be made if new processes and technology was developed to fulfill the huge contracts. Military manufacturing was one of the few industries where innovation was rewarded. In most other industries conservative investors were reluctant to invest in new manufacturing technology. But in military manufacturing the government was the investor and was unconcerned with the manufacturing technology as long as the product was delivered on time. Many technological advances were made through military manufacturing some of these were new ways to manufacture iron, conveyer belts, and the use machine tools . The technology developed for military manufacturing then spilled over into the civilian sector of the economy. And because it was now a tested technology investors who were normally cautious were willing to put their capital into these ventures which instead of pouring iron to make guns now made iron ore into stoves and pots. ? The second critical underpinning of the first industrial revolution was the development of a home market in Britain. The first British industrialists manufactured textiles; specifically cotton for the home market. The growth of the home market in Britain promoted industrialization in several ways. First, it was a steady market which able to cushion the export market which was very dynamic and had sudden fluctuations. This allowed a steady rate of growth even when exports fell. Second, the home market started the process of urbanization by causing people to leave the agricultural sector of the economy and move to the cities to work in the cotton and textile factories. This urbanization had a snowballing effect throughout the economy because it caused other business and factories to open in the cities to support this new urban class. Third, the home market caused investments to be made in improving infrastructure including roads, bridges and canals. This paved the way for industria lization which needed an efficient system to transport goods from factory to market. The home market also provided the base for other industries such as coal. This was because the home market created greater urbanization and thus the need for coal in urban England grew. The military sector of the economy provided some of the key technological innovations that promoted industrialization. And the home market that was produced by the cotton textile trade promoted improvements in infrastructure and spurred other industries to develop.

Health Care Research Paper Topics

Health Care Research Paper TopicsWith the proliferation of health care research papers that are written for different audiences, the demand for health care research paper topics is rising. The reason for this is simple - people are interested in getting the information they need to help them make more informed decisions about their own health. Therefore, there is a massive need for health care research paper topics that are focused and practical.To illustrate how big the demands for health care research paper topics are, you can look at just a few examples. First, there are the special interest groups who need the information that the research papers provide. They need it for educational purposes, to present to others in their group or to generate funds to do projects of their own. Health care research paper topics can be geared toward these groups or be written for a general audience, depending on the information needed.There are many types of health care research paper topics to ch oose from. Topics can include: medical research tools and techniques, health care delivery, healthcare promotion, and public health. These topics are designed to educate, inform, and entertain.To understand why health care research paper topics are important, you need to understand what health care means. In the United States, it is often associated with hospitals and clinics. However, it extends far beyond that. Health care refers to the systems in place that have been set up to provide care and treatment to patients, particularly those who may have very special needs.The wide range of health care research paper topics is so broad because the nature of those needs are varied. Therefore, health care research papers can be extremely broad or very specific in focus. The problem is that these two methods of health care research are not always possible or desirable.With a wide range of needs to address, it is very difficult to write research papers that are able to address all of them. In order to do this, health care researchers often have to look outside of the traditional areas of medicine and health care. As a result, they are forced to write on more general topics, which are more feasible to the resources they have available.Health care research paper topics can also be very specific. One type of research paper offers solutions to the problems that occur as a result of the different types of equipment used in different medical facilities. They can also be very specific to the different issues that may arise when one organization does not follow standards of care.It is important to remember that health care research paper topics should focus on the kind of information needed to solve health care problems. It should be clear and precise, so that people understand exactly what it is they are looking for. Health care research paper topics must be successful so that people find them useful.

Research Papers References - Things To Remember

Research Papers References - Things To RememberIn order to write the perfect research paper, it is important to understand the value of research papers references. The hard work you put into writing your paper will be greatly rewarded in the form of a great grade. A paper that is filled with the right academic terms and formulas that have little to no connection to your subject will get you the lowest grade possible.For the best grade possible, it is best to first go over the references section of your reference sheet. While reading the references, it is important to look for the perfect references for your paper. Even if you can't find them all in one spot, you can always find them at the end of the reference sheet. Your objective when going over the references is to determine the information that you need to use in order to do the proper research on your own.Make sure that you browse the Internet thoroughly in order to gather as many references as possible. This will give you the f lexibility to include as many of them as possible. After the Internet searches are completed, it is time to decide on which ones you will use and which ones you will leave out.When determining which research papers references to include, you will want to consider where the student will be using the paper. If the document is to be used for a class assignment, you will want to include your research paper's references at the bottom of the paper. However, if it is used for a thesis or report, it will be useful to include your references throughout the paper.In order to make your research paper's references as powerful as possible, you should only use the highest quality research papers references that are available. To ensure that you are using the most accurate sources available, you will want to avoid choosing papers that have been published elsewhere. You will also want to consider selecting papers that are not academic publications.For instance, it is important to use Google Scholar to compile your research paper's references. Google Scholar is a popular website that is used by students all over the world to collect the references for their research papers. It is possible to search in several different subjects and research fields, allowing you to narrow down your research papers choices.The research paper's references that you add to your reference sheet will help you gain the maximum benefit from your research. The level of interest you draw from the research paper will greatly depend on how well the references section is written. Research papers should always be an aid to the reader, so it is important to give your readers what they are looking for.Following these tips when compiling your research paper's references will help you to not only have a high grade, but it will help to give your paper a better overall impact. When it comes to your research papers, it is important to provide your readers with all the information that they are looking for. With pro per research paper reference assistance, your research paper will shine!

College Essay Writing - Things You Should Consider When Writing Your Essay

College Essay Writing - Things You Should Consider When Writing Your EssayCollege essay writing can be a difficult task if the topic you're writing about is one that is controversial. So when choosing what topic to write about in college, be sure to have as much information as possible to support your point of view. College essays are often written in the first draft and once the student feels they've covered all the bases, they will then pass the content along to an editor for revisions and a polish. Below are some tips to help get you through this difficult time:To begin writing your college essay on morality, keep in mind the purpose of the essay. Is it to explain why you think morality applies in college? Is it to speak out against what you think is immoral? Is it to help you create a character for yourself? No matter what it is, there is common ground's that you need to explore so that the reader has something to relate back to in the future.In order to do this you will need to know the history of morality in your country and in your college, this will help you come up with a starting point for what has brought you to the point of writing an essay on morality. If you're not familiar with your topic at the beginning of the semester, the best thing to do is to find a book that has a list of the current events in morality and see if you can remember any of them.After your initial research is done, check out as many good moral examples and common examples of morality in your country or college you can find. This will help the writer to come up with a starting point that will resonate with the reader. When writing your essay, remember that not all religions, cultural groups, or nations are alike. Because of this, it will help the writer to use other people's experiences or examples of morality to help create a frame for their essay.So how do you come up with amoral guideline that is acceptable for you to follow? This might take some researching and digging thro ugh other students' writings for a few days before the essay is complete.After you've done the research and come up with an acceptable starting point, you'll want to put yourself in the shoes of a reader who is looking for objective morals. Be sure to consider your own situation and what the example the writer is trying to create is for you. Remember, the purpose of your essay is to come up with a moral guideline to help you think about and apply in your own life, and make a decision about what is right and wrong.College essay writing can be frustrating and painful at times. So don't let it bring you down, but be sure to give yourself a place to stand when writing your essay. Your essay is just a means to an end and it is important that you are passionate about what you are writing about so that you can come up with a coherent and professional essay that will serve you well in your life.