Essay on “The Hills Have White Elephants” Essay

The hills of white elephants have brought along many problems for Jib. The thought of having a child is a hard topic to think about, especially, but even more so when isn’t planned. There will be arguments and issues with any ordinary couple, but these two try to figure out a way besides fighting. Love is always a difficult subject to explore but talking about it is only half the problem. Things can get so messed up, lost in the translation when you’re trying to explain yourself, that it can even makes things worse when you drag it out. To talk is to compare to compare is to solve, and thinking about all the issues these two have to work out is mind boggling. But for Jig and the man and for their relationship to work, it’s necessary for them to figure it out. It seems if Jig is a foreigner, someone the American (pg. 475) man may have met while traveling in Europe that he’s become very attached to. Lying can it be good or can it be bad, depending on the peo ple that this speaks to, it could go either way. Maybe she decides to lie to Jib, maybe that was her plan all along just to get Jib to speak his mind. You never know what anyone is thinking; maybe she loves him so much she’ll lie about anything just to keep Jib around. Lies can take you to far places, from experience I know, but when things go bad and suddenly turn south it’s hard to dig yourself out. Usually the damage has been done and there’s no way to fix the hole in the boat. Coming from Jib’s perspective when the man offered the abortion as an idea or way out of the situation, it seemed it was his plan maybe to trick her into getting one all along. He says â€Å"he knows plenty of people who have had one.† (pg. 476 ) Then he shows his affection by saying he wants what’s best for her, but then says, â€Å"I’m perfectly willing to go through with it if it means anything to you.† (pg. 477). Like as if to say it in a way to put the pressure of the situation or the outcome of their relationship on her, by the decision she makes, but because he keeps talking it kind of unravels on him. In his mind, the man appears to want to keep things the way they were, before there was this baby. He wants to continue traveling the world and partying around. What comes out from the conversation is the man’s true selfish ways. You can tell Jib is also fishing for reassurance of the man’s love for her. Jib says, â€Å"And if I do it you’ll be happy and things will be like they were and you’ll love me?† (pg. 477) As if to say Jib is questioning how the man feels about  her now in this situation. Yet he says â€Å"I love you now. You know I love you.† (pg. 477) But you can tell that Jib really doesn’t believe he loves her the way that he did before, because the situation has caused drama in their relationship. To me, the white elephants in the room were Jib and the unborn baby; the hills are kind of the whole situation they’re dealing with as a couple. But because Jib continues to drink alcohol, fully knowing she’s pregnant leads me to believe she knew all along that she was going to go ahead with the operation. This conversation was her way of finding out how the man really felt about her and their relationship. A baby is supposed to be the combination of two people and the love they have for each other, it’s a natural thing you’d want and desire if you really love someone. She doesn’t want to have the operation at first, or so she says, but the man plays a mind game on her and confuses her into agreeing with the operation, but Jib was playing may have been playing her own game as well. This isn’t really a form of love coming from either side; it’s a form of deception. He practically baits Jib by the way he says things to her when she says, â€Å"And we could have all this, â€Å"And we could have everything and every day we make it more impossible.† (pg. 477) But the man is very negative in saying â€Å"No we can’t.† (Pg. 477) numerous times. Jib is trying to be positive, make light of the situation, but the man is full of negativity. True love comes from the mind and heart, is sacrificial, in that you’d do almost anything to protect the one you love. Jib says, â€Å"she doesn’t even care about herself.† (Pg. 477) She just wants things to be fine again and is willing to sacrifice her child for it and him. These two have a form of attachment, an almost obsession, but love, it seems more one sided, I don’t see it, lust maybe. Jib appears to be young, and the man older, but you sense neither of them knows what either of them wants from a relationship let alone anything else. Except to travel the world and have fun. Love isn’t always fun and for anyone who has been in love, you know what I am talking about. Complications hit you at every turn to take the love you have away, and when the real stuff starts happening that’s when you find out if someone really loves you or they’re just using you for their own personal gain. Real love takes work and time to establish. The man is using Jib to his advantage, just so he has a party friend, and a traveling companion. A baby is not in his plans, but  now the pregnant news comes to light, and his true self is exposed and he pani cs, even pretends to love her just to trick her into getting an abortion. In conclusion love can be seen in a lot of ways, but to some it’s just a game to see how far people can play with each other’s emotions. The man is a traveler and having a kid would have ruined his plans of fun. He did what he had to do for himself and lust for travel. Love is powerful and the way he uses it is wrong especially on a young girl. Don’t abuse the power given to you because you never know who you might hurt. The pain you inflict on others always seems to have a strange way of coming back to haunt you in your future. I guess what people say about what comes around goes around, because if you think about, it does.

Krispy Kreme

Krispy Kreme Doughnuts, Inc. FIN Professor XXX XXXX Month xx, xxxx History Krispy Kreme was founded by Vernon Rudolph after he purchased the famous secret recipe of yeast-raised doughnuts in 1937 from a French chef in New Orleans. Rudolph began to sell these doughnuts wholesale to supermarkets. The demand for his doughnuts grew quickly, and by cutting a hole in the wall of the factory to sell directly to customers the concept of Krispy Kreme retail stores was born. The retail concept for Krispy Kreme doughnuts allowed Rudolph to grow his factory stores to 29 shops in 12 states by the late 1950’s.When Rudolph died in 973 Beatrice Foods bought his company and expanded it to more than 100 locations and expanded the menu to include soups and sandwiches. Beatrice tried to reduce costs by changing the appearance of the stores and using cheaper ingredients. This negatively affected the company and Beatrice sold the company to a group of franchise owners. This group of owners was led by Joseph McAleer, who was the first Krispy Kreme franchisee. The leveraged buyout was completed for $24 million in 1982. The new group brought back the original recipe and logo.By 1989 the group was almost debt free and they were beginning to expand. The company CEO, Scott Livengood, took the company public in April of 2000. The share price after the first day was $40. 63. Holes in Doughnut Accounting Practices In May of 2004 Krispy Kreme announced to its investors that they should expect earnings to be 10% lower than predicted. It was at this time that the low-carb diet had taken the U. S by storm, and Krispy Kreme blamed this low-carb diet for their low wholesale and retail sales.They also announced the sales of a the Montana Mills bakery chain of 28 bakery cafe’s that had been acquired in January of 2003 for $40 million in stock. Krispy Kreme also announced that the Hot Doughnut and Coffee Shops were falling short of expectations and three of them were closing at a cost o f $7 to $8 million. Krispy Kreme (KKD) stock price closed down 30% that day. Shortly after on May 25th, 2004 when the Wall Street Journal published a story about how Krispy Kreme handled is accounting for franchise acquisitions.According to the article Krispy Kreme recorded the interest paid by the franchisee as interest income for immediate profit, except that Krispy Kreme booked the purchase cost of the franchise as an intangible asset and did not amortize it. In the repurchase agreement of the 7 stores in Michigan, they allowed one of the franchises top executives to stay on with the company after the repurchase. This executive left the company shortly after closing the deal, and had to pay him $5 million in severance which Krispy Kreme also rolled into the unamortized-asset category. Krispy Kreme claimed it followed GAAP standards and had done nothing wrong.The final shoe to drop as on July 29th, 2004 when Krispy Kreme announced that the Securities and Exchange Commission (SEC) had launched an informal investigation related to â€Å"franchise reacquisitions and the company’s previously announced reduction in earning guidance†. Krispy Kreme (KK) shares fell another 15%. The revelations about the companies accounting practices and showing interest as immediate income and not amortizing the repurchased franchises but rather showing them as intangible assets alone could justify the devaluation of their stock price by approx. 45%.Couple their earnings decline and the announcement of store closings and it easily can be justified. Couple that with the fear of the unknown. If Krispy Kreme was treating their interest and reacquired franchises as they were which seems to be blatantly wrong, what else might the SEC find during their investigation? This fear would certainly drive investors away and their share price down. The facts along with its ratings being dropped by 50% of analysts to â€Å"Hold† from â€Å"buy† a few months earlier. K rispy Kreme Deep Fried and Possible Deeper Issues Krispy Kreme grew incredibly quickly in the years leading up to the nvestigation (as shown in the chart below) and then may have tried to meet Wall Street expectations through some questionable practices such as shipping more product or pulling ahead product orders, then allowing the orders to be returned shortly after for credit. â€Å"Testimony by a former sales manager at a Krispy Kreme outlet in Ohio, said a regional manager ordered that retail store customers be sent double orders on the last Friday and Saturday of the 2004 fiscal year, explaining â€Å"that Krispy Kreme wanted to boost the sales for the fiscal year in order to meet Wall Street projections. The witness said the manager explained that the doughnuts would be returned for credit the following week – once fiscal 2005 was under way† (Chin, 2005). It seems pretty clear that Krispy Kreme was using questionable methods to inflate profits. Investors also l ater found out that Scott Livengood (CEO), the former COO John W. Tate, and the former CFO Randy Casstevens, â€Å"unloaded more than 475,000 shares of Krispy Kreme stock for proceeds of $19. 8 Million†, (Chin, 2005) while they were fully aware sales were declining since January of 2003.During this investigation, Scott Livengood, Krispy Kreme’s CEO announced his retirement. It would seem to me that there may be some deeper issues with Krispy Kreme and if I were a shareholder I would want out, or to be certain that Krispy Kreme’s accounting mess was cleaned up. The chart below shows Krispy Kreme’s performance during the years leading up to the investigation. Krispy Kreme Re-made Fresh Today Krispy Kreme’s stock has not fully recovered, (see chart below), but as of the end of 2012 Krispy Kreme seems to have made a comeback. â€Å"Krispy Kreme Doughnuts, Inc. Krispy Kreme) is a retailer and wholesaler of doughnuts complementary beverages and treats a nd packaged sweets. The Company’s principal business is owning and franchising Krispy Kreme stores, at which a variety of doughnuts, including the Company’s Original Glazed doughnut, are sold and distributed together with complementary products, and where a broad array of coffees and other beverages are offered. As of January 29, 2012, there were 234 Krispy Kreme stores operated domestically in 38 states and in the District of Columbia, and there were 460 shops in 20 other countries around the world.Of the 694 total stores, 292 were factory stores and 402 were satellites. The Company operates in four segments: Company Stores, domestic franchise stores, international franchise stores, and the KK Supply Chain† (â€Å"Krispy Kreme Doughnuts†). As of close of business on Friday last week KKD traded at $14. 80, way below its heyday when the stock traded in the $40’s but it is double its all-time low. Krispy Kreme doughnuts (KKD as of March 22, 2013 When compared to its competitors Krispy Kreme’s P/E is 49. 33. This is much higher than the others but its P/S is in the middle.Krispy Kreme’s competitors are listed as Dunkin’ Brands Group, Einstein Noah restaurant Group, and Starbuck Corporation. Below is the direct competitor comparison. Direct Competitor Comparison| | | KKD| DNKN| BAGL| SBUX| Industry| Market Cap:| 989. 57M| 3. 94B| 253. 09M| 42. 99B| 384. 28M| Employees:| N/A| 1,104| 6,912| 160,000| 10. 87K| Qtrly Rev Growth (yoy):| 0. 16| -0. 04| -0. 04| 0. 11| 0. 30| Revenue (ttm): | 435. 84M| 658. 18M| 427. 01M| 13. 66B| 453. 84M| Gross Margin (ttm):| 0. 17| 0. 79| 0. 21| 0. 57| 0. 31| EBITDA (ttm):| 47. 93M| 304. 86M| 48. 46M| 2. 46B| 47. 5M| Operating Margin (ttm): | 0. 09| 0. 38| 0. 07| 0. 14| 0. 07| Net Income (ttm):| 20. 78M| 108. 18M| 12. 74M| 1. 43B| N/A| EPS (ttm):| 0. 30| 0. 93| 0. 74| 1. 86| 0. 78| P/E (ttm):| 49. 33| 39. 95| 20. 01| 30. 87| 29. 99| PEG (5 yr expected):| 1. 02| 1. 58| 0. 98| 1. 43| 1. 50| P/S (ttm):| 2. 24| 5. 96| 0. 59| 3. 13| 1. 04| | | | | Suggestions for a Krisp/Klean Future Making Doughnuts I three things I might suggest if I were the CFO for Krispy Kreme doughnuts would be to insure open communication with investors and insure them that internal auditing systems are in place.I’m sure that investors lost all trust in the previous management because of the questionable practices that were followed. Krispy Kreme needs to rebuild that trust by having open lines of communication with its investors. I would take a serious look at closing unprofitable stores, and research other markets to open more stores. Some areas may still be underperforming while others are booming. Concentrate on the areas that show better potential and take advantage of that market while it is supporting growth. Because their competitors seem to offer expanded menus I would concentrate on healthy choices for the lunchtime crowd.Everyone is aware of Krispy Kreme’s doughnuts, but I’m not so sure their other menu items are well known as an option for lunch/brunch. Other than the morning rush for doughnuts, they could make their stores more profitable with being the †go toâ€Å" spot for lunch also. References Chin, N. (2005). Krispy Kreme Dougnuts: Empty calories or empty profits? Retrieved from http://www. corporateconflicts. com/index-sb-cases-kk. html Krispy kreme doughnuts. (n. d. ). Retrieved from http://www. google. com/finance? client=ob&q=NYSE:KKD Krispy Kreme Krispy Kreme Doughnuts, Inc. FIN Professor XXX XXXX Month xx, xxxx History Krispy Kreme was founded by Vernon Rudolph after he purchased the famous secret recipe of yeast-raised doughnuts in 1937 from a French chef in New Orleans. Rudolph began to sell these doughnuts wholesale to supermarkets. The demand for his doughnuts grew quickly, and by cutting a hole in the wall of the factory to sell directly to customers the concept of Krispy Kreme retail stores was born. The retail concept for Krispy Kreme doughnuts allowed Rudolph to grow his factory stores to 29 shops in 12 states by the late 1950’s.When Rudolph died in 973 Beatrice Foods bought his company and expanded it to more than 100 locations and expanded the menu to include soups and sandwiches. Beatrice tried to reduce costs by changing the appearance of the stores and using cheaper ingredients. This negatively affected the company and Beatrice sold the company to a group of franchise owners. This group of owners was led by Joseph McAleer, who was the first Krispy Kreme franchisee. The leveraged buyout was completed for $24 million in 1982. The new group brought back the original recipe and logo.By 1989 the group was almost debt free and they were beginning to expand. The company CEO, Scott Livengood, took the company public in April of 2000. The share price after the first day was $40. 63. Holes in Doughnut Accounting Practices In May of 2004 Krispy Kreme announced to its investors that they should expect earnings to be 10% lower than predicted. It was at this time that the low-carb diet had taken the U. S by storm, and Krispy Kreme blamed this low-carb diet for their low wholesale and retail sales.They also announced the sales of a the Montana Mills bakery chain of 28 bakery cafe’s that had been acquired in January of 2003 for $40 million in stock. Krispy Kreme also announced that the Hot Doughnut and Coffee Shops were falling short of expectations and three of them were closing at a cost o f $7 to $8 million. Krispy Kreme (KKD) stock price closed down 30% that day. Shortly after on May 25th, 2004 when the Wall Street Journal published a story about how Krispy Kreme handled is accounting for franchise acquisitions.According to the article Krispy Kreme recorded the interest paid by the franchisee as interest income for immediate profit, except that Krispy Kreme booked the purchase cost of the franchise as an intangible asset and did not amortize it. In the repurchase agreement of the 7 stores in Michigan, they allowed one of the franchises top executives to stay on with the company after the repurchase. This executive left the company shortly after closing the deal, and had to pay him $5 million in severance which Krispy Kreme also rolled into the unamortized-asset category. Krispy Kreme claimed it followed GAAP standards and had done nothing wrong.The final shoe to drop as on July 29th, 2004 when Krispy Kreme announced that the Securities and Exchange Commission (SEC) had launched an informal investigation related to â€Å"franchise reacquisitions and the company’s previously announced reduction in earning guidance†. Krispy Kreme (KK) shares fell another 15%. The revelations about the companies accounting practices and showing interest as immediate income and not amortizing the repurchased franchises but rather showing them as intangible assets alone could justify the devaluation of their stock price by approx. 45%.Couple their earnings decline and the announcement of store closings and it easily can be justified. Couple that with the fear of the unknown. If Krispy Kreme was treating their interest and reacquired franchises as they were which seems to be blatantly wrong, what else might the SEC find during their investigation? This fear would certainly drive investors away and their share price down. The facts along with its ratings being dropped by 50% of analysts to â€Å"Hold† from â€Å"buy† a few months earlier. K rispy Kreme Deep Fried and Possible Deeper Issues Krispy Kreme grew incredibly quickly in the years leading up to the nvestigation (as shown in the chart below) and then may have tried to meet Wall Street expectations through some questionable practices such as shipping more product or pulling ahead product orders, then allowing the orders to be returned shortly after for credit. â€Å"Testimony by a former sales manager at a Krispy Kreme outlet in Ohio, said a regional manager ordered that retail store customers be sent double orders on the last Friday and Saturday of the 2004 fiscal year, explaining â€Å"that Krispy Kreme wanted to boost the sales for the fiscal year in order to meet Wall Street projections. The witness said the manager explained that the doughnuts would be returned for credit the following week – once fiscal 2005 was under way† (Chin, 2005). It seems pretty clear that Krispy Kreme was using questionable methods to inflate profits. Investors also l ater found out that Scott Livengood (CEO), the former COO John W. Tate, and the former CFO Randy Casstevens, â€Å"unloaded more than 475,000 shares of Krispy Kreme stock for proceeds of $19. 8 Million†, (Chin, 2005) while they were fully aware sales were declining since January of 2003.During this investigation, Scott Livengood, Krispy Kreme’s CEO announced his retirement. It would seem to me that there may be some deeper issues with Krispy Kreme and if I were a shareholder I would want out, or to be certain that Krispy Kreme’s accounting mess was cleaned up. The chart below shows Krispy Kreme’s performance during the years leading up to the investigation. Krispy Kreme Re-made Fresh Today Krispy Kreme’s stock has not fully recovered, (see chart below), but as of the end of 2012 Krispy Kreme seems to have made a comeback. â€Å"Krispy Kreme Doughnuts, Inc. Krispy Kreme) is a retailer and wholesaler of doughnuts complementary beverages and treats a nd packaged sweets. The Company’s principal business is owning and franchising Krispy Kreme stores, at which a variety of doughnuts, including the Company’s Original Glazed doughnut, are sold and distributed together with complementary products, and where a broad array of coffees and other beverages are offered. As of January 29, 2012, there were 234 Krispy Kreme stores operated domestically in 38 states and in the District of Columbia, and there were 460 shops in 20 other countries around the world.Of the 694 total stores, 292 were factory stores and 402 were satellites. The Company operates in four segments: Company Stores, domestic franchise stores, international franchise stores, and the KK Supply Chain† (â€Å"Krispy Kreme Doughnuts†). As of close of business on Friday last week KKD traded at $14. 80, way below its heyday when the stock traded in the $40’s but it is double its all-time low. Krispy Kreme doughnuts (KKD as of March 22, 2013 When compared to its competitors Krispy Kreme’s P/E is 49. 33. This is much higher than the others but its P/S is in the middle.Krispy Kreme’s competitors are listed as Dunkin’ Brands Group, Einstein Noah restaurant Group, and Starbuck Corporation. Below is the direct competitor comparison. Direct Competitor Comparison| | | KKD| DNKN| BAGL| SBUX| Industry| Market Cap:| 989. 57M| 3. 94B| 253. 09M| 42. 99B| 384. 28M| Employees:| N/A| 1,104| 6,912| 160,000| 10. 87K| Qtrly Rev Growth (yoy):| 0. 16| -0. 04| -0. 04| 0. 11| 0. 30| Revenue (ttm): | 435. 84M| 658. 18M| 427. 01M| 13. 66B| 453. 84M| Gross Margin (ttm):| 0. 17| 0. 79| 0. 21| 0. 57| 0. 31| EBITDA (ttm):| 47. 93M| 304. 86M| 48. 46M| 2. 46B| 47. 5M| Operating Margin (ttm): | 0. 09| 0. 38| 0. 07| 0. 14| 0. 07| Net Income (ttm):| 20. 78M| 108. 18M| 12. 74M| 1. 43B| N/A| EPS (ttm):| 0. 30| 0. 93| 0. 74| 1. 86| 0. 78| P/E (ttm):| 49. 33| 39. 95| 20. 01| 30. 87| 29. 99| PEG (5 yr expected):| 1. 02| 1. 58| 0. 98| 1. 43| 1. 50| P/S (ttm):| 2. 24| 5. 96| 0. 59| 3. 13| 1. 04| | | | | Suggestions for a Krisp/Klean Future Making Doughnuts I three things I might suggest if I were the CFO for Krispy Kreme doughnuts would be to insure open communication with investors and insure them that internal auditing systems are in place.I’m sure that investors lost all trust in the previous management because of the questionable practices that were followed. Krispy Kreme needs to rebuild that trust by having open lines of communication with its investors. I would take a serious look at closing unprofitable stores, and research other markets to open more stores. Some areas may still be underperforming while others are booming. Concentrate on the areas that show better potential and take advantage of that market while it is supporting growth. Because their competitors seem to offer expanded menus I would concentrate on healthy choices for the lunchtime crowd.Everyone is aware of Krispy Kreme’s doughnuts, but I’m not so sure their other menu items are well known as an option for lunch/brunch. Other than the morning rush for doughnuts, they could make their stores more profitable with being the †go toâ€Å" spot for lunch also. References Chin, N. (2005). Krispy Kreme Dougnuts: Empty calories or empty profits? Retrieved from http://www. corporateconflicts. com/index-sb-cases-kk. html Krispy kreme doughnuts. (n. d. ). Retrieved from http://www. google. com/finance? client=ob&q=NYSE:KKD Krispy Kreme INTRODUCTION First, I will discuss the environment of Krispy Kreme and my analysis as to what led to the company’s position in 2004. Second, I will discuss the financial health and current condition based upon the historical income statements and balance sheets. Third, I will discuss the financial ratios in relation to the financial statements. Fourth, I will discuss if Krispy Kreme was financially healthy at the end of 2004. Fifth, I will discuss my assessment of Krispy Kreme’s health and why I think the stock price dropped by 80% between 2003 and 2004.Sixth, I will discuss why I think the market reacted so negatively to the disclosures about adverse results and the revelations in the Wall Street Journal regarding the firm’s accounting methods for the franchise rights. Lastly, I will provide my recommendations for turning around Krispy Kreme Doughnuts’ business. COMPANY POSITION Krispy Kreme Doughnuts started small by selling directly to grocery stores. T heir doughnuts became so popular they began selling directly to customers. They sold a delicious doughnut and a viewing experience.When Beatrice Foods bought the company, her business model did not succeed because it expanded the product line in the opposite direction of what consumers wanted and she inputted cheap ingredients into a popular recipe which sacrificed taste. When she sold the company to the group of franchisees, it pushed the company back into a positive direction by bringing back the original recipe. Krispy Kreme was debt-free by 1989 and their IPO left them with a market capitalization of nearly $500 million in 2000.They appeared to be on the right track but, it seemed they were expanding too rapidly. They allowed franchisees to place their stores in locations that were not favorable, resulting in the franchises not doing well enough and owing Krispy Kreme Doughnuts millions. Krispy Kreme relied on the income from franchised stores purchases of equipment and mixes to o much. They also had their product in too many locations, creating an increase of supply and a decrease in demand. HISTORICAL FINANCIAL STATEMENT ANALYSISOn further analysis of the historical income statement, it seems that Krispy Kreme Doughnuts’ operating expenses are increasing gradually every year and are over 75% of total revenues for each year. The only income statement item that has decreased significantly was interest income from 2002 through 2004. Everything else seemed to point towards a profitably company because both gross profit and net income were increasing by at least 2% every year. On further analysis of the historical balance sheet there we some large red flag items.Property and equipment, net of depreciation was a significant portion of total assets each year. Most of the equipment they created was sold to franchisees and used in each company owned or franchisee owned factory stores. The significant amount on their balance sheet could have meant that they were manufacturing equipment faster than they were selling it to their franchises or due to the fact that they were expecting to expand, but were not able to expand to the extent they wanted to. As a percent of total assets, accounts receivable declined from 17% in 2000 to 7 % in 2004.Inventories were significantly increasing each year, but one would assume that some of their inventory would have to be written of due to the items expiration date (doughnuts can only last so long, so they appear to not be selling as much). Reacquired franchise rights, goodwill and other intangibles significantly increased starting in 2002, and every year after that. It rose in those years to be close to one third (30%) of total assets, which was the biggest item percentage wise other than property and equipment. The most significant item on the liabilities and shareholders’ equity section of the balance sheet is common stock.Every year common stock was close to 50% of total liabilities and shar eholders’ equity. In my opinion, Krispy Kreme Doughnuts, recognized they were in trouble with the increasing failures of franchises and kept issuing more stock in hopes to bail themselves out. FINANCIAL RATIO ANALYSIS In exhibit seven the time series of the ratios raise one specific question. The inventory turnover raises the question as to why it was taking longer for their inventory to sell. When converted to days, the ratio determined that their inventory took over twenty-three days to turnover in 2003.It seems that Krispy Kreme Doughnuts’ inventory was over saturated in the market. With an abundance in supply, it seems that their doughnuts were not as in demand. When comparing Krispy Kreme Doughnuts’ financial ratios to others in the industry, I determined that Krispy Kreme was doing better in some areas than those in the industry such as with their liquidity ratios. Krispy Kreme’s liquidity ratios were significantly higher than any company in its ind ustry. In other areas, such as profitability ratios, Krispy Kreme was about average compared to other companies.Krispy Kreme’s activity ratios were significantly lower than any other company in its industry, meaning their assets are not turning over as much as other companies. In such an industry, product seems to move fast, which further supports my notion that their product was becoming less popular due to the saturated market. It seems a lot more companies in this industry support operations with debt rather than capital, Krispy Kreme was doing the opposite. Exhibit nine supports this position because no other company had a significant amount of shareholders’ equity like Krispy Kreme.Other companies were better able to handle their operating expenses keeping them closer to 50% of net sales, unlike Krispy Kreme who kept theirs closer to 75%, but Krispy Kreme also had a higher percent of net sales in relation to operating profit and profit before taxes. FINANCIALLY HE ALTHY AT YEAR END 2004? In my opinion, Krispy Kreme Doughnuts is not completely healthy at the financial year end of 2004. Their income statement shows an increased net income from the year before, but I believe that increase can only last so long.With the inability to expand further, and current operations decreasing more than they are making, I do not expect their net income to increase by year end 2005. Everything on their balance sheet is increasing, including their inventory. They need to realize that they are simply not selling product. Although their debt is low, that is from the increasing stockholders’ equity in the form of stocks. With the outlook of the company not good, they cannot expect to support their operations with the issuance of new stock. They need to find a new way to finance their operations and ecrease their operating costs. STOCK PRICE DECREASE AND NEGATIVE MARKET REACTION In my opinion investors recognized the same warning signs that I did when analy zing Krispy Kreme Doughnuts’ financial statements and decided to drop their losses while they could still make some kind of profit selling off the stock. When Krispy Kreme announced to investors to expect earnings to be â€Å"10% lower than anticipated, claiming that the recent low-carbohydrate diet trend in the US had hurt wholesale and retail sales,† I think they further expected that something was not right with the picture they were portraying.The Wall Street Journal article, revealed an accounting practice that was not commonly followed by others in Krispy Kreme’s industry. When the SEC launched an informal investigation into the â€Å"franchise reacquisitions,† investors jumped ship as fast as they could. The significant decrease in stock from 2003 to 2004, was investors getting nervous and protecting themselves from their stock being worth near nothing. RECOMMENDATIONS In my opinion Krispy Kreme Doughnuts needs to make radical changes to the way it conducts business.I think they should completely stop off-premise sales, making their product only available in factory stores. This would hopefully decrease their inventory and decrease operating expenses related to the fleet of trucks that deliver product to grocery stores. Selling their product in factory stores only will hopefully recreate the demand for the doughnuts that there once was. I also believe that they should decrease the amount of franchises and refocus to company owned stores.Franchisees might not properly know how to pick a location or be properly trained, as seen with the increase of failing franchises. This would decrease the large amount on their balance sheet from reacquiring franchises. Focusing their business to one or two types of primary sources of income and reducing expenses would be a way to help lower market saturation of their product. Having more company owned factory stores, provides Krispy Kreme a chance to have more control over their operations a nd not depend on franchisees to make a profit for them.

Investment Account Essay

What is the meaning of Al-Awfar? Al-Awfar means â€Å"prosperous investment†. 3. What is the difference between Al-Awfar Savings Account and Investment Account-i and the normal Bank Islam Savings Account-i and General Investment Account-i (GIA)? Al-Awfar Savings and Investment Account-i is a rewarding account that offers a host of additional features, which include expected Mudharabah returns on savings and investments (if any). This is in addition to the opportunity to receive cash prizes from the bank through a quarterly prize draw. 4. Is Al-Awfar Saving and Investment Account-i a form of gambling? NO. Al-Awfar Savings and Investment Account-i is free from any elements of gambling. 5. Is Al-Awfar Savings and Investment Account-i Shariah-compliant? YES. The Shariah Supervisory Council of Bank Islam approved this product in its 102nd meeting dated 7th April 2008 (30 Rabiulawal 1429H). 6. Are prize draws allowed according to the Shariah Law? YES. Prize draws are permitted if there is no elements of riba (usury), gharar (uncertainty) and maysir (gambling). 7. What is the basis on the permissibility of draw in Islam? 1. Al-Quran, in Surah Ali ‘Imran verse 44 This is a part of the news of the Ghaib (unseen, i. e. the news of the past nations of which you have no knowledge) which We inspire you with (O Muhammad ). You were not with them, when they cast lots with their pens as to which of them should be charged with the care of Maryam (Mary); nor were you with them when they disputed. . Is the draw performed in a manner that is transparent to the public? YES. There is an external independent draw committee who will observe the draw process. 9. What is the difference between Al-Awfar Savings and Investment Account-I and other competitors’ product? Al-Awfar Saving and Investment Account-i is the first product of its kind introduced by an Islamic bank, which meets all Shariah requirements. 10. Where does Bank Islam invest the funds deposited by customers? Bank Islam invests the fund in Shariah-compliant investments pproved by the bank’s Shariah Supervisory Council. 11. Can the cash prizes received be used for Ibadah purposes, e. g. performing the Hajj and Umrah or given away as Zakat and Sadaqah? YES. The cash prizes come from a Halal source. Upon receiving the cash prize, the customer is free to use it for any purpose 12. Are the cash prizes taken from the profit earned through Al-Awfar Savings and Investment Account-i? NO. The cash prizes are provided by the Bank and are not specifically derived from profits of Al-Awfar Savin gs and Investment Account-i.

Art Museum Assignment Essay Example | Topics and Well Written Essays - 750 words

Art Museum Assignment - Essay Example It captures a man by a boat at the river and the tranquil surroundings. Analyzing the elements of the painting shows that horizontal lines dominate the painting indicating the calmness of the scene. The colors used are mostly tones of blue and green with hues of brown, red and yellow. The painting simulates the textures of the textile and the reeds at the river and the artist created an illusion of proximity by using the varying values of the colors. The boat and the man appear nearer to the viewer since the artist used darker values of green, brown, blue and red. In contrast, the trees and the house on the right part of the composition appear to be distant because of the lighter values of green, yellow and blue used on the forms. A River in Normandy exhibits the fine technical skill of Bonington. The artist’s precision and mastery of techniques earned the respect of his colleague Eugene Delacroix. The painting is also one of the examples of en plein air artworks at the time that artists were usually inside studios to paint. Another painting from the Dallas Museum of Art is the Sheaves of Wheat by Dutch painter Vincent van Gogh. The oil on canvas work is 50.483 centimeters x 100.965 centimeters and was completed in July 1890, the same year that van Gogh died. The piece was painted during the period that the painter was experiencing physical and mental health problems. It was also during this time that van Gogh was assumed to develop problems with his eyesight thus the colors he used were lighter in value. The Sheaves of Wheat is a non-representational painting showing bundles of freshly harvested wheat. Typical of a non-representational painting, van Gogh’s artwork does not fully resemble the heaps of wheat because of the color and daubs of paint that make up the form of the wheat stacks. Diagonal lines are prevalent in this painting, signifying movement and suggesting

Analyse and discuss lesson planning Essay Example | Topics and Well Written Essays - 1000 words

Analyse and discuss lesson planning - Essay Example An effective lesson plan commences by the teacher addressing learners’ thinking. The teacher ought to determine the curriculum in which sociology as a subject is embedded. As such, it calls on the teacher to determine the subject content of the lesson while at the same time critically assessing what the students are able to do on their own after acquiring the selected knowledge. In this initial stage of planning for an ideal lesson plan, the teacher ought to establish the learners’ entry behaviour prior to starting the lesson on sociology. The analyses and research of the learners’ entry behaviour enables the teacher to lead into the present curricula whereupon they keep on the established track and avoid veering off the set trend (Buchberg, 1996). At this stage, the teacher establishes better means of assisting the involved learners in not only receiving but also understanding the new subject matter as stipulated in the curriculum. Ideal lesson plans on sociolog y also call on teachers to determine the specific time for assessing the learners’ outcomes in a learning process whereupon he or she is obliged to segment the lesson plan. In the initial planning of a sociology lesson so as to address the inherent differences among learners, the teacher is called upon to describe the classroom context as well as the learners’ features that ideally make them different from the others. If the lesson is not meant for a real group of learners, it is recommended that the teacher should constitute the features as well as context of a sample class that the educator had in mind in the process of planning the lesson (Davies, 1999). It is also critical for the teacher to identify precise aims or objectives that he/she intends to meet upon the conclusion of the lesson. In meeting these objectives, it is absolutely critical that the teacher ensures that

MRKT Assignment Example | Topics and Well Written Essays - 250 words

MRKT - Assignment Example Imber’s , Jane, and Betsy-Ann Toffler’s dictionary states the meaning of alternative media as channels of in-store promotions, shopping cart advertisements, video kiosks in shopping malls, business publications, trade journals, flyers, and telephone directories. While researching for this paper, I came across the business card of a divorce lawyer James A.W. Mahon on a blog of Alex Beker related to creative ideas. The card could be torn in half and both the sides bear the same details for the clients. This is an alternative source of promotion for the service as it involves no print, electronic and the outdoor mode of advertising. This innovative idea of a business card would be enough for James to generate a buzz in the market and build a strong clientage and he may also not have enough capital to advertise on the mass media which is an expensive vehicle. Works Cited Imber, Jane, and Betsy-Ann Toffler.  Dictionary of Marketing Terms. Hauppauge, NY: Barron's, 2000. Int ernet resource. Beker, Alex. John St. Toronto. James A.W. Mahon Divorce Lawyer. Alex Beker 2007. Internet Resource. http://scratchyourhead.blogspot.com/2007/01/john-st-toronto-james-aw-mahon-divorce.html

The Ides of March by George Clooney Essay Example | Topics and Well Written Essays - 500 words

The Ides of March by George Clooney - Essay Example   Some of the gossip about certain indignities including bribery or corruption, sex scandals, blackmail and altering their visions and course of history by compelling the voters to compromise their values and principles, by doing so, the candidates end up making sacrifices so that they can survive in the race and hopefully win in the end.The idea for the theme and plot of this movie traces back to the historical 2004 elections. It is a condemnation of the small minded politicians in the country, and an eye-opener to the public that there is something greater inside all of us, therefore, we should not be swayed by what we see and compromise our values, but stick to our beliefs and vote for the right people. It is also a reflection of the cost one has to pay for conducting business, in a world filled with people who are ready to bring down and kill each other in whichever manner, just for the opportunity to be in control of what and who remain. When Barrack Obama was vying for the pr esidency under the Democratic flag, there were high anticipations of him clinching the chair, and that would be the most exhilarating event to occur to the party, after the death of John F. Kennedy. However, the hash of the reality of the past few years messed up the optimism everyone had, but Obama managed to become victorious. In relation to the movie, it is a depiction of a long, hard journey from mere hope to struggling to survive, just as Obama did. In conclusion, the theme of the movie is about a politician who seems different from others.