Financial Ratios Analysis of IBM 2005-2006 Case Study

Financial Ratios Analysis of IBM 2005-2006 - Case Study Example There was also an inverse increase in current liability of $4,939 ($40,091 - $35,152 million) which adversely affected the company’s liquidity ratio. This decline also reflected in acid test ratio or the ability to settle obligation immediately as it also declined by 13.492. 2. Leverage ratios analysis a. Debt to-total-assets ratio (Total liabilities/total assets) 2005 2006 % of change Total debt $22,682 $22,641 Total assets 105,748 103,234 Ratio .687 .724 5.386 b. Debt-to-equity ratio 2005 2006 % of change Total debt $22,682 $22,641 Total equity 28,506 33,098 Ratio 2.195 2.621 19.40 c. Long-term debt-to-equity ratio 2005 2006 % of change Long-term debt 15,425 $13,780 Total equity 28,506 33,098 Ratio .466 .483 3.648 d. ... Changes in liability decreased minimally but still, the increase in total assets helped drive debt to asset ratio up by 5.386 %. Since debt was almost constant in 2006, debt to equity ratio significantly went up when IBM registered a profit in the previous year, where portions of the net gain were retained as equity. 3. Activity ratio analysis a. Inventory turnover 2005 2006 % of change Net Sales 91,134 91,424 Inventory 2841 2840 Ratio 32.07 32.53 .01 b. Fixed assets turnover 2005 2006 % of change Net Sales 91,340 91,424 Net fixed assets 60,087 58,574 Ratio 1.517 1.561 2.900 c. Total assets turnover 2005 2006 % of change Net Sales $91,340 $91,424 Total Assets 105,748 103,234 Ratio .862 .886 2.784 d. Average collection period Payment terms for inventory and accounts receivable financing generally range from 30 to 90 days (IBM, 2006 pg. 79). With regard to activity ratios, IBM did a good job of maintaining its level of inventory to 2841-2840 million despite the increase in sales in 200 6 ($91,424 million). It only meant that IBM has a very good internal control and monitoring of its inventory. In sum, the activity ratio of IBM increased by 2.784 % which can be mainly attributed to its ability to maintain its inventory despite the increase in sales. With regard to collection period, IBM adopts â€Å"Payment terms for inventory and accounts receivable financing generally range from 30 to 90 days† (IBM, 2006 pg. 79). 4. Profitability ratio analysis a. Gross profit margin 2005 2006 % of change Gross profit margin 36,532 38,295 Net Sales 91,134 91,424 Ratio .401 .419 4.488 b. Operating profit margin Operating profit margin 0.134 0.146 0.012 8.95522388% c. Net profit margin ratio 2005 2006 % of change Net profit after tax 79,940 94,920 Net Sales 91,340

The Use of Force Essay -- Health Care

The Use of Force, written by William Carlos Williams is a story about a conflicted unnamed doctor using physical force to determine a diagnosis. The question that is brought up is whether or not the doctor’s use of force was one of ethical duty or infuriating violence. The doctor makes it his duty to save the patient, Mathilda as she does not cooperate he makes a choice to go on and use force to open her mouth to determine her diagnosis. The choice of using force isn’t necessarily the questionable part, the motive on using physical force is debatable. The ultimate question that the short story, the Use of Force asks is whether or not the doctor’s motives become one of dutiful compassion or desirable violence. As the story begins, the unnamed doctor is introduced as one who appears to be strictly professional. â€Å"Aas often, in such cases, they weren’t telling me more than they had to, it was up to me to tell them; that’s why they were spending three dollars on me.† (par. 3) The doctor leaves the first impression that he is one that keeps his attention about the job and nothing out of the ordinary besides stating his impressions on the mother, father and the patient, Mathilda. Though he does manage to note that Mathilda has a fever. The doctor takes what he considers a â€Å"trial shot† and â€Å"point of departure† by inquiring what he suspects is a sore throat (par. 6). This point in the story, nothing remains out of the ordinary or questionable about the doctor’s methods, until the story further develops. The doctor contains his professionalism, but as it goes on, pieces of frustrated irregularities begin to surface. As the doctor learns that the parents say no, that the girl says she doesn’t have a sore throat, he purs... ...der what motive? He had to justify his motives, perhaps to add some morality to ensure what he was doing was ethical. He would flip that thought, perhaps to try and downplay his desire to unleash his violent frustration onto the girl. He ultimately saved Mathilda’s life in a sense, but under which motive? I believe the this is the question William Carlos Williams’ The Use of Force has the reader ask themselves. Under a emergency situation the human condition can be torn between a code of ethics or a dominance of dark desire. No doubt in The Use of Force, the end of the situation turned out well as the girl could be saved, but the method to find out was ambiguous. How well would the case between doing the right thing and doing what you desire turn out in any other situation? I believe this is the question that William Carlos Williams wanted the reader to think about.

Imperialism in Africa and India

Section 1: A Scramble For Africa †¢ European nations needed to fuel industrial production †¢ Competed for new markets for goods and took huge interest in Africa †¢ Imperialism- Seizure of a country or territory by a stronger country o Occurred throughout most of Africa o Europe came in and dominated †¢ Mid 1800’s Africans divided into ethnic and linguistic groups †¢ Some converted to Islam and Christianity †¢ Most kept traditions and religion For 400 years African army able to keep Europeans out †¢ Until late 1800’s Europe only dominated coast of Africa †¢ Couldn’t navigate rivers †¢ Disease also kept them out †¢ Specialized trade networks †¢ Introduction of steam powered river boats allowed Europeans to dominate more of Africa’s interior †¢ Those who did get in were against slave trade †¢ People learned about Africa through their publications The Congo Sparks Interest: †¢ Dr. David Livi ngstone traveled with group of Africans into deep Africa to promote Christianity †¢ Several years past and people thought he was dead Henry Stanley went to find him and succeeded †¢ Stanley wanted to trace course of Congo River †¢ In 1879 and 1882 Stanley signed treaties with local chiefs of the Congo River Valley †¢ Gave King Leopold II of Belgium control of these lands †¢ Leopold II claimed wanted to abolish slave trade and promote Christianity †¢ Brutally exploited Africans by forcing them to collect sap from rubber plants †¢ About 10 million Africans died due to abuse In 1908 Belgian govt. took control of Congo away from king †¢ Congo 80x larger than Belgium †¢ This alarmed France because they had signed treated that gave them control of north bank of Congo †¢ Soon More European and Latin American countries began to claim parts of Africa Forces Driving Imperialism †¢ Industrial Revolution drove European countries to obtain m ore land †¢ European countries searched for more markets Europeans viewed themselves as the greatest nation and race †¢ Racism- the belief that one race is superior to others †¢ Social Darwinism- theory that those who were fittest for survival enjoyed wealth and success and were superior to others †¢ Non-Europeans on lower scale of cultural and physical development because didn’t make technological progress †¢ Europeans thought was their job to bring advancements to other countries †¢ European missionaries sought to convert lands to Christianity †¢ Hoped Christianity would bring end to evil practices like slave trade †¢ Also wanted to civilize landsFactors promoting Imperialism in Africa: †¢ European’s technological superiority †¢ Europeans had guns †¢ Europeans had steam engines that allowed them to control deep Africa †¢ Europeans had railroads, cables, and steamships that allowed them to communicate within colony and to controlling nation †¢ Drug quinine prevented Europeans from catching diseases †¢ Africa wasn’t unified due to diversity and wars fought between different ethnic groups Divison of Africa: †¢ Discoveries of diamonds and gold in south Africa increased European’s interest in conquering Africa †¢ All European countries became part of raceBerlin conference divides Africa: †¢ Berlin Conference- 14 European nations who met to lay down rules for the division of Africa †¢ Competition between European countries †¢ Any country could conquer land but had to notify other European countries †¢ How Africans felt about it wasn’t a factor †¢ Didn’t pay attention to how ethnic and linguistic groups in Africa were distributed †¢ By 1914 only Liberia and Ethiopia were free from European control Demand for Raw Materials Shapes Colonies: †¢ During colonization Europeans believed Africans would buy their goods †¢ Only few Africans did this Businesses still needed raw materials †¢ Greatest wealth obtained from Africa was large mineral sources †¢ Congo contained copper and tin †¢ This nothing compared to diamonds and gold in south Africa †¢ Developed cash crop: peanuts, palm oil, cocoa, and rubber †¢ Replaced food crops needed by farmers to feed families Three Groups Clash over South Africa: †¢ Zulu chief, Shaka used highly disciplined warriors and good military organization to create large centralized state †¢ Shaka’s successors unable to keep control †¢ Zulu nation eventually fell to British controlBoers and British Settle in the Cape: †¢ Boers- Dutch settlers (Boer=farmer in Dutch) who took African’s land and established large farms †¢ When British took control of Cape Colony there was clash over British policy of slaves and land †¢ Boers moved north in Great Trek to escape from British †¢ Started fighting fie rcely with Zulu and other African groups whose land was getting taken †¢ When Diamonds and gold found in south Africa Boers tried to keep outsiders from gaining political rights †¢ British tried to rebel against Boers and failed Boers rose against British in Boer war †¢ The war was brutal (no mercy) †¢ Many black southern Africans also participated †¢ Many were captured and put in British concentration camps †¢ Britain won war †¢ Europeans made efforts to change political, social and economic lives of people they conquered Section 2: Imperialism: †¢ Imperialism of 18th and 19th century different than previous imperialism †¢ Europeans demanded more influence over all aspects of African lives †¢ Determined to shape economies to help benefit European economies †¢ Wanted people to adopt European customsForms of Control: †¢ 4 types: o Colony- a country or territory governed internally by a foreign power o Protectorate- A country or territory with its own internal government but under the control of an outside power o Sphere of influence- an area in which and outside power claims exclusive investment or trading privileges o Economic imperialism- an independent but less developed country controlled by private business interests rather than other govts. †¢ Also had direct and indirect control †¢ Britain and U. S. preferred indirect France and most other European nations preferred direct †¢ Indirect control: o Relied on existing political rulers o Rulers adopted British Authority o Rulers handled much of daily management of colony o Each colony had legislative council: ? Colonial officials ? Local merchants ? Professionals ? Colonial governor †¢ Direct Control: †¢ French and other European didn’t think Africans could run country †¢ Paternalism- the idea that the people in authority restrict freedoms to their subordinates for the subordinates’ good †¢ Gave them n eeds but not rights Europeans brought in own bureaucrats †¢ Didn’t train Africans in European methods of govt. †¢ Assimilation- the idea that the local population would adopt the superior culture in order to become more like them †¢ Africans adopted French culture †¢ All schools, courts, and businesses patterned after French institutions †¢ In practice idea of assimilation abandoned †¢ French resided to indirect control †¢ Recognized African culture but saw it as inferior |Indirect Control |Direct control | |Local govt. fficials used: |Foreign officials brought in to rule | |Limited self-rule |No self rule | |Goal: to develop future leaders |Goal: assimilation | |Govt. institutions based on European styles but may have |Govt. institutions are based only on European styles | |local rules | |A British Colony: †¢ Britain gained control of southern Nigeria †¢ Some local rulers agreed to sign treaties of protection and accept British r esidents †¢ Others opposed intervention and rebelled against it †¢ British defeated rebellions †¢ Royal Niger Comp. gained control of palm oil trade over Niger River Delta †¢ In 1914 British claimed entire Nigeria as colony Managing the Colony: †¢ Nigeria culturally diverse †¢ Three main groups were: o Hausa-Fulani: ? Muslim ? Had strong central govt. o Yoruba Followed traditional religion ? Relied on chiefs for control o Igbo ? Same as Yoruba †¢ Didn’t have enough British troops to govern such complex area †¢ British resided to indirect control †¢ Worked well with Hausa-Fulani but not with other two groups †¢ Local chiefs of Yoruba and Igbo resented limited power African Resistance: †¢ Africans resisted European attempts to colonize †¢ But Europeans had more advanced weaponry †¢ Therefore, Africans didn’t succeed in most cases Unsuccessful Movements: There was resistance and resistance through religious movements †¢ Algeria’s almost 50 year resistance against France †¢ West Africa’s Samori Toure’s 16 year resistance against France †¢ African villagers resisted Germans in spiritual defense o Believed magic water would turn German’s bullets to water o 20 groups came together and fought against Germans o Fighters believed God and their ancestors would return to life and assist them o Over 75,000 Africans died o Twice that many Africans died in famine to follow o Germans shocked and passed some reformsEthiopia: A successful Resistance †¢ Only African nation that successfully resisted Europeans †¢ Menelik II- became emperor of Ethiopia in 1889 †¢ Successfully played Italians, French, and British against each other †¢ Built up large arsenal of modern weapons he purchased from Russia and France †¢ Menelik II signed treaty with Italy while Italians were invading the country †¢ Menelik II declared war in 1896 †¢ B attle of Adowa was largest battle in history of Africa †¢ Ethiopians won and kept independence Legacy of Colonial Rule: †¢ Negative effects: Africans lost control of land and independence o Lost many people to disease and rebellion o Famine o Breakdown of traditional culture o Traditional authorities replaced o Homes and properties transferred o People lost jobs o Identity issues o Division of Africa o Unnaturally divided groups o No Unity †¢ Positive Effects: o Local warfare reduced o Sanitation improved o Hospitals o Schools o Lifespans increased o Literacy increased o Economic expansion o Railroads, dams, telephone, telegraph lines built in Africa o However, this only really benefited the EuropeansSection 4: British Imperialism in India: †¢ Area controlled by East India Company grew overtime †¢ Both directly and indirectly governed southern India, Bangladesh, and territory along Ganges River in north †¢ British govt. regulated East India company â₠¬ ¢ Company ruled India without British interference until 19th century †¢ Had own army with British officers †¢ Sepoys- Indian soldiers †¢ Army was dangerous because could easily turn against British Britain’s â€Å"Jewel in the Crown†: †¢ Industrial revolution turned Britain into world’s workshop †¢ India supplied Britain with many raw supplies India’s 3,000,000 people also large potential market for British made goods †¢ India was â€Å"brightest jewel in crown† because it was the most valuable of all Britain’s colonies †¢ British made restrictions that prevented Indian economy from operating on its own †¢ Indians could only produce raw materials for Britain †¢ Indians were not allowed to compete with Britain British Transport Trade Goods: †¢ Railroad system built in India †¢ India became more valuable †¢ Most of raw materials transported included: o Tea o Indigo o Coffee o Cotto n Jute o Opium †¢ Sold trade opium for tea from China †¢ Sold tea in England Impact of Colonialism: Negative impact on India: †¢ British held most of economical and political power †¢ British restricted Indian owned industries †¢ Many villagers couldn’t be self sufficient due to emphasis on cash crop †¢ Food production reduced †¢ Famine †¢ Racism †¢ Forced conversion to Christianity Positive impact on India: †¢ Had world’s third largest railroad system †¢ Railroad system united brought modern economy that India †¢ Sanitation and public health improved India modernized by railroads, telephones, telegraphs, dams, bridges, irrigation canals †¢ Schools and collages founded †¢ Literacy increased †¢ Idea cleared of bandits †¢ Local welfare amongst competing rulers The Sepoy Mutiny: †¢ British controlled most of India †¢ Believed British were trying to convert Indians to Christianity â⠂¬ ¢ There was so much racism †¢ Nationalist idea emerged †¢ The Indians decided to rebel †¢ Gossip spread amongst sepoys that the cartridges of their new rifles were greased with beef and pork fat †¢ To use cartridges Indians had to bite off ends Cows were sacred to them and Muslims didn’t eat pork so they were very angered †¢ Soldiers who refused cartilages were imprisoned †¢ Next day they rebelled †¢ Sepoy Munity- rebellion of the Indian soldiers †¢ Uprising spread from Delhi to much of northern India †¢ British and sepoys tried to slaughter each others armies †¢ Took company more than a year to regain control of country †¢ Indians couldn’t unite against British due to weak leadership and conflict between Hindus and Muslims †¢ Hindus preferred British rule over Muslim ruleTurning Point: †¢ After munity Britain took direct control over India †¢ Raj- British rule after India came under British crown during reign of Queen Victoria †¢ To reward many princes who stayed loyal to company during munity, Britain promised to respect all treaties they had with them †¢ Also promised that Indian states that were still free would remain independent †¢ Regardless, British gained control of free states unofficially †¢ Munity fueled racist attitudes of British Munity increased distrust between Indians and British †¢ Hindus and Muslims felt they were being ruined under British rule Nationalism Surfaces in India: †¢ In early 1800’s some Indians began demanding modernization †¢ Ram Mohum Roy, a modern thinking, well educated Indian began campaign to move away from traditional Indian practices †¢ Ram Mohum Roy believed that if practices weren’t changed India would continue to be controlled by outsiders †¢ Ram Mohum Roy’s writings inspired other Indians to press for social reforms and adopt western ways †¢ Nationalist feelings also began to surface in India Indians hated system that made them second class citizens in own country †¢ Made much less money than British workers Nationalist groups form: †¢ 2 nationalist groups formed: o Indian National Congress in 1885 o Muslim League in 1906 ? Focused on Indian’s concerns ? Wanted self government ? Divided in to Hindu and Muslim section ? Separation made it hard for them to unite in calling for independence ? In 1911 British regained control and divided them differently †¢ Conflict over Indian control continued to develop between Indians and British Key Terms: Imperialism- Seizure of a country or territory by a stronger country †¢ African goods: copper, tin, gold, diamonds, rubber, cocoa, palm oil, and peanuts †¢ Racism- the belief that one race is superior to others †¢ Social Darwinism- theory that those who were fittest for survival enjoyed wealth and success and were superior to others †¢ Berlin Conference- 14 Euro pean nations who met to lay down rules for the division of Africa †¢ Shaka- was a Zulu chief used highly disciplined warriors and good military organization to create large centralized state in South Africa.His successors weren’t as successful †¢ Boers- Dutch settlers (Boer=farmer in Dutch) who took African’s land and established large farms †¢ Boer War- War between British and Boers over land and minerals in which British won †¢ Colony- a country or territory governed internally by a foreign power †¢ Protectorate- A country or territory with its own internal government but under the control of an outside power †¢ Sphere of influence- an area in which and outside power claims exclusive investment or trading privileges †¢ Economic imperialism- an independent but less developed country controlled by private business interests rather than other govts. |Indirect Control |Direct control | |Local govt. officials used: Foreign officials bro ught in to rule | |Limited self-rule |No self rule | |Goal: to develop future leaders |Goal: assimilation | |Govt. institutions based on European styles but may have |Govt. institutions are based only on European styles | |local rules | | †¢ India was â€Å"brightest jewel in crown† because it was the most valuable of all Britain’s colonies †¢ Indian goods: Tea, Indigo, Coffee, Cotton, Jute, and Opium †¢ Menelik II- became emperor of Ethiopia in 1889.He was the only one who was successful at preventing his state (Ethiopia) from being conquered. †¢ Sepoys- Indian soldiers †¢ Sepoy Munity- rebellion of the Indian soldiers †¢ Raj- British rule after India came under British crown during reign of Queen Victoria †¢ Ram Mohum Roy- a modern thinking, well educated Indian began campaign to move away from traditional Indian practices and bring nationalism †¢ Paternalism- the idea that the people in authority restrict freedoms to their sub ordinates for the subordinates’ good †¢ Assimilation- the idea that the local population would adopt the superior culture in order to become more like them †¢

What Is Cream of Tartar or Potassium Bitartrate

Cream of tartar or potassium bitartrate is a common household chemical and cooking ingredient. Heres a look at what cream of tartar is, where it comes from, and how the cream of tartar is used. Basic Cream of Tartar Facts Cream of Tartar is potassium bitartrate, also known as potassium hydrogen tartrate, which has a chemical formula of KC4H5O6. Cream of tartar is an odorless white crystalline powder. Where Does Cream of Tartar Come From? Cream of tartar or potassium bitartrate crystallizes out of solution when grapes are fermented during winemaking. Crystals of cream of tartar may precipitate out of grape juice after it has been chilled or left to stand or the crystals may be found on the corks of wine bottles where the wine has been stored under cool conditions. The crude crystals, called beeswing, may be collected by filtering the grape juice or wine through cheesecloth. Cream of Tartar Uses Cream of tartar is used primarily in cooking, though it is also used as a cleaning agent by mixing it together with white vinegar and rubbing the paste onto hard water deposits and soap scum. Here are some of the culinary uses of cream of tartar: Added to whipped cream after it has been whipped to stabilize it.Added to egg whites when whipping them to increase their volume and help them maintain peaks at higher temperatures.Added when boiling vegetables to reduce discoloration.One of the key ingredients in some formulations of baking powder, where it reacts with baking soda and an acid to produce carbon dioxide to promote rising of baked goods.Found with potassium chloride in sodium-free salt substitutes.Used to make icing for gingerbread houses and for another frosting, where it acts to prevent sugar from re-bonding and crystallizing.Used to clean brass and copper cookware and fixtures.Added to soft drinks, gelatin, photography chemicals, baked goods, and many other products. Shelf Life and Cream of Tartar Substitution As long as it is kept in a sealed container away from heat and direct light, cream of tartar maintains its effectiveness indefinitely. If cream of tartar is used in a cookie recipe, its used with baking soda to form a type of double-acting baking powder. For this type of recipe, omit both the cream of tartar and the baking soda and use baking powder instead. The substitution is to use 1 teaspoon of baking powder for each 5/8 teaspoons cream of tartar and 1/4 teaspoon baking soda. After you do the math for your recipe, you may find it calls for additional baking soda. If this is the case, you can add the extra baking soda to the batter. While its best to use cream of tartar if its called for in a recipe, if you must substitute, you can add vinegar or lemon juice instead. In baking recipes, it takes a bit more of the liquid ingredient to get the same acidity, so add 1 teaspoon of vinegar or lemon juice for every 1/2 teaspoon of cream of tartar. The flavor will be affected (not necessarily in a bad way), but the biggest potential problem is there will be more liquid in the recipe. For whipping egg whites, you can use 1/2 teaspoon lemon juice per egg white.