http://online.wsj.com/article/BT-CO-20100505-721603.html?mod=WSJ_latestheadlines
Summary
Atmos Energy Corporation, the largest distributor of natural gas in the United States, has recently released their financial report for the second quarter. As par t of the report, it has been shown that there has been a 12% decline on unrealized loses. Although Atmos Energy Corporation suffered a profit loss from a decline on unrealized, the company has benefited from recent changes in the second quarter. The company has benefited from recent rate increases and rate-design changes that moderate earnings instability from causes such as weather, lower consumption and bad debt. During the second quarter, Atmos Energy Corporation has been leaning away from their core regulated business and performing riskier operations such as gas storage and gathering.
Connection
The connection between the article, "Atmos Energy 2Q Profit Down 12% On Unrealized Losses" and the Financial Accounting Textbook is unrealized losses, bad debts and internal control. During Atmos Energy Corporation's second quarter in their fiscal period, they suffered a decline of 12% on unrealized losses. The investments that Atmos Energy Corporation held decreased in value and caused the company to lose profit. Although Atmos Energy Corporation suffered losses from unrealized losses, they were able to benefit from rate-design changes that moderate earnings instability of bad debts, accounts receivable that cannot be collected. From the recent rate of changes and rate-design changes the company also improved their physical measures, a key part in internal control. More specifically the company improved their protection from damages or destruction caused by weather.
Reflection
Although Atmos Energy Corporatation suffered a decline on unrealized losses, I think the company will be fine. It is not uncommon for a company to lose money on an investment they are holding and since Atmos is benefiting from recent rate changes that moderate earnings instability of weather and bad debt, I am sure the company will do fine. Atmos Energy Corporation is the largest distributor of natural gas in the United States and it shows from the activities they perform. Even with the set back from the decline on unrealized losses, Atmos takes risk and performs operation outside of their usual core regulated business such as gas storage and gathering. I am also happy to see that the company is following the conservatism principle. Unlike some companies, Atmos Energy Corporation recognized their losses as soon as they could estimated and reported to the public.
Wednesday, May 5, 2010
Monday, April 12, 2010
FAC12: Chapter 5 Article
http://www.winnipegfreepress.com/business/breakingnews/shaw-communications-second-quarter-profits-dip-despite-higher-revenue-90348879.html
Summary
Shaw Communications Inc., a Calgary-based cable company has recently announced its plan to start its long awaited wireless business in late 2011. The company has invested 100 million dollars this year and hopes their investment will pay off when they debut their wireless business. By making this large investment the company hopes that they will be able to offer a leading-edge product in two years. The company has no problems waiting two years before they release their wireless service, and believes it might be a good thing. Despite the fact that the company will be having a large cash outflow in the next two years, the company has bumped up its dividend by 5%. Besides the large investment in its wireless business, Shaw Communications Inc. has also announced its plan to buy control of Canwest Global, one of Canada's largest international media companies.
Connection
The connection between the article, "Shaw to launch wireless business in late 2011, invest 100 million this year" and the financing accounting textbook is cash flow, specifically cash outflow and investing activities. Many companies invest in long-term assets to bring in future profit, and Shaw Communications Inc. is no exception. The investing activities that Shaw is currently involved in is their $100 million investment in their wireless business and possibly the purchase of Canwest Global. The large investment causes a large outflow of cash for the company, but will possibly result in a larger inflow of cash after two years, when their wireless business has launched. Besides an outflow of cash caused by investing activities, the company is also having an outflow of cash caused by their financing activities. Even though the company knows that their will be a large outflow of cash caused by their new investments, the company has decided to increase their dividends by 5%.
Reflection
I think Shaw Communications Inc. is heading in the right direction by planning to launch a wireless business. With a rapidly increasing rate of improving technology, I think it is a good idea for almost all companies to spend more on investments and R&D. Although Shaw will have an increase of cash outflow for the next two years, I think they will be able to achieve a higher cash inflow when their wireless business has launch. Besides their investment in their wireless business, I think it would be a good idea for Shaw to buy out Canwest Global since it is one of Canada's largest media company. Even though there will be an increase in cash outflow for Shaw, Shaw has increased their dividends by 5%. I think it was nice of the company to increase their dividends even with their large cash outflow. The increase in dividend not only thanks their investors for their support but gives an aura of confidence that Shaw is financially healthy and will be able to produce a great product in the near future.
Summary
Shaw Communications Inc., a Calgary-based cable company has recently announced its plan to start its long awaited wireless business in late 2011. The company has invested 100 million dollars this year and hopes their investment will pay off when they debut their wireless business. By making this large investment the company hopes that they will be able to offer a leading-edge product in two years. The company has no problems waiting two years before they release their wireless service, and believes it might be a good thing. Despite the fact that the company will be having a large cash outflow in the next two years, the company has bumped up its dividend by 5%. Besides the large investment in its wireless business, Shaw Communications Inc. has also announced its plan to buy control of Canwest Global, one of Canada's largest international media companies.
Connection
The connection between the article, "Shaw to launch wireless business in late 2011, invest 100 million this year" and the financing accounting textbook is cash flow, specifically cash outflow and investing activities. Many companies invest in long-term assets to bring in future profit, and Shaw Communications Inc. is no exception. The investing activities that Shaw is currently involved in is their $100 million investment in their wireless business and possibly the purchase of Canwest Global. The large investment causes a large outflow of cash for the company, but will possibly result in a larger inflow of cash after two years, when their wireless business has launched. Besides an outflow of cash caused by investing activities, the company is also having an outflow of cash caused by their financing activities. Even though the company knows that their will be a large outflow of cash caused by their new investments, the company has decided to increase their dividends by 5%.
Reflection
I think Shaw Communications Inc. is heading in the right direction by planning to launch a wireless business. With a rapidly increasing rate of improving technology, I think it is a good idea for almost all companies to spend more on investments and R&D. Although Shaw will have an increase of cash outflow for the next two years, I think they will be able to achieve a higher cash inflow when their wireless business has launch. Besides their investment in their wireless business, I think it would be a good idea for Shaw to buy out Canwest Global since it is one of Canada's largest media company. Even though there will be an increase in cash outflow for Shaw, Shaw has increased their dividends by 5%. I think it was nice of the company to increase their dividends even with their large cash outflow. The increase in dividend not only thanks their investors for their support but gives an aura of confidence that Shaw is financially healthy and will be able to produce a great product in the near future.
Monday, March 1, 2010
FAC12: Chapter 4 Article
http://money.cnn.com/news/newsfeeds/articles/marketwire/0587289.htm
Summary
Research in Motion Ltd. (RIM), a leading designer in mobile communication has recently introduced the BlackBerry Enterprise Server Express. The new software wirelessly synchronizes BlackBerry smart phones with Microsoft Exchange or Microsoft Windows Small Business Server. This new server software will be free of charge for all BlackBerry smart phone owners. Research in Motion has decided to provide this software for free in order to address two key market opportunities. Their first key market is the small and mid-sized businesses that desire the enterprise-grade security and manageability of the new software but don’t require all the advanced features. Their second key market is the increasing amount of BlackBerry smart phone owners. With the new software, IT departments will gain a cost-effective solution that enables them to let employees connect their BlackBerry smart phones to their work email. With an already great product, Research in Motion will be raising the bar for smart phones all over the world with this new cost-effective solution.
Connection
The connection between the article, “RIM introduces BlackBerry Enterprise Server Express” and the Financial Accounting textbook is the cash-to-cash cycle. As a leading designer in mobile communication, Research in Motion Ltd. has a large number of shareholders. With the large amount of money from the shareholders, RIM has acquired new software for their product. In a way, the new software acts like a promotion since it is free of charge for all BlackBerry smart phone owners. With the new software, customers will have a stronger urge to buy BlackBerry smart phone over any other smart phone. The new software will be available via download, so no delivery will be required. If the new software is a success, Research in Motion will be collecting a good amount of revenue in their sale of smart phones.
Reflection
With an already great product, RIM’s new BlackBerry Enterprise Server Express will widen the already large gap between BlackBerry smart phones and other smart phone in the market. I think it’s great that BlackBerry owner’s will be receiving this new software for free. I also think it is very generous of RIM to provide the software for free since RIM makes most of their revenue from service fees as stated on page 247 of the financial accounting textbook. Not only do I think that the new software will help promote the purchase of BlackBerry smart phones but provide current BlackBerry smart phone users with a great software. The new software can wireless synchronize email, calendar, contacts, notes, and tasks, manage email folder, search email on the mail server remotely, book meetings and appointments, access files stores on the company and many more. As a leading designer in mobile communications, I can't wait to see what RIM has in store for its consumers.
Summary
Research in Motion Ltd. (RIM), a leading designer in mobile communication has recently introduced the BlackBerry Enterprise Server Express. The new software wirelessly synchronizes BlackBerry smart phones with Microsoft Exchange or Microsoft Windows Small Business Server. This new server software will be free of charge for all BlackBerry smart phone owners. Research in Motion has decided to provide this software for free in order to address two key market opportunities. Their first key market is the small and mid-sized businesses that desire the enterprise-grade security and manageability of the new software but don’t require all the advanced features. Their second key market is the increasing amount of BlackBerry smart phone owners. With the new software, IT departments will gain a cost-effective solution that enables them to let employees connect their BlackBerry smart phones to their work email. With an already great product, Research in Motion will be raising the bar for smart phones all over the world with this new cost-effective solution.
Connection
The connection between the article, “RIM introduces BlackBerry Enterprise Server Express” and the Financial Accounting textbook is the cash-to-cash cycle. As a leading designer in mobile communication, Research in Motion Ltd. has a large number of shareholders. With the large amount of money from the shareholders, RIM has acquired new software for their product. In a way, the new software acts like a promotion since it is free of charge for all BlackBerry smart phone owners. With the new software, customers will have a stronger urge to buy BlackBerry smart phone over any other smart phone. The new software will be available via download, so no delivery will be required. If the new software is a success, Research in Motion will be collecting a good amount of revenue in their sale of smart phones.
Reflection
With an already great product, RIM’s new BlackBerry Enterprise Server Express will widen the already large gap between BlackBerry smart phones and other smart phone in the market. I think it’s great that BlackBerry owner’s will be receiving this new software for free. I also think it is very generous of RIM to provide the software for free since RIM makes most of their revenue from service fees as stated on page 247 of the financial accounting textbook. Not only do I think that the new software will help promote the purchase of BlackBerry smart phones but provide current BlackBerry smart phone users with a great software. The new software can wireless synchronize email, calendar, contacts, notes, and tasks, manage email folder, search email on the mail server remotely, book meetings and appointments, access files stores on the company and many more. As a leading designer in mobile communications, I can't wait to see what RIM has in store for its consumers.
Wednesday, January 20, 2010
FAC12: Chapter 3 Article
http://www.nytimes.com/2010/01/20/technology/companies/20revenue.html?ref=business
Summary
As of January 19, 2009, Google prepares for a vital discussion with the Chinese government over its decision to stop its cooperation with censorship laws in China. Many people believe that Google’s Chinese-language search engine won’t be surviving the company’s upcoming confrontation, but its business and operation in China depend on it. Google has stated that it will shut down its local Chinese-language search engine, Google.cn, if agreements over censorship aren’t met. If Google is able to attain the right to run its search engine uncensored, then the company will be making a huge step forward and claim a principled stand on free speech and human rights while only suffering from a minor setback in its business. Experts believe that Google’s goals won’t be easily obtained. So far, Google has postpone the release day of two mobile phones in China, but the Chinese government remain hesitant due to the fact that they would be losing pride if they agree with Google’s terms. Google hopes to meet its terms in the upcoming negotiation and be able to keep its business and its many talented programmers in China.
Connection
The connection between the article, “Google Hopes to Retain Business Unit in China” and the Financial Accounting Textbook is discontinued operations. Although the negotiation between Google and the Chinese government is still in progress, Google has announced that it will discontinue operations in China if their terms aren’t met. Google’s Chinese-language search engine, google.cn is a significant segment of the company. If Google was to lose this segment, it will lose $150 million, a fraction of its $6 billion global revenue, in its quarterly sale. Although this event won’t affect Google’s revenue by a lot, it will greatly affect its research and development operations in China if terms aren’t met. If Google is to shut down in China, it will lose many talented programmers and engineers, which are a vital part of the company. If the discontinued operation is confirmed, then Google’s income will be greatly affected.
Reflection
I support Google’s action. I believe it’s time to get rid of the censorship laws in China. The censorship laws go against free speech and human rights and it should no longer exist in this time of age. If Google isn’t able to meet its requests and shuts down its operations in China, I think there will be many consequences. First of all many of Google’s talented and skilled programmers in China will lose their jobs and be forced to find another job, possible a job working for one of Google’s adversaries. Secondly, Google will be losing some revenue and many companies in China will be losing an excellent source of distribution for their advertisements. Lastly, China will be losing a great search engine. The only good that comes from the refusal of Google’s terms is that China won’t be losing their pride, which isn’t that important in my eyes. I hope that Google will be able to reach their goals and that China will finally get rid of censorship laws.
Summary
As of January 19, 2009, Google prepares for a vital discussion with the Chinese government over its decision to stop its cooperation with censorship laws in China. Many people believe that Google’s Chinese-language search engine won’t be surviving the company’s upcoming confrontation, but its business and operation in China depend on it. Google has stated that it will shut down its local Chinese-language search engine, Google.cn, if agreements over censorship aren’t met. If Google is able to attain the right to run its search engine uncensored, then the company will be making a huge step forward and claim a principled stand on free speech and human rights while only suffering from a minor setback in its business. Experts believe that Google’s goals won’t be easily obtained. So far, Google has postpone the release day of two mobile phones in China, but the Chinese government remain hesitant due to the fact that they would be losing pride if they agree with Google’s terms. Google hopes to meet its terms in the upcoming negotiation and be able to keep its business and its many talented programmers in China.
Connection
The connection between the article, “Google Hopes to Retain Business Unit in China” and the Financial Accounting Textbook is discontinued operations. Although the negotiation between Google and the Chinese government is still in progress, Google has announced that it will discontinue operations in China if their terms aren’t met. Google’s Chinese-language search engine, google.cn is a significant segment of the company. If Google was to lose this segment, it will lose $150 million, a fraction of its $6 billion global revenue, in its quarterly sale. Although this event won’t affect Google’s revenue by a lot, it will greatly affect its research and development operations in China if terms aren’t met. If Google is to shut down in China, it will lose many talented programmers and engineers, which are a vital part of the company. If the discontinued operation is confirmed, then Google’s income will be greatly affected.
Reflection
I support Google’s action. I believe it’s time to get rid of the censorship laws in China. The censorship laws go against free speech and human rights and it should no longer exist in this time of age. If Google isn’t able to meet its requests and shuts down its operations in China, I think there will be many consequences. First of all many of Google’s talented and skilled programmers in China will lose their jobs and be forced to find another job, possible a job working for one of Google’s adversaries. Secondly, Google will be losing some revenue and many companies in China will be losing an excellent source of distribution for their advertisements. Lastly, China will be losing a great search engine. The only good that comes from the refusal of Google’s terms is that China won’t be losing their pride, which isn’t that important in my eyes. I hope that Google will be able to reach their goals and that China will finally get rid of censorship laws.
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