http://www.financialpost.com/news-sectors/story.html?id=1494767
Summary
This article is about the second-largest mobile-phone, Telus plans to spend around $10 billion to upgrade their wireless and wifelines services in 2009. They tried to make 5% of earning growth that it’s between $3.4 billion-$3.7 billion shares. The past month, Telus spent $500-milllion in British Columbia to improve their services. In April, Telus Corp. plans to spend $700-million more in Alberta. Telus Corp. decides to upgrade the network technology. For example, High Speed Packet Access (HSPA) can make transmission faster on the date. They would try to provide service of Apple iPhone 3G and blackberry. They try to make good return on investment for next year. Also, they expect to have a good investment return for next year.
Connection
This article is related chapter5 which are the cash flow and investment. Telus Corp. tries to have more investing activities. Telus Corp. tries to improve their technology in order to attract more costumers to buy their products. However, they required to make sure they have enough cash flow. If they are only have limit cash, their company will be in danger or bankrupt. Cash flow management is very important that can affect a company directly. The successful company is depended on the cash flow. The stocks in Telus Corp. have done a great job in making decisions because they have deeply considered and they have done a lot of researches. However, they must flow a rule that operating cash flows which must be sufficient to support investing and financing activities over the long term.
Reflection
In my opinion, Telus Corp. have made an improvement in making a great sale but they should not start at the falling down economy. They have invested too much money on this improvement. They will be short of money on other activities. I think they should consider a rule of cash flow seriously. They will cause a trouble, if they only have limited flowing cash. They invest these huge amounts of money; they should understand that they should not get a good return immediately. While the economy slows down, customers will not use lot money on little supplies. I believe they would have a longer time to get a return on this investment.
Thursday, June 17, 2010
Wednesday, May 5, 2010
Chapter 6 ^_^
http://www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20090529/Canadian_dollar_090529/20090529?hub=BritishColumbiaHome
summary:
This article mainly about how and why Canada’s currency raced higher versus the U.S. dollar affects Canada’s economy. Although the rising value of Canadian dollars is good for people spend holiday in the states, it may insert negative influence on nation’s manufacture and export. If the dollar continues to swell, there may be a massive $50-billion federal deficit in the coming up months. The last rise in Canadian dollars in 2007 is quite different for now because the last surge was caused mostly by the rising prices for oil and commodities, and this reduced the losses in Canada’s manufacture and export industries. However, the rise this time is because of the losing faith in the US dollar, which means the high export prices and low commodity prices can really affect Canada’s economy.
Connection:
This chapter is mainly about what can be done with excess cash on hand, and there is a small section about how the changes in purchasing power, which is the currency, can affect a company’s cash. With the rising value, Canadian manufacture is affected the most because American people may want lower prices commodities from other countries. Amid the economic crisis, most people are losing faith in the US dollar and stop hoarding it, as a result, the purchasing power for the US dollar drops tremendously, the face value for other dollars will not change, but it is affecting most countries economy if the US dollar drops.
Reflection:
Low commodity prices, high export prices and surging manufacturing costs could drive down corporate profits this year and further diminish Ottawa's tax base. This is because investors have started to unload the currency because of continuing signs that the worst of the global recession may have passed. Since it is a hard time for most manufacturing and export industries, government can have short-term investment on these industries to prevent the shortage of cash.
summary:
This article mainly about how and why Canada’s currency raced higher versus the U.S. dollar affects Canada’s economy. Although the rising value of Canadian dollars is good for people spend holiday in the states, it may insert negative influence on nation’s manufacture and export. If the dollar continues to swell, there may be a massive $50-billion federal deficit in the coming up months. The last rise in Canadian dollars in 2007 is quite different for now because the last surge was caused mostly by the rising prices for oil and commodities, and this reduced the losses in Canada’s manufacture and export industries. However, the rise this time is because of the losing faith in the US dollar, which means the high export prices and low commodity prices can really affect Canada’s economy.
Connection:
This chapter is mainly about what can be done with excess cash on hand, and there is a small section about how the changes in purchasing power, which is the currency, can affect a company’s cash. With the rising value, Canadian manufacture is affected the most because American people may want lower prices commodities from other countries. Amid the economic crisis, most people are losing faith in the US dollar and stop hoarding it, as a result, the purchasing power for the US dollar drops tremendously, the face value for other dollars will not change, but it is affecting most countries economy if the US dollar drops.
Reflection:
Low commodity prices, high export prices and surging manufacturing costs could drive down corporate profits this year and further diminish Ottawa's tax base. This is because investors have started to unload the currency because of continuing signs that the worst of the global recession may have passed. Since it is a hard time for most manufacturing and export industries, government can have short-term investment on these industries to prevent the shortage of cash.
Monday, March 1, 2010
CHAPTER 4 ^_^
http://www.financialpost.com/trading_desk/financials/story.html?id=1171778
Summary:
Canada’s fourth largest bank, BMO Bank of Montréal,purchased the world’s largest insurance company – AIG’s Canadian Life Insurance Unit. It acquired the company with an all-cash transaction of $375 million CAD. AIG was required to pay back the loans from the U.S federal government with an amount of $60 billion US dollars. BMO saw the purchase as a source to expand, strengthen the business’ financial plans, and increase client relationships. Also, the business deal will certainly benefit BMO’s revenue by opening the doors to a variety of customers and enhancing the bank’s earnings. Without a doubt, the BMO has strategically purchased AIG Life of Canada at a perfect timing with a fairly low cost.
Connection:
Chapter 4 focuses highly on Revenue Recognition with the GAAP code and criteria. Businesses strive to keep their company from bankruptcy by continually earning revenue throughout their accounting cycle and recording it into the financial statements. Only the businesses with new and fresh strategies are able to successfully continue their business without being afraid of closing down. Similar to BMO’s earnings with additional accounts and customers, they must recognize the revenue they encounter by verifying it onto the financial statements. Also, the purchase of AIG Life of Canada clarifies the Return on Investment Ratio (ROI) which declares the Performance Measurement of the business.
Reflection:
I think BMO took a mountain load off AIG’s shoulders as they acquired the company with an all-cash transaction. It is fairly beneficial to BMO’s new line of business for financial plans and increasing customers. As a matter of fact, I think BMO made a smart move when they decided to buy AIG Life of Canada. This way, the bank will be able to strengthen their financial position and achieve access to many supplementary customers. Also, AIG couldn’t maintain their expenses at low costs with high revenue which indicates their unsuccessful business strategies. It was impossible for AIG to survive without the help of BMO’s cash flowing into the company.
Summary:
Canada’s fourth largest bank, BMO Bank of Montréal,purchased the world’s largest insurance company – AIG’s Canadian Life Insurance Unit. It acquired the company with an all-cash transaction of $375 million CAD. AIG was required to pay back the loans from the U.S federal government with an amount of $60 billion US dollars. BMO saw the purchase as a source to expand, strengthen the business’ financial plans, and increase client relationships. Also, the business deal will certainly benefit BMO’s revenue by opening the doors to a variety of customers and enhancing the bank’s earnings. Without a doubt, the BMO has strategically purchased AIG Life of Canada at a perfect timing with a fairly low cost.
Connection:
Chapter 4 focuses highly on Revenue Recognition with the GAAP code and criteria. Businesses strive to keep their company from bankruptcy by continually earning revenue throughout their accounting cycle and recording it into the financial statements. Only the businesses with new and fresh strategies are able to successfully continue their business without being afraid of closing down. Similar to BMO’s earnings with additional accounts and customers, they must recognize the revenue they encounter by verifying it onto the financial statements. Also, the purchase of AIG Life of Canada clarifies the Return on Investment Ratio (ROI) which declares the Performance Measurement of the business.
Reflection:
I think BMO took a mountain load off AIG’s shoulders as they acquired the company with an all-cash transaction. It is fairly beneficial to BMO’s new line of business for financial plans and increasing customers. As a matter of fact, I think BMO made a smart move when they decided to buy AIG Life of Canada. This way, the bank will be able to strengthen their financial position and achieve access to many supplementary customers. Also, AIG couldn’t maintain their expenses at low costs with high revenue which indicates their unsuccessful business strategies. It was impossible for AIG to survive without the help of BMO’s cash flowing into the company.
Chapter 3 !!!!
http://www.canada.com/vancouversun/news/business/story.html?id=6d86864a-1991-4ebe-b2de-0cf76d741760
Summary:
This article is about most of the small business owners in B.C are optimistic for the falling economic. Recently, TD bank got a Small Business Survey which found out the mainly concerns to manage growth was maintaining cash flowing. TD bank also replies their survey that “they are a bright light in these darker economic times.” They are optimistic about small business owners are able to grow their business and take steps to effectively manage their growth. This survey is provided an important strategically plan for small businesses. For example, small business owners have better raise enough capital before starting or diversify services.
Connection:
The connection between the article and the text book are Chart of accounts and the accounting cycle. All the businesses need to provide chart of accounts that all the information recorded in the accounting system are generally summarized. The business required to follow the system of accounting cycle which is recording and reporting of events in the accounting system. If businesses follow those steps, it’s easy to read or analyze the statement. Owners or the authorities can easily to figure out how much cash flowing they have now. It’s very important to know this information because the business must have enough capital before they have new services or production in the falling economy.
Reflection:
In the article,it talks a bout how small business owners are so optimistic for the falling economics. I can understand that , because they are only a small business; they cannot handle anything big happen to them.
Summary:
This article is about most of the small business owners in B.C are optimistic for the falling economic. Recently, TD bank got a Small Business Survey which found out the mainly concerns to manage growth was maintaining cash flowing. TD bank also replies their survey that “they are a bright light in these darker economic times.” They are optimistic about small business owners are able to grow their business and take steps to effectively manage their growth. This survey is provided an important strategically plan for small businesses. For example, small business owners have better raise enough capital before starting or diversify services.
Connection:
The connection between the article and the text book are Chart of accounts and the accounting cycle. All the businesses need to provide chart of accounts that all the information recorded in the accounting system are generally summarized. The business required to follow the system of accounting cycle which is recording and reporting of events in the accounting system. If businesses follow those steps, it’s easy to read or analyze the statement. Owners or the authorities can easily to figure out how much cash flowing they have now. It’s very important to know this information because the business must have enough capital before they have new services or production in the falling economy.
Reflection:
In the article,it talks a bout how small business owners are so optimistic for the falling economics. I can understand that , because they are only a small business; they cannot handle anything big happen to them.
Tuesday, October 13, 2009
Chapter 2 -TD Bank, Scotiabank latest to raise mortgage rates
http://www.nationalpost.com/related/topics/story.html?id=2097728
Summary :
There are numerous of Canadian banks that are rising the cost of taking out a mortgage with them. Just on Tuesday, TD Bank raised rates on fixed mortgages, now with a five year posted rate it has increased to o.29 of a percentage point to 5.84%. The rates has also raised up for two, three, and four year fixed rate mortgages. The two year went up to 0.3 of a point to 4.2%, three year went up to 0.3 too but to 4.75% and lastly the four year will increase up to 0.35 which will be 5.29%. After TD bank has raised their mortgage rates, followed by Scotiabank they announced they are rising their mortgage rates as well. All this changes will be effected on Wednesday.
Connection:
In this article, you can see that several of Canadian banks are rising their cost of taking out a mortgage with them. TD Bank and Scotiabank has raised the mortgage rates ranging from 0.1 to 0.35 just on Tuesday. This article relates to Chapter 2 because it talks about the rates being increased in the mortgage. It is already bad with all the other things going on right now, but now they are increasing the mortgage rates too.
Reflection:
In my opinion, I don't think they should raise the mortgage rates because once they raise the mortgage rates then the home owners will have to pay more for their mortgage. Mortgage is a big part of life. There is already tons and tons of people losing jobs right now, and now they hear about the mortgage rate going up. I don't think they will want to buy a house or anything because of the increase for the mortgage rate. It will be harder for people to pay off their mortgage and that also means having to work a second job to pay off everything.
Wednesday, September 16, 2009
Apple Investors Catch Religion?
http://www.cnbc.com/id/32880029
Summary
With the outbreak of the recession, the stock market has improved.Even though the money has been tight in some cases, Apple company has made a soaring raise in the stock market. Climbing the 52 week high in the morning. The mac sales surpassed estimates for the September quarter, with a seven percent year-over-year increase. Analysts predict that something closer to five percent would translate into at least 2.8 million Mac computers being sold around the world. The invention Apple has made like,Ipods,Iphones,Mac's and downloads from the App store.This is why Apple is expanding and continues to attract new customers. Apple would not have gotten to this glory day,where everyone knows where and what Apple's creation are .That is why investors in Apple would continue to support the company financially.
Connections
In this article, despite what other people think and put theories as to how it is really weak but there are some temporary factors. in the first chapter, the textbook talk about Financial Accounting Standards Board (FASB) which sets accounting standards for American corporations;there are currently numerous groups involved in the process of trying to devise international accounting standards. The article reports FASB rule change is certainly meaningful when it passes. Even if FASB allows more litheness, but rest guaranteed that a change will come?
Reflection
After reading this article, I think if the Financial Accounting Standards Board (FASB) rule is truly significant and it will have great outcomes if it comes to pass. If FASB allows more flexibility to implement any changes in its accounting then it will assure a change will come.
Summary
With the outbreak of the recession, the stock market has improved.Even though the money has been tight in some cases, Apple company has made a soaring raise in the stock market. Climbing the 52 week high in the morning. The mac sales surpassed estimates for the September quarter, with a seven percent year-over-year increase. Analysts predict that something closer to five percent would translate into at least 2.8 million Mac computers being sold around the world. The invention Apple has made like,Ipods,Iphones,Mac's and downloads from the App store.This is why Apple is expanding and continues to attract new customers. Apple would not have gotten to this glory day,where everyone knows where and what Apple's creation are .That is why investors in Apple would continue to support the company financially.
Connections
In this article, despite what other people think and put theories as to how it is really weak but there are some temporary factors. in the first chapter, the textbook talk about Financial Accounting Standards Board (FASB) which sets accounting standards for American corporations;there are currently numerous groups involved in the process of trying to devise international accounting standards. The article reports FASB rule change is certainly meaningful when it passes. Even if FASB allows more litheness, but rest guaranteed that a change will come?
Reflection
After reading this article, I think if the Financial Accounting Standards Board (FASB) rule is truly significant and it will have great outcomes if it comes to pass. If FASB allows more flexibility to implement any changes in its accounting then it will assure a change will come.
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