http://www.bloomberg.com/apps/news?pid=20601082&sid=asza3wG0bq90&refer=canada
Summary:
Since unemployment has been happening, the Canadian currency was dropped from near an eight months high. Traders predict that the U.S Federal Reserve may increase the interest rates. An economist, Meny Grauman announced that the loonies have been overdone. The Canadian currencies might reach and equal to U.S. Also, Bank of Canada believed the unprecedentedly rapid rise in Canadian dollar would fully offset the improvement of economic conditions. In Bloomberg survey, it showed that the unemployment rate rose higher than their prediction. U. S. has lost 504000 jobs in eight months and it was the highest jobless rate since 1983; however, a Chief currency strategy in TD Securities Inc, Shaun Osborne believes the confidence in a rebound would rise. In the interest-rate bets, traders started to price in chances that fed may lift interest rate in the recession eases.
Connections:
Ch6 talks about purchasing power and short investment. Purchasing power is to derive its value from its ability to be exchanged for goods and services in the future. Especially, cash serves as the medium of exchange in every economy and currency which would lose its value by the economy changing. International traders might be directly affected by the currency changing. They would have less profit because of the changing rates. Many people were losing their job because of the high interest rates that make the traders not willing to make any short investment.
Reflection:
Traders should try to use a unit-of measure assumption that all transactions should be measured using a common unit. This produces valuing items in terms of purchasing power; cash is measured at its face value rather than by any other method. However, exchange rates are determined in the foreign currency market. The changes in purchasing power of foreign currencies by allowing the dollar value of the foreign currencies to rise and fall with the changes in exchange rates.
Monday, June 8, 2009
Thursday, April 16, 2009
Telus to spend $700-million to upgrade Alberta networks
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.
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, February 26, 2009
Chapter 4 Telus Sees Revenue Rise As Client Growth Slows Down
http://topnews.us/content/23566-telus-sees-revenue-rise-client-growth-slows-down
Summury:
Telus Company grows 5% in revenue in its fourth quarter, because they have more services of wireless and data. This service attracts 148,000 new wireless customers, but 9% fewer cell phone customers. Obviously, an industry shows a growth of wireless products. Also, Telus.Co is exceeding profit expectations. Telus.Co has $2.45-billion revenue, while they are posing a profit of $285-million, or 90-cents a share. In order, consumers are expecting a cell phone to have more features and services, such as BlackBerry which helps to increase the data revenue. As their large competitor of Roger Communication Inc. improve quickly, the new entrants won wireless spectrum last year's auction by the government, and they can fetch networks. In addition, it will capture cost conscious consumers. Of course, they will have more discounts for wireless brands.
Connection:
The connection between the article and the information in chapter 4 is about how to a get better revenue of a company. Telus Company has a great strategy and provides a great service for consumers. It mostly provides an Operating active. In addition, Telus Company makes the selling price of a good or service to satisfy a customer. It also connects Matching principle and Recognition. Telus Company records their revenues and expenses at the same time period as the revenues. So, the expenses can match with the revenues. Telus Company records an event in the accounting system that provides both of description and the amount of the company.
Refletion:
It’s good for Telus Company to follow a rule of matching principle and recognition. So, it would be easy for them to read and analyze their finance. Its will figure out quickly, whether they get a net income or net loss. Also, revenue recognition criteria may meet at different points for different products. Telus Company is able to increase their revenues because they are improving and they are having more new strategies: great service and Price allowance. Telus Company is successfully using those strategies to attract more customers to buy their products and earn better profits.
Summury:
Telus Company grows 5% in revenue in its fourth quarter, because they have more services of wireless and data. This service attracts 148,000 new wireless customers, but 9% fewer cell phone customers. Obviously, an industry shows a growth of wireless products. Also, Telus.Co is exceeding profit expectations. Telus.Co has $2.45-billion revenue, while they are posing a profit of $285-million, or 90-cents a share. In order, consumers are expecting a cell phone to have more features and services, such as BlackBerry which helps to increase the data revenue. As their large competitor of Roger Communication Inc. improve quickly, the new entrants won wireless spectrum last year's auction by the government, and they can fetch networks. In addition, it will capture cost conscious consumers. Of course, they will have more discounts for wireless brands.
Connection:
The connection between the article and the information in chapter 4 is about how to a get better revenue of a company. Telus Company has a great strategy and provides a great service for consumers. It mostly provides an Operating active. In addition, Telus Company makes the selling price of a good or service to satisfy a customer. It also connects Matching principle and Recognition. Telus Company records their revenues and expenses at the same time period as the revenues. So, the expenses can match with the revenues. Telus Company records an event in the accounting system that provides both of description and the amount of the company.
Refletion:
It’s good for Telus Company to follow a rule of matching principle and recognition. So, it would be easy for them to read and analyze their finance. Its will figure out quickly, whether they get a net income or net loss. Also, revenue recognition criteria may meet at different points for different products. Telus Company is able to increase their revenues because they are improving and they are having more new strategies: great service and Price allowance. Telus Company is successfully using those strategies to attract more customers to buy their products and earn better profits.
Tuesday, November 25, 2008
Chapter 3- Small business owners optimistic in tense times, bank survey finds
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:
After I read this article, I realized that the small businesses are easier to survive compare with the large businesses in the falling economy because the small businesses do not require too large amount of cash flowing. In this article also tells the reader that businesses must be analyzed seriously of the financing in the temperately time. The accounting cycle will be a very useful for the small businesses. However, this system is not that useful for the large company because they had too much investment, they do not have much cash flowing in their company.
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:
After I read this article, I realized that the small businesses are easier to survive compare with the large businesses in the falling economy because the small businesses do not require too large amount of cash flowing. In this article also tells the reader that businesses must be analyzed seriously of the financing in the temperately time. The accounting cycle will be a very useful for the small businesses. However, this system is not that useful for the large company because they had too much investment, they do not have much cash flowing in their company.
Monday, October 20, 2008
Chapter 2- Household debt now rising faster than wealth: CIBC
http://www.financialpost.com/magazine/family_finance/story.html?id=732170
Summary
The debt of Canadian households is now climbing faster, because of the stock market is correcting and the housing market is falling down. Many Canadian consumers are starting the personal bankruptcies and mortgage arrears. CIBC reviews the Canadian credit markets, they get an analysis that the bankruptcies will continue rising. Early, the professor predicts that consumer credit growth will be increased 10%. CIBC economist and Benjamin Tal mention if these conditions are unchanging, the Canadian consumer would build up more liability and they are not able to pay it. Recently, the Western Canadian cities are starting to control strictly for the federal mortgage lending restrictions.
Connection
This article is connecting the rule of principal. The Bank needs to make sure the Canadian consumers are available to pay their liability. During the economy slow down, the business or consumer cannot follow the rule of matching concept. Their expenses cannot match to the production of revenues because the spice is continue rising. The condition will be turning better while the business or bank follows the rule of accrual basis. Especially, bank requires recognizing seriously of revenues and expense from whom they owed the money. However, the consumer still requires analyzing their financial before they have loan.
Reflection
I think both of the bank and consumer need to be took little responsible for the debt rise. Of course, the government needs to resolve this financial problem. The first considering is decreasing the production price. The second considering is slowdown in borrowing money. Even though, the bank decides to borrowing money to other businesses or consumers, the bank needs to make sure their financials are stable. I think this economy problem will be continuing for couple of years.
Summary
The debt of Canadian households is now climbing faster, because of the stock market is correcting and the housing market is falling down. Many Canadian consumers are starting the personal bankruptcies and mortgage arrears. CIBC reviews the Canadian credit markets, they get an analysis that the bankruptcies will continue rising. Early, the professor predicts that consumer credit growth will be increased 10%. CIBC economist and Benjamin Tal mention if these conditions are unchanging, the Canadian consumer would build up more liability and they are not able to pay it. Recently, the Western Canadian cities are starting to control strictly for the federal mortgage lending restrictions.
Connection
This article is connecting the rule of principal. The Bank needs to make sure the Canadian consumers are available to pay their liability. During the economy slow down, the business or consumer cannot follow the rule of matching concept. Their expenses cannot match to the production of revenues because the spice is continue rising. The condition will be turning better while the business or bank follows the rule of accrual basis. Especially, bank requires recognizing seriously of revenues and expense from whom they owed the money. However, the consumer still requires analyzing their financial before they have loan.
Reflection
I think both of the bank and consumer need to be took little responsible for the debt rise. Of course, the government needs to resolve this financial problem. The first considering is decreasing the production price. The second considering is slowdown in borrowing money. Even though, the bank decides to borrowing money to other businesses or consumers, the bank needs to make sure their financials are stable. I think this economy problem will be continuing for couple of years.
Tuesday, September 23, 2008
Financial 12 Chapter 1
http://www.financialpost.com/news/story.html?id=813046
Summary
I read the article is about the retail slowdown raises warning flags on economy. The consumer unwilling to spent the money on shopping because of the high prices and a troubled U.S, economy. Because of the high gasoline prices, fewer consumers consider buying a car or they will consider stop driving. Obviously, those events will reflect recent financial market turmoil. It will make the economy slow down because it’s unavailable for the consumer to spend a lot of the money on that.
Connection
This article is connecting with the neutrality that the information is not calculated or present in a way that would bias users toward. For example, it will make the economy turning down if they do not get a balance with the employee’s salary and gasoline prices or other supplies. Even though, any business people require to consider seriously getting a balance on their business. Otherwise, the company will end with the failure.
Reflection
I think neutrality is very important for business. If the person is not following this concept, he/ she will not be successful. That’s a lot of methods can make balance and reach the goal. For example, the price of supply is increasing, and then increasing the salary at the same time. I believe it will make the economy become more possible. It relates with the decision maker who need more information faithfully represents the attribute or economic event that is purporting to represent.
Summary
I read the article is about the retail slowdown raises warning flags on economy. The consumer unwilling to spent the money on shopping because of the high prices and a troubled U.S, economy. Because of the high gasoline prices, fewer consumers consider buying a car or they will consider stop driving. Obviously, those events will reflect recent financial market turmoil. It will make the economy slow down because it’s unavailable for the consumer to spend a lot of the money on that.
Connection
This article is connecting with the neutrality that the information is not calculated or present in a way that would bias users toward. For example, it will make the economy turning down if they do not get a balance with the employee’s salary and gasoline prices or other supplies. Even though, any business people require to consider seriously getting a balance on their business. Otherwise, the company will end with the failure.
Reflection
I think neutrality is very important for business. If the person is not following this concept, he/ she will not be successful. That’s a lot of methods can make balance and reach the goal. For example, the price of supply is increasing, and then increasing the salary at the same time. I believe it will make the economy become more possible. It relates with the decision maker who need more information faithfully represents the attribute or economic event that is purporting to represent.
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