KISMET Inc.

KISMET Inc. Executive summary Financial analysis of Kismet indicates that it was highly profitable during the first and second quarters. The profitability improved in the second quarter. Besides, the company had a strong liquidity and solvency indicating that it had sufficient assets to repay its debt. It has the character, capacity and condition for paying a loan from the people. Analysis of the cash flow statement also showed that it generated more cash than it used in the second quarter of the year. However, the company does not have adequate collateral to cover the entire $43,000 loan. The bank will incur a high risk if it advances the entire amount to the company. Alternatively, it can lend the company less than the amount requested or lend the same amount but on condition that the company guarantees that it will make adequate sales after the expansion. This may include signing pre-contract documents with customers. Problem statement Kismet wants to expand its operations and requires a loan of $43,000 as well as expanding its credit line from $5,000 to $10,000. The company has applied for the loan with its bank. The problem, in this case, is to analyze the financial performance and stability of the company, assessing its creditworthiness and evaluating options the bank has and recommending whether the bank should advance the loan or not. Ratio analyses and implications This analysis helps in determining the financial strength and performance of the business. It is important in determining the ability of the business to pay his debts. Relevant analyses include profitability, liquidity and solvency analysis. Analysis of liquidity Kismet’s current ratio for the three months ended July was 3.00 implying that its current assets were more than thrice the value of its current liabilities. This shows that it has adequate current assets to pay its current obligations. At the end of April, Kismet’s current ratio was 1.56. The increase in the current ratio in the second quarter shows that the liquidity of Kismet improved. Its cash ratio was 0.215 at the end of the second quarter and 0.152 at the end of eth first quarter. This suggests that its cash balance as at that date could pay 21.5% of the total short-term liabilities. The increase in the cash ratio indicates that the liquidity of Kismet improved in the second quarter. Kismet’s quick ratio was 0.244 and 0.176 in the second and first quarters respectively. It implies the Kismet’s quick assets (current assets excluding inventory) could repay only 24.4% of the total current liabilities. The increase indicates an increase in liquidity. The above liquidity analysis indicates that Kismet has a strong liquidity since its current assets are sufficient to clear up its current liabilities. This further implies that Kismet can pay its short-term obligations hence the bank should be worried about short-term lending funds to Kismet. The concern, however, is a significant amount of inventory which leads to a lower quick ratio. Profitability analysis Profitability analysis is important is it determines whether the firm’s operations are cost-effective. Profitable businesses generate adequate revenues thus enhancing their ability to repay debt. Kismet’s gross profit margin was 32.82% in the second quarter, up from 30.21% in the first quarter. This shows that it earned a gross profit of $0.3282 for every dollar of total revenue. The increase in gross margin suggests an improvement in Kismet’s profitability in the second quarter. Its operating profit margin increased from 8.61% in the first quarter to 15.67% in the second quarter. The net profit margin was 11.74% in the second quarter up from 6.45%. It suggests that it earned a net profit of $0.1174 per dollar of total revenue. The return on assets for Kismet was 52.12% in the second quarter and 15.99% in the first quarter. It shows that Kismet erased a net income of $0.5212 per dollar of total assets used during the second quarter. The increase in ROA shows that the profitability of Kismet improved in the second quarter. Kismet’s return on equity was 83.52% in the second quarter indicating that it earned a net profit after tax of $0.8352 per dollar of shareholders’ equity. The ratio increased from 52.99% in the first quarter to 83.52% in the second quarter. This suggests that the profitability of Kismet improved in the second quarter. Profitability ratios indicate that Kismet was profitable in both the first and second quarters. The high profitability is a positive contribution to its ability to honor its debt obligations. Besides, its profitability improved in the second quarter. Solvency/Leverage analysis This analysis helps in determining the financial stability of Kismet, including its ability to settle the long-term debt. The debt ratio for Kismet at the end of the second quarter was 0.314 indicating that Kismet financed the acquisition of 31.4% of its total assets through borrowing. This implies that it has a low leverage since the debt ratio is less than 50%. The debt ratio for the first quarter was 0.698. The decline in the debt ratio shows that the solvency of the company improved in the second quarter. The debt-equity ratio at the end of the second quarter was 0.458 indicating that Kismet had more equity than debt in its capital structure. The ratio shows that Kismet had a low leverage and strong solvency. In the first quarter, the debt-equity ratio was 2.313. The decline in the debt-equity ratio shows that the solvency of Kismet improved in the second quarter of the year. Kismet had an interest cover (times interest earned ratio) of 898 times. This shows that Kismet operating income (before interest and taxes) was 898 times the interest expense for the quarter. This shows that Kismet generated more than sufficient earnings to cover its interest expense. This indicates that the probability that Kismet will be unable to pay interest on its debt is very low. The interest cover increased from 602.28 times in the first quarter to 898.23 times in the second quarter indicating an improvement in the solvency of the company. The above analysis indicates that Kismet had a strong solvency. Its total debt is only 315 of the total assets. Besides, the balance sheet indicates that it does not have any long-term debt. It generates sufficient earnings to meet its interest expense. The string solvency implies that the financial risk involved in Kismet is low since the possibility of failing to honor its obligations is low. Thus, the bank should advance the required amount of debt to the company since it can pay interest on the debt as well as the principal. Statement of change and implication (sources and uses of cash) Analysis of the cash flow statement indicates that Kismet had a positive net change in cash at eth end of the second quarter. Its short-term financing sources included taxes payable and working capital loan. The total short-term sources of finance were $6,812. It also obtained cash from long-term sources such as retained earnings (sales- operating activities) and the sale of fixed assets. It sold a fixed asset $1,000 while its retained earnings were $67,293. The total cash inflows (sources of cash) were $75,105. Its uses of cash included the purchase of inventory worth $58,389 and payment of accounts payable of $15,479. During the second quarter, the company’s cash inflows (sources) were more than its cash outflows (uses). The analysis indicates that the company does not face any cash flow problems. It has adequate cash to finance its daily operations. Cash flow stability is important in the evaluation of the creditworthiness of the company since the uses cash interest on debt and not receivables. It is not enough for the company to make higher revenues, it must be efficient enough to convert those revenues into cash. 4 C’s of credit Character Kismet is owned by two shareholders, Stuart Trier and Aaron Anticic, each holding 50% of the business. Trier, 24, is the president of the company. He graduated with a bachelor of arts from the University of Western Ontario. He was enrolled in the administrative and commercial studies program at the University. He worked as an analyst at 3M Canada where his duty was to optimize service and inventory levels. He is self-motivated and energetic. Aaron, the Treasurer, is a graduate of Richard Ivey School of Business (University of Western Ontario) with a degree in business administration. He held a lecture position at the Richard Ivey School of Business and developed experience in small business management by managing his family’s restaurant during the summers. The company sells lower-priced tools to individuals and contractors. Its stores are located in Hamilton. It also operates a mobile tool show. The above analysis indicates that Kismet has an experienced management. Besides, the company is yet to acquire long-term debt. Capacity The financial statements indicate that it can borrow and repay the required amount of the loan. Its net income after tax for the second quarter was $67,292 while that for the first quarter was $11,274. The balance sheet shows that it has less debt. It had no long-term liabilities, and its total current liabilities was less than 50% of the total assets. Besides, its cash inflows were more than its cash outflows. Thus, it can repay $43,000 from the bank. Condition The company’s industry shows positive prospects and is expected to grow. The company’s additional investment is expected to increase its earnings. Interest rates are also stable and are not expected to change rapidly. Collateral The company’s fixed assets are inadequate to secure the entire amount of the loan. The net book value of the company’s fixed asset is only $6,000. If the bank lends the company the $43,000 required to purchase new fixed assets, only $6,000 of the amount will be secured. Alternative analysis Option 1 The first option the bank has is to Kismet the entire amount of the loan ($43,000) and allow the expansion of working capital loan (credit line) to $100,000. Pros: The advantage is that Kismet will get the required capital to finance its expansion. Expanded operations may lead to an increase in revenues and net income thus enhancing the return on investment. If the expansion is successful, Kismet will be able to repay the bank. Cons: Kismet will not provide collateral for the entire amount of the loan. The company’s fixed asset will only cover $6,000 of the $43,000 loan. Secondly, there is no guarantee that the bank will get back its money. Since most of the loan is not covered, the banks may lose the amount if the expansion is not successful. Option 2 The bank to refuse the loan application from kismet. The advantage is that the bank will not be at risk of losing the unsecured portion of the loan. However, it will be disadvantageous to Kismet since it will not be able to finance its expansion plans. Option 3 To give the loan on condition that the company’s sales increase. The bank may also wait for Kismet to find a large buyer for the expanded production. This will reduce the risk of loss to the bank. However, Kismet may not get the loan if the market conditions are not favorable. Recommendations As shown in the analysis, the company is financially stable. It is profitable, highly liquid and has a strong solvency. Evaluation of the 4Cs showed that company had a strong capital, collateral, and capacity to pay the debt. However, a loan of $43,000 will be higher than the company’s capacity. The bank should lend the company less than $43,000 or wait until the company secures buyers.

The History of the Kaleidoscope and David Brewster

The kaleidoscope was invented in 1816 by Scottish scientist, Sir David Brewster (1781–1868), a mathematician and physicist noted for his various contributions to the field of optics.  He patented it in 1817 (GB 4136), but thousands of unauthorized copycats were constructed and sold, resulting in Brewster receiving little financial benefits from his most famous invention. Sir David Brewsters Invention Brewster named his invention after the Greek words kalos (beautiful), eidos  (form), and scopos  (watcher). So kaleidoscope roughly translates to beautiful form watcher. Brewsters kaleidoscope was a tube containing loose pieces of colored glass and other pretty objects, reflected by mirrors or glass lenses set at angles, that created patterns when viewed through the end of the tube. Charles Bushs Improvements In the early 1870s, Charles Bush, a Prussian native living in Massachusetts, improved upon the kaleidoscope and started the kaleidoscope fad. Charles Bush was granted patents in 1873 and 1874 related to improvements in kaleidoscopes, kaleidoscope boxes, objects for kaleidoscopes (US 143,271), and kaleidoscope stands. Charles Bush was the first person to mass manufacture his parlor kaleidoscope in America. His kaleidoscopes were distinguished by the use of liquid-filled glass ampules to create even more visually stunning effects. How Kaleidoscopes Work The kaleidoscope creates reflections of a direct view of the objects at the end of a tube, through the use of angled mirrors set at the end; as the user rotates the tube, the mirrors create new patterns. The image will be symmetrical if the mirror angle is an even divider of 360 degrees. A mirror set at 60 degrees will generate a pattern of six regular sectors. A mirror angle at 45 degrees will make eight equal sectors, and an angle of 30 degrees will make twelve. The lines and colors of simple shapes are multiplied by the mirrors into a visually stimulating vortex.

Kill A Mockingbird By Lee Pulitzer - 1748 Words

The prize winning novel, To Kill A MockingBird by lee Pulitzer, has remained amazingly famous since it was distributed in 1960. As a six year old, her encounters were from a grown-up point of view. Jean Louise Finch, who is nicknamed Scout, portrays the circumstances which incorporate her widowed father, Atticus, and his lawful barrier of Tom Robinson, a nearby dark man who was erroneously blamed for assaulting a white lady. In the three years encompassing the trial, Scout and her more seasoned sibling, Jem, witness the treacherous results of bias and contempt while in the meantime seeing the estimations of mettle and honesty through their dad s illustration. Lee s first and final novel, To Kill a Mockingbird was distributed amid the†¦show more content†¦Scout and her sibling Jem are raised by their dad and by Calpurnia, who is an African-American maid who lives up to expectations for the gang. Scout and Jem meet and get to be companions with a seven-year-old Dill Harris, wh ich is a kid who has touched base in Maycomb to stay with his close relative for the late spring. Lee has expressed that the character of Dill is in view of youthful Truman Capote, a no doubt understood Southern author and youth companion. Together with Dill, Scout, and Jem make a session of watching Boo Radley, a town hermit who has stayed inside his home for a long time, (somewhat insane wouldn t you say?) ,attempting to incite him to come outside. Neighborhood myth holds that Boo eats live squirrels and sneaks the avenues during the evening, and the youngsters impression of him is hued by such stories. In the fall, Dill comes back to his family in the North and Scout enters the first grade. Scout and Jem start to find odd articles, intended to stimulate the inquisitive its of kids, covered up in a tree on the Radley property. At the point when Tom Robinson, an African-American man, is blamed for assaulting Mayella Ewell, Atticus is named as the barrier lawyer. Mayella and her lazy father, Bob Ewell, live in to a great degree awful neediness on the outside of the town. The family is known as inconvenience and loathed by townspeople. Regardless of this current, Atticus protection of Tom is disagreeable in the white group, and Scout

Walden By Henry Thoreau Analysis; Essay Example For Students

Walden By Henry Thoreau Analysis; Essay Walden By Henry Thoreau AnalysisIn Henry David Thoreaus infamous novel ?Walden?, we are shown endlessparadoxes that stem from the authors deep and insightful views intonatures universal connections with the human race. Thoreau makes himself aquest of finding the meaning to our existence by investigating nature fromdifferent perspectives that our preoccupied society constantly overlooks. Two ofthese perspectives are of viewing nature from a mountaintop or panoramic viewand the other being from our own earthly foundations. ?At other times watchingfrom an observatory of some cliff or tree, to telegraph any new arrival; orwaiting at evening on the hill-tops for the sky to fall, that I might catchsomething, though never caught much, and that, mannawise, would dissolve againin the sun? (Thoreau 336). In this passage, Thoreau tells us that he issearching for something but he is not sure of what it is exactly. He states thathe has taken refuge plenty of times at sites that are at high altitudes to tryto see more clearly so that the answers of life can become more apparent. Hesays he waits for the sky to fall, which of course it cant, but this tells methat he is looking for the unexpected or what hasnt been seen yet. The word?mannawise? is a Thoreau ?original? word. I know, by my own knowledge,that ?manna? is another word or prefix for ?earth?, so when he says thatthe ?mannawise, would dissolve again in the sun?, I believe he is sayingthat his search has hit another rut without answers and so the sun sets and sodoes the earths responses of wisdom. ?Let us settle ourselves, and work andwedge our feet downward through the mud and slush of opinion, and prejudice, andtradition, and delusion, and appearance, that alluvion which covers the globe,through Paris and London, through New York and Boston and Concord, throughchurch and state, through poetry and philosophy and religion, till we come to ahard bottom and rocks in place, which we can call reality, and say, This is, andno mistake; and then begin (Thoreau 400). This is one of Thoreausstrongest statements using the perspective of burrowing down to our own roots tofind the buried treasures of life. He tells us to forget everything we havelearned and start all over with a fresh and clean state of mind. Once we do thiswe can experience true ?reality? and not what society has handed us tobelieve in. To work our way down through all we have been taught by man and tofind the real answers in ourselves and nature and if we do this, only then shallwe live and be. ?To my imagination it retained throughout the day more or lessof this auroral character, reminding me of a certain house on a mountain which Ihad visited the year before. This was an airy and unplastered cabin, fit toentertain a travelling god, and where a goddess might trail her garments. Thewinds which passed over my dwelling were such as sweep over the ridges ofmountains, bearing the broken strains, or celestial parts only, of terrestrialmusic? ?Olympus is but the outside of the earth every where? (Thoreau 390)In this passage, Thoreau gives us another panoramic view of being on amountaintop where a house is, with a sight so beautiful and magical, that itsonly comparison would be of Olympus, home of the Greek gods. He gives us a pastdescription of what he remembers about a rundown cabin and even though it was adecaying site, its towering position made it god worthy. Thoreau starts bystating that his present house looked like an ?auroral character?, settingan analogy of the sun shining all around his residence reminding him of the?Olympus? site. .ub4f605cb411f6b8d43beacbc25ef960f , .ub4f605cb411f6b8d43beacbc25ef960f .postImageUrl , .ub4f605cb411f6b8d43beacbc25ef960f .centered-text-area { min-height: 80px; position: relative; } .ub4f605cb411f6b8d43beacbc25ef960f , .ub4f605cb411f6b8d43beacbc25ef960f:hover , .ub4f605cb411f6b8d43beacbc25ef960f:visited , .ub4f605cb411f6b8d43beacbc25ef960f:active { border:0!important; } .ub4f605cb411f6b8d43beacbc25ef960f .clearfix:after { content: ""; display: table; clear: both; } .ub4f605cb411f6b8d43beacbc25ef960f { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ub4f605cb411f6b8d43beacbc25ef960f:active , .ub4f605cb411f6b8d43beacbc25ef960f:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ub4f605cb411f6b8d43beacbc25ef960f .centered-text-area { width: 100%; position: relative ; } .ub4f605cb411f6b8d43beacbc25ef960f .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ub4f605cb411f6b8d43beacbc25ef960f .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ub4f605cb411f6b8d43beacbc25ef960f .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ub4f605cb411f6b8d43beacbc25ef960f:hover .ctaButton { background-color: #34495E!important; } .ub4f605cb411f6b8d43beacbc25ef960f .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ub4f605cb411f6b8d43beacbc25ef960f .ub4f605cb411f6b8d43beacbc25ef960f-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ub4f605cb411f6b8d43beacbc25ef960f:after { content: ""; display: block; clear: both; } READ: Liberal Arts and the Advantages of Being Useless Essay This godlike place on the mountain has natures own musicplaying by the ways of the wind passing through the holes and hollows ofearths landscapes. He uses the metaphor of Greek Mythology to give us agrandeur view of the earth so that we may see clearly and truly to find our realselves and world. ?Though the view from my door was still more contracted, Idid not feel crowded or confined in the least. There was pasture enough for myimagination? (Thoreau 392). This is another statement which Thoreau uses theperspective of the ground and foundation to explain his point of view. I havethis mental picture of Thoreau sitting in his doorway of the small cabin facingWalden Pond, making his fascinating inquiries and writing steadily as they cometo him. This cabin was supposedly small by the measurements Thoreau givesearlier on, and so someone, like me, might take it that such a confined spacemay take away from the imagination rather than ignite it. But as Thoreau pointsout, sitting in his doorway, staring out at all of the inhabitants and land,that he has no feelings of imaginative solitude since there was enough pasture(land) ?for my imagination?. This is a very important point even though itonly consists of one short sentence. Thoreau is reminding us that ourimagination lies within us and that no matter what circumstances we are in, itis there and always accessible. So does this mean that our imagination is thelost treasure? ?I wanted to live deep and suck out all the marrow of life, tolive so sturdily and Spartan-like as to put to rout all that was not life, tocut a broad swath and shave close, to drive life into a corner, and reduce it toits lowest terms, and, if it proved to be mean, why then to get the whole andgenuine meanness of it, and publish its meanness to the world; or if it weresublime, to know it by experience, and be able to give a true account of it inmy next excursion? (Thoreau 394-5). This is one of the most famous passagesfrom Walden. These lines have been read by millions of people since they werepublished and have shaped many lives into personal happiness. This is another?burrowing? perspective but this time the burrowing is done inside of ourown lives with the imagery of using our own bodies. Thoreau gives us his thesisstatement of why he moved to Walden and what he hoped to find. ?Cutting? ourimages and lives down to the core, reaching the depths of ones soul, startingover again with just the essentials of the mind is how he will find this losttreasure that so many of us have lost. These passages remind me of a warriorsspeech before going to battle (like a Spartan!) in the epic tales, or like thequests for the Holy Grail, stating that if he does not find the meaning of lifeso obviously then he will continue his search relentlessly making this his humangoal. In my opinion, this man really lived with wonderful awareness, takingevery hour of being as a gift and savoring everything that life, not society,had to offer. Thoreau saw with transparent eyes into the lowest depths of worldand then up to the highest zeniths of creation to find what most people neverwill.BibliographyThoreau, H. D. A Week On The Concord and Merrimack Rivers, Walden, The MaineWoods, Cape Cod. Lib. Of America. New York, 1985.