Symbolism In The Drummer Boy Of Shiloh By Ray Bradbury

To begin with, the mass bloodshed that occurred during the major, long-drawn conflict of 1861 to 1865 was called the Civil War. The stakes were dangerously raised as a casualty count climbed toward roughly 1,264,000 deaths and other similar ailments. Although, a number of books and historical fiction are based on the Civil War; the short story that we are particularly focusing on is â€Å"The Drummer Boy of Shiloh.† In this piece of literature beautifully written by the author, Ray Bradbury, we experience Bradbury’s story based on a 14-year old, dejected drummer boy, Joby, who doubts that he has a crucial role in the army. Throughout the short story, a various amount of symbols stick out like a sore thumb and ultimately enhance the story’s†¦show more content†¦Moreover, the next example of symbolism is the muted thunder that occurs when the peach blossoms beat against the drum. This important event occurs once Joby has changed his pitiful views based on himself, so inferences can be made to say that the muted thunder represents a new dawn and tranquility. Cited from the story on line 199-200, â€Å"He lay next to it, his arm around it, feeling the tremor, the touch, the muted thunder as†¦Ã¢â‚¬ , we can draw inferences that Joby has turned over a new leaf in terms of his emotional and mental state. Likewise, another object that holds relevance in this particular novel is the peach blossoms that appear throughout the story as repeated symbolism or a motif. This means that the object or relevant detail is repeated in a pattern of meaning to convey an emotion, idea, or element. The peach blossoms not only appear at the beginning of the short story where they fall before the two-day battle that began on April 6, 1862, near the southwestern Tennessee church from which the bloody clash takes its name, but also near the end to signify the new feelings and emotions that Joby experiences. In other words, the peach blossoms, in this case, corresponds with the idea of serenity and peace of mind because as seen on line 1-2, â€Å"In the April night, more than once,

Harriet Beecher Stowe and the Civil War - 862 Words

Abraham Lincoln once told Harriet Beecher Stowe,†So you’re the little lady who wrote the book that made this great war†(Hillstrom and Baker 431). Harriet Beecher Stowe, in a way, did start the Civil War, one of the bloodiest battles in American history. She tried her hardest to abolish slavery and never gave up on the slaves no matter what obstacles there were along the road. Stowe wrote Uncle Tom’s Cabin, helped release slaves during the Civil War, and also worked to abolish slavery in her life. Harriet Beecher was always a good writer, even when she was young. When she was young, she won an essay contest. Besides winning essay contests, she also wrote an essay for her high school graduation. In the future, writing would be her life.†¦show more content†¦Uncle Tom’s Cabin was so popular that it was translated into more than 60 languages(Harriet Beecher Stowe). Because of the book, it caused Northerners to accuse the Southerners of treating s laves badly. In turn, the Southerners accused Stowe of exaggerating how they treated their slaves and said that Stowe didn’t know that much about slaves and just made up some of the things in the book. Stowe responded to this by writing a book called Key to Uncle Tom’s Cabin. This book lists all resources she used to help write her book Uncle Tom’s Cabin(Randolph 67). However, the book caused the Northerners to not cooperate with the Fugitive Slave Act, therefore picking up an argument with the South. The argument caused the Civil War(Hillstrom 431). Harriet Beecher Stowe not only tried to abolish slavery before the Civil War by writing Uncle Tom’s Cabin, but also helped during the Civil War by help convincing President Abraham Lincoln to sign the Emancipation Proclamation(Haugen 82).When the Civil War started from the attack on Fort Sumter, Abraham Lincoln wanted to defeat the South as quickly as he could. Stowe had criticized Lincoln for not freeing th e slaves since Lincoln didn’t include as part of his plan in defeating the rebels. She had a meeting with Lincoln in the White House. Stowe wanted to convince Lincoln to sign the Emancipation Proclamation, which released slaves in the South from the seceded states. Lincoln had signed theShow MoreRelatedThe Civil War, By Harriet Beecher Stowe2254 Words   |  10 PagesToutant-Beauregard better than that? It could be said that Beauregard, with his quick wit and tremendous skill, was destined to play a vital role in the Civil War. Decades of tension and rivalry between the North and the South led to the five year â€Å"war between the states,† more commonly known as the Civil War. No one knows for certain what the true cause for war was; some people claim it was slavery; some people insist it was state’s rights. The main issues included the South’s dwindling political powerRead MoreThe American Civil War By Harriet Beecher Stowe1193 Words   |  5 PagesThe American Civil War Following the victory against Mexico, the U.S had gained a vast amount of land in the southwest. However conflict arose again when the debate on whether these new lands should allow slavery or not became a matter in question. This caused trouble between the northern states and southern states leaving the nation divided. One factor that led to the Civil War was that the North was so different from the South. In 1860, the North’s population was largely white, only two percentRead MoreThe Civil War Was By Harriet Beecher Stowe1953 Words   |  8 PagesThe Civil War was caused by a compilation of many significant events. One reason was the Abolitionist Movement. This was the movement to help end slavery in the South. While many Northerners were against slavery, most white Southerners were proponents of slavery, and even went as far as to use the Bible to try and justify the act. Among the advocates of the Abolitionist Movement were John Brown, who decided to protest with violence, Harriet Beecher Stowe, who elected to protest peaceably throughRead MoreHarriet Beecher Stowe s Family897 Words   |  4 PagesHarriet Beecher Stowe was born on June 14, 1811 in a town in Connecticut called Litchfield. Her parents were Reverend Lyman Beecher and Roxanna Foote Beecher, who wanted their children t o influence the world in some way. Harriet Beecher Stowe’s family based their philosophies on social justice. Some of the Beecher’s children were ministers, teachers in education for women, the youngest daughter was founder of the National Women’s Suffrage Association, and Harriet was the writer of the family (HarrietRead MoreSummary Of Harriet Beecher Stowe s Uncle Tom s Cabin 1124 Words   |  5 Pages FINAL PAPER: Harriet Beecher Stowe Bertha Hernandez History 1301: United States History Dr. Jahue Anderson July 2, 2017 Slavery will always be one of the most inhuman acts of today’s history. African American men and women had no way of life, being taken from their social and cultural lives. Food was scarce for slaves and they were lucky to grab a bite to eat. On the route to the America’s from the west coast of Africa, many of them died from starvation, disease, lack of space andRead MoreUncle Tom s Cabin By Harriet Beecher Stowe1008 Words   |  5 Pagesmade, protests held, but what no one was expecting was a short white lady by the name of Harriet Beecher Stowe to make the change that no one had yet achieved. In times of disagreement and discrimination, people search for ways to make change. Harriet Beecher Stowe did so through a work of literature known to many as Uncle Tom’s Cabin. Uncle Tom’s Cabin focused on the horrors of slavery in the 1800’s. Stowe believed that slavery was a horrible sin against God and decided to write the book in hopesRead MoreHarriet Beecher Stowe : An Abolitionist1645 Words   |  7 PagesHarriet Beecher Stowe Elisabeth is most famous for being an abolitionist toward slavery. Harriet was born in Litchfield, Connecticut, on June 14, 1811. He was the seventh of 13 children. Stowe was born religious leader Lyman Beecher and his wife Roxana, an extremely religious woman who died when Harriet was just five years old. Brothers Harriet s include a sister, Catharine Beecher, was an educator and author, as well as brothers who became ministers whose names are Charles Beecher, Edward BeecherRead MoreTerm Paper1494 Words   |  6 Pagesbecause Ma tthiessen did not appreciate women writers of the nineteenth century does not mean that others have to follow in his footsteps; which is why this is an appreciation essay to two nineteenth century female writers: Catherine Sedgwick and Harriet Beecher Stowe. Catharine Maria Sedgwick was born December 28, 1789 in Stockbridge, Massachusetts. In childhood, Sedgwick was cared for by a former slave and as a young woman, Sedgwick attended a private school where girls are prepared for entry into fashionableRead MoreHarriet Beecher Stowe: The Eyes Behind Slavery1640 Words   |  7 PagesHarriet Beecher Stowe: The Eyes Behind Slavery Harriet Beecher Stowe became one of the most famous writers, reformers, and abolitionist women of the 1800s in large part due to her most effective selling fictional book, Uncle Toms Cabin. The image of brutal whippings, rape, and the splitting of families broke down the hearts of people in the eighteenth century. Her writing influenced thousands to become a great phenomenon, take a stand, and change the world. Harriet Beecher Stowe lived much ofRead MoreEssay Uncle Toms Cabin as written by Harriet Beecher Stowe911 Words   |  4 PagesUncle Toms Cabin as written by Harriet Beecher Stowe The novel Uncle Tom’s Cabin as written by Harriet Beecher Stowe and published in the United States in 1852. The novel depicted slavery as a moral evil and was the cause of much controversy at the time long after. Uncle Tom’s Cabin had impact on various groups publics. It caused outrage in the South and received praise in the North. It is in opinions and historical movements that the impact of this novel can be justified and shows how

How Is Curley Presented by Steinbeck in of Mice and Men Free Essays

Curley is one of ‘Of Mice and Men’s’ major characters. Although he does not appear to hold a central role, he is very important in other respects. The first of these is the way in which he treats George and Lennie, and the ranch workers in general on the ranch. We will write a custom essay sample on How Is Curley Presented by Steinbeck in of Mice and Men or any similar topic only for you Order Now Curley is the boss’ son. Therefore he acts like he is the boss himself. He orders the others around, and, although it is true that he does hold some power on the ranch, he does not hold any respect from the workers. He is nasty towards them, treating as though they are them below him, and often trying to pick fights. Curley is disliked by pretty much everyone on the ranch, and with good reason. George immediately dislikes his hostility, and shows the same attitude in return. He himself says â€Å"I hate that kind of a guy† as soon as he has and warns Lennie to â€Å"have nothing to do with him†. Even Curley’s own wife dislikes him, sarcastically saying â€Å"swell guy, ain’t he† when told to talk to him by Candy. Furthermore, Candy, although not directly airing his dislike mentions the he is â€Å"handy. God damn handy. † The way in which Candy says this hints towards his dislike for Candy being on account of his aggressive nature and hostility, rather than simply being due to his nastiness. His desire to fight with people all the time shows two things. Firstly, it shows inferiority complex: Curley is short, and therefore is constantly trying to be better than â€Å"big guys†. Secondly, it shows his aggression. Curley holds a fighting stance when he first encounters George and Lennie: â€Å"his arms gradually bent at the elbows and his hands closed into fists. He stiffened and went into a slight crouch. † According to Candy, Curley is an amateur boxer and is always picking fights, especially with guys who are bigger than he is. Ultimately, Curley is trying to prove his masculinity. Another way in which Curley can be seen as trying to prove himself is by marrying a physically attractive woman. His wife is never given a name, but by calling her â€Å"Curley’s wife,† Steinbeck indicates she is his possession. Curley refuses to let her talk to anyone on the ranch, isolating her from everyone and setting the stage for trouble. This trouble happens in Section 3, where he accuses Slim of being with his wife and is completely wrong. He is ganged up on by the ranch workers, and picks on Lennie in order to vent his anger at being picked on. This turns out to be a mistake. Lennie quickly crushes his hand, and Curley has to be taken to the hospital. Luckily for George and Lennie, Slim comes to there aid, telling Curley â€Å"your hand got caught in a machine†. He makes a big show of keeping his hand soft to caress her, yet also visits the local whorehouse on Saturday night. While he may strut around the ranch because of his position as the boss’ son, he obviously cannot satisfy his wife and is mean, or perhaps simply detached from her. Curley beats up any man who dares to talk to her, but ironically, he rarely talks to her himself, and they spend the majority of the book looking for each other. When Curley’s wife dies, Curley, rather than showing the reaction that would be expected of a man whose wife has just been killed. He does not appear to grieve at all in any way, barely looking at the body, or regarding the her death into his immediate future plans. Instead, his first thought is towards seeking revenge and hunting down Lennie. It is perhaps this moment in the novel which epitomises the way in which Curley is aggressive, nasty, and shows no concern for anyone else apart from himself. All of this seems to be negative however. Surely Steinbeck didn’t present Curley in a poor light? Well, there may some positive aspects to Curley, or perhaps those which are not entirely bad. Firstly, he does appear to show some care for his wife. He is constantly looking for her, and appears to try and protect her. Although she is more of a possession to him than a person, he is clearly proud of her, but perhaps for the wrong reasons. Also, Curley is a good worker. He is one of the best on the ranch, having grown up there, and this shows in his care for his work. Unlike most of the other characters, Curley doesn’t develop much over the course of the book, but he stands out as a character with whom Steinbeck does not sympathise. Whilst everyone else is struggling, Curley’s busy picking fights and trying to throw his weight around on his dad’s ranch. He seems to be outside of the economic struggle and even the personal struggle of the Depression. Curley’s the kind of person that is needed in contrast to the mild peacefulness of the other characters. Also, someone is needed to be the source of trouble among the men of the ranch who mostly want to get along. In conclusion, if Steinbeck wrote ‘Of Mice and Men’ as being a microcosm of American society, then Curley represents one clear type of person. This is all the men in the country at the time who are petty and embittered, who wish to appear better than all of the others. He acts as a sort of control variable, whose actions and reactions can almost always be predicted, because he is such a simple shallow person. How to cite How Is Curley Presented by Steinbeck in of Mice and Men, Papers

Initiative Of Disclosure Undertaken By IFRS †MyAssignmenthelp.com

Question: Discuss about the Initiative Of Disclosure Undertaken By IFRS. Answer: Memorandum TO: All the Employees of Cruz Accounting Ltd. FROM: XYZ CC: Senior Accounts Manager DATE: 22 September, 2017 SUBJECT: Issues with respect to initiative of disclosure undertaken by IFRS The International Financial Reporting Standards (IFRS) can be regarded as the guidelines, which are set for ensuring transparency in the style of financial reporting at the global level. These standards are infact set by theInternational Accounting Standards Board (IASB) (Rouse, 2017). During the year 2017, IASB was observed to pass disclosure initiative- principles (DP), so that it would be possible to improve the communication between the users of financial report and the ones who have prepared it. Precisely, the disclosure initiative provided better information regarding the financial performance to the users. IASB has focused on the agenda of enhancing the reporting standards for the period 2017 to 2021. The IASB proposes an inappropriate way of preparing financial statements that can lead to errors with respect to making investment decisions, as the investors may not be able to trace performance of a business. Moreover, the board propounded that adding irrelevant information in the final accounts involves loss of time and extra costs pertaining to the preparation of financial statements. Even, if relevant information is provided in the financial statements, improper presentation can make it difficult for the stakeholders to correctly interpret the performance of the business firms (EY, p. 1-2). In paragraph 6.16 of the disclosure initiative, it is mentioned that the primary intention of this particular initiative is to enable the organizations to get adequate insights about the aspects that have to be disclosed in the financial statements. For example, IFRS makes it necessary to mention regarding the changes in financial items that have included in the report (IFRS, 2017, p. 62). The disclosure policies of the IFRS state that disclosures enable the investors to have a better understanding about the style of financial reporting standards. There is no such need for disclosing financial information that is useless to the stakeholders. The entities must focus on explaining, whether a property has been measured at cost of acquiring or at the market price (IFRS, 2017, p. 60-67). It can therefore be stated that mitigation of disclosure issues will enable the stakeholders to make comparison of the financial statements of a particular period with others. On the contrary, it can further be stated that readability is critical pertaining to paragraph 6.22. This is because excessive sections and subsections have been used for describing the disclosure principles. In part, b and c of the paragraph 6.16, mentions about category 1, 2 and 3, which makes it necessary for the readers to focus on the previous paragraphs. These complexities could have been avoided by directly men tioning about the categories in paragraph 6.16 (Deloitte Global Services Limited, 2017; IFRS, 2017, p.64-66). Paragraph 6.22, additionally mentions that entities have to decide regarding the place, where disclosure of theaccounting policies will be conducted. The policies can be disclosed either in the footnotes of the financial reports or at the beginning. More precisely, the disclosure policies states that all the disclosure onaccounting policies can be given on a single note in a comprehensive manner. It enables to trace the items that have been given due importance while preparing of the financial statements. Another choice that is present before the entities is to give information on accounting policies separately pertaining to separate heads. For example, at the place where depreciation has been calculated, a note can be given on the method used for evaluating the same (IFRS, 2017, p.64-66). Finally, the entities can provide a complete separate note, which will focus on mentioning the accounting policies that have been used for the preparation of the financial statements. Thus, it can be stated that the disclosure initiatives have provided wide range of guidelines to the business entities, so that they can flexibly prepare the financial statements by disclosing accounting policies in the most convenient (IFRS, 2017, p.64-66). However, the statement but disclose the rest in the same notes as the information to which they relate is not well comprehensible. This is due to the fact that it is not possible to trace, whether it implies towards the need of disclosing information under a single note or under each specific items along with the foot note. Hence, it can be stated that the paragraphs 6.16 and 6.22 can be better understood with the support of higher level accountants as compared to those who work at the lower hierarchy. The above mentioned developments of accounting disclosures are done as per the norms laid down by the Australian Accounting Standards Board (AASB). It is observed that the disclosures requirements are set by AASB are similar to the provisions mentioned in the paragraph 6.16 of the disclosure initiative pertaining to IFRS. For example, AASB makes it mandatory to mention about the basis of measurement that has been used while calculating investments. It can be done on historical basis or at the fair value that prevails in the market. In case, if more than one method is used, then it is necessary to mention about them. The AASB also states that the final decision regarding the policies of accounting lies with the management. Additionally, the standards of IFRS provide a scope of disclosures pertaining to the accounting policies that can be presented. For example, in paragraphs 6.22, it is clearly mentioned that the information relating to accounting policies can be given on a single not e, under separate heads or completely a new report can be attached with the financial reports that states about the accounting methods (AASB, 2015, p. 24; IFRS, 2017, p.64-66). Pertaining to small business entities, it can further be stated that providing information on accounting methods is feasible within a single note. Medium scale organisations can mention the specific accounting policies under a separate head. On the other hand, large organisations that have several subsidiaries or operate in multiple nations having a wide range of products must disclose all the information on a separate note under specific headings. This will enable the investors and other stakeholders to easily know about the policies that are used for the preparation of financial statements. Pertaining to Cruz Accounting Ltd., it can be inferred that the disclosure initiatives of 2017 will enable in preparing financial statements more precisely for the clients. This is because customized notes can be given on the financial statements pertaining to the policies of accounting methods. As a result, the end users will be able to get sufficient information from the financial statements. Thereby, the clients will place repeated orders with Cruz Accounting Ltd. for preparation of financial statements, which can lead to rise in revenue earnings. On the contrary, more time and cost will be involved in the preparation of the financial statements, which can be set-off by increasing revenues (IFRS, n.d.; Deloitte Global Services Limited, 2017a). Letter To, The Senior Accounts Manager Alex Chemicals Pvt. Ltd, Australia, Date-22 September, 2017 Subject: Use of IFRS 2017 Dear Sir, It is hereby informed that on March, 2017 IFRS has passed a Disclosure InitiativePrinciples of Disclosure, which mentions about the changes regarding certain criteria of disclosures in the financial statements. These standards are duly important for the business entities, as it will enable them to improve the mode of communication with the stakeholders. The same benefits are applicable for Alex Chemicals Pvt. Ltd, so that it is possible to disclose the vital information in the financial statements. Alex Holdings Pvt. Ltd. will enable to obtain information that is to be included in the financial statements. For example, being a chemical manufacturing organisation, it is important to mention about the depreciation of machines in the financial statements. This will help the investors to easily understand regarding the methods used for calculating depreciation and its impact on the level of profit and return on shareholders wealth. It will boost up confidence of the investors and provoke them to purchase more shares (IFRS, 2017a). The board committee of Alex Chemicals Pvt. Ltd have wide range of options available pertaining to the disclosure mechanisms. Previously, the AASB only stated about the need of mentioning changes in the accounting policies that are brought about in an organisation along with the present ones that are being followed. On the contrary, on March 2017, the initiative that has been taken by IFRS, specifically mentions about the three types of options that can be followed during financial reporting. In case of quarterly annual reports, Alex Chemicals Pvt. Ltd can use single note mechanism for reporting the accounting procedures. This is because quarterly reports contain information only on three month time period, and so it is rational to mention regarding the accounting procedures at one place. In case of an annual report, the same can be provided on a separate attachment, as numerous policies are used for pertaining each of the items that are present on the financial statements (AASB, 2015, p. 24; IFRS Foundation, 2017, p. 4). The chemical industry and other sectors in Australia are observed to adhere to the policies that are initiated by IFRS. It is thus logical for Alex Chemicals Pvt. Ltd to easily adapt the standards of disclosure that have been prescribed in the disclosure Acts of IFRS in 2017. Hence, it is advisable to proactively adopt the standards while preparing the financial statements, as it will enable to get accustomed to the disclosure initiatives. It is possible that after a few years, AASB will make it necessary to adopt accounting policies and disclosure requirements that are given by IFRS on March 2017. Already, AASB has made certain regulations that make it necessary to adapt the IFRS standards (Australian Prudential Regulation Authority, 2005, pp. 2-3). Finally, it is to remind again that Alex Chemicals Pvt. Ltd must start adhering to the standards of disclosure that has been passed by IFRS in 2017. Yours sincerely XYZ Accounts Manager Cruz Accounting Ltd References AASB 2015, Presentation of financial statements File, pp. 1-31. Australian Prudential Regulation Authority 2005. Adoption of international financial reporting standards Lifs, pp. 1-19. Deloitte Global Services Limited 2017, IAS 1 presentation of financial statements, EN, viewed 22 September 2017, https://www.iasplus.com/en/standards/ias/ias1. Deloitte Global Services Limited 2017a, Background, EN, viewed 22 September 2017, https://www.iasplus.com/en/news/2017/03/dp-pod. EY 2017, Disclosure initiative principles of disclosure, Publications, pp. 1-4. IFRS 2017, Disclosure initiativeprinciples of disclosure, Media, pp. 1-110. IFRS 2017a, Snapshot: disclosure initiativeprinciples of disclosure File, pp. 1-16. IFRS Foundation 2017, Disclosure initiative principles of disclosure File, pp. 1-113. IFRS, No Date, Principles of disclosure. Work, viewed 22 September 2017, https://www.ifrs.org/projects/work-plan/principles-of-disclosure/ Rouse, M 2017, Definition IFRS (international financial reporting standards), Techtarget, viewed 22 September 2017, https://whatis.techtarget.com/definition/IFRS-International-Financial-Reporting-Standards. EFRAG 2016, Disclosure initiative - principles of disclosure Activities, viewed 22 September 2017, https://www.efrag.org/Activities/322/Disclosure-Initiative---Principles-of-Disclosure. PwC 2016, IFRS disclosure Assets, pp. 1-236. Robinson K 2016, Disclosure initiative An overview XBRL Europe, Luxembourg, pp. 1-17. XBRL 2017, Webinar about disclosure initiative from the IFRS foundation News, viewed 22 September 2017, https://www.xbrl.org/news/webinar-about-disclosure-initiative-from-the-ifrs-foundation/.

George Orwell and Animal Farm A Critical Analysis

Accounting for Uncollectible Accounts Essays

Accounting for Uncollectible Accounts Essays Accounting for Uncollectible Accounts Essay Accounting for Uncollectible Accounts Essay For the exclusive use of X. LIU CASE: A-165 DATE: 09/00 (REVD. 05/07) SEARS: ACCOUNTING FOR UNCOLLECTIBLE ACCOUNTS Sarah Simons picked up the 1999 Annual Report for Sears, Roebuck and Co. , which had Just been delivered to her office. As an analyst for a major brokerage, she was responsible for providing investment advice regarding companies in the retail industry, including Sears. She looked over the income statement, noting that net income grew by 39 percent over the previous year, despite a slight decrease in revenues (see Exhibit 1). Before long, however, she turned her attention to the Companys credit card receivables and allowance for uncollectible accounts (see Exhibit 2). In recent years, Sears had suffered heavy write-offs from uncollectible credit card accounts, as well as an expensive scandal caused by illegal collections procedures. These problems had depressed Sears stock price substantially from its peak in mid-1998. Had Sears overcome their credit card problems? BACKGROUND Sears, Roebuck and Co. as founded in 1886 as a retail mail-order business and grew rapidly by providing a wide range of products to people in rural areas who did not have access to large, well-stocked stores. The Company began to diversify into financial services in 1931, when it established Allstate Insurance Company. This diversification continued in the 1980s, as it acquired Dean Witter Reynolds and Coldwell Banker, and launched the Discover card. By 1990, however, Sears was struggling and the investment community was critical of its business strategy, which was derisively characterized as socks and stocks. Shareholder discontent drove the Company to a massive restructuring to refocus on its retailing roots. According to former CEO Edward Brennan, 1992 was a disastrous year in which the Company lost 3. 9 billion, of which $3. 1 billion was a charge related to the restructuring. By 1995, Sears had divested its financial services businesses and largely restructured its merchandising operations. The transformation of Sears was largely credited to Arthur Martinez, the former chairman of Saks Fifth Avenue, who Joined the Company in 1992 as head of the merchandising group. His actions were swift and decisive. He immediately closed the unprofitable Sears Catalog, shut 113 Research Associate David Hoyt prepared this case under the supervision of Professor Karen K. Nelson as the basis for class iscussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright 2000 by the Board of Trustees of the Leland Stanford Junior University. All rights reserved. To order copies or request permission to reproduce materials, email the Case Writing Office at: [emailprotected] tanford. edu or write: Case Writing Office, Graduate School of Business, Stanford University, Stanford, CA 94305-5015. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any torm or by any means lectronic, mechanical, photocopying, recording, or otherwise without the permission of the Stanford Graduate School of Business. This document is authorized for use only by XUEYONG LIU i n Financial Accounting taught by Yonca Ertimur from August 2013 to October 2013. Sears, Roebuck and Co. A-165 unprofitable stores, cut 50,000 Jobs, and launched a five year, $4 billion capital investment program to renovate and update the stores. In 1993, he initiated an intensive marketing campaign, Come See the Softer Side of Sears, which was a hugely successful move to call attention to changes in the apparel division and ttract women to the stores. Sears made a remarkable turnaround. From its massive 1992 loss, it recovered to post net income of $1. 8 billion in 1995. Martinez was named Sears CEO in 1995 and was also recognized as Financial Worlds CEO of the year. The stock price responded accordingly, increasing more than seven-fold from 1991 to mid-1997. 1 By the late 1990s, however, problems had surfaced and the financial press had become critical. They questioned whether some components of the Martinez turnaround had backfired, most notably his strategy related to the Sears proprietary credit card, the sears card. THE SEARS CARD AND CREDIT CARD RECEIVABLES Prior to 1993, the only charge card that Sears accepted was the Sears Card. In order to attract new customers and prop up sagging store sales, Sears began accepting other major charge cards in 1993. While this helped improve sales, Sears lost the opportunity to collect interest on purchases made with other cards. To avoid a drop in profits from its own credit operations, Sears aggressively marketed the Sears Card, mailing out pre-approved card offers, hawking the card at tables positioned at store entrances and paying incentives to sales clerks for opening new accounts. Between 1993 and 1996, Sears issued 24 million new credit card accounts. In his Letter to Shareholders in the 1996 Annual Report, Martinez commented on the importance of the credit card program, stating that the Sears Card is one of the most important ways we form an alliance with our 50 million customer households. The availability of credit is critical to the ability of moderate-income families to finance the purchases they require. Despite rising delinquencies in the industry, we have a very strong and profitable credit portfolio. However, the new Sears Card users were not necessarily he best credit risks. Sears marketing of their credit card tended to attract customers that had trouble paying their bills. Those that could get cheaper credit elsewhere used bank cards with low teaser rates and incentives. These factors, combined with an increase in delinquencies and average balances, were cause for concern (see Exhibit 3). By late 1997, the average Sears Card balance was more than three times that carried by J. C. Penny Co. cardholders and delinquencies exceeded the industry average by two percentage points. Sears drive to issue more cards, and the lax credit policies that were needed to ncrease cardholders at such a rapid rate, eventually caught up with them. Uncollectible receivables and charge-offs started rising in 1995. The Company responded by increasing the interest rate toa hefty 21 percent while at the same time lowering the minimum required monthly payment. This let cardholders continue to ring up purchases on their Sears Cards and also increased interest revenue on outstanding credit balances. To offset the impact of delinquencies, Sears raised late fees and other charges. However the quality of their credit card receivables was still questionable, as by 1997 Sears was a creditor in about one-third f U. S. personal bankruptcies. This case was prepared using public documents, including Sears Annual Reports and a variety of news accounts, including: Debra Sparks, Arthur Martinez: Financial Worlds CEO of the Year, Financial World, March 25, 1996; John McCormick, The Sorry Side of Sears, Newsweek, February 22, 1999; Joseph Cahill, The Softer Side: Searss Credit Business May Have Helped Hide Larger Retailing Woes, Wall Street Journal, July 6, 1999. Neither Sears nor any current or former employee participated document is authorized for use only by XUEYONG LIU in Financial Accounting taught y Yonca Ertimur from This in preparing this case. The problems went further, however. In January 1997, it was discovered that Sears had illegally coerced payments from cardholders who had sought bankruptcy protection. This resulted in a criminal conviction as well as restitution payments to 187,000 customers. In the end, the scandal cost Sears $475 million in fines, refunds, interest, and legal fees, which the Company charged against income in 1997. ACCOUNTING FOR UNCOLLECTIBLE ACCOUNTS Generally Accepted Accounting Principles (GAAP) require that accounts receivable be ecognized in the balance sheet at net realizable value†that is, at the amount the company can reasonably expect to collect from its credit customers. Moreover, Statement of Financial Accounting Standards No. 5 (SEAS 5) requires that an estimated loss from a contingency, such as uncollectible receivables, be accrued by a charge to income if two conditions are met: (1) it is probable that a loss has been incurred; and (2) the amount of the loss can be reasonably estimated. According to their Annual Reports, Sears reported credit card receivables net of an allowance for uncollectible accounts. The allowance was based on impaired accounts, historical charge-off patterns, and management Judgments. Until late 1998, uncollectible accounts were generally charged off automatically when the customers past due balance was eight times the scheduled minimum monthly payment, except that accounts could be charged off sooner in the event of customer bankruptcy. In 1998, Sears began phasing in a new system in which accounts were charged off automatically when the customer fails to make a required payment in each of the eight billing cycles following a missed payment. In the fourth quarter of 1998, 12 ercent of accounts were converted to this system, with the balance being converted in the first and second quarters of 1999. This new system was intended to help Sears better manage its collection efforts by identifying delinquent accounts earlier and enabling better c ontrol of uncollectible expenses. It also had the affect of charging off balances earlier than under the previous system. ARE THE PROBLEMS IN THE PAST? As she read the Letter to Shareholders in the 1999 Annual Report, Sarah noticed Martinezs comments regarding credit: In our credit business, we worked tirelessly to trengthen our portfolio quality, reduce our losses, and improve our collection processes. Sarah knew that the credit business was important to the overall performance of Sears (see Exhibit 4) and that the Companys stock price had been affected by credit-related issues (see Exhibit 5). Had Sears truly put its problems behind it? Was the allowance for uncollectible accounts adequate? What should she say to the investment community? EXHIBITS Consolidated Financial Statements Analysis of Allowance for Uncollectible Accounts Key Credit Portfolio Information Summary Segment Data Stock Performance This document is authorized for use only by XUEYONG LIU in Financial Accounting taught by Yonca Ertimur from August 2013 to October 2013. Exhibit 1 Income Statement (in millions) 1995 1996 1998 1999 Revenues Merchandise sales and services Credit revenues Total revenues Expenses Cost of sales, buying and occupancy Selling and administrative Provision for uncollectible accounts Other Total costs and expenses Operating income Other income, net Income tax provision Net Income $31 ,133 $33,752 $36,649 $36,957 $36,728 3,702 4,313 4,925 4,618 4,343 34835 38,064 41 ,574 41 ,575 41 ,071 23,160 7,428 589 1,953 33,130 1,705 703 1,801 24889 8,059 971 2,062 35,981 2083 834 $1,271 26,985 8,394 1,532 2,669 39,580 1 ,994 106 912 $1,188 27,444 27,212 8,384 8,418 1 ,287 871 2605 2,157 39,720 38,658 1 ,855 2413 (41) (56) 766 $1,048 $1,453 1997 Balance Sheet (in millions) Assets Cash and cash equivalents $ 606 $ 660 Credit card receivables Allowance for uncollectible accounts (819) (801) Net credit card receivables 20,106 1903 Other current assets 5,729 8,484 Property and equipment, net Other assets Total Assets $ 358 20,956 (1,113) 19,84 3 10,042 495 $ 729 18,946 18,793 (974) (760) 17,972 18,033 10804 9,905 5,077 5878 6,414 6,380 6,450 1,612 1 ,842 043 2,024 1,837 $33,130 $36,167 $38,700 $37,675 $36,954 Liabilities Current liabilities Long-term liabilities Total liabilities Shareholders equity $14,607 $14,950 $15,790 $14,222 $13,701 14,138 16,272 17,048 17,387 16,414 28,745 31 ,222 32,838 31 ,609 30,1 1 5 4,385 4,945 5,862 6,066 6839 Total Liabilities and Equity Source: Sears, Roebuck and Co. s Annual Reports. Exhibit 2 Allowance, beginning of year Net credit losses Allowance, end of year $ 808 578 $ 819 989 $ 801 1 ,220 $1,113 1 ,426 $ 974 $974 1,085 $ 760 Source: Sears, Roebuck Co. s Annual Reports. Exhibit 3 56. 6% 4. % 5. 8% 55. 1% 2. 3% 51 1. 1% 47. % 1. 8% Sears Card sales as a % ot sales Comparable store sales growth (%) Merrill Lynch Broadline Retailers Index of comparable store sales growth (%) 2. 0% 3. 8% 5. 2% Average account balance ($) $ 914 $977 $1,058 $1,076 $1,121 Delinquency rates (%) 4. 16% 5. 40% 7. 00% 6. 82% 7. 58% Net credit charge-offs to average credit card receivables 2. 77% 5. 02% 6. 23% 7. 54% 6. 03% Sources: Sears, Roebuck and Co. s Annual Reports; Merrill Lynch Broadline Retailers Index for 1999 from Merrill Lynch Industry Report Retailing-Broadlines, January 6, 2000. Exhibit 4 Operating Income Retail Services Credit International

Business Environment Essay Example | Topics and Well Written Essays - 1500 words - 2

Business Environment - Essay Example This paper approves that the PMT brand of organic products is also part of a monopolistically competitive industry, but a recent visit to their business advisor informed them that the Price Elasticity of Demand for their products is inelastic. But being in the monopolistically competitive industry, the stiff competition from rival businesses does not affect the profit margins of PMT. There is a niche market for the PMT products, which are unique in their own way and add to the variety of organic cosmetics, soaps and perfumes. People who buy such products will prefer to have variety, and so a good number of buyers will regularly come back to the PMT brand, though they test out other brands in the mean time. The factors that would affect this demand curve and hence the PED include the variety of substitutes available for buyers to try around, the proportion of income required for the item and degree of necessity or luxury. This essay makes a conclusion that disposable income is the amount of income a person or an organization has, after the taxes have been deducted from the total amount. It is being assumed that disposable incomes are going to fall in the next two years. With the decrease in the people’s income, the Income Elasticity Demand for the organic products would turn positive or high positive and the niche market catered to would reduce. The organic perfumes, soaps and cosmetics would thus, come under the category of luxury goods.But the fall in disposable income is not likely to affect the services offered by the salon, since people would still be catering to their basic needs. The income elasticity demand for the services is likely to fall between one and zero.