Medieval Company free essay sample

Medieval Adventures Company Questions: 1. ) Prepare monthly income statements, balance sheets, and cash budgets based on sales increases of 500 units per month and a 30-day advance production for January through September. When will the company need extra funds? How much will be needed? When can a short-term loan to cover the need be repaid? Please see the attached financial statements that follow. A projected analysis of the Cash Budget for Medieval Adventures yields a negative cash balance by April month-end. Assuming the company’s costs (expenses) are paid within the month incurred, additional funds are required within the month of April. Medieval projects a positive cash balance of $30,000 at March month-end. In April, the company Medieval Adventures – April Analysis: 571 Units Cash Balance, April 1, 20xx: $30,000 will incur a fixed â€Å"being in business† expense of Expenses: $10,000 and a variable cost of $35 per unit Being in Business Cost: (10,000) purchased. Therefore, additional funding would Cost of Producing 571 units: (19,985) need to be in place prior to the production of the 572 Balance: unit. We will write a custom essay sample on Medieval Company or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Further analysis of the Cash Budget indicates a continued cash balance decline to a maximum value of $40,000 at July month-end before trending upward. Not inclusive of taxes or incurred monthly finance charges, a short-term loan of $40,000 could be either be paid lump-sum at the end of October, or via three payments of $7,500, $17,500, and $15,000 in the months of August, September, and October respectively. See the example amended Cash Budgets below. Note: these amended budgets include assumed continued sales increases of 500 units for the months of October and November. per month in preparation for the upcoming month’s sales, he is producing units in excess of those being sold in the current month. Therefore there is a monthly increase in inventory non-cash item of $17,500 (500 units x $35) reducing his net cash flow. Additionally, Reinholz is incurring an increase in accounts receivable through delayed collection practices. This non-cash item stabilizes at $55,000 monthly beginning in March. Therefore, while profitable, Medieval Adventures cash flow from operating activities is negative each month through August resulting in a sub-zero bank balance in April; it is not until a net income in excess of $72,500 ($17,500 + $55,000) is achieved that the trend is reversed. This scenario could be avoided (or minimalized) through one of two measures. First, Reinholz could delay production, thereby deferring costs closer towards revenue receipt of the unit produced. Secondly, more aggressive collection efforts or buyer incentives such various sales/cash discounts could be used to lessen the affect of monthly increases in accounts receivable. 3. ) From your calculations and financial statements for Question 1, derive cash flow statements for the moths of March, May, and July from each month’s beginning and ending balance sheets and income statement. Compare these derived cash flow statements with the cash budgets prepared directly in Question 1. Please see the accompanying financial statements and Cash Flow Statement for the Months of March, May and July that follow. In comparison, the cash flow statements for each of the months in question indicate Cash at End of Month identical to the projection of the prepared budget.

Advertising to Emotions Essay Example

Advertising to Emotions Essay Example Advertising to Emotions Essay Advertising to Emotions Essay Advertising to Your Emotions When a message is transmitted through the media by way of advertising, it can provoke many emotions in the audience. Often times advertising can strike a cord with people and reach them through their insecurities and guilt in an effort to persuade them into buying something that they believe they need. An advertisement can very easily play on someones emotions to get him or her interested and hooked into their product before the person even realizes it. No advertisement is more effective than one that makes you feel something because of how emotion and Emory are tightly linked together. When we watch television, we are usually so caught up into the TV show or movie that we dont even realize how vulnerable our minds can be. Lets say youre watching your favorite movie and a commercial comes on; this commercial starts off with very sad, slow music and someone starts speaking in a soft, calm voice. Most of us would make the connection that its a commercial about the ASPIC needing donations to save unwanted animals and we immediately start to feel sad and guilty that we cant do anything about it. Id be willing to bet each animal lover that sees that commercial automatically think of their own pets and begin the What if Chain of thoughts. Guilt can be one of the most damaging and motivating emotions one could experience. If you had no intention in donating money to an organization like the ASPIC before, but all of a sudden decided to after watching a heart wrenching commercial, then they got you good. That right there is the key to bringing in their donations. Not to say donating isnt a wonderful thing to do, but playing on ones motions can almost guarantee more donations than not. According to an article written March 19, 2013 titled, The Truth About ASPIC, detonators bring in about 150 million dollars annually. Wicked there be nearly as much money if they didnt have those commercials to make everyone feel so sad? Who knows? The advertising we are confronted with on a daily basis tries to persuade us into believing that we need (or do not need) a particular product or service. Lets look at another example: This is an advertisement showing how much better life can be for your dog when e/she is in shape and healthy. The physical attributes of this advertisement is what makes it so appealing considering most dog owners want their dogs to be healthy. This ad however shows skinny dogs engaging in human-like sexual acts as the fat dog watches, which gives it a certain level of humor but still sadness. Yes, this ad is designed to be funny but its also designed for humans to remember how over weight people are Judged and play on the desires to lose weight. It plays on your emotions to automatically make you feel that your dog is fat and would be happier if e/she lost weight. Right then youre hooked, because then what you might do is try to find the product they are selling and be interested in buying it so that you dont Tell guilty Not only ten product Itself out perhaps a new lease Ana collar, let treats, and dog toys to get your dog more physically active. This type of advertisement could actually create a domino affect from one product to another. Advertisements that bring out the negative emotions sort of give consumers a deep connection with the ad and possibly even the product. However, creating these advertisements also risks creating negative associations with that brand. Some people who come across those sad commercials might Just turn the station or channel so they dont have to hear it or see it; then there is very little chance that advertising product or service will receive a profit. Its those consumers who automatically associate the advertisement with negative thoughts and actions that help the product or service decline in profit. So why do they go through the depressing steps of advertising? Simple, it works. According to an article on Scenically. Mom, When consumers are interested in an ad, they are better able to devote mental resources to thinking about it. Therefore advertising aimed at interested consumers can tap into more complicated emotions, such as bittersweet nostalgia, anxiety, and guilt. Advertisements with positive emotions and uplifting events, outcomes, or people will not always enhance persuasion more than ads with sad and downh earted emotions. For example, when it comes to funny advertisements, if too much of the ad is focused on humor, people ay not even notice who the advertiser is. To go into a little more detail, a company called Ace Matrix and their team looked at every national commercial from January 2011 to March 2012 to measure the effectiveness of humor in advertising. What they found was that funny commercials were more appealing but in actuality were not more effective in convincing viewers to buy their product. The attention and likeability was high; however, low information and relevance on many funny ads resulted in lower desire for the product than non-funny ads. Negative emotions at he start can grab the viewers attention and draw them in to the ad; then turning points can define memorable branding moments. By traumatizing a problem that your brand will solve, negative emotions will actually drive motivation. After writing this paper I was then curious enough to see if negative over positive emotions actually won over my memory and it did. Every commercial I remember from the past is sad in some form of way. The ASPIC/animal shelter commercials, children in 3rd world countries seeking donations, even the Saleslady commercial room last years super bowl came to mind. Then when I try to think of a funny commercial from the past, I really have to sit and think for a while; nothing immediately came to mind. When it comes to these certain advertisements I now realize I am exactly the demographic the companies shoot for. I love animals and those in need of homes in combination with sad music Just rips me to pieces. What is even more ironic is that I actually do donate to shelters in need. In that sense, I can see how advertisers using negative emotions can appeal to consumers to get them to buy their product.