Posted on

review article是什么?應該怎么寫?

review article怎么寫

review article,也就是評論文章,是對發生的某一個特定的事務進行評論的常用文體,我們常見的有評論員文章、重要評論或者短評等,當然還有文學評論、藝術評論等等,這里我們重點學習的是文學評論。對review article有這么一段解釋:

An article review is both a summary and an evaluation of another writer’s article. Teachers often assign article reviews to introduce students to the work of experts in the field. Experts also are often asked to review the work of other professionals. Understanding the main points and arguments of the article is essential for an accurate summation. Logical evaluation of the article’s main theme, supporting arguments, and implications for further research is an important element of a review. 文學評論是同學們常常遇到的一種寫作,旨在學生的批判性觀點,為大論文寫作的literature Review打基礎。那么寫好一篇review article要注意哪些方面呢?

評論文章時,評論的內容根據材料的內容自己決定,可能但不一定包括:論證在概念界定上是否清楚;論證方法是否正確;論據是否成立;論據是否足以支持結論;有無支持結論的更為有力的論據;推理有無錯誤或漏洞;論證的成立是否需要另外的條件;有無另外的解釋反對或削弱該論證,作何種修改可以使論證更為有力等。論文是議論文的一種文體,但評論文很容易被狹隘的寫作成駁論文。因此,評論文章需要有以下幾方面的特點:一是要有正確而鮮明的觀點(論點)。我們對某個特定事件發表議論,總要有個基本看法:是好還是壞?是基本上好的還有缺點,還是基本上不好但尚有某些可取之處?這個基本看法就是文章的中心論點,而這個論點必須是正確的、鮮明的。二是要有準確、充分而有說服力的論據。論據主要應從特定的材料、情節和來龍去脈中去找,從而引用足以說明自己論點的材料來作為論據。這些論據一定要準確可靠,不能想當然,更不可曲解,甚或斷章取義,攻其一點不及其余。三是要運用科學的符合邏輯推理的論證方法。是用歸納法,還是用演繹法,或者是類比法,應深思熟慮。而且,是寫成一篇立論的評論,還是一篇駁論的評論,也需要根據寫作目的和讀者需要出發來確定。四是要具有批評的當代意識,能按照社會規律和特性結合事件實際進行寫作。必須運用學過的理論知識、常識等,針對具體事件進行具體分析。否則,在文章中盡講外行話,或者提出不切實際的要求,這樣的評論肯定難以服人。

評論文特征就是對于具體材料或現象的評論,所以我們在思考時一定要圍繞材料本身來展開,切不可拋開所閱讀材料,另起爐灶,一般情況下,我們應從下面幾個角度來展開思考:(1)表態度,要明確你對這一事件的態度和看法,贊同或者不贊同;(2)說現象,由特殊到一般,聯想同類現象或事件,分析這一特殊事件的典型性與代表性;(3)探本質、論特征,透過現象看本質,探究其本質屬性;或分析其特征;?(4)看問題,思考這一問題或現背后存在或反映出的問題;(5)析原因,分析持此態度的原因,或產生或出現這一現象的原因等;(6)論影響、后果、危害,談這一事件可能產生的影響或導致后果,以及可能產生的危害;(7)談價值、意義,從正面或反面思考價值意義;(8)想辦法、提措施,針對問題,指出應該怎么辦。

此外評論文章需要以下幾個基本功要扎實:一是評論文章需要一定知識積累,也就是個人的文化素養要高。這點很重要,評論文章不是胡思亂想出來的,每天去關注你所喜歡的領域是必不可少的,有了大量發的文學積累你才有話題的評論,才能使你對某件事有自己的想法和看法。二是基本的結構是“總—分—總”,但是合理的構設文章還是需要一定的功底。這是通過的文字表達方式,寫一篇評論文章常用的思路和寫作文一樣,都是由(總—分—總)這樣的套路來寫作的。大體路子是,開篇的(總):引用或描述某一件 事。(分):對這件事進行拆分,用各種觀點,尤其是自己的觀點來進行描述、佐證。(總):也就是文章最后的總結,發表些個人總結等等。具體來講,一般常用的是五段式的評論結構。一般第一段是概述你評論的對象,以概敘的方式讓讀者了解事件的前因后果,接著發表你的基本觀點,作為中心論點。第二段至第四段結構基本一致,分論點、論據、分析論證,三部分,一步不能少。其基本模式為:分論點+論據+分析+總結。第五段:總結陳述。在這一部分我們要解決這么幾個問題,照應開頭,辯證看問題,提出解決問題的方法或方向。總括起來,也就是提出問題(中心論點)、分析問題(二至四段)、解決問題。或者叫“總分總結構”。這只是一個基本模式,具體有無窮的變化。三是要有自己的觀點,也可以理解為自己的見解獨特、深刻,不能人云亦云,堅持自己的原則立場。這一點很重要,可以說,有自己的見解和觀點是整篇評論文的靈魂,失去了這些也就沒有思想性,沒有什么品位的文章不值得被人去品讀。四是寫好評論文章要能夠透過現象看本質,也就是看問題是否透徹,角度是否獨到。看問題要看到實質,在此基礎上,要做到人無我有,人有我新,也就是特立獨行地提出自己的觀點。這不僅是文章視角的問題、評論角度的問題、新穎的問題,而且是透過現象看本質的問題,也就是要有自己獨特的看法與對現象深刻分析。看問題的實質其實已經涉及寫作問題了,那就是寫評論文章,必須觀點先行,觀點先行者,中心論點先確立也。自己觀點就是你所看到的問題的實質,就是你要弘揚的,你要批判的,或者是你要怒罵的。確立中心論點還有一個我們要注意的問題,根據自己的駕馭能力選擇比較小的角度確立中心觀點,角度越小,我們就越能駕馭,越容易寫好。角度越大我們就越不能駕馭,就越有可能把文章寫砸的可能。也就是什么都想要說,反而什么都說不清。五是評論文不僅僅是議論,一般給人以啟發思想,或者給出解決問題之道。也就是說評論文不是我們個人對所閱讀文章好壞的一個評價,而是從具體的文章內容談起,讓讀者明白你要分析論證的對象,提出所閱讀文章的作者對世間萬象的看法,然后,分層論證,以讓讀者信服于你,在這樣的基礎上辯證分析問題,并提出作者解決問題的建議或方向,好讓讀者易于理解。夸夸其談,是不起作用,對理解所閱讀論文的思想內容沒有任何意義。

<标题>那么,評論文章該如何寫作呢?一般來講,評論文的寫作一般有四種常用方法。分別是:一是駁論法,事件或現象總是會有正反兩面的意見,我們可以選擇相反的觀點做為靶子,用駁論的方法來增加論述的力量。但這種手法往往不用于全篇,而只是用于文章中的某個局部,與其它的論述方法綜合運用。二是綜合分析法,從兩個或三個角度進行分析,按照認知邏輯安排全文結構與層次,開成層層深入的思維與結構形式,析原因(或本質)——論危害——想辦法,這是最常見的一種形式。三是平面分析法,文章的主體從一個角度進行分析,或析實質,或談特征,或析原因,或談問題,或論危害,或談價值(意義)等,總之,要分析出三條,使文章形成并列式結構,這樣的結構方式,在評論性文章中,仍然是最受老師青睞的。四是正反分析法,正面,從意義、價值角度思考,反面,從問題危害角度探討,但不平均用力,以其中一個方面為主,以另一方面為輔,形成對比。這樣的方式,對比鮮明,結構清晰。

當然,我們在寫評論文章時,需要注意幾個方面。一是要詳盡了解所閱讀文章和內容和核心思想,在沒有詳盡了解之前,請不要撰寫評論類文章,因為你的評論一定會偏離軌道。二是不夾帶個人情感,要做到這點很難,真的很難。我們在寫文章時,要時時記得這點,盡量以客觀的眼光去看待文獻中涉及的問題。如果你認為,寫不好,太容易夾帶個人情感,那么就請盡早放棄,在這種情況下,就算寫完,也不會是一篇有意義的文章。三是是觀點明朗,寫評論類文章,要有自己的觀點,同一篇文章中的觀點絕對不能自相矛盾。樹立觀點時,思路要清晰,樹立的觀點必須是自己能闡述得清的,以免到時候東扯西扯,扯了半天也沒有將觀點說清楚。

Posted on

圣安德魯斯大學論文代寫 – Overvaluation of the Stock Market

圣安德魯斯大學論文代寫

<标题>股票市場是投資者最喜歡的投資平臺之一,因為它有著高投資回報。造成這種高回報的原因有很多,其中之一可能是股票市場上金融商品的估值。一些金融分析師認為,股票市場被高估了。另一個學派的觀點是股市的估價是合理的;而一些人則認為他們被低估了。由于這些觀點的差異,很難確定股票市場被高估的程度。

Introduction

<标题>Stock markets are considered to be among the most preferred investment platforms by investors, as they generate a high return on investment (Fong, 2014). There are many underlying reasons for this high return, one of which may be the valuation of the financial commodities traded in the stock market (Chang, 2005). Some financial analysts believe that the stock markets are extremely overvalued (Phoenix, 2014), while there are others who consider them as being slightly overvalued (Rosenberg, 2010). Another school of thought has a viewpoint that they are fairly valued (Wolf, 2008); while, some hold the opinion that they are undervalued (Pan, 2009). Due to these differences in viewpoints, it becomes difficult to gauge the extent to which stock markets are overvalued. The reasons for these differences in opinions are the different geographical locations (Tan, Gan and Li, 2010) and the different assumptions made in comparisons (Cheng and Li, 2015). The difference in the methods used for valuation also turns out to be one of the reasons, as every method has its merits and demerits (Khan, 2002). Stock market overvaluation may have severe negative effects including a market crash or increasing organisation’s agency costs, which need to be considered by managers in organization-wide strategic management (Jensen, 2005).

Methods used for Stock Valuation

<标题>Various methods are used for stock valuation; some of the common ones include Price to Earnings ratio (Stowe et al., 2008), Knowledge Capital Earnings (Ujwary-Gil, 2014) and Dividend Discount Model (Adiya, 2010). The price to earnings ratio is the most common method used to evaluate stock markets, whereby the company’s current stock price is compared with the predicted earnings it will yield in future (Stowe et al., 2008). Knowledge Capital Earnings – KCE is another method through which a company’s intellectual capital can be gauged and interpretation of the extent to which it is overvalued can be given (Ujwary-Gil, 2014). The KCE method, however, is specifically subjective if the analyst is interested in estimating the potential future earnings of an organization (Ujwary-Gil, 2014).

The Dividend Discount Model is based on the assumption that the price of a stock at equilibrium will be equal to the sum of all its upcoming dividend yields discounted back to its current value (Ivanovski, Ivanovska and Narasanov, 2015). One of the shortcomings of this model is with the company’s growth estimation, in which the averaged historical rates do not provide an accurate picture, as they ignore the ongoing economic conditions and the changes that take place in the company (Ivanovski, Ivanovska and Narasanov, 2015). Another issue identified by Mishkin, Matthews and Giuliodori (2013) is related to the accuracy of dividends forecasted based on the company’s past performance and the predicted future trends of the market; critics cast doubts on the accuracy of these figures, as they are purely based on estimation of analysts and may not be always correct.

Stock Markets are Extremely Overvalued

Hussman (2014), who is well-known for his accurate insights about the financial markets, comments in one of his speeches that due to their Zero Interest Rate and Quantitative Easing policies, the central banks have driven the stock prices up to twice as high as they are supposed to be. This imparts the stock markets to be overvalued by 100%. While different authors argue that every evaluation metric has its merits and demerits, which makes it difficult to conclude whether stock markets are overvalued when calculated via a specific metric, a Phoenix (2014) report provides evidence of the fact that stock markets are overvalued by almost every metric used for valuation. According to Autore, Boulton and Alves (2015), short interest rates are also a determinant of stock valuation; the lower the short interest rate of the initial stock, the more overvalued the stock will be.

An example could be that of the U.S. stock market which is analysed to be overvalued by 55% (Lombardi, 2014), while it is estimated to be overvalued by 80% according to another research (Heyes, 2015). Lombardi (2014) identifies it to be overvalued to such an extent due to the increasing presence of bullish stock advisors as compared to bearish advisors, which results in the investors being complacent without being anxious about a huge market sell-off. By evaluating the market through various methods, Tenebrarum (2015) established an opinion that the U.S. stock market is valued at its highest peak to date. Additionally, Lombardi (2014) recognises these indicators to be similar to those before the stock market crash in 2007. Hence it may lead us to a prediction that history might repeat itself, as specialists have already expected the forthcoming crash (Heyes, 2015).

Posted on

finance論文代寫范文- Costing of Income Statements

income statement

<标题>本文旨在研究如何使用邊際和吸收成本法編制損益表。吸收成本核算方法收取產品成本的所有直接成本以及間接成本的份額。間接成本使用單一間接費用吸收率計入產品,該費用通過將總成本中心間接費用除以預算生產總量計算得出。(ACCA,2006; Drury,2006; Blocker等,2005)。另一方面,在邊際成本計算下,只有可變成本按成本單位計算。固定成本作為期間成本從損益賬中扣除。(Drury,2006; Blocker等,2005)。下面的a)和b)部分分別顯示了在2006年和2007年結束的年份中生產和銷售單一產品的H有限公司的邊際和吸收成本收益表。假設公司使用先進先出(FIFO)方法來估算庫存。此外,假設公司每年根據預算單位和實際單位采用單一的管理費吸收率,兩年的預算單位完全相等。 

<标题>This paper aims to look at how income statements are prepared using marginal and absorption costing. The absorption costing method charges all direct costs to the product costs, as well as a share of indirect costs. The indirect costs are charged to products using a single overhead absorption rate, which is calculated by dividing the total cost centre overhead to the total volume of budgeted production. (ACCA, 2006; Drury, 2006; Blocker et al., 2005). On the other hand under marginal costing, only variable costs are charged to cost units. Fixed costs are written off the profit and loss account as period costs. (Drury, 2006; Blocker et al., 2005). Sections a) and b) below show the marginal and absorption costing income statements respectively for H Ltd that manufactures and sells a single product during the years ending 2006 and 2007. It is assumed that the company uses the first-in-first-out (FIFO) method for valuing inventories. In addition it is assumed that the company employs a single overhead absorption rate each year based on budgeted units and actual units exactly equalled budgeted units for both years. 

Marginal Costing

H Ltd Income Statement (Marginal Costing)2006 2007
  £’000 £’000
Sales Revenue 3000 3600
Cost of Sales:    
Opening Stock0 400 
Production cost (W1, W2)700 500 
Variable Marketing and Admin1000 1200 
Cost of Goods available for sale1700 2100 
Ending inventory (W3, W4)200 100 
   1500 2000
Contribution Margin 1500 1600
Less Fixed costs    
Marketing and Admin400 400 
Production overheads700 700 
   1100 1100
Operating profit 400 500

Absorption costing.

H Ltd Income Statement (Absorption Costing)2006 2007
   £’000 £’000
Sales  3000 3600
Cost of Sales    
Beginning Inventory0 400 
Production Cost (W5, W6)1400 1200 
Ending Inventory (W7, W8)400 240 
   1000 1360
Gross Profit 2000 2240
Marketing and Admin Expenses    
Fixed 400 400 
Variable 1000 1200 
   1400 1600
Operating profit 600 640

Reconciliation of net income under absorption and Marginal Costing.

Reconciliation 2006 2007
  £’000 £’000
Absorption operating profit 600 640
Less Fixed overhead cost in ending inventory (W9)200 140
Marginal Costing net income 400 500

Under marginal costing inventory of finished goods as well as work in progress is valued at variable costs only. On the contrary, absorption costing values stocks of inventory of finished goods and work in progress at both variable costs and an absorbed amount for fixed production overheads. (ACCA, 2006; Lucy, 2002). In the case of H Ltd, under marginal costing, only variable costs are included in the ending inventory figure. This results in a profit figure of £400,000. On the other hand absorption costing includes additional £200,000 as fixed overhead in the ending inventory for 2006. As a result absorption operating profit is overstated by £200,000 in 2006. In like manner, the absorption profit under absorption costing is overstated by £140,000 due to an inclusion of £140,000 of fixed overhead cost in the ending inventory figure for 2007. To reconcile the profit under absorption costing and marginal costing, we may either subtract the fixed overhead included in ending inventory from the absorption cost operating profit to arrive at the marginal cost operating profit or add the fixed overhead costs in ending inventory to the marginal cost operating profit to arrive at the absorption cost operating profit.

Stock Build-ups

<标题>Stock build-ups may result from using absorption costing for performance measurement purposes because inventory is valued at both fixed and variable costs. Firstly, profit is overstated. In fact absorption costing enables income manipulation because when inventory increases fixed costs in the current year can be deferred to latter years and as such current net income is overstated which in effect results in financial statements that do not present fairly and as such affect users’ decisions on the financial statements. Secondly, maintaining high levels of inventory may result in obsolescence and as such declines in future profitability resulting from the loss in value of the inventory. (Blocher et al., 2005; Storey, 2002).

Advantages of Absorption Costing and Marginal Costing

According to ACCA (2006) the following arguments have been advanced for using absorption costing:

  1. It is necessary to include fixed overhead in stock values for financial statements. This is because routine cost accounting using absorption costing produces stock values which include a share of fixed overhead. Based on this argument, financial statements prepared using absorption costing present a true and faithful representation of the actual results of operation of the company.
  2. For a small jobbing business, overhead allotment is the only practicable way of obtaining job costs for estimating and profit analysis.
  3. Analysis of under/over-absorbed overhead is useful to identify inefficient utilisation of production resources. 

<标题>ACCA (2006) also identifies a number of arguments in favour of marginal costing. Preparation of routine cost accounting statements using marginal costing is considered more informative to management for the following reasons:

  1. Contribution per unit represents a direct measure of how profit and volume relate. Profit per unit is a misleading figure.
  2. Build-up or run-down of stocks of finished goods will distort comparison of operating profit statements. In the case of closing inventory, the inventory is valued only at the variable cost per unit. This makes the profit under a situation where there is closing inventory to be the same as the case when there is no closing inventory thereby enabling the comparison of operating profit statements over time.
  3. Unlike under absorption costing, marginal costing avoids the arbitrary apportionment of fixed costs, which in turn result in misleading product cost comparisons.

Bibliography

  • ACCA (2006). Paper 2.4 Financial Management and Control: Study Text 2006/2007. www.kaplanfoulslynch.com
  • Blocher, E., Chen, K., Cokins, G., Lin, T. (2005). Cost Management A Strategic Emphasis. 3rd Edition McGraw Hill.
  • Drury, C. (2004). Management and Cost Accounting. 6th Edition. Thomson Learning, London.
  • Lucy, T (2002), Costing, 6th ed., Continuum.
  • Storey, P (2002), Introduction to Cost and Management Accounting, Palgrave Macmillan
Posted on

金融論文代寫范文-財務利率分析

financial ratio

<标题>Financial statements are useful as they can be used to predict future indicators for a firm using the financial ratio analysis. From an investor’s perspective financial statement analysis aims at predicting the future profitability and viability of a company, while from the management’s point of view the ratio analysis is important as it helps anticipate the future conditions in which the firm should expect to operate and facilitates strategic decision making (Brigham and Houston 2007, p. 77).

Profitability analysis

Harry’s Hamsters Limited (HHL) experienced growth in its profitability from 2007 to 2008; however, the net income reduced significantly during 2009. The return on equity (ROE) was 4.24 percent in 2007, increased to 14.68 percent in 2008 and decreased back to 5.10 percent in 2010. Similarly, the return on assets (ROA) also initially increased and later declined in 2009; the decline was sharper compared to the decline in ROE as the ROA in 2009 of 1.73 percent is lower than 2.08 percent in 2007. The ROE comprises of two main components: the return on net operating assets (RNOA) and the return on debt (ROD). RNOA for HHL has also deteriorated during 2008 decreasing from 16.61 percent in 2008 to 5.08 percent in 2009. The RNOA is used to weigh the overall performance of the HHL management. The ROD component of the ROE has also deteriorated from 13.68 percent in 2008 to negative 3.32 percent in 2009 (Kemsley 2009, pp. 12-16).
The ROCE was the highest in 2008 estimated 11.39 percent. It implies that the capital employed by HHL yielded high returns before the expansion period and that the company was significantly profitable. A considerable decline in 2009 to 4.82 percent can be unfavourable for the investors; however, as the company has not sold its shares to the public a reduction in this ratio for a temporary period is not a major concern for the current owners. 
The operating profit margins for HHL initially increased from 10 percent in 2007 to 17.45 percent in 2008; however, the company reported lowered margins of 8.53 percent in 2009. The decline in the operating profit margins of HHL is largely attributed to the increase in costs associated with the expansion of the business. The operating margins are expected to recover over the next year assuming that the new operations will become profitable as sales increase. The cost of goods sold have increased in absolute terms but the overall gross profit margins for the company have improved from 35 percent in 2007 to 42.01 percent in 2009. This implies that the company is effectively managing its relations with suppliers and has kept a control over the costs attached to buying the hamsters for breeding; but the operating costs have increased due to the low sales activity in the new operations.

Liquidity analysis

The current ratio of HHL remains above the minimum threshold of one and is currently 1.22; historically, the ratio has remained between 2.73 and 3.25 times. However, the quick ratio for the company reveals serious concerns as it has decreased from 1.67 in 2008 to 0.22 in 2009. The low quick ratio implies that a considerable portion of the current assets of the company are tied up as part of its inventory (Bragg 2007, pp. 14-16). This could also mean that HHL might be unable to sell the hamsters and sales might be suffering. The company must increase its working capital to meet its near term current liabilities and retain its solvency (Brigham and Houston 2007, pp. 42).

Efficiency analysis

The firm’s efficiency has not necessarily decreased during the last year; an analysis of the efficiency ratios suggests a trend that is different from what is seen through the profitability and liquidity ratios. The inventory turnover has slightly deteriorated from 3.00 in 2007 to 2.89 in 2009; similarly impacting the day’s inventory on hand from 121.67 to 126.35 during the same period. The long inventory holding period suggests that the company needs to improve its liquidity position to maintain its efficiency and aim to reduce its inventory turnover significantly (Brigham and Ehrhardt 2008, pp. 57-62). The days of accounts receivables have reduced from 45.63 in 2007 to 40.05 in 2009 and at the same time the days of accounts payables have reduced even more drastically from 40.56 to 28.08. The operating asset turnover for HHL has deteriorated considerably from 0.87 in 2007 to 0.60 in 2009, owing to a long inventory holding period and a quick payment of the accounts payables.

Capital structure analysis

<标题>The capital structure has significantly changed over the past two years as HHL has increased its financial leverage and is using a considerable debt to finance its expansion activities. The debt ratio of the firm has increase from 0.47 in 2007 to 0.60 in 2009; imply that HHL is now funding 60 percent of its assets through debt (Berry 2006, pp. 68-71). The interest coverage ratio of the company had improved considerably in 2008 and was 4.29, but it has deteriorated to 1.89 raising additional concerns for the banks. The ROD for the company has reduced considerably but remains positive implying that the current level of financial leverage is generating additional returns for the company. Operating cash flows (OCFs) for the company remain negative being typical of young firms experiencing a high growth rate, but the ability of HHL to raise additional financing is limited; therefore negative OCFs raise serious concerns for the bank management.

Report to credit committee

Analysis for reasons of results

HHL avails a long-term debt facility of £ 0.45 million and has also utilised an overdraft of about £ 35,000 from its current facility. The company performed exceptionally well during 2008, which led to an increase in its debt facility from £ 0.275 million to £ 0.45 million recently. The recent financial results revealed a tightening credit position of the company during 2009, which led to concerns regarding the excess usage of the overdraft facility by the company. Recent communication with the company reveals that it is facing liquidity problems due to its ambitious expansion program; however, the problem can be solved depending on the ability of the management to realise the seriousness of the situation (Madura 2006, pp. 17-32). 
The company is running an overdraft without any immediate plans regarding its understanding to pay back the short-term loan. The overdraft is being utilised to fund the working capital needs of the company, which it did not anticipate during its expansion into southern England. The success or failure of the new operations is yet to be seen and the position will only be clear by next year. The current assets are largely financing the inventory requirements of the company, while the inventory cycles are long and not in a position to be liquidated on urgent need. The company needs to introduce additional capital in order to solve its working capital problems.
The working capital position of HHL can also improve by increasing the days of accounts payable ratio to higher levels or by reducing the inventory cycle if possible (Myers 1984, pp. 126-128). However, both options seem unlikely leading us to prescribe alternative solutions. The company has seen deterioration in the profitability ratios, which has reduced its ability to pay the interest commitments on the outstanding loan. However, the company still maintains an interest coverage ratio of 1.89 and should be able to regain its position once the new operations become profitable.
The efficiency ratios of the firm have remained relatively stable with a slight decrease in the inventory turnover, an improvement in the accounts receivables turnover and a significant drop in the operating assets turnover. The company maintains a high debt ratio and about 60 percent of its assets are funded using debt; however, this is typical of most firms under the initial expansion phase.
The company remains committed to making profits but has not considered rising outside capital by going public in the near future; the only way to maintain its current pace of growth will be either through an injection of personal equity or through the offering of company stock to the public (Ronen and Yaari 2007). The owners have invested most of their life savings into the business and the company cannot possibly raise any further internal financing.

Recommendations regarding bank arrangements

The credit committee is recommended to raise concerns regarding the current liquidity position of the company and to prepare a schedule for the repayment of the overdraft amount over the next six months. The company is expected to recover from the current situation during the next year, but it is important to remain cautious until the sales position appears to improve. Also developing a degree of pressure on the management should clearly communicate the banks position to the firm (Gibson 2009, pp. 212-216). The intention is to educate the company management about the gravity of this situation and ensuring that it is able to recover smoothly from the liquidity crunch, while at the same time minimising the bank’s exposure to the business risk HHL is facing.
The Managing Director of HHL is consistent in maintaining regular contact with the bank; therefore we need to educate him with the possible solutions for recovering from the credit crunch faced by the company. The recommended solutions include a consolidation of the business before considering any further expansion projects, a reduction in the days inventory on hand, increase in the days accounts payables, the retention of profits into the business allowing for no dividend payments over the next quarters, an injection of equity from any other sources available, an increase in collateral to support the bank’s claims and a phasing out of the bank overdraft over the next six months as revenues from the sales are realised (Harvard Business School 2006, pp. 3-12).

Recommendations to management about improving finances of the company

Mr. Michael,
Thanks for a quick response pertaining to the overdraft issue. We have analysed the situation faced by HHL based on the recent financial statements and the qualitative information that we received during our recent correspondence. It is understood that your company has recently gone a major expansion and the short-term impacts are apparent on the financial results in terms of lowered profitability as anticipated. The concern raised by the bank is not directly related to the profitability of your company and we remain concerned about the liquidity position of HHL in months to follow (Bissessur 2008, pp. 142-146).
The understanding between the bank and the company was that the expansion will be fully funded by the increase in the loan facility. This increase in loan was to support both the fixed investment in the expansion project as well as the working capital needs of HHL. However, as it is seen the actual expansion investment has exceeded the anticipated amounts and the company is facing a severe liquidity crunch that needs to be resolved.
The credit committee is concerned regarding the profitability of the expansion project and is not prepared to enhance the overdraft limit until the latest results for the company become available. HHL would have to independently solve this liquidity crunch by either an injection of equity to facilitate the increased working capital requirements or to raise additional external capital. The intention of the company to continue towards is expansion projects can be best facilitated through a public listing of the company to raise additional capital (Hill and Jones 2009, pp. 28-29).
The bank would require the company to pay the entire overdraft drawn in instalments over the next six months. This payment schedule has been drafted after a careful consideration of the credit history of your firm with the bank; in usual circumstances we would have required the repayment of the whole overdraft instantly. Moreover, it must be understood that this correction is in the best interest of your company as it serves to facilitate your understanding of the gravity of the situation faced by HHL.
A large proportion of the current assets held by HHL are tied up in the inventory and the company has no cash reserves available to pay for the maturing current liabilities including the bank’s interest payments. It is important to understand that the company would have filed for bankruptcy if the current overdraft was not available. Therefore, it is a very serious concern which should be resolved as soon as possible (Capon 1990, p. 1145).
The company can adopt some emergency measures to immediately improve its cash position, including a maximum delay in the payment to creditors that might be possible without significantly harming the supplier relations, a quicker recovery of accounts receivables without significantly harming the sales position and an immediate sale of ready inventory on a cash payment discount (David 2006; Ebert and Griffin 2005). Moreover, the company must not withdraw any retained earnings in the form of dividends until the liquidity position is resolved. 
Waiting for your response,
<标题>Nick Cameron

Bibliography

Berry, A., (2006). Accounting in a business context. Brighton: Cencage Learning. 
Bissessur, S., (2008). Earnings quality and earnings management: The role of accounting accruals. Rosenberg Publishers.
Bragg, S., (2007). Business Ratios and Formulas: A comprehensive Guide. New Jersey: John Wiley and Sons. 
Brigham, E., and Houston, J., (2007). Fundamentals of Financial Management. Mason: Thomson Publishing Limited.
Brigham, E., and Ehrhardt, M., (2008). Financial management: Theory and practice. Mason: Thomson Higher Education.
Capon, N et al., (1990). Determinants of financial performance: A Meta Analysis. Journal of Management and Sciences, Vol. 36 (10), pp. 1143-1159.
David, F., (2006). Strategic management: concepts and cases, 10th ed. Hong Kong: Pearson education.
Dominguez, K., (2006). Exchange rate exposure. Journal of International Economics, 68 (1), pp. 188-218.
Ebert, R., and Griffin, R., (2005). Business Essentials. Prentice Hall.
Finnerty, J., (2007). Project financing: Asset based financial engineering. New Jersey: John Wiley and Sons Publishing.
Kemsley, D., (2009). Financial Accounting Seminar: Practical Equity and Credit Analysis. New Orleans: Tulane University.
Kumar, K., and Dissel, V., (1996). Sustainable collaboration: Managing conflict and cooperation in systems. Journal of Information Management, 20 (3), pp. 279-300. 
Gibson, C., (2009). Financial Reporting and Analysis: Using Financial Accounting Information. Mason: Cencage Learning. 
Harvard Business School., (2006). Essentials of strategy. Boston: Harvard Business School Press.
Helfert, E., (2001). Financial Analysis: Tools and techniques, a guide to managers. New York: McGraw Hills.
Hill, C., and Jones, G., (2009). Strategic management theory: an integral approach. Mason: Cencage learning.
Madura, J., (2006). Introduction to business. Mason: Thomson publishing.
McDonald, B., and Morris, M., (1984). The statistical validity of the ratio method in financial analysis: An empirical examination. Journal of Business Finance and Accounting, 11 (1), pp. 89-104.
Myers, S., (1984). Finance theory and finance strategy. Interfaces, 14 (1), pp. 126-137.
Ronen, J., and Yaari, V., (2007). Earnings Management: Emerging insights, in theory, practice and research. New York: Springer Publishers.