http://www.cbc.ca/canada/british-columbia/story/2009/09/01/bc-lowest-minimum-wage.html
http://www.policynote.ca/bcs-minimum-wage-is-now-22-lower-than-ontarios/
Summary:
When New Brunswick officially raised its minimum wage to $8.25 an hour, British Columbia has claimed the honour to be the province with the lowest minimum wage in Canada. Not to mention British Columbia is one of the 3 provinces in Canada that pays training wages to first-time employees. Approximately 60,000 people in B.C. earned $8 per hour last year and nearly 300,000 people earned less than $10 per hour, which is below the poverty line. When compared to Ontario’s minimum wage, B.C.’s $8 minimum is 22% lower than Ontario’s, which means B.C.’s workers are earning one fifth less than the workers of Ontario. Despite the effort contributed by many people such as the B.C. Federation of Labour, the NDPs and many more to raise the minimum wage to a reasonable price, they were all turned down by the government. Ever since Premier Gordon Campbell and the Liberal government took over, they have frozen the minimum wage for about 9 years, the longest wage freeze in Canada followed by a two year freeze by Nunavut. The only excuse they had was that the raising of minimum wage will hurt the businesses and will reduce job opportunities for the young people and contrarily, Premier Gordon Campbell doubled his own salary over the 8 year wage freeze.
Connection:
British Columbia’s minimum wage connects to Chapter 16.1 where it talks about wages. By definition, wages are payments to workers for their labour, on an hourly, daily, or weekly basis, or by the piece. Based on the numbers of workers paid by wages from the article, we can assume that a major population of BC workers are paid by wages. Minimum wage is set as a standard for employers to pay its employees. Since the economy changes over time as a result of inflation and many other factors, minimum wage have to be adjusted to a reasonable amount to ensure that workers are able to afford basic necessities such as shelter and food. Although this may be beneficial for many workers in BC, it could cause problems for the accountants working with payroll expenses. Accountants and accounting softwares would have to adapt to the changes. New software updates must be made and would have to spend some time adapting to new tax deduction figures.
Reflection:
With British Columbia being one of the most expensive provinces to live in Canada, I believe that the minimum wage should be increased. Although the increase of minimum wage will cause an increase in a business’s payroll expenses, it will not dramatically affect the business’s performance. However, considering that the businesses in all the other provinces in Canada did not cause many problems, the businesses in B.C. should not have problems with the increase in minimum wage. Ontario is an excellent example of a prosperous province similar to B.C, but with a difference of $2.25 (22% more) in minimum wage. B.C is well known for the most expensive housing prices in Canada and yet it has the lowest minimum wage across Canada. How does the government expect B.C. citizens especially immigrants to afford a shelter, one of the basic needs, while working for $8 an hour? As a future part-time job worker, I strongly believe the minimum wage of B.C. should be increased.
Comment: Dickson's Blog
Friday, April 30, 2010
Monday, April 12, 2010
Canadian Tire goes back to future
http://www.thestar.com/business/article/791930--canadian-tire-goes-back-to-future
Summary:
Canadian Tire decided to return its focus in the automotive parts and services. They have devised a three-to-five year strategic plan by sharply focusing on its automotive segment and core retail. By doing so, Canadian Tire may boost its shareholders’ return on equity through drenching more profit and sales from its current 479 stores and the impending 11 new stores this year. Canadian Tire aims to increase 3%-5% in sales, 8%-10% in profit and 10%-12% in return on equity to shareholders. Along with the new stores, Canadian Tire has arranged a deal with the province to open its first 23 Canadian Tire gas stations on the 400 series of provincial highways. Also, Canadian Tire is currently reformatting its store layouts which will increase the storage space and make it more efficient for its customer’s to shop. With all these changes taking place, Canadian Tire stated that it can achieve its targets without further increasing its capital expenditures.
Connection:
This article ties in closely with the simple small ratios in chapter 15.3 and to be more precise, the rate of return on equity and the rate of return on net sales. The actions taken by Canadian Tire all share the common focus, to increase the rate of return on net sales and the rate of return on owner’s equity. By increasing the sales, profit and the return on equity to shareholders, Canadian Tire can automatically increase the rate of return on net sales and owner’s equity. Since these two ratios are vital to the outsiders when it comes to analyzing a company’s financial health, Canadian Tire must maintain and increase these ratios in order to impress the outsiders.
Reflection:
From my perspective, I believe Canadian Tire is taking the correct actions by putting its customers and investors as its priority. If I was an investor and I was told that Canadian Tire will increase its rate of return on equity to shareholders, I would be interested to invest into Canadian Tire because there’s a high chance of dividend. The increase of the two ratios can also raise the value of the stock as it can prove to the outsiders that the company is performing well. I strongly believe that Canadian Tire will have an optimistic future if it can achieve its goals.
Summary:
Canadian Tire decided to return its focus in the automotive parts and services. They have devised a three-to-five year strategic plan by sharply focusing on its automotive segment and core retail. By doing so, Canadian Tire may boost its shareholders’ return on equity through drenching more profit and sales from its current 479 stores and the impending 11 new stores this year. Canadian Tire aims to increase 3%-5% in sales, 8%-10% in profit and 10%-12% in return on equity to shareholders. Along with the new stores, Canadian Tire has arranged a deal with the province to open its first 23 Canadian Tire gas stations on the 400 series of provincial highways. Also, Canadian Tire is currently reformatting its store layouts which will increase the storage space and make it more efficient for its customer’s to shop. With all these changes taking place, Canadian Tire stated that it can achieve its targets without further increasing its capital expenditures.
Connection:
This article ties in closely with the simple small ratios in chapter 15.3 and to be more precise, the rate of return on equity and the rate of return on net sales. The actions taken by Canadian Tire all share the common focus, to increase the rate of return on net sales and the rate of return on owner’s equity. By increasing the sales, profit and the return on equity to shareholders, Canadian Tire can automatically increase the rate of return on net sales and owner’s equity. Since these two ratios are vital to the outsiders when it comes to analyzing a company’s financial health, Canadian Tire must maintain and increase these ratios in order to impress the outsiders.
Reflection:
From my perspective, I believe Canadian Tire is taking the correct actions by putting its customers and investors as its priority. If I was an investor and I was told that Canadian Tire will increase its rate of return on equity to shareholders, I would be interested to invest into Canadian Tire because there’s a high chance of dividend. The increase of the two ratios can also raise the value of the stock as it can prove to the outsiders that the company is performing well. I strongly believe that Canadian Tire will have an optimistic future if it can achieve its goals.
Monday, March 29, 2010
Accused killer racked up debt using dead wife's credit
Summary:
After precise investigations regarding the death of Charles Kembo’s wife Margaret Kembo, daughter, and a friend, Charles Kembo is charged with first degree murder. His motive was believed to assume the victim’s identities for financial gains. According to his wife’s chartered accountant Rosanne Terhart, Margaret owned $43 000 in credit card debt when she vanished in 2002. The substantial debt was distributed over five different credit cards. By the end of 2003, another five credit cards were created under Margaret’s name and resulted in a total balance of $160 000. Furthermore, several fraudulent cheques were issued and deposited after the credit card limits were reached. Charles Kembo spent the fortune to portray himself as a rich, successful businessman along with an expensive car.
Connection:
This article contradicts the numerous advantages and benefits of credit cards as stated in Chapter 14.2. The book strictly focuses on the benefits and the convenience credit cards can provide its owners rather than the various dangers behind the possession of a credit card. All it takes is several pieces of personal information for others to secretly withdraw money from one’s bank account without one’s notice. Not to mention, many credit cards only require a personal pin code to access, so if that personal pin code is obtained by someone else, things can get disastrous similar to what happened in the article.
Reflection:
In my opinion, a credit card is similar to an email account. All it requires is a password or in this case, a personal pin to access a credit card. If the password to your email is obtained by someone else, that person can access all your private documents and information in your email account. Furthermore, things will get disastrous if the person decides to contact your contact list and act as if he/she is the owner. Now, all of the your email contacts may fall any potential scams sent to them by the person. If one does not handle their personal information with caution, he or she may be the next victim to carry a massive debt exactly like the victims mentioned in the article.
Article:http://www.vancouversun.com/news/Accused+killer+racked+debt+using+dead+wife+credit+court+told/2690675/story.html
After precise investigations regarding the death of Charles Kembo’s wife Margaret Kembo, daughter, and a friend, Charles Kembo is charged with first degree murder. His motive was believed to assume the victim’s identities for financial gains. According to his wife’s chartered accountant Rosanne Terhart, Margaret owned $43 000 in credit card debt when she vanished in 2002. The substantial debt was distributed over five different credit cards. By the end of 2003, another five credit cards were created under Margaret’s name and resulted in a total balance of $160 000. Furthermore, several fraudulent cheques were issued and deposited after the credit card limits were reached. Charles Kembo spent the fortune to portray himself as a rich, successful businessman along with an expensive car.
Connection:
This article contradicts the numerous advantages and benefits of credit cards as stated in Chapter 14.2. The book strictly focuses on the benefits and the convenience credit cards can provide its owners rather than the various dangers behind the possession of a credit card. All it takes is several pieces of personal information for others to secretly withdraw money from one’s bank account without one’s notice. Not to mention, many credit cards only require a personal pin code to access, so if that personal pin code is obtained by someone else, things can get disastrous similar to what happened in the article.
Reflection:
In my opinion, a credit card is similar to an email account. All it requires is a password or in this case, a personal pin to access a credit card. If the password to your email is obtained by someone else, that person can access all your private documents and information in your email account. Furthermore, things will get disastrous if the person decides to contact your contact list and act as if he/she is the owner. Now, all of the your email contacts may fall any potential scams sent to them by the person. If one does not handle their personal information with caution, he or she may be the next victim to carry a massive debt exactly like the victims mentioned in the article.
Article:http://www.vancouversun.com/news/Accused+killer+racked+debt+using+dead+wife+credit+court+told/2690675/story.html
Wednesday, January 13, 2010
Peachtree by Sage Quantum – Accountants Edition 2010
Summary:
Last year, Peachtree has climbed its way up to the top rank of all other accounting software in 2009. Being a dominant figure, Peachtree provides basic accounting solutions to complicated solutions for small business owners. One of the key successes to this software is the easy-to-navigate user interface. Through the Peach Navigation Centers, users can access various product functions with a few clicks away. Peachtree offers many useful functions to make business owner’s life easier. A few of the major functions include General Ledgers, Accounts Receivable, Accounts Payable and Payroll features, and a comprehensive Inventory module. To be more competitive, Peachtree released the Business Analytics option which enables users to compare one’s client’s business performance to comparable businesses. This product is highly recommended to small businesses and new users because it’s very easy to access your client’s data which will greatly reduce the amount of work required at year end and increase the accuracy of the results. Moreover, Peachtree provides built-in safeguards which make it hard to pass up.
Connection:
This Quantum software is closely tied with the early version of ACCPAC Simply Accounting software. The only difference between the two is that Quantum is better, faster, and enhanced with more features. As mentioned in 12.4, Simply Accounting is designed for small businesses due to its limitations. However, problems like insufficient computing capacity and limited to only one user have been covered and eliminated by Quantum. Not only does Quantum allow 40 users simultaneously, it is designed for both small and medium businesses and even large businesses. If you look at the master menu of Simply Accounting on pg 527, you will see that you can only view and work on one thing at a time. However, in Quantum, users are capable of opening multiple windows simultaneously, therefore, allowing users to multitask.
Reflection:
From my personal experience with Simply Accounting in grade 11, accounting software had immensely reduced the number of accounting errors and the sophistication of the accounting process. For example, journalizing a 5 column journal manually will take hours to get everything balanced and transferred to other financial statements. However, by using Simply Accounting, I am only required to do the first step of the accounting cycle, journalizing, and the software will magically complete the other steps of the accounting cycle. This includes general journals, trial balance, balance sheet, and financial statements. As a result, only about 1 hour entering journal entries into the computer and allow the computer to finish the accounting cycle, instead of 3 hours of manual work.
http://www.cpatechnologyadvisor.com/article/article.jsp?id=2387&pageNum=1
http://www.cpatechnologyadvisor.com/article/article.jsp?id=2387&pageNum=2
Last year, Peachtree has climbed its way up to the top rank of all other accounting software in 2009. Being a dominant figure, Peachtree provides basic accounting solutions to complicated solutions for small business owners. One of the key successes to this software is the easy-to-navigate user interface. Through the Peach Navigation Centers, users can access various product functions with a few clicks away. Peachtree offers many useful functions to make business owner’s life easier. A few of the major functions include General Ledgers, Accounts Receivable, Accounts Payable and Payroll features, and a comprehensive Inventory module. To be more competitive, Peachtree released the Business Analytics option which enables users to compare one’s client’s business performance to comparable businesses. This product is highly recommended to small businesses and new users because it’s very easy to access your client’s data which will greatly reduce the amount of work required at year end and increase the accuracy of the results. Moreover, Peachtree provides built-in safeguards which make it hard to pass up.
Connection:
This Quantum software is closely tied with the early version of ACCPAC Simply Accounting software. The only difference between the two is that Quantum is better, faster, and enhanced with more features. As mentioned in 12.4, Simply Accounting is designed for small businesses due to its limitations. However, problems like insufficient computing capacity and limited to only one user have been covered and eliminated by Quantum. Not only does Quantum allow 40 users simultaneously, it is designed for both small and medium businesses and even large businesses. If you look at the master menu of Simply Accounting on pg 527, you will see that you can only view and work on one thing at a time. However, in Quantum, users are capable of opening multiple windows simultaneously, therefore, allowing users to multitask.
Reflection:
From my personal experience with Simply Accounting in grade 11, accounting software had immensely reduced the number of accounting errors and the sophistication of the accounting process. For example, journalizing a 5 column journal manually will take hours to get everything balanced and transferred to other financial statements. However, by using Simply Accounting, I am only required to do the first step of the accounting cycle, journalizing, and the software will magically complete the other steps of the accounting cycle. This includes general journals, trial balance, balance sheet, and financial statements. As a result, only about 1 hour entering journal entries into the computer and allow the computer to finish the accounting cycle, instead of 3 hours of manual work.
http://www.cpatechnologyadvisor.com/article/article.jsp?id=2387&pageNum=1
http://www.cpatechnologyadvisor.com/article/article.jsp?id=2387&pageNum=2
Tuesday, October 13, 2009
Wal-Mart posts flat 2nd-quarter profit; boosts outlook as it benefits from cost-cutting
Summary
This article revolves around Wal-Mart’s and its sales revenue. Wal-Mart Stores Inc. managed to maintain an unchanged income during the harsh economic recession. Compared to the Wall Street analysis, Wal-Mart actually did better than expected. Wal-Mart maintained its revenue through a process of cost cutting in both its inventory and expenses. Adjustments were made in the store layout to persuade the consumers away from its rivals. They lowered the shelves to broaden the view of the store from the entrance and installed better lightings and wider aisles. In addition, Wal-Mart added more brands and extended its electronics offerings. Wal-Mart is planning to spend around $1.6-$1.7billion dollars to redo up to 600 stores to persuade the new customers.
Connection
As stated in Chapter 11 of Accounting 12, an excess inventory slows down the inventory cycle, takes up room, and reduces the amount of cash flow in the business. Wal-Mart discovers this problem and immediately made adjustments to its inventory. This increased the amount of cash flow in the business for better investments and also increases the storage space in the business. As a result of better inventory management and cost-cutting, Wal-Mart was able to improve its profit margins and reduced the revenue loss in an economic recession. As you can see, an excess inventory can be a burden for a company’s financial health.
Reflection
Once again Wal-Mart showed its ability to maintain a healthy business. Wal-Mart did what they were supposed to do to prevent the business from further revenue loss. Although the cost cutting was not specifically explained, we can assume from its previous reputations. Wal-Mart has the reputation of treating its employees poorly and applying pressure on its suppliers to lower the price. They probably lay off many of its employees just like all the other businesses during the recession. Another perspective of laying off employees is that it will continue to worsen the recession and reducing the consumers spending in the long run.
http://abcnews.go.com/US/WireStory?id=8317384&page=1
http://abcnews.go.com/US/WireStory?id=8317384&page=2
Wednesday, September 16, 2009
Intuit Inc buying Mint.com for $170M
Summary:
This article is mainly about Intuit Inc. who decided to purchase an online personal finance website, Mint.com, for $170 million. Intuit Inc. sees this transaction as a beneficial and defensive move for the business. This website (Mint software) organizes the users’ bank accounts all in one place and provide ways to analyze the users’ spending and investments. Simultaneously, Mint recommends other financial service companies to its 1.4 million users in return for a charged fee. Both Intuit Inc. and Mint will benefit from this transaction. Intuit Inc. will further strengthen its position as a leading provider of consumer SaaS (Software as a Service) offerings with profits in the process and on the other hand, Mint can acquire a large portion of Intuit Inc.’s original users.
Connection:
The connection between the article and accounting is the new and improved accounting software. These software not only helps inexperienced individuals to do simple accounting, but they also make accounting easier for accountants. In the past, accountants have to spend countless hours calculating financial information like mortgages for the customers. Now with the aid of these software, accountants can simply punch in a few values and a few clicks and the results will magically show up in a blink of an eye. Software like Mint can increase the efficiency of running a business by reducing the time consumption required to organize and speed up the accounting processes.
Reflection:
In my perspective, this transaction is certainly a defensive move for Intuit Inc. By accumulating the original users of Mint and sharing its users with Mint can immensely increase the profit. I think that this is a defensive move because this transaction allows Intuit Inc to climb out of recession quicker and prevent any deficit from getting deeper. Also, considering that Intuit Inc’s loss has increased to $70million in quarter 4, Mint can play a huge role in filling up the $70million loss.
http://sanjose.bizjournals.com/sanjose/stories/2009/09/14/daily2.html
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