Investment Requirements Capital Intensity Fertilizer industry is highly capital intensive, as a lot of capital is required to finance plant, property and equipment (PPE). PPE in the fertilizer industry accounts for roughly 40% of total assets. The PPE of the all the major players is about Rs. 108 billion (FFC: Rs. 21 billion, FFBL: Rs. 11 billion, Engro: Rs. 70 billion and Fatima Group: Rs. 5 billion) Debtors’ Credit Norms Mostly, the sales transactions take place on cash basis. Whenever a credit sales occurs the companies can secure bank guarantees with no risk exposure. Therefore, the account receivables are less. The proportion of cash sales vs. credit sales is 94%-6%, clearly showing that fertilizer industry primarily runs on cash basis. …show more content…
Availability of Finances Suppliers’ Credit Norm Mostly, purchases from suppliers are done on credit. Fertilizer companies are on long-term contract with Government of Pakistan over the supply of natural gas. Account payable days lie in a range of 60 to 80 days. About Rs. 4.3 billion worth of funding comes from accounts payable, representing 7% of liabilities and equities or total assets. Other Funding Sources & Financial Leverage Other major sources of funding include long-term and short-term borrowings, deferred government assistance, and finance under mark-up arrangement and other credit facilities. Typical leverage of the industry is 2.18 and debt ratio stands at 54% Regulatory & Policy Framework Policies Affect on the Industry Agriculture sector is the nation’s largest employer and there its backbone. Fertilizer industry plays a vital role in driving the agriculture sector. Therefore, the government offers subsidies and relaxed policies for the players to make it feasible for farmers to grow …show more content…
Also, it is being very expensive to import natural gas. The good news is that the government of Pakistan has now signed a 15-year agreement with Qatar. Pakistan would import nearly 3.75 million tons of Liquefied Natural Gas (LNG) per year. This is a very good news for the fertilizer industry of Pakistan which was being greatly affected by the shortage of natural gas. Since one fourth of Pakistan’s GDP comes from this industry and Pakistan is primarily an agricultural economy, its fertilizer sector plays an essential role in enhancing our agricultural output, to produce numerous high-volume export goods, like; Textiles, Wheat, Sugar, etc. For many years now, the robust fertilizer industry has been suffering due to insufficient supply of Natural Gas – which is used as an important raw material for producing fertilizer. According to media reports, the first LNG terminal in Pakistan which has the capacity to re-gasify 600-630mmcfd gas was commissioned in 2013. This was a great initiative by the
Being an ag teacher requires a lot more than just sitting in a classroom. It proves to be much easier for students to learn certain things by performing those tasks tangibly. Agricultural education prepares students for life. Ag classes offer students an education that will prepare them for college and work, as well as teaching them how to be educated consumers (“National Teach Ag Campaign - Frequently Asked Questions.” ) . Agriculture teachers also serve as the school’s FFA advisor.
I nventory Value + Purchases – Current Inventory Value = Costs of Goods Sold Cost of Goods Sold / Actual Net Sales = Food Cost percentage Jeremy states that the improvements to the inventory system over the last few years have helped him run his business better.
This cash ratio indicates that Big Lots has 8 cents for each dollar of current liabilities and should have enough cash on hand to pay their employees and take care of all of their other obligations to creditors sufficiently (Bethel University, 2017). 2. Current Ratio 994,379/678,595
Week 5 Written Assignment Federal Reserve 1 Federal Reserve Tools Name Withheld University of the People BUS 2203 Instructor Joel Almanzar Week 5 Written Assignment Federal Reserve 2 In my essay this week we will explore the Federal Reserve. What monetary tool that is available to Federal Reserve is used most often, and why is it used? I will describe how expansionary activities by the FED impacts credit availability, money supply, interest rates, and security prices.
Nowadays, there are many corporations contribute from corn a lot, which provides such a countless benefits for them. The factories will apply various aspects on corn in order to amply utilizing it. Pollan points that, “They provide the pesticide and fertilizer to the farmers; operate most of America’s grain elevators; broker and ship most of the
Thus, they are in a position to cover any debt obligations that may come up quickly. Their inventory turnover has been relatively steady over the five years of data. In year 7 their inventory turnover reached 3.2 which means inventory is moving through to customers at an increased rate over the year which correlates with their increased sales. This statement is supported by the fact that the days inventory held for stoves has dropped over the past five years from 146 days in year 3 to 114 days in year 7. These reductions have allowed for the reduction of their days in accounts payable from 51 all the way down to 11.
The Civil War had already ended when agriculture began to develop, bringing about changes across the country, particularly in the West. American agriculture began in rural regions that were urbanized, resulting in a surge of people in the fields and cities where employment and hard labor were supplied manually. It has grown significantly as a result of advanced economic and social changes towards its industrialization for expansion. It increased production among the families of farmers, who served through hard and difficult situations. Throughout the period of 1865-1900, American agriculture changed rural inhabited areas, expanding prospects for migration and urbanization, industrialization growth with advanced machinery, and evolved farming
Introduction The Keystone Pipeline was a proposed idea of a pipeline that would run from the oil sands of Canada to Steele City, Nebraska. It would then connect to an existing pipeline that would administer it elsewhere. Since it is an oil pipeline that would cross international borders, it needed the President’s approval. The idea became such a controversial topic when President Obama stated that six days to decide the fate of this project was not a sufficient amount of time to make a decision.
“The vision of a huge fertile garden extending from the Appalachians to the Pacific Ocean had inspired Americans since the early days of the republic” (Out of Many - A History of the American People, pg. 622). Since its beginning, the American ways of farming had always been gradually evolving, but in the time between 1865 and 1900, it transformed like never before. The American tradition of agriculture would experience dramatic changes, as the growth of production and agribusiness would ensue from revolutions in technology, massive increase in population, and alterations in government policies. A major factor in changing the way of agriculture was the new technology being developed in farming and transportation.
On December 23rd, 1913, President Woodrow Wilson signed the Federal Reserve act. This act created the Federal Reserve, which is a central bank of the United States. It has a Federal Reserve Board in Washington D.C. along with twelve regional banks located all across the country. The Federal Reserve has two main jobs. One job is to regulate all banks in the United States and ensure the health of the banking system overall.
The Iowa Farm Bureau mission is to create a vibrant future of agriculture, along with farm families, and their communities. My field of study will help support this mission of the Iowa Farm Bureau by defining agriculture’s brand to the masses. I am attending Iowa State University in the fall to major in Ag Communications and minor in marketing and sales. I hope to maintain a 3.5 or higher GPA, join clubs and organizations on and off of campus, and to expose myself to new people and things. In the fall I will also be rushing, and joining a sorority.
Ensure that the property, plant and equipment exist and are genuine assets of the business and are beneficially owned by the business and any restrictions, pledges or liens on the property, plant and equipment are identified and adequately disclosed in the financial statements. At the same time, have to prepare fixed assets schedule as to attachment for this section. Test the mathematical accuracy, agree opening balances to prior period working papers and agree closing balances to the nominal ledger and investment ledger where maintained. Vouch against invoices, contract notes, and agreements for any additions or disposals in order to ensure that all property, plant and equipment are included in the balance sheet and gains or losses on realization of property, plant and equipment are correctly stated. In additions, ensure the property, plant and equipment are properly disclosed and
1) a. current liability: Money that a business owner must pay to a creditor within 12 months of the balance sheet date is a current liability. Ideally, short-term assets, such as cash and accounts receivable, should more than offset short-term liabilities, such as accounts payable, notes payable and payroll. If they do, the company 's short-term liquidity position is positive, which suggests the company will likely meet its cash-flow needs and remain a going concern. It is wise for a business owner to remain alert to his company 's current liabilities and the cash and assets that will be turned to cash within one year to meet these obligations. 1) b. Long-term liabilities are due more than a year after the balance sheet date.
ACCT 1010 PRINCIPLES OF ACCOUNTING I (FLEX) Name ____________________ Date _____________________ Multiple Choice and True/False Statements (3 points each) Please answer the following questions.
Fertilizers remove the nutrients of the soil damaging the soil and the local environment and after being mixed with the soil, gradually reduce the fertility of the soil. In the study of (Southland) using fertilizers consists of substances and chemicals like methane, carbon dioxide, ammonia, and nitrogen, the emission of which has contributed to a great extent in the quantity of greenhouse gases present in the environment. These facts are alarming and a serious step needs to be taken as soon as possible to avoid more severe consequences. This in turn is leading to global warming and weather changes. The use of fertilizers for growth and cultivation is keeping our stomach filled for now, but then if things keep on progressing the way they are, it won’t take long to see the times where there is lack of food, water, and health.