From Orlando, Florida, it's theCUBE. Covering ServiceNow, Knowledge 17. Brought to you by ServiceNow. In 2004, Fred Luddy had a vision. He was the founder of ServiceNow and his vision was to create software that was really simple to use to automate workflows within organizations. Two years later in 2006 was the first ServiceNow knowledge. He rented out a room at a hotel that could support 50 people. 30 minutes before that event, nobody was in the room. By the time, the time came to start the first ServiceNow knowledge, 85 people were in the room talking to each other about this transformation that was occurring in their business and they started the talking to each other. Fred Luddy stepped back and said, you know what, to have a successful conference, I just need to let people talk to each other. And here we are today in 2017, 15,000 people at the ServiceNow Knowledge. Welcome to Orlando, everybody. My name is Dave Vellante and I'm here with my co-host, Jeff Frick. This is, I believe, our fifth knowledge, Jeff. This is like a 14, 15, 16, 17, fourth or fifth, yeah. Fourth knowledge, we started at the Aria Hotel in Las Vegas with about 4,000 people and now we're up to 15,000. This is a story of a company that did an IPO right around 100 million, brought in an excellent CEO, Frank Slutman. In six years, this company has exploded to $1.4 billion. They're on a path to do $4 billion of revenue by 2020. They've got a $17 billion market cap. If you look at software companies over $1 billion, there is no software company that's growing as fast as ServiceNow 30 plus percent a year and throwing off as much free cash flow as ServiceNow growing at about 45 percent. So they are incomparable in terms of comparing to other software companies. They are on a tear, the stock price is up. Lo and behold, Frank Slutman, the CEO, is getting out at the top, bringing in new CEO, John Donahoe. I feel like it's, you know, an NFL quarterback. You know, it's Bill Walsh handing the reins over to George Seifert, maybe, and as I said, getting out at the top. John Donahoe totally different style. We're going to be talking to him on theCUBE, just finishing up his keynote now. But Jeff, here we are, our fourth year, I guess, at Knowledge. And a pretty amazing transformation in this company. It is a pretty amazing transformation. You know, we talk a lot about big data and we talk a lot about cloud and maybe the shows we go to. But we probably don't talk about enough and we are going to for the next three days is really the success of SaaS apps. And as I always like to joke, there's a 60 story building going up in downtown San Francisco. That Salesforce is completing to show you the power of SaaS apps. And I think what the ServiceNow story is, is more of that same story. You know, they started out with a relatively simple idea. Fred wanted to make work easier and he started with the ITSM because that was an easy place to get going. But really it's about simplifying workflow and a SaaS application, letting people get work done easier. And then it's pretty interesting because now as you look around, Dave, the conference, they've got five bubbles or five balls or five posters to really symbolize how they've moved beyond just ITSM into HR, customer service, biz apps and security. And applying the same foundation, the same method, the same software to get after more and more of the workloads that are happening inside of the enterprise. From a company perspective, this story here is about execution.  They've penetrated the global 2000, over 50% of their average contract value comes from the global 2000. And there's significant upside there as well. In addition, their average contract value is growing very dramatically. I was speaking to some customers and they're asking them, what was your deal size when you first started with ServiceNow?  It was like $60,000 contracts. Now they have many, many customers, well over a million dollars. They have several customers over $5 million. So this is a company that is largely focused on large organizations, but also governments and mid-sized companies. Not small businesses yet, Jeff.  They announced Express a couple years ago, but what Express really was, was a way for the larger companies to try, get their feet wet before they really jump ball in. So we are still waiting for that day, but in the meantime, ServiceNow has a lot to do. As I say, their goal now is to be four billion by 2020. It feels like, when we first covered ServiceNow knowledge, we said, wow, this company reminds us a lot of the early days of Salesforce. They've got this platform, you can develop on this platform, call it Paz or whatever you want to call it, but we at the time said they're on a collision course with Salesforce. Now there's plenty of room for both of those companies in the marketplace. Salesforce obviously focused predominantly on Salesforce automation, ServiceNow, really on workflow automation, but you can see those sort of two markets coming together. People really know Salesforce, we try to use it for a lot of different things. And so giant markets built on the cloud, built with flexibility to add volumes. We started at problem change management, help desk type of things within IT service management. We're seeing that expand dramatically. And one of the things that you've always emphasized, Jeff, is the ecosystem. Take us back to the early days of when we walked the floor of the original knowledge that we did. It was four or five years ago. The companies that you saw there are much different than what you see today. Right, but the passion is still the same. And that's why we've loved coming to this thing for so many years is because it's one of the companies that has a real passion. And there was a shout out to Fred, which is where it all started. I think Frank did a great job continuing that. And now clearly John is a really polished guy, did his time at Bain, eBay, which he talked about as a community-based environment. And that was built on the strength of it. But the other part in terms of their expansion, their TAM expansion, which is always a popular topic, is John talked about IT living at the intersection of interconnectedness across departments. And they've really done a good job of leveraging that. And he talked about a simple HR onboarding process to highlight all the departments that are touch. Security, facilities, you need to get your badge, you need to get your laptop, you need to get checked in. So they're leveraging this and coming up from the bottom. And we talk about IT being an agent of transformation and not a cost center. Well, what better way to do that than to continue to simplify all these basically mundane processes, but again, just start eating them up and pulling more and more processes into the ServiceNow platform. The key to success from a customer standpoint is to adopt a single CMDB and to adopt a service catalog. Jeff, when we first started following ServiceNow and we talked to the customers, not everybody was adopting a single CMDB. That was a very political sort of football. When I talked to customers today, many more, the vast majority and just anecdotally, have adopted the CMDB. What that gives the customer and service now is tons of leverage because you essentially have that single source of the truth and then you can use that as a ripple effect across all the other innovations that you drive with ServiceNow. So for example, you start with help desk and change management and problem management and then you move on to maybe IT operations management and you're automating those tasks. Then you may move on to HR. You might move on to logistics or marketing. You're now dealing with security. So the example, the perfect example that they often give is onboarding. When you onboard a new employee, there's six or seven or eight departments that you have to talk to. There's at least eight, nine, 10 processes. You've got to order your laptop. You've got to get a phone. You've got to get your office. You've got to get onboarded to HR. All these things that have to occur that are generally separate phone calls or you're walking down the hall. ServiceNow, when you onboard, they give you the example. They're eating their own dog food.  So that's given ServiceNow a lot of leverage within these companies. What you hear from customers is, one, it's complicated to install this stuff. And in the early days, especially where there weren't as many experts in ServiceNow. So it used to take a couple of years to implement this. Second is, your price is too high. You know, you hear that a lot. That's, I mean, if that's your biggest hurdle, you're in good shape. So what ServiceNow has to do, in my view, Jeff, is two things. One, it's got to tap the ecosystem and you've seen companies like CSX now, DX Technology and Accenture and others, KPMG, EY join the fray. I was joking, the SIs love to eat at the trough.  So ServiceNow has to lean on those partners very heavily to go in and accelerate implementation, convey best practices. ServiceNow has a program called Inspire, which is a lost leader. It's one of the best freebies in the industry where they will go in and share best practice with their largest customers. And then doing that in conjunction with the SIs to accelerate adoption. On the price side, this company, and I think John Donahoe is perfect for this, really has to, and I want to ask him about this, has to increasingly emphasize the value. I think to date, Jeff, it's been a comparison. Well, I can get this from BMC for this much or HPP for this much or IBM's got versions of that or other competitors in this space. ServiceNow is essentially, their pricing has been compared to them. What they have to do is shift the conversation from cost and price to the value that they're delivering.  Biggest surprise that came out of that for you. Well, I don't know if it was a shocker, but it was certainly underscored is the actual amount of upside that this company has. Because they have penetrated the global 2000 pretty substantially. But what struck me was their ability to add new capabilities and expand their TAM. I think I wrote a piece in 2013, basically sizing the TAM. When ServiceNow first IPO'd, Gartner came out and said this is a dead market, help desk is $8 billion market, where are they going? I followed that up with a piece that said, this TAM is quite large, it's probably about 30 billion. And I shared with the Wikibon audience how it could get there. I think I underestimated that. I think the TAM is 60 to 100 billion dollars. And the reason is that ServiceNow is able, as Fred Lutty said when we first interviewed him, it's a platform. I took it out there and said, here it is. And the VC said, what can you do with it? He said, anything. And I said, well, we're not going to fund it. And so what they've been doing now is adding modules and one of the ones that I'm most excited about is security. And it's not competing with the FireEyes and the Palo Alto networks and the McAfee's. It's actually automating a lot of the response to security, automating the run book, automating the incident response and doing so in a way that actually builds that ecosystem up and is the glue that hangs it together. So I guess the biggest eye opener for me, Jeff, I talked earlier about the revenue growth and the free cash flow growth for a billion dollar plus company. What was surprising, the biggest eye opener or surprise to me was the sustainability, in my opinion, of that upside. Right, but if it works, no one's going to give it up. And if the efficiencies are so much better, no one's going to give it up. And I just look at those other huge categories of enterprise software, right? There's CRM, which they're praying a little bit into, not coming at it from kind of a sales perspective, coming at it from a customer management perspective. There's HR, which they're clearly going after. There's ERP, which they're probably not in a position to do in the immediate term, but there's still a lot of work getting done in large enterprises that can use a significant amount of customization, automation, with a little big data twist in the back and a real eye to the customer experience as the millennials more and more in the workforce and the expected behavior of enterprise apps needs to mirror more what we get on our phone. So I think they're in a pretty good position. Yeah, so ITSM is the core, everything stems from that. That's sort of the main spring. And really, IT are their peeps, as Frank Slutman used to say. ITOM, IT Operations Management, is another large and substantive business, not as big as ITSM, but bigger than the others. Customer Service Management is a new and growing area. Security is a huge upside, in my opinion, in security. HR, they've been at it for a while. We've talked to Jen Stroud many times, and that's a big growth area. So these line of business entries are what's going to power the growth of ServiceNow going forward. There's also M&A, we haven't talked about M&A. When we first walked around the ecosystem on the exhibit floor at the ARIA four or five years ago, what we saw were a number of companies that could fit right into the ServiceNow platform. So one of the most more prominent companies that ServiceNow acquired was DX Continuum. It's sort of an intelligent AI machine learning system, and they're deploying that to help predict outages part of their IT operations management service, and they'll use that elsewhere. So it's a very specific, AI, we cover AI, we cover autonomous vehicles and so forth. That's actually a great use case, but so much of AI is fuzzy, and so much of deep learning and machine learning is like, how is that applied? Well, predictive analytics to say, okay, this component is going to fail, replace it or move the work off of that server. That's a really tangible use of AI. So we've seen ServiceNow use M&A. Now what it does when it acquires a company, it has to go through cycles of replatforming. ServiceNow doesn't just bolt on third-party products. Wait, basically it rebuilds them from scratch on the platform. Into the platform, which is what you have to do, which is kind of part of what SaaS has all about, and in the early days of SaaS, there was a lot of pushback, because everybody thought they needed customization. Well, he didn't really need customization because you can't have 47 versions of the platform out there. What you need is the ability to configure and have great configurability, and that's what good platforms do, and that's what Fred tried to build in. Oh, by the way, I got to get started, so I went with the ITSM. So I think they're in a great position, Dave, and as we know, cloud economics, of which this is a big giant application, get good as the thing gets bigger and bigger and absorbs more and more functionality. So again, interesting change of management. We're going to talk to John, really look forward to it, fresh new energy, and I think they're off the races. They've been racing for a while. Some of the other things, let's talk about customers for a minute. So one of some of the things that I get from customers when I talk to them is, and again, again, CMDB and service catalog, those are too critical. If you want to get the value out of service now, you got to implement those two things and others. But as well, this idea of multi-instance allows you to upgrade at your own pace. What a lot of SaaS companies will do, and we know this as a customer of a lot of SaaS companies, they say, new upgrade coming, beware and boom, the function hits, or it also oftentimes hits with a price increase. What service now claims is that because you're in a multi-instance as opposed to a multi-tenant environment, you can plan your upgrades. Now, having said that, what a lot of customers will do is they will try to avoid custom mods, custom modifications, and they'll try to take service now function out of the box. The desirability of that is when a new upgrade comes, you don't have to worry about the modifications that you've made. However, it's not always that simple. I talked to a customer this morning on the way over here, and they're a big SAP user, and they're doing a lot of custom mods with their implementation. I said, aren't you worried about that? Yes, we're very worried about that because that's going to be problematic for us when we upgrade, but they're wed to SAP. So my advice to customers is always try where possible to avoid custom modifications. You hear that a lot from, for instance, in-for customers. You frankly hear it a lot from Oracle customers trying to avoid the modifications. So mods can drive value for your business, but in the cloud world, in the cloud era, they can really create problems for you. And everyone thinks that they're special, but the reality is a lot of processes are repeatable across businesses. And actually, if you're sitting as a SaaS software provider, you see it across a lot of customers try to go with what's the standard out of the box with basic configuration changes and try to keep away from the customization or like I said, you can get yourself in serious trouble and not really take full advantage because you want to take advantage of the upgrades. You want the security upgrades. You want the functionality upgrades. You want the latest plug-ins from the ecosystem. So stick with the core and try to really avoid. And if you've got stuff that needs to be kept up and it's old and it's legacy, try to shield it as much as you can from kind of this new age application. So we're here for three days, the cube, knowledge, 17, the hashtag, no, 17. And so we will be covering all the innovations. It's an interesting conference because the roles here are IT practitioners, CIOs, line of business professionals like those within HR and other lines of business. So really a diverse crowd. There's a developer conference, a lot of events within the event. There's a women in tech luncheon tomorrow hosted by John Donahoe. So a lot of stuff going on that we're going to be covering. Jeff Frick and myself, we are going to be right back with John Donahoe, the new CEO of ServiceNow coming fresh off the keynote. So keep right there everybody. This is theCUBE. We're at knowledge 17 right back.


I'm Mark Slater and I'm the Executive Inspector in charge of the State Drug Investigation Unit in Brisbane. So you've wrapped up Operation Ice Soldier? Yeah, we have today. There's been a closure phase of the operation today and also yesterday and that's been the culmination of about 11 months of intensive work by detectives from the local area here on the Sunshine Coast and also the State Drug Investigation Unit. Tell us what you see and how many people you arrested because obviously this would be a big operation. We look over all throughout the 11 months including the closures yesterday and today. A total of 39 persons have been charged with 117 offences at this stage. There's still a lot of work going on out there today and there'll be continuing work in the coming weeks and we'd expect some more arrests as that work continues. Has there been a street value put on the amount of drug seized? At this stage the value of drugs is just short of $2 million and that includes the seizures over the last couple of days plus also during the course of the operation and we would expect some more as the operation continues. What's the type of drugs? Generally the majority of arrests have taken place in the North Coast regions. Earlier throughout the course of the operation people have been identified in other areas and enforcement actions have been taken in relation to those people. How many drugs and what types of drugs have you seized? We've seized drugs across the spectrum. The majority of seizures relate to cannabis but there's also been some seizures in relation to amphetamines, ecstasy and some GHB and steroids. Is it fair to say this is $2 million worth of drugs that will be off Sunshine Coast or these sort of streets up North? That's right, you can say that. Definitely it's been a significant seizure for us and will have a big impact on the local market. Is it mainly sort of took off from the public that you rely on to do raids like this? We rely on a range of things as far as our operations are concerned. Certainly information which does come from the public from time to time but also work that's generated from other operations that the local detectives are performing here and also work that we're doing in Brisbane. Can you tell us about what you seized yesterday? The major seizure yesterday was approximately 537 plants from an area at Condale and a 25 year old Condale man was charged with trafficking in relation to that seizure plus other matters that have come to light during the investigation. Was that one of the largest seizures during this operation? It has been, yes. Have you mainly found on rural properties is that where you find the drug labs? Generally, labs are found in various types of locations rural, semi-rural that can be in residential premises or business premises across the state. Are we getting smarter in the way that they try and hide things from you? It's probably hard to say. Obviously, when we talk about clandestine labs I mean people want to keep those types of things covert from us but with the work that we are currently doing particularly a lot of the good work that's happening here in the North Coast region we've been quite fortunate that we've been able to seize as many as we have in the last 12 months, two years. We were named as one of the, I think it was, the North Coast was the highest drug area. Is this operation sort of attributing to that because you're uncovering these operations? Look, in terms of lab seizures certainly from a material that's appeared in the media recently there is a high proportion of labs located in this region but that's probably indicative of the population that you have here and the majority of drug labs have been located in the higher population areas in the South East corner. Where are the hotspots for drugs on the coast? Look, I wouldn't exactly say that you could identify any particular hotspots that are of major concern but certainly where we do get information about drugs out there in the community either from a local level or with the assistance from state crime we look into that and take action where it's appropriate. There was a marijuana drug bust recently is it sort of getting more common to find cannabis plants rather than other types of drugs? Look, all types of drugs are found all the time so it's through the good work that the police are doing across the state that we had these seizures. When did the Brisbane Drug Squad come on board with this? We came on board in September in 2010 after the local detectives here at Mauritidore with their drug enforcement team kicked off the operation in June 2010 I believe. Certainly it's been talked about as being one of the biggest here on the Sunshine Coast and obviously some work done by our local police here to get that, to get those tips. What would you have to say about the work that was done here by our local detectives? Certainly the major contributing factor towards the results here today were from the good work that started here with the local drug enforcement team. The resources that we have at state crime particularly at the drug squad our commitment right across the state is to support the regions in dealing with the drug trade in Queensland. How many police altogether have been involved in this operation? About a hundred police in the last two days, yeah. And you're able to say like Western suburbs like an old mansion conundale like between where and where? Yeah, yeah, yeah, yeah. Yeah, Morris, Carlos, M-A-U-R-I-C Carlos, C-A-R-L-E-D-S, Detective Superintendent, Regional Crime Coordinated North-Gas Region. Can you list the areas where you have found drugs like from the North of the South? Well, our area covers between Redcliffe to Bundaberg including those districts and there's no one area that creates any greater problem for us than any others. We seem to find drugs across the spectrum of the region but also across the spectrum of the population. So it's difficult to pinpoint one place.  It's been going for a very long time. Obviously it's not a lot of success. It is. It's certainly a large operation and it's down to the dedication of other detectives and they've proven the success of their work through the results of this operation. In terms of its size per head, there have been a number of operations of similar size but certainly this is one of the most successful in terms of outcomes and results. When's the next one then? Well, of course, this is an ongoing struggle. It's only part of a larger strategy to fight what is a difficult thing for society but enforcement will continue and it will be continued in a vigorous way in this region. For the Sunshine Coast community who are hearing about this today and certainly with cannabis, we hear about it so often being out there there might be the perception that cannabis may be one of the more minor drugs. Tell the community how this is going to impact and how it will help protect them. Well, it's difficult for us to pinpoint exactly the effects of these things and we've seen our road told. It's difficult to predict how much of that may have been attributable to drugs whether it's marijuana or ecstasy or any of the others. These do have an effect and those deaths could be prevented in some circumstances. Now that on top of suicides and other mental health concerns surely must indicate that this is a thing we must attack and we attack a vigorous here in this region. From a local angle, $2 million worth of drugs. That's pretty awesome for the Sunshine Coast area which is quite small. It is and it's something that concerns us and that's why the Sunshine Coast District and other districts in this region have taken such a vigorous stance against such crimes. Obviously the public purse has impacted where that sort of money is floating around in the community untaxed and untouched. What would you like to say through us I guess and to the community about the detectives, your detectives who have helped get this $2 million drug bust? Well, like the detectives across the spectrum these offices have worked very hard for a long time and their success has shown here today in these results and whilst this is only part of the larger strategy I think the enforcement and the people of the Sunshine Coast District will be very confident in the enforcement action that's been taken to prevent these drugs getting onto the street. Have you been surprised by some of the larger falls that you've got like yesterday and conned out 537 plans since a small operation that's huge, that's drug trafficking? Yeah it is and we're disappointed that that continues but we're not surprised given the work that's been done since June 2010 on this operation and it is as I say the culmination of a lot of work so in that respect I think it's good to see the outcomes of that but it's disappointing in terms of the ongoing attitude that some people have to drugs. Can you give us an idea of what we found that's in the shots of Montville today? There was a number of places on the hinterland where seizures of cannabis and other powder drugs and speed and other drugs have been located and obviously our concern is that those get onto the street and they affect our young people and drivers and so forth and we're determined to do what we can to stop it. What's your message to I guess other people who are in this industry who might happen to be watching? Well of course this is an ongoing process it has been ongoing for many years and I think the results of the day should make those people think carefully about whether or not this is a hit industry to be in it's something that we will continue to vigorously pursue and there will be no later on.


From DailyDoseOfWeirdNews.com, I'm Darren Marlar and this is your Daily Dose of Weird News. This episode is brought to you by The Audiobook, Could It Be True, Volume 1, Urban Legends by Cindy Parmitter. Here are a free sample and support Marlar House by downloading the audiobook for yourself at DailyDoseOfWeirdNews.com. In a new trend, more women are using marijuana during pregnancy. Is it itty-wonder why we're having more fat babies being born? The moms are always having the munchies. Kim Kardashian says she is done with Caitlyn Jenner. My theory is to avoid the whole question of should I still buy her a Father's Day gift. A German man tried to leave his house for work this week only to find his front door had been bricked up. He was exiting his residence near Frankfurt and found somebody had built a wall in front of his entrance. He had to tear it down in order to leave his property. You gotta admit, that's a whole lot more creative than the whole post-it notes all over your car thing. A study says two hours of video games a week makes young people more employable. So that should make the kid who lives next door to me 15 times more employable than the other candidates. Contrary to conventional wisdom, drinking alcohol is not enough to make you fat or even gain weight, as long as you drink in moderation. Nutrition reviews report that a team of researchers examined 31 different studies on the topic and concluded that moderate drinking doesn't have a strong association with weight gain or a high-body mass index. So good news, you no longer have a beer belly. Bad news, you are still morbidly obese. Meanwhile, a new study warns that even moderate drinking can damage our brains. This news could not come at a worse time with parents everywhere having to deal with kids being home from school. A Russian man recently proposed to his girlfriend, a nurse, by hiding the engagement ring that he bought her in his stomach wound. He asked her to change the dressing on the wound and while doing so she found the ring. The woman said yes to the proposal but washed the ring before putting it on.  A Utah woman is accused of pulling two over seven-year-old son's teeth out with pliers in a Walmart bathroom. See, and people say Obamacare is dead. If you liked this video, please give it a thumbs up and be sure to subscribe if you want to see more, and click that little bell icon next to the subscribe button to be notified when I post new videos. And if you're already an official Weirdo, please share this video on your own social media. Find even more weird news that I didn't have time for on the Facebook page at DailyDoseOfWeirdNews.com. I'm Darren Marlar and I'll see you next time, Weirdos!


Deep in the heart of New York City's Chinatown, is an office of two Feng Shui masters, where framed photos decorate the walls next to crazy, fancy fountains and a megaton of plants. My kind of place. But of all these photos, there's one that's weirder than the others. In it, you'll see a woman named Poon Ying standing next to a significantly less orange Donald Trump. With a phrase, photo taken at the Trump International Hotel and Tower, groundbreaking and blessing ceremony June 1995. Now I know what you're thinking. Trump doesn't exactly embody the principles of an ancient Chinese philosophy that aims to harmonize people with their surroundings. But according to Poon Ying, who is his chief Feng Shui advisor for decades, incorporating those principles into his real estate holdings was always one of his first priorities to attract Asian investors. And apparently one of his closely guarded secrets behind his success in business. Since the Western Feng Shui boom began back in the 70s, this ancient art form has got gobbled up by the spiritual community as an over-glorified interior decorating scheme. And almost every spiritual entrepreneur is pushing it today. A lot of the time without knowing any of the history or actual theory behind it outside of, hey, face the right direction and you'll get good luck and resonate. Which is just, ugh, ugh, I'm totally done with it. And you know what else we're done with these past couple of years, ugh. And sure, while we can leave you today better equipped to understand and harness Feng Shui to improve and transform your environment, we can also leave you much more fully equipped and prepared to tackle this brand new year and all of the blessings and challenges that await you. Introducing our 2022 Almanac of the New Age. With this extensive guide, you'll be provided the knowledge you need to work with the energies of 2022 rather than against them. Go swipe up your copy now and we promise your 2023 self will thank you later. Here's the deal. Get nearly everything you think you know about Feng Shui if you learned it from a New Age book. Anyone who teaches Feng Shui without having a solid grounding in classical Chinese philosophy is like someone practicing surgery without studying anatomy. It just doesn't work and it can even be dangerous. In fact, one of the major criticisms that mainstream science has with Feng Shui is that in most experiments where it's been tried, no two professionals agree on the right direction or flow of Qi. So it comes across like it's all pure guesswork. In reality, unless you've read the Yi Qing, Book of Burial or the Book of the Tomb, or learned from an actual Feng Shui master, you aren't really qualified to tell someone where to put their bed. And like any profession, there are a lot of people who know how to take advantage of people's beliefs and gullibility, because Feng Shui is a mysterious or exotic Oriental practice that the Starbucks hipsters just down quicker than their Chai lattes. In order to really, really understand what exactly Feng Shui is, we need to go back into ancient history, like really ancient, and look at some astronomy since before the invention of the Feng Shui compass, all those lucky and unlucky directions were calculated using the stars. The practice is as old as Chinese culture itself, with Stone Age villages along the Yellow River dating back to 6000 BC even practicing it. Back in 2001, a grave was unearthed in the Henan province of China and it was kind of a big deal. It got interesting when the skeleton was found with two figurines made mostly of shells, a dragon to the east and a tiger to the west. And the center of the grave was a model representation of Beidou, the Chinese name for the Big Dipper. Since the dragon and tiger are also constellations in the Chinese sky, it's pretty clear that the early emperors and sages were orienting their tombs with the yearly revolution of the Big Dipper around the North Star. Yeah, but why is all this important? Well, because Feng Shui was originally a practice meant to orient the homes of the dead. Basically the tombs. Not the living. But before we can talk about why, we need to cover something even bigger. Qi. Qi is the basic force behind all of Feng Shui. It's the energy through which it, in most of our existence, is said to work. Thousands of pages of books and scrolls over the last 4,000 years have been dedicated to the idea and, to be honest, no English translation can do it justice. While energy might capture some of its physical characteristics, it doesn't even come close to addressing its spiritual qualities. Now, the ancient book of burial, written by the 4th century Taoist sage Gua Pu, characterizes Qi as life breath. But in its earliest context, Qi was actually used as a description for weather. According to the Zuol commentary, Qi was a force composed of the six phases. Cold, warmth, wind, rain, darkness, and light. In the early days, the word actually just meant vapor, or steam. Basically anything in the sky, like clouds, but by the time Confucius came along, it had come to mean a kind of animating force in the atmosphere that was manifested in weather phenomena that actively influenced the human body. If you looked after your environment, and the Qi was flowing harmoniously in the world, the individual would be healthy. But if there was a block where the atmosphere was damaged somehow, it would manifest as fevers, chills, or even sickness on a society-wide scale. Hey, I'm not saying anything. The science of feng shui analyzed this force in the environment with the intention of controlling its manifestations for the individual. I call it a science because in the beginning it really kind of was. The practice was based entirely on mathematical calculations of stars, an empirical observation of the weather patterns around you that you could then use to inform your theory about where the Qi was flowing. But as time progressed, and astrology and numerology got lubed in, it became less of a concrete science and more of an art form. The quote-unquote art of feng shui isn't as much based on elemental physical world, but requires a belief in something like a force of destiny or even fate. But that doesn't necessarily mean that it's any less effective. See, Qi is said to ride the feng, meaning wind, and scatter. But it is retained and collected when it comes to the content with shui, water. The ancient sages collected it to prevent its dissipation and guided it in specific ways to assure as much Qi as possible was retained in a specific area. That's why it was called feng shui, literally the art of wind and water. According to the laws of feng shui, a place that attracts water is the first and utmost priority, followed by a site that catches wind. And going as far back as the Shang Dynasty, good or bad times for feng shui, was determined through oracle bone readings. Very cool. Remember the aunt Wu episode of Avatar, where that old woman threw dragon bones on a fire and then interpreted the cracks and aim got all hung up on Kitarra? Yeah, that's a totally real thing. Okay, well maybe not with the dragons, but still. We have records of turtle shells or animal bones that are inscribed with phrases like, on such and such a day, a crack was made in this bone. And so and so, divined that the king needs to build a city over the hill. Does the High God say we're gucci? Good news, High God says the place is lit. Go for it. Obviously, with a few more thousand, four sooths or whatever, but you get the idea. Throw in some Taoist philosophy on yin and yang, which originally denoted sunshine and shade in its earliest form. And we start to see the main principle behind all the feng shui, orientating the tomb and home to collect the most amount of qi by facing it in a correct direction that is calculated by a mixture of astrological and physical signs. So why is everyone so obsessed with dead people and whether they're being put in juicy qi spots? I said qi spots, you guys. Oh, Jesus, really should have read the script on this one. Because feng shui was originally a form of ancestor worship, there was this belief in ancient China that the ghosts of ancestors and other independent, intangible forces, both personal and impersonal, kind of like great grandma and river spirit, could affect the material world and that these forces needed to be looked after through rites and suitable burial places, because their support ensured the success and balance of the living. The spirits were always thought to be supporting us, and by orientating their homes in the right way, we could strengthen them, and they could support us better in return. When it comes to feng shui in practice, there are generally two schools of thought, li fa, meaning compass, and zheng fa, meaning form. The form, referred to in zheng fa, is the shape of the environment itself, like mountains, rivers, plateaus, buildings, and general surroundings.  Ideas about yin and yang and the traditional five elements of the wuxin, fire, water, earth, metal, and wood. This school generally analyzes the shape of the land and flow of the wind and water to find that place with perfect shi. It also considers the time of important events, such as the birth of the resident and the building of the structure. If we look at a few ancient Chinese texts, actually, we see just how important that relationship between qi and the land really is. The guan su text reads, water is the blood and qi of the earth, flowing and communicating as it's sinews and veins. Way later, after the forum school developed, we see the book of burial again, saying, qi flows where the earth changes shape. The flora and fauna are thereby nourished. It flows within the ground, follows the form of the terrain, and pulls where the terrain runs its course. According to the book, the best place to build a tomb or house in that case is an area where the features of the land finish, but they didn't end there. The sages also brought in some heavy astrology and Chinese zodiac stuff when considering it all. They looked at the four palaces of heaven in Chinese mythology and brought them into the physical world as the cardinal directions. Again, they tell us that, the dragon and tiger are what protect the district of the home. On a hill amidst folds of strata, if a place is open to the left or vacant to the right, if it is empty in front or hollow at the rear, qi will dissipate in the blowing wind. Back to water though, flowing water was also said to attract qi like a magnet, and an auspicious home was one that encourages water to linger in its vicinity without stagnating. That's why so many Zen gardens have those cute little bamboo flowing brooks that just look beautiful and feel great. If we think about the form school as dealing with physical qi, then the compass school deals with the cosmic qi. It relies on astrology and numerology, and helps us align ourselves to its flow. It works by using a special compass called the luo ban, to establish 8 heavenly directions, all of which have a different kind of qi and an orienting stuff in the right direction using something called a bagua. Eight symbols use in Taoism to represent different parts of reality. So how would you actually go about using feng shui in your life right now? Well, in modern practice at least, the whole process generally revolves around something known as your life gua.  So before we get into it, you'll need two things, a pen and paper, and your birthday. Which I guess is technically three things, but anyway, are you guys ready? Take your year of birth, let's say 1956 for example, and add the last two digits together. So in this case, adding 5 and 6, giving you 11. Now take the number 11, sum that number together, in this case, 1 plus 1, which gives you 2.  So in this case, 10 minus 2 equals 8, which gives you your life gua. If you're a female, you add 5 instead, so it would be 2 plus 5 equals 7. Okay, but let's be honest, numbers are pretty boring, so here is a quick video of some cute puppies! Anyway, there is one major exception to all of this stuff though, and that's the number 5.  Why you may ask? Well, this is because on the old school of Luopan, compasses that determine the directions. The number 5 was considered the center and had no direction in itself, but this has been adapted in modern versions and has started showing up on charts. Once you have your life gua, you can use this chart to see your good and bad directions and start incorporating feng shui into your life right now by paying attention to which directions you have certain things in. Don't worry, we'll also leave a link to this exact chart in the description of this video too. Now, there's still a lot more to cover, but we're going to just let you dive into the sources yourself in the description if you want to explore the history and practice of it all. And it's worth pointing out that even landscape ecologists are getting into traditional feng shui nowadays, and spiritual architecture that incorporates sacred geometry as well. Feng shui and vastu shastra is going through a huge boom right now, so it's the perfect time to get into it. And if you took the time to calculate your life gua from earlier, let us know in the comments. Once you get past the boring math stuff, this stuff gets pretty interesting really quick. Alright guys, it looks like it's my time. Until next time folks, later!


Hello and welcome to the session. In this session we will discuss about mortgage loans and we will calculate monthly mortgage payments for fit-straight mortgage loan. Let us first understand the meaning of real estate or real property. Real estate or real property is land plus any permanent improvement on land. The improvement on land may include buildings, homes or any type of structure. These permanent structures are also known as real structures. Now let us understand the meaning of mortgage loans. Purchasing or constructing home, hotels, commercial buildings etc. is very expensive. Most of the people need to borrow some money in order to purchase or construct real property. For this they take loans. These loans are called mortgage loans because in these loans real property is kept as security with the lender. This property which is kept as security on a mortgage is called collateral. If a person is unable to repay the loan then the lender takes the possession of the property, kept as security and sells it in order to recover the loan. Although there are different types of mortgages but here we will understand the meaning of fixed rate mortgage. Under fixed rate mortgage the rate of interest remains same for the entire period of loan. Now we will discuss monthly mortgage payments. The loan is repaid in equal and regular installments which includes the repayment of principal and interest over a specific period of time. This process of repayment of loan is called amortization of the loan. We can calculate the amount of amortization or monthly mortgage payments using a table or a formula. We shall discuss some steps on how to calculate monthly mortgage payments using $1000 monthly payments table. In the first step we will find the amount financed using the formula amount financed is equal to purchase price minus the down payment. Next we find the number of $1000 units in amount financed by dividing the amount financed by $1000. That is the number of $1000 units is equal to amount financed upon $1000. From the table we will locate the table factor for given annual rate of interest and number of years financed. This table factor is the monthly payment for $1000 financed. So finally we calculate the monthly mortgage payments. So monthly mortgage payment is equal to number of $1000 units into table factor. We can also find the total interest on the loan. Total interest on loan is equal to monthly mortgage payment into number of payments minus the amount financed. For better understanding of all these steps let us consider an example. Suppose your friend Sam is purchasing a commercial building for $221,500. He made a down payment of $30,000. Rest of the amount is financed at a fixed rate of 5% annually for 20 years. What is the monthly mortgage payment? So now we know that Sam is purchasing a commercial building for $221,500. So the purchase price will be equal to $221,500. The rate of interest is equal to 5% annually. The time period is equal to 20 years and the down payment is equal to $30,000. So now with all this information we shall find the monthly mortgage payment. So here our first step is to find the amount financed. The amount financed is equal to purchase price minus down payment. So here the amount financed will be equal to purchase price that is $221,500 minus the down payment that is $30,000. Which is equal to $191,500. So our next step is to find the number of $1,000 units which is calculated by amount financed upon $1,000. So here the number of $1,000 units is equal to amount financed that is $191,500 upon $1,000 which is equal to $191.5. Our next step is that from the table we will locate the table factor for given annual rate of interest and number of years financed. This table factor is a monthly payment per $1,000 financed. So here is a table showing the rate of interest and the number of years. Now here time period is equal to 20 years. So we first locate 20 years in the table. Also the rate of interest is equal to 5% annually. So in the first column we locate 5%. Now the value corresponding to the rate of interest 5% and the time 20 years is the table factor. So here it is 6.60. So the table factor is equal to 6.60. So now lastly we calculate the monthly mortgage payment which is equal to number of $1,000 units into the table factor. So here the monthly mortgage payment will be equal to number of $1,000 units that is $191.5 into the table factor that is 6.60 which is equal to $1,263.9. So monthly mortgage payment for Sands loan is equal to $1,263.9. Now we shall discuss how to calculate monthly mortgage payment for fixed rate using formula. We use the following formula to calculate monthly payment for fixed rate mortgage. That is monthly payment is equal to P into R upon 1 minus 1 plus R the whole raised to power minus n. Where P is equal to the principal amount or the amount financed. R is equal to the monthly rate of interest in decimals and n is equal to total number of payments. Using the same example we calculate the monthly mortgage payment using the formula. Here we had calculated the amount financed which was equal to $191,500. So here the principal amount that is P is equal to $191,500. Rate of interest was equal to 5% annually that is 5 upon 100 which is equal to 0.05. So monthly rate of interest will be equal to 0.05 upon 12. That means R will be equal to 0.00416. The time period was equal to 20 years. So as there were monthly payments so total number of payments that is n will be equal to 12 into 20 which is equal to 240. So now we put all the values in the formula P into R upon 1 minus 1 plus R raised to power minus n. Which will be equal to $191,500 into 0.00416 upon 1 minus 1 plus 0.00416 the whole raised to power minus 240. That is equal to $191,500 into 0.00416 upon 1 minus 1.00416 raised to power minus 240. So now for such a large calculation we use a calculator and find 1.00416 raised to power minus 240 will be equal to 0.3692. This implies monthly payment will now be equal to $191,500 into 0.00416 upon 1 minus 0.3692. Which is equal to $191,500 into 0.00416 upon 0.6308. Again using calculator this is equal to $1,262.9. Thus using formula monthly mortgage payment for SAM's loan is $1,262.9. So in this session we have discussed about mortgage loans and also launched to calculate monthly mortgage payments for fixed rate mortgage loan. This completes our session. Hope you enjoyed this session.


from the CUBE studios in Palo Alto and Boston. It's theCUBE, covering IBM Think, brought to you by IBM. We're back, and this is Dave Vellante. You're watching theCUBE and we're covering wall-to-wall the IBM 2020 Think digital experience. Rob Thomas is here as the Senior Vice President of Cloud and data platform, Rob. Always a pleasure to see you. I wish it were face-to-face, but hey, we're doing the best we can. As you say, doing the best we can. Great to see you, Dave. Hope family, safe, healthy, happy as best you can be. Yeah, Ditto, back at you, Rob. And congratulations on the new role. Look at you and theCUBE. We've been riding this data wave for quite some time now. It's really been incredible. It really is.  We've gotten to the point now where I'd say it's game on for AI, which is exciting to see. And that's a lot of what the theme of this year's Think is about. Yeah, and I definitely want to dig into that, but I want to start by asking you sort of the moves that you saw and are seeing your clients make with regard to the COVID-19 crisis, maybe how you guys are helping them and very interested in what you see as sort of long-term and even quasi-permanent as a result of this. I would first say it this way. I'm not sure the crisis is going to change businesses as much as it's going to be accelerating what would have happened anyway. Regardless of the industry that you're in, we see clients aggressively looking at how do we get the digital faster? How do we automate more than we ever had before? There's the obvious things like business resiliency, business continuity, managing the distributed workforce. So to me, what we've seen is really about an acceleration, not necessarily in a different direction, but an acceleration on the thing is that that we're already kind of in the back of their minds or in the back of their plans. Now that as we've come to the forefront and I'm encouraged because we see clients moving at a rate and pace that we've never seen before, that's ultimately going to be great for them, great for their businesses. And so I'm really happy to see that. You guys have used Watson to really try to get some good high fidelity answers out to citizens. I wonder if you could explain that initiative. Well, we've had this application called Watson Assistant for the last few years and we've been supporting banks, airlines, retailers, companies across all industries and helping them better interact with their customers. And in some cases, employees. We took that same technology and as we saw the whole COVID-19 situation coming, we said, hey, we can involve Watson Assistant to serve citizens. And so it started by, we started training the models which are intent based models in Watson Assistant on all the publicly available data from the CDC, as an example. And we've been able to build a really powerful virtual agent to serve really any citizen that has questions about COVID-19 and what they should be doing. And the response has been amazing. I mean, in the last two weeks, we've gone live with 20 organizations, many of which are state and local governments, but also businesses, city of Austin, children's healthcare of Atlanta, state and local governments in Spain and Greece, all over the world. And in some instances, these clients have gotten live in less than 24 hours, meaning they have a virtual agent that can answer any question, they can do that in less than 24 hours. It's actually been amazing to see. So proud of the team that built this over time. And it was kind of proof of the power of technology when we're dealing with any type of a challenge. You know, I had a conversation earlier with Jamie Thomas about quantum and was asking her sort of how your clients are using it. And the examples that came up were financial institutions, pharmaceutical, you know, battery manufacturers, airlines. And so it strikes me when you think about machine intelligence and AI, the type of AI that you're doing at IBM is not consumer oriented AI. It's really designed for businesses. And I wonder if you could sort of add some color to that. Yeah, let's distinguish the difference there because I think you said it well. Consumer AI is smart speakers, things in our home, you know, music recommendations, photo analysis, and that's great and it enriches all of our personal lives. AI for business is very different. This is about how do you make better predictions? How do you optimize business processes? How do you automate things that maybe your employees don't want to do in the first place? Our focus in IBM as part of what we've been doing with Watson is really anchoring on three aspects of AI. Language, so understanding language because the whole business world is about communication and language. Trust, meaning trusted AI, you understand the models, you understand the data. And then third, automation. And the whole focus of what we're doing here in the virtual think experience is focused on AI for automation, whether that's automating business processes or the new announcement this week, which is around automating IT operations for a CIO. You've talked over the years about this notion of an AI ladder, you actually wrote a book on it. But it's been hard for customers to operationalize AI. We talked about this last year at Think. What kind of progress have we made in the last 12 months? There's been a real recognition of this notion that your AI is only as good as your data and we use the phrase there's no AI without IA, meaning information architecture. It's all the same concept, which is that your data has to be ready for AI if you want to get successful outcomes with AI. And the steps of those ladders around how you collect data, how you organize data, how you analyze data, how you infuse that into your business processes and seeing major leaps forward in the last nine months where organizations are understanding that connection and then they're using that to really drive initiatives around AI. Let's talk about that a little bit more. There's this notion of AI ops. I mean, it's essentially that take the concept of DevOps and apply it to the data pipeline, if you will. I mean, everybody complains, data scientists complain they always spent all their time wrangling data, improving data quality. They don't have line of sight across their organization with regard to other data specialists, whether it's data engineers or even developers. Maybe you could talk a little bit more about that announcement and sort of what you're doing in that area. Sure, so first let me put a number on it because the numbers are amazing. Every year organizations lose $26.5 billion of revenue because of outages and IT systems. That is a staggering number when you think about it. And so then you say, okay, so how do you break down and attack that problem? Well, you have to get better at fixing problems or you have to get better at avoiding problems altogether. And as you may expect, it's a little bit of both. You want to avoid problems, obviously, but in an uncertain world, you're always going to deal with unforeseen challenges. So also the question becomes, how fast can you respond? And there's no better use of AI than to do something like those tasks, which is understanding your environment, understanding what the systems are saying through their data, and identifying issues before they become outages. And once there is an outage, how do you quickly triage data across all your systems to figure out where is the problem and how you can quickly address it? So we are announcing Watson AI Ops, which is the nervous system for a CIO. To manage all of their systems. What we do is we just collect data, log data from every source system. And we build a semantic layer on top of that. So Watson understands the systems, understands the normal behavior, understands the acceptable ranges, and then anytime something's not going like it should, Watson raises his hand and says, hey, you should probably look at this before it becomes a problem. We've partnered with companies like Slack. So the UI for Watson AI Ops is actually in Slack. So that companies can use, and employees can use a common collaboration tool to troubleshoot or look at any of their systems. It's really powerful, something we're really proud of. Well, this kind of leads me to my next question, which I mean, IBM got the religion 20 years ago on openness. I mean, I can trace it back to the investment you made in Linux way back when. And of course, there's a huge investment last year in Red Hat, open source company. So you just mentioned Slack, talk about open ecosystems and how that fits into your AI and data strategy. Well, if you think about it, if we're going to take on a challenge this grand, which is AI for all of your IT, by definition, you're going to be dealing with a whole ecosystem of different providers because every organization has a broad set of capabilities. We identified early on, that means that our ability to provide an open ecosystem, interoperability was going to be critical. So we're launching this product with Slack I mentioned, with Box, we've got integrations into things like PagerDuty, ServiceNow, really all of the tools of a modern IT architecture, where we can understand the data and help clients better manage those environments. So this is all about an open ecosystem, and that's how we've been approaching it from the start. It's really about data, applying machine intelligence or AI to that data, and about cloud for scale. So I wonder what you're seeing, just in terms of that sort of innovation engine. I mean, obviously it's got to be secure, but it seems like those are the pillars of innovation for the next 10 plus years. I think you're right. And I would say this whole situation that we're dealing with has emphasized the importance of hybrid deployment, because companies have IT capabilities on public clouds, on private clouds, really everywhere. And so being able to operate that as a single architecture is becoming very important. You can use AI to automate tasks across that whole infrastructure. That makes a big difference. And to your point, I think we're going to see a massive acceleration towards hybrid cloud deployments using AI, and this will be a catalyst for that. And so that's something we're trying to help clients with all around the world. You know, you wrote in your book that O'Reilly published that AI is the new electricity, and you talked about problems of not enough data. If your data's on-prem and you're only in the cloud, well, that's a problem, or too much data, how you deal with all that data, data quality. So maybe we could close on some of the things that you talked about in that book, maybe how people can get ahold of it or any other sort of actions you think people should take to get smart on this topic. Yeah, so look, really excited about this. Paul's a copulous friend of mine and a colleague. We've published this book working with O'Reilly called the AI ladder. And it's all the concepts we talked about in terms of how companies can climb this ladder to AI. And we go through a lot of different use cases, scenarios. I think anybody reading this is going to see their company in one of these examples. Our whole ambition was to hopefully plant some seeds of ideas for how you can start to accelerate your journey to AI in any industry right now. Well, Rob, it's always great having you on theCUBE. Your insights over the years, and you've been a good friend of ours. I really appreciate you coming on and best of luck to you, your family, your wider community, really appreciate it. Thanks, Dave, great to be here. And again, wish you and the whole CUBE team the best. And to all of our clients out there around the world, we wish you the best as well. All right, you're watching the CUBE's coverage of IBM Think 2020, the digital event. We'll be right back right after this short break. This is Dave Vellante.


Hello, and welcome to the session. This is Professor Farhad in which we would look at an actual exercise that could be considered a simulation that deals with overhead. How do we compute the predetermined overhead rate for various jobs? And what do we do when we have an overapplied, compute that amount or underapplied overhead and what do we do with it? As always before we start, I would like to remind you to connect with me on LinkedIn if you haven't done so. YouTube is where you would need to subscribe. I have 1,900 plus accounting, marketing, tax, finance, as well as Excel tutorials. If you like my lectures, please like them and share them. If they benefit you, it means they might benefit other people as well. I do have a website, and on my website I do have additional resources, especially for CPA candidate, as well as accounting students.  I can't replace those courses. What I can do is I can make the material on those courses much more interesting and much more beneficial to you. So if you use my resources to study, then Becker, Roger, and all these courses, then you can use them to their max efficiency. So I strongly suggest if you're a CPA candidate to check out my website. So let's take a look at this problem. Northern Rim Parts estimates, so the first word is important. It's manufacturing overhead to be 495, and its direct labor cost to be 900,000. That's all estimates for year one. The first three jobs that Northern Rim worked on had an actual direct labor cost of 20,000 for job 301, 30,000 for job 302, and 40,000 for job 303. So we have the job 301, 302, and 303. And 301, we spent 20,000, 302, we spent 30,000. That's easy, and 303, we spent 40,000. This is how much we actually spend. For the year, actual manufacturing overhead was 479,000. This is another important term. Here is the actual. Notice we have actual numbers and we have estimates. So you have to know when to use the actual, when to use the estimate. The actual was 479, and the actual direct labor cost was 850. Manufacturing overhead is applied to jobs on the basis of direct labor hour constants. Although we are giving, there's no other method here using predetermined rate. Okay, how much overhead was assigned to each of the three jobs? Well, to know how much you assign, you need to have a predetermined overhead rate. To know the predetermined overhead rate, you need to know how do you allocate your overhead? Well, I allocate my overhead based on my direct labor cost, based on the estimate that I make at the beginning of the year. My estimate is based on 495,000. So notice these are all from the estimate divided by total of 900,000. If I do this, I'm gonna find the rate of 55%. It means I am for every job, for every dollar I spend in, for every dollar I spend in direct labor cost, I allocate an additional 55% to that job in manufacturing overhead. Well, let me change my pen here and see how much I allocated for each of these jobs. Well, 20,000 times 0.55, 30,000 times 0.55, 40,000 times 0.55. And that's gonna give me 11,000, 16,500 and 22,000. In total, I allocated to these jobs 49,500. This is how much I allocated. That's good. What was the over-applied or under-applied manufacturing overhead for year one? Now it's a different question. They're asking us for the whole year, how much was overhead over-applied or under-applied? How do I know whether overhead is under-applied or over-applied? I have to compare two numbers. I have to look at my actual, how much my actual was versus my applied. How much did I estimate I will spend? Well, I have the actual right here. My actual overhead was 479,000. That's easy peasy versus applied. Well, how do I apply it? I applied based on direct labor hours. What was my direct labor hours? My direct labor hours were 850,000 and I'm gonna apply 0.55 and that's gonna give me 467,500. Therefore my applied is 467,500. What does that mean? Well, I actually spend 479,000. I applied, applied another word for applied is estimate. I estimate the spent on overhead based on my rate of 55% of direct labor cost, 467. Well, guess what? I underestimated. I underestimated my overhead. I under, let's use the technical word, under-applied by 11,500. So I answered this question. What do we do with any under-applied or over-applied? We have to close it. How do we close it? That's gonna be in the next question. Let's take a look at this question. Prepare an entry to allocate the under-applied or over-applied overhead. We already know it's 11,500. Overhead applied to each, overhead applied in each of the inventory accounts. So what they want us to do, they want us to take this 11,500 and allocate it to working process, finished goods and cost of goods sold. Now, how do we allocate? Sorry. Since they want us to allocate, for example, in most textbooks, or when you first learn this in managerial accounting, you allocate this to manufacture to cost of goods sold. Now, let's allocate it only to cost of goods sold. So it's just the easy way. So this way, once you understand it, it will be easy for you. So you have an overhead account. That's what you have. And in that overhead account, you have a debit. On the debit, you have the actual. And on the credit, you have the applied. Now, let's see. Our actual was 479,000 and our applied was 467,500 as computed earlier. Therefore, we had a debit balance of 11,500. In managerial accounting, what you did is basically, you said, okay, I'm gonna close this account to cost of goods sold. That's assume I already have a million in cost of goods sold. How do I close it? Well, I will credit 11,500 of manufacturing overhead to make it down, go down to zero. So I credit and I debit 11,500. Therefore, my cost of goods sold becomes 1,011,500. So I closed my overhead. I closed the two cost of goods sold. Now they want us to close it to not only the cost of goods sold, to spread it out, to spread it out. But this is basically what happened. Well, if we're gonna spread it out, we're gonna have to allocate it. How do we do so? We'll do so based on the relative value. What does it mean relative value? It means I'm gonna add up all these figures, then allocate for each one separately.  Then what I do, the figures are working process, finished goods and cost of goods sold. The reason I spell out everything is because I have some blind viewers on make sure I want to make sure they follow what I'm saying. So what I do is I'm gonna take 37,400 divided by 467,500 and that's gonna give me 8%. It means I'm gonna allocate of the 11,500 of the 11,500, I'm gonna allocate 8% to finished goods. I will do the same thing for the 102,850 which is finished goods inventory divided by 467,500 and that's gonna give me 22%. Then I divide cost of goods sold by the total and without even doing the computation which is 327,250 divided by the total 467,500 it must be 70% because the first two percentages were eight and 22, what's left is 70 because they all have to add up to 100%. Now I'm ready to allocate of the 11,500 to each of these accounts. So let me show you the computation first. So this is basically exactly what I just stated. I will take the total and I will divide each account work in process finished goods and cost of goods sold by the total to get the percentages. Then now I need to prepare the journal entry. What I have again, I have, let me show you the journal entry then I will explain it. So if you remember what I showed you earlier, I showed you the overhead account and I said there are two sides on the debit side I have 479,000 and on the credit side I have 467,500 and what I said, I said I have a credit balance of 11,000. What I need to do now, I need to close these accounts. I need to basically not these accounts I need to close this account, overhead has to go away. So I have to close it, how do I close it? Well, I'm gonna credit basically I don't have to credit 479 because it's technically, you know, but let's do it. So I'm gonna credit this account 479,000, debit this account 467,500 and debit this account also, I'm sorry, then credit this account. So 467,500, this amount canceled. Well, let's not do it this way. Okay. I already have 479 and overhead is 467,500. Basically those two accounts, if you know, one is applied, one is actual and one is applied. So basically those two accounts as I showed you earlier they net out to 11,500. Now all what I have to do is credit this account 11,500 which is, that's what I did here, credit this account 11,500, debit work and process, debit finish goods and debit cost of goods sold. And now, you know, you understand why I showed you the simple entry, credit overhead debit cost of goods sold. Here they kind of, they show it to you and like little bit more involved which is it's not much then taken the 11,500 and spreading that number over three accounts, 920, 2530 and 8,050. And notice what happened overall, all the accounts are down to zero. So after I have 11,500, I credited 11,500, my overhead is zero whether it's debit or credit now it's zero. So I allocated all the overhead. So basically the overhead is gone. The overhead is gone. So simply put, how would I, how would I journalize this entry? What I would do, I would say, I will debit work and process basically what it boils down to, 920, debit finished goods, 2530, debit cost of goods sold, 8,050 and credit the total manufacturing overhead, 11,500. So as long as you have those two accounts, the 479 and the 467,500, the debit and the credit in the overhead, this entry will close everything. But in this entry here, they're telling us you are, you are also closing the other two accounts. We already kind of closed them. Hopefully you'll see both journal entries and you understand both. As always, before I'm done, I would like to remind you to check out farhatlatchers.com for additional resources, whether you are studying for your CPA exam or if you're taking cost account.


the topic which we are going to discuss is theories of accident causation accident incurred in many situations we have discussed now the different theories which are related to accidents we will discuss them one by one as you have seen over the years from many years, many decades, many centuries several theories of accident causation have evolved that attempts to explain why accidents occur in theories, primary aim is to detect what kind of accidents are happening and how to prevent them the most widely known theories of accident causation are domino theory, a human factor theory third is accident incident theory and last is the epidemiological theory now here I have shared 4 types of theories which are of primary importance along with that, if we look at adjacent, there are 3 more theories which are of secondary importance there are system theories, combination theories and behavioral theories if we conclude them, then these are total 7 theories the primary aim of these 7 theories is to discuss the different theories of accident causation now we are going to discuss them one by one henrich domino theory of accident causation this theory is called domino theory which is henrich a person who has described 5 factors and he told us with the sequence that there are 5 factors in the sequence of events leading to up to an accident these factors can be summarized as follows number 1, Ancestry and social environment Ancestry and social environment's purpose is that wherever you are working if the working environment is healthy then chances of accidents are less if the working environment is not healthy then chances of accidents are more fault of a person this common practice is seen that most of the time in any organization accidents occur where the negligence comes in front of a person or the implie itself is negligence or the performance of your different types or the supervisor or the supervisor their negligence comes in front of them these are the reasons that organizations have seen these things and they have also seen how to control them the primary objective is how you can escape from accidents in organizations henrich domino theory of accident causation the third point is it is the unsafe act mechanical or physical hazards unsafe act it means that in organizations there is no healthy safety environment unsafe act mechanical or physical hazards act mechanical means if we talk about it technically then the mechanical part of the organization the machinery of the plant or the equipment related to it there may be problems in it and physical hazards act for example the space where you are working the space is less most probably you are moving from one place to another place and specifically the gap in between is very less so there are chances that if there are some products then you can be injured that point is accidents typically accidents that result in injury are caused by falling are being hit by moving object this is a self explanatory point that in organizations they have seen that something is moving you have ignored it when you have seen it from the right side or from the left side chances are that the object can hit you when the object will hit you there is one sort of injury over there and fifth point is your injury itself typical injuries resulting from accidents include lacerations and fracture now here it is seen that in organizations when injuries are in severe form then the implies can also be fractured for this sometimes you have to go for some surgery as well hand-rich domain theory of accident causation is a very important aspect it is linked to industrial safety first point is injuries result from a completed series of factors one of which is accident itself accidents are many reasons for example, I am giving you a lecture if something is stuck on the top of the house then it is one sort of accident and it may be result of injury if before explaining all the mechanisms or before doing the work if you see it in safety then chances of injuries will be less second point is an accident can occur only as the result of an unsafe act by a person or the physical mechanism mechanical hazards the first I have discussed after D.S. students this point is relevant again in organizations physical environment, safety, healthy hygienic working environment so chances of accidents are less most accidents are the results of unsafe behavior of the people as well sometimes the behavior of the employee is not very caring attitude and it is seen that when there is no caring attitude of any person then it is also seen that there is an accident in the result and unsafe act the main point is if you have an injury then there is unsafe practice in good organizations SOPs are written display is written the employee is shared communicate is done and the employee is educated if the employee is educated then chances are that the activity in the repetitive way will not occur in the redundancy way when it will not repeat then the chances are higher as compared to those organizations which are not practicing these particular practices the reasons why people commit unsafe act can serve as a helpful guide in selecting corrective action to convert unsafe practice in corrective action for example if someone tells a lie and he has been converted from lie to truth now he speaks truth when he converts then he will convert from bad habit to good habit similarly if there is unsafe practice in some organization that people are not following if they start following then chances of injury will be reduced thus variety of an accident is largely virtuous and the accidents that cause it is largely preventable any accident can be dealt with in a preventable way any accident whether it is a burnout related to health physical, chemical hazardous it can be controlled but for this you need a lot of care if in an organization there is an accident on it the work of research and development so that it does not have such activities then automatically these things can be dealt with in a preventable way the best accident prevention technique are analogues with the best quality and productivity techniques analogues what is there what is going to happen and you have to control it if you are going to control it you have to do all maximum possibilities that you have to control the activities and it should not be like that analogues with the best quality and productivity techniques management should assume responsibility for safety because it is the best position to get the result safety is given more weight in the organization why it is given more weight safety is the best mechanism to control injury or to control accident if all aspects related to safety are followed then automatically in the organization chances of much less accidents the supervisor is the key person in the prevention of industrial accidents if someone is working in an organization if someone who is a supervisor the supervisor is the senior he is the manager he is in the top management position and he has gone through from all steps in his life he has seen things in the lower management he has done all the work in middle management now he is in the top management if the supervisor is followed automatically chances of accidents will be reduced in addition to the direct cost of an accident for example compensation liability claims medical cost and hospital expenses there are also some hidden or indirect cost these are 10 points there are two things mentioned in this direct cost and indirect cost in direct cost hospital expenses hospital bill employee compensation these are the expenses which you have to pay because the indirect is a hidden organization image bad repute whose calculation is difficult but due to this the repute of the organization will be damaged so both these things can be added and calculated human factor theory of accident causation overload inappropriate activities human error factor inappropriate response if you see it is a two way aspect inappropriate activities link is with inappropriate response and if you see it it is overload when the employee is overloaded automatically the way he works and his exertion of body will be more chances of accidents will be more as compared to other people human factor theory of accident causation human factor theory of accident causation attributes to accidents chain of events accidents chain of events but if you see it it consists of following three work factors that leads to human error work overload inappropriate response and inappropriate activities inappropriate activities inappropriate response and overload because of these three things inappropriate response


Hey everyone and welcome back to Nintendo Prime. Are you new to this channel? Hit that subscribe button because if you do, from now through January 27th, new subscriber, one of you new subscribers will win $100 in cash! Woo, baby! $100! Oh, yeah. All right, folks. Besides that, for everyone else who's been subscribed this entire time, we are giving away three copies of Pokemon Legends Arceus. All you gotta do is head down into the description or the pinned comment to enter for that. Click on the viral sleeping link. All right, folks, we gotta get into this because, whew, grab your tinfoil hats.  So yeah, grab your tinfoil hats, grab your salt, back it up, be skeptical. I am not telling you this information is true. I am telling you that it's very interesting to think about.  So let's talk about this by just bringing up the tweets right now.  All right, so now what you're seeing is some tweets from Samus Hunter. We'll talk about why we're talking about Samus Hunter again after I said I wouldn't for a while in a moment, but let's just read these tweets and we'll get going beyond this. Samus Hunter said, Hi, I hope you all had a great Christmas. Today I wanted to provide you with a little update on Splatoon 3. In the plans present at the Splatoon 3 announcement, the game was internally scheduled for March around the 18th of the month. At the moment, I cannot tell if there are delays. The team is definitely working on post launch updates, but they must be a quantity such that in a case of new closures caused by COVID, the team can reorganize without having to slow down the release of new content. Avoiding the situation that occurred with Animal Crossing New Horizons. In the case of the launch date remained unchanged, its announcement should come as early as January, after the end of the holidays. Speaking of the game, an aspect to which they have worked on a lot is the online compared to two. The game will take advantage of features included after its release as the ability to send invitations to play. There will also be a system of private games via an ID code. Allowing players who are not in the friends list to access them anyways. I know that several players have complained about the absence of a player replacement system in case of disconnection, but from what I understand, it will not be present. Now, that's all nice in Danny, March 18th. Sounds amazing. Obviously, this whole idea of these additional online features, like that's really cool, being able to invite people to play, invite people off your friends list, not just make a room and wait for them, or obviously being able to create a room code. So kind of like a Mario Kart Tournament code that you can invite anybody in. I think that's really cool and it will allow me to play with all of you guys without having to necessarily, you know, have you on my friends list because like there's a limit on how many people I can add. So this is actually really great. This is great news for us. Livestream is between three.   Come on. All right, so here's Emily Rogers. You guys might have heard of her before. If not, she's just another person who has had inside information before. And she said, indirect response to Santa Santa, not true, Splatoon 3 was always planned to be released closer around the summer, May to August.  Both have a track record of being right. Both have also gotten things wrong. Santa Santa obviously were well known lately about things wrong. The 35th anniversary, you know, having New Zelda information at the game awards, wrong. Splatoon 3, Tournament of E3, wrong, but also right on a bunch of things throughout the year as well. In fact, she's really some new tweet, basically bragging about all the things she's been right about in the last year. It's cool, whatever. She's got a bunch of stuff right. Most of it's kind of minor stuff, but still she's gotten some stuff right, but she's also got some big swings and misses this year. Emily Rogers isn't perfect either. Sure, she nailed Mario plus Rabbids Kingdom Battle that she called back in 2016 telling us that game exists and that Mario's gonna be shooting a gun and got it. She clearly had real information then, but then also like swung and miss on Star Fox Racing that was supposedly coming from retro studios, at least as far as we're aware. People just like give her the benefit of the dollar. Oh, that game was canceled or it was used to try to find out who's leaking information. And look, here's the thing. If these people are real insiders, information does change. We know this publicly, release dates get pushed back, games get rebooted like Metroid Prime 4. So like, yes, internal plans do change all the time. So if they have real internal information, games get canceled, patents don't get used, things happen, right? This is like while that Switch Pro stuff blew up over the summer, but then we only got the OLED, we didn't get all the other stuff, which probably had some truth to it because plans change all the time. So yes, I can give some benefit of the doubt for that.  Look, I know some video game developers, but I don't know anyone who works for Nintendo at all. Never met anyone at Nintendo personally, maybe bumped into a few Treehouse people once in a while at E3. Don't remember their names, don't have any contact information, and they probably have no idea who I am. And if they did, it's probably because they tuned in while I was covering E3 and they probably saw me doing some shots on the final day.  I look, guys, I don't know anything, but I do like to speculate. And my personal feelings about Splatoon 3 and when it's gonna come out is it's gonna come out in the summer. Not because Emily Rogers said so, just the kind of game it is. It has that 90s aesthetic to it. And as a 90s kid, summertime is really when that stuff's shown the most. And that's basically my logic there.  As for March, and I have to mention, Emily Rogers did mention this as well, that likely we could get a certain game in March and I kind of agree with her, but I agree with her because I was already thinking this, not because she said it. So I don't wanna give Emily Rogers credit for this opinion I'm about to throw out there. Yes, we do a project triangle strategy already confirmed for early March. Because it's early March, I think there is an open slot for another game on Switch in mid to late March. And what will that game be? Well, I think it has a high chance of being Kirby and the Forgotten Land. Why? Because we already have an ESRB rating for the game, which heavily suggests it's coming out soon. So sure, Pokemon Legends Arceus is coming up. We don't know, it could be a February game, could be March, it could be April. I have no idea. I'm just speculating that it might be an end of fiscal year game. Now it's not a system selling type game. Kirby usually isn't. So I could see why maybe they'd rather have Splatoon 3 and then March slot and maybe put Kirby in February or April. That's entirely possible by the way. I can't rule that out. I just think Kirby probably makes the most sense. Nintendo's already selling out cause they can't make enough units in the first place. So it's not like they need to worry about having a massive system seller. And besides Pokemon Legends Arceus is in January. Does Nintendo really need anything else in the first three months? Probably not. But that's also means it's a good time to release maybe some of their smaller, more experimental titles such as the partnership with Square Enix for Project Triangle Strategy and obviously Kirby and the Forgotten Land. So again, lots of speculation. I don't know anything. So be skeptical. Now why did I choose to cover this today? Couple things. One, news is slow right now, right? It always slows down around the holiday. As things ramp up, people get more excited and there's all these switch owners. And yeah, I could make a, oh my gosh, look at all these sales. How many sales were happening over the last two weeks? Like do you even know? There were so many sales happening. I didn't think it was worth even covering it because the moment you make a video about look at these sales on Switch games, there's already like 10 billion new sales happening and your data, your information's out of date by just by the time you're editing the video let alone by the time you release it and by the time you guys actually get a notification and come watch it. Yeah, that information's already out of date and there's already new sales. You can't really keep up with it in this sort of format. Now, if I was doing a live news show every single day, that's a little different. And maybe, I don't know, tune in tomorrow. I do have a video planned to come out tomorrow talking about our plans for 2022 and beyond and maybe some ideas that will float out there if we can hit certain goals. That being said, yeah, you guys let me know what you think about this information down in the comments below. I am Nathan Neuropeljans from Nintendo Prime. This is the last video today, no live stream or anything. We probably will do a live stream tomorrow for New Year's Eve, but otherwise, I'll catch you guys in the next video.