Divers from oil companies located within the North Sea have been discovering the remains of a drowned ancient city, which once spanned from the UK all the way to Denmark. An ancient city so massive its suspected population has been estimated well into the tens of thousands. A team of climatologists, archaeologists, and geophysicists have now successfully mapped the area, which has revealed just how vast and expansive this once lost land once was. Many specialists are now claiming this was once the real heartland of Europe. This enormous civilization is now believed to have dated back to some 8,000 years ago and that the landmass was submerged over a period of several thousand years, a submersion which began some 20,000 years prior. Dr. Richard Bates of the Department of Earth Sciences at St. Andrews, who organized the Drowned Landscapes exhibit covering the finds within the UK says the data reveals the human story behind Doggerland, a now submerged city of the North Sea that was once larger than many modern European countries. Could these discoveries reveal Doggerland as the real lost city of Atlantis? Several hypotheses have placed the sunken island of Atlantis within modern Northern Europe. Most noted among such researchers is Olaus Rudbeck, who suspected that Doggerland, as well as a Viking Bergen island, which is thought to have been flooded by a mega tsunami following the Storegaslide in 6100 BC, is the real location of Atlantis, a proposition he put forward all the way back in the 1600s. Some have proposed the Celtic shelf as a possible location and that there is certainly links to Ireland. Many places have been put forward for the possible location of the sunken city throughout the years, yet none have revealed ruins worthy of such claims, many of these areas being too small to have housed such an enormous city. Doggerland, however, fits the bill. Not only could it turn out to be the largest ancient civilization found on Earth, but it also rests in a possible location based on historical research for the city of Atlantis. It was submerged at one point in its history and it is revealing astonishing ruins of a once great and presently unknown civilization. Dr. Bates, a geophysicist, said Doggerland was the real heartland of Europe until sea levels rose to give us the UK coastline of today. We've speculated for years on the lost lands existence, from bones dredged by fishermen all over the North Sea, but it's only since working with oil companies in the last few years that we've been able to recreate what this lost land looked like. When the data was first being processed, I thought it unlikely to give us any useful information. However, as more area was covered, it revealed a vast and complex landscape. We have now been able to model its flora and fauna, build up a picture of the ancient people that lived there and begin to understand some of the dramatic events that subsequently changed the land, including the sea rising and a devastating tsunami. The research project is a collaboration between St. Andrews and the universities of Aberdeen, Birmingham, Dundee and Wales Trinity St. David.  Thanks for watching guys, and until next time, take care. We have, in the past, covered the astonishing mega metropolis that has been unearthed using ground-penetrating radar beneath a nearly impenetrable rainforest that now engulfs the area. A super-civilization that not only supports our posit of there once being a number of lost civilizations that have flourished and often seemingly met an untimely demise here on our planet, but has been estimated to have been home to more than 10 million sites such as Tikal once believed to be independent separate clusters of past impressive and as yet unexplained block buildings through the use of ground-penetrating radar have been proven beyond doubt to have once been part of the same super-settlement that spanned nearly the entire rainforest that the site is now home to. Yet we have also covered the incredible ancient stone and earthworks that can be found dotting many areas of the Amazonian rainforest that again are indicative of a past super-civilization. Yet conveniently, since the discovery of Guatemala's super-city, funding for such penetrative studies elsewhere of said areas has dried up. The question is why? Why are we witnessing an active attempt to conceal these ruins from the world? We feel the evidence to suggest so is now beginning to mount. However, where mainstream academia won't step, many others are fortunately willing to pick up the slack, and this particular area of interest is of no exception. And as usual, the investigative researchers have turned up some astonishing characteristics of the Amazonian rainforest, features which are indicative of another super-settlement, possibly of a similar size to that of the ancient sites found within Guatemala. A group of scientists and researchers, after investigating the area, have put forward what has been pinned as the Amazonian Stonehenge. According to said researchers, they found evidence that a, quote, highly advanced ancient civilization once existed in Brazil. And although they have dated the ruins, as having been built 500 years before the European colonization of the Americas began, we feel that the evidence to suggest that they were in reality far before this date will soon be realized, and that these people who once inhabited the Brazilian Amazon were possibly creating an impressive arrangement of immense towering granite blocks. As such, scientists today speculate that these massive stones were like so many other sites we have covered in the past, attributed as that of an ancient astronomical observatory. The structure consists of 27 blocks of granite, each up to 4 meters tall, standing upright in a circle measuring over 30 meters in diameter. In other words, possibly more than a thousand years ago, an ancient civilization of native peoples were flourishing in the area. According to the New York Times, radiocarbon tests and site measurements during the winter solstice shed light on the ancient civilization's abilities that inhabited the Amazon. From this, new archaeologists have realized that the people who lived in the area developed a more advanced civilization than previously thought. Who built the Amazon Stonehenge? When did they build it? Is there a lost super-settlement hidden beneath the Amazonian rainforest as that of the Guatemala rainforest? We find the evidence to suggest such highly compelling. The slow destruction of the Amazonian rainforest, the felling of thousands of square miles of trees, has not only shown us the result of man's insatiable and sometimes irresponsible hunger for resources, but also, ironically, what may become one of the most important historical discoveries of the modern age. Evidence of a very ancient and as yet unknown civilization has become apparent upon the now barren landscape, a civilization which would have dwarfed the Egyptian and Roman empires combined. As a result of the drastic deforestation that has taken place over the last few decades to make way for farming land, huge swaths of land features have become visible from the air. Not only are these now grassy areas showing evidence of numerous, enormous complex ancient cities, but also the remnants of what could be classified as straight Roman roads connecting these massive sites. According to a new report published in the Journal of Antiquity, the archaeologist Martí Parsinen, along with numerous other scientists, have documented more than 210 geometric structures. The city spreads out over an area of more than 250 square kilometers, reaching from northern Bolivia to the state of Amazonia in Brazil. Although the early explorers had heard legends from the Indians regarding a fabulously rich Amazonian civilization, which they named Eldorado, the countless searches for the city of gold have all invariably ended in failure. No evidence of a vast ancient civilization within Amazonia had ever materialized, that is until now. Most scholars subsequently concluded that Eldorado was no more than a story. Indeed, scientists believed that the merciless conditions in the jungle were simply too inhospitable to support a large population. The most influential archaeologist of the 20th century, Betty Magers, famously dubbed the region as counterfeit paradise. In the early 1900s, the British explorer Percy Harrison Fawcett, while exploring and mapping much of the same area where the ruins were recently discovered, reported finding large earthmounds filled with ancient and brittle pottery. Buried under the jungle floor, he claimed he had also found traces of causeways and roadways. Based on this and other evidence, he insisted that the Amazon once contained large populations, and at least one, if not more advanced civilizations. Despite being dismissed and ridiculed as a crank, he set off in 1925 to find the place, which he christened the city of Z. Shortly thereafter, his entire party, including his 21-year-old son Jack, vanished within the jungle and they were never seen of again. Because of the symmetrical shape of many of these mounds now seen from the air and the way they slant to the north, a possibility that they may have had an astronomical purpose had begun to be seriously looked at. We could quite possibly be on the verge of discovering another highly advanced civilization which once lived here on earth. As always, thanks for watching guys, and until next time, take care. The slow destruction of the Amazonian rainforest. The felling of thousands of square miles of trees has not only shown us the result of man's insatiable and sometimes irresponsible hunger for resources, but also ironically what may become one of the most important historical discoveries of the modern age. Evidence of a very ancient and as yet unknown civilization has become apparent upon the now barren landscape. A civilization which would have dwarfed the Egyptian and Roman empires combined. As a result of the drastic deforestation that has taken place over the last few decades to make way for farming land, huge swads of land features have become visible from the air. Not only are these now grassy areas showing evidence of numerous enormous complex ancient cities, but also the remnants of what could be classified as straight Roman roads connecting these massive sites. According to a new report published in the Journal of Antiquity, the archaeologist Marti Parsinen, along with numerous other sciences, have documented more than 210 geometric structures. The city spreads out over an area of more than 250 square kilometers, reaching from northern Bolivia to the state of Amazonia in Brazil. Although the early explorers had heard legends from the Indians regarding a fabulously rich Amazonian civilization, which they named Eldorado, the countless searches for the city of gold have all invariably ended in failure. No evidence of a vast ancient civilization within Amazonia had ever materialized, that is until now. Most scholars subsequently concluded that Eldorado was no more than a story. Indeed, scientists believed that the merciless conditions in the jungle were simply too inhospitable to support a large population. The most influential archaeologist of the 20th century, Betty Magers, famously dubbed the region as counterfeit paradise. In the early 1900s, the British explorer Percy Harrison Fawcett, while exploring and mapping much of the same area where the ruins were recently discovered, reported finding large earth mounds filled with ancient and brittle pottery. And buried under the jungle floor, he claimed he had also found traces of causeways and roadways. Based on this and other evidence, he insisted that the Amazon once contained large populations, and at least one, if not more advanced civilizations. Despite being dismissed and ridiculed as a crank, he set off in 1925 to find the place, which he christened the city of Z. Shortly thereafter, his entire party, including his 21-year-old son Jack, vanished within the jungle and they were never seen of again. Because of the symmetrical shape of many of these mounds now seen from the air and the way they slant to the north, a possibility that they may have had an astronomical purpose had begun to be seriously looked at. We could quite possibly be on the verge of discovering another highly advanced civilization which once lived here on Earth. As always, thanks for watching guys, and until next time, take care. Thanks for watching guys, and until next time, thanks for watching guys, and until next time, small beads, stored at the University College London's Petrie Museum, dated to around 3200 BC, were found in necklaces along with exotic terrestrial minerals such as lapis lazuli, agate, and gold. They are some of the earliest iron artifacts ever found, and archaeologists have confirmed that they came from outer space. Meteoric iron is much harder and more brittle than copper. They were rolled and hammered into shape. This is a very different technology from the usual stone bead drilling, and shows quite an advanced understanding, showing the metalsmiths know exactly how to work this rather difficult material. Said Thilo Rarin, a University College London Professor of Archaeology. When American geophysicist John Wasson was consulted regarding King Tut's Strange Gem, he curiously linked the event with one within an extremely remote forest of Siberia, an event we have covered before. Quote, When the thought came to me that this required a hot sky, I thought immediately of the Tunguska event, he told Horizon. In 1908, a massive explosion flattened 80 million trees in Tunguska, Siberia. And whatever landed there, over a century ago, is still there, and it kills any living organism which settles above it. And what is most interesting surrounding all of this is the ancient Egyptian accounts of what they did with a rather peculiar, rather special type of object that was at one point retrieved from the glassy sands of Libya, a particularly different object, which they called a phoenix egg, that hieroglyph state was secreted away within a secret chamber deep within the Great Pyramid. We have covered before the hypothesis that these stories, etched in hieroglyphics, may be far older than the Egyptian culture which may have preceded it. Yet, the question is clear. What could this phoenix egg be?


I think Becky said this to you. We didn't talk about multi-stakeholderism in the beginning. It was sort of bottom up, was the byword. But we did this lateral arabesque into a more generalized, supportive, multi-stakeholder environment. John had the idea that the initial board would not be able to be trusted to do the right thing. Here's this researcher and the guardian of the protocols, looking at a recruiting effort that was grabbing evil hither and yard from around the court. So in the bylaws, he made sure that Joe gave a very powerful role to these three support organizations, one for protocols, one for domain names, and one for numbers.


Dear students, so far we have discussed various aspects of management accounting. Today, we are going to discuss a very interesting topic that is on analysis of financial statements. So, we will try to analyze and interpret the accounting statements. We have already seen how to record the entries. We have discussed various accounting statements particularly balance sheet, profit and loss account and cash flow. Now, various stakeholders as you know are interested in reading and interpreting the accounting statements. Can you imagine who are those stakeholders? The most important are of course, the owners who want to know the performance of the company. So, they want to know the profitability. They also want to know the financial position of the company. The vendors who give loans to the company like banks or like financial institutions will be more interested in capacity to repay their debt. So, they will also look at profitability and cash flows available with the company. Outside people like creditors, employees, managers all of them want to know about how is company performing. And that can be analyzed looking at the financial statements of the company. Today, we are going to discuss a little bit on what are the techniques of interpretation. We will also see, we will also in a way revise what were the formats of balance sheet and we will solve one or two cases wherein we will actually see how is the analysis done. Now, let us see what is going to be covered in this. We will be starting with two techniques in analysis that is vertical and horizontal analysis and then we will go for ratio analysis. You know that traditionally financial statements were prepared for the owners from the owners angle and a raw statement contains lot of raw data. So, you will know what are the assets, you will know the liabilities, you will know the details of various assets, you will also know the incomes, expenses, inflow, outflow sources. But to exactly get what you want, you will have to relate that information, analyze that information. You may want to compare this information with other companies. You may want to compare this information with the earlier year of the same company and so on. This is something which is going to be discussed more in this topic. So, financial statement analysis refers to the detailed study of these statements. The objective is to arrive at useful interpretation. Unless the statements are properly reorganized, processed and converted into useful information, they just remain lot of unwanted details. So, that is an attempt in these discussions where we will see what can be done to meaningfully understand a financial statement and interpret on whatever aspect you are interested. As we were discussing, for example, lenders may be interested to know what is the interest paying capacity of the company. Employees may be interested to know what is a profit, what is going to be the trends in profit and what are their chances of getting incentives or bonus. So, according to the view of the user or the stakeholder, various types of tools, techniques can be used. Let us see some of the techniques today. One technique popularly used and very simple in nature is horizontal analysis. There is another technique known as vertical analysis. These two are the main techniques. Horizontal analysis is the basic, very simple thing which everyone does. The moment we see the figure, we will try to know what was the position last year or what was the position last quarter. So, this involves comparison of two years or two periods for the same concern. For this, usually a comparative statement is prepared. In a comparative statement, we see this year's figure, we compare them with the last year figure. Difference is found to know how much is an increase and difference is also calculated in percentage terms. So, that we know what is a percentage increase or decrease in the current year or current period. There is another type of analysis that is known as vertical analysis. In vertical analysis, as the name suggests, within the statement, the relationship is found. So, if we know sales, we know profits. One may be interested to know what is a percentage of profit on sales or in case of balance sheet, we know the total assets, we know fixed assets. One may be interested in knowing that what percentage of total assets is represented by fixed assets. So, like this, in vertical statement, relationship between the two items of the same statement are found. Of course, this data can be used for comparison later on with the earlier year data or with the data of some other concern. For vertical analysis, the popular statement which is prepared is known as common size statement. Once again to remind you about the balance sheet formats, we have learnt horizontal format, we have also learnt vertical format. Let us have a look at it again. Here I have shown you horizontal format. As you can see, on one side, the assets are shown. Assets are listed into categories like fixed assets, investment, current assets, loans and advances. Liabilities are also listed. So, you have capital, reserves, various types of loans, current liabilities, provisions. Now, this horizontal statement may not be so much useful to analysis, because we would like to know what are the total owners funds. We may like to know what is a total capital employed and so on. So, usually horizontal balance sheet is converted into vertical balance sheet, so that a better analysis can be done. These are some of the advantages of this conversion. So, what happens with horizontal balance sheet is, it is mainly designed for the owners. The sequence in which the items are presented are mainly useful in the event of liquidation. But when we are going to study the company as a going concern, then it is better to convert it into vertical statement. So, you already know the format, but have a look at it again. So, in vertical statement, generally we start with sources of funds. This is more or less the liabilities, but not exactly the repetition of liabilities. So, in sources of funds, we take owner's fund. This is the money, which belongs to the owners. In turn, it has two parts, A capital, B reserves and surplus minus profit and loss account debit balance, which represents the accumulated losses and miscellaneous expenditure, if it is not written off. So, the total of A and B is the total money, which belongs to the owners or which enterprise should pay back to the owners. So, this is the owners fund. The second one is loan funds. Loan fund consists of secured and unsecured loan. The total is the total loan funds, which is also known as borrowed funds. The total of 1 plus 2, that is owner fund plus loan funds is known as capital employed. Now, let us go to application of funds. This is more on assets. First one could be fixed assets, which can be again divided into tangible and intangible. So, tangible assets are known as gross block minus depreciation, we get the net block or the current value. Apart from tangible, we also have an item called as intangible assets. Then second one could be long term or trade investments. The third one is working capital. This consists of current assets, less current laboratories. So, fixed assets plus long term investment plus working capital. This total is known as total assets employed. So, total of funds employed should match with total of assets employed. Of course, we have discussed this earlier, but I am trying to have a recap, so that now we can proceed for analysis. So, this is what a brief was about what is a vertical statement and what is a horizontal statement and also about the format of balance sheet. Now, let us try to take a real case, where we will try to have a raw data and then use it for making vertical and horizontal analysis. So, here a data about a real life company, Venkatesh industry is presented. Of course, this is a raw data right now. I have also changed the name of the company, but it is very close to the real data. I hope it is clear now. So, the format of balance sheet is given and the data relates to year 9 and 10. Balance sheet is already in the vertical format. So, you can see capital, loan, unsecured, mortgage, loan, P and L account and assets. Now, you are required to prepare both common size and comparative statement below. You are also given the income statement and in the end, you are also given certain ratios. We will go to ratios later. First, let us concentrate on common size and comparative statement. Now, given this data, you are required to prepare first a comparative statement. Now, what will you do? How will we start? Before starting for making a comparative statement, it makes sense to rearrange the balance sheet and P and L in a more systematic format. So, you can see the rearrangement. I have already tried to do it for you. So, what has been done now? You can compare the earlier one and this one. In the earlier one, just the information about capital, loan, etcetera was given. Now, it has been rearranged systematically. So, you come to know what are the owner's funds and what are the borrowed funds. So, capital plus reserves are taken and loan, unsecured loan, mortgage loan, you get the borrowed funds. Same way in the assets also, slight rearrangement has been done. So, you know the working capital, investments and fixed assets. Now, using this, we are required to make, let us first start with comparative statement. As I have already told you, comparative statement essentially tries to find the increase or decrease in the current year. So, we will try to make using the same thing. Comparative statement, now the balance sheet as rearranged, I will try to change it and make a comparative statement. I will request you all also to do it along with me, so that it will be clearly understood by you. Now, we will make comparative statement as on 31st March 2010. We have a data for 9 and 10. First step in the comparative is to find the change or the difference. So, let us highlight it as a change in the current year. So, 250 minus 250 in case of capital, there is no change. I will try to drag it down. So, you can see that reserves and surplus has increased by 9, overall owner's fund has increased by 9, unsecured loans have increased by 25. Change loan has decreased by 5. So, on the whole borrowed funds have increased by 20, total increase in the liabilities is 29. Instead of liabilities, now I will re-change it to sources of funds, so that it makes more sense to you. Assets now we will start with, again I will rename it as applications of funds. This is a better title, because I am not going to exactly write the same assets. This is already including assets minus current liabilities. The first part is same, we will find the difference. So, you can have a look at how the assets look like. Fixed assets at gross that is at cost have increased by 30, depreciation has increased by 40. So, net increase in fixed assets is in minus 10, current assets investments have also decreased by 10, current assets you can see each current asset stock. There is an increase of 20, debtors there is an increase of 20, loans there is an increase of 5. So, total increase of current asset is 45. In case of current liabilities there is an increase of 4. So, working capital on the whole has increased by 49, I am sorry in case of current liabilities there is a decrease of 4 that is why net effect on working capital is 45 and minus 4. So, it becomes an increase of 49 and total increase is 29. Now, this first column just shows absolute change. Now, let us try to also understand the change as a percentage. So, this change is in absolute right now. To better understand the importance let us try to find the change in the percentage terms. So, percentage change what we will try to do is this change divided by the base figure into 100 first one is of course, 0. So, now I think it will make more sense to you, you can see that there is no change in the capital. However, in case of reserves and surplus there is a change of 7 percent major change is in mortgage loan which has gone down by 25 percent while unsecured loan has increased by 31 percent. Overall the company looks fairly stable there is neither significant increase nor major decrease. It is a marginal increase of 6 percent on the total values. Same way let us try to do it for assets. So, in assets you can have a look you can see that investments have decreased by 25 percent depreciation has increased by 28 percent stock there is a major increase which perhaps you can note. There is a increase in the stock by 60 sorry there is a increase in the daters by 66 percent increase in the stock is not very high it is just 12 percent. So, in absolute terms both the increases are same it is just 20, but if you look in relative terms you will realize that increase in the stock is just a normal increase from 160 to 180. So, it is a 12 percent rise not much to worry, but increase in the daters from 30 to 50 though the increase is only of 20 in absolute terms it is 66 percent in percentage terms. So, what does it mean for an interpreter? So, what perhaps it shows is there is some issue because now there may be some items which are accumulated unpaid for a very long time or there is also a possibility that there are some amounts which are unlikely to be received, but they are just continued to be shown as daters these things you will come to know when you see in percentage terms this major rise. Other things are more or less same you can see that there is a increase in working capital by relatively higher amount that is 30 percent around that is also mainly because of increase in daters. So, major increase and decreases I am just marking to draw your attention. So, you will realize that investments have gone down and to an extent there is a increase in daters. Now have a look at the whole statement this is known as comparative statement. Now, let us also try to make one more statement that is known as common size statement. So, what comparative statement tries to do is comparative statement is mainly for comparing the same companies financial comparing the same companies financial with the earlier year, but now if you want to compare with other companies or if you want to compare with industry averages this comparison may not be enough. So, you may like to go for next step that is known as a common size statement. Let us try to do it then it will be more clear to you. So, this is I have just copied what we had earlier now instead of comparing from last year to this year we are going to compare the figure of the same statement. So, when we look at 250 as capital we will try to see what percentage it is of the total that is 466 then it is known as common size statement. Let us try to make it again my request is you try to solve it with me so that you really understand. So, we are making now common size statement as on both 31st March 2009 and 10 now instead of absolute and relative changes we are going to calculate both in percentage terms. So, nothing to do with change now, but it is more a percentage of total. So, you can see this 250 I will try to relate the total of sources which is 466. So, it is C 4 divided by C dollar 10 which makes it 55. So, now I think it will be clear to you I will just try to reduce the decimal places does it make sense to you now. So, 53 percent of the total funds is contributed by capital 78 percent is the owners fund these type of interpretations are possible. First let us do it for both the years we will also try to do it for the assets in case of assets we are going to compare it with the total of sources of funds. Now, the whole data is ready with you so what we have done is we have taken the total and we have compared each item as a percentage of total. So, you can see that the major contribution in case of this company actually comes from capital. So, owners have put in a significant amount of money may be the company has still not grown they have do not have very high amount of accumulated profits as compared to owner fund and the loans which they have taken are much lesser may be they have a policy not to rely on borrowed funds which you can see from here. What you can observe if you try to compare you will realize that now the percentage of unsecured loan has slightly increased or the total loan has increased from 21 to 24, but still the company is largely financed by owners fund. So, vertical analysis or a common size statement as you can see here helps you to find each item in relative terms. Now, it is not so much useful for comparing with the same company because you can see we do not see much difference in the percentage where it is much more useful is if you want to compare this company with some other company then common size statement data is extremely useful because two companies are at different sizes one company may be small another may be big. So, it does not make much sense to compare them without adjusting the figures in common size statement and attempt is made to bring all the figures in relative terms as a percentage to total. So, that this data can be compared with any other company. So, even if the company is large we can see that as a percentage how much is contributed by let us say capital let us say how much is contributed by loans and so on. Now, have a look at assets you will realize that out of the total assets bulk of the assets are coming from bulk of the assets are in the nature of fixed assets. It looks like the company is a manufacturing concern or a company is a service entity but which has lot of reliance on asset even if you look at WDV it is still contributing to 55 percent. The next very big amount consist of stock which is 34 percent which has now increased to 36 percent. So, what it shows or what it means is probably company is a manufacturing or a trading concern maintains a large quantity of stock. So, it is does not look like a service entity from high amount of fixed assets you may feel either it is manufacturing or it involves intensive services like say relays or airlines intense capital intensive services. Now, once you look at stock you will realize that it is not a service company it has a high component of fixed assets it also has a high component of stock. So, probably it is into a manufacturing entity you can also see here that the data percentage has increased though it is a very small as compared to total but still from 6.44 it has gone to about 10 percent. Loans and advances also are fairly high because 18 percent of the total assets is a reasonably big amount. So, as an analyst we may have to enquire into why such high instance of loans and advances. There could be a possibility that some of them are dummy or there could be a possibility that some money from this company is being used by some other entity which is owned by the same owners. So, we will have to look at it. So, on the whole you can see that 33 percent 35 percent is financed by working capital 35 percent is used to finance working capital and 55 percent about was used for fixed assets is it ok. So, this is what a comparative balance sheet looks like. Now, let us try to do both comparative income statement and balance sheet. Let us try to make both common size and comparative but for a income statement. Now, this was a income statement which was given to us. Now, let us try to make a common size and comparative statement using these data. So, here you had a comparative balance sheet. Now, using the similar data we will using the similar technique we will try to make a comparative income statement. Now, in income statement as the name suggests we have taken the income statement information and similar to balance sheet we will find absolute and percentage changes. Now, you know the techniques so it should be much easier for you. So, you have the data on sales, cost of production, selling, marketing, admin expenses, interest and profits. So, what we have tried to do is we have seen the percentage change. So, you can see that the sales have increased by 1000 and in absolute sense it is 1000 and in percentage term it comes to 13.33 percent. Production costs there is a increase of 500 which does not tell you much information but in percentage term you can understand well that production costs have not increased significantly they have increased only by 8.9 percent. So, though the sales have increased by 13 percent the production costs have increased by only 8 percent. This is a good sign it shows that company was able to contain the increases in the cost that has helped them to increase the gross profit margin. This difference is known as gross profit or gross margin as it is sometimes called. So, now you will realize that there is a good increase in gross profit and it is mainly because of savings in the cost of production. Now have a look at selling expenses they have increased by 16 percent which is because it is almost in tune with sales. There is a increase in operating profit by 46 percent. Now why has this increase happened? It is mainly because though the sales are rising the cost of production is controlled that has helped them to have a significant increase on the net profit margin I mean I am not sorry not the net profit margin but the net operating profit as a percentage over last year shows a good increase of 46 percent. Interest cost has also increased by 5, but the profit before tax could be increased by 46 percent again this rise is mainly attributable to savings in the cost of production. We will also try to find it for the remaining. So, you can see that tax remains at a similar percentage. So, there is a 46.09 percent increase in both PBT, tax and PAD. So, is it clear to you here we have tried to learn making of a comparative income statement. Now, let us try to make a common size income statement. So, we will go to next sheet where we have already made a common size statement for the balance sheet. Now, you know that in common size we take the total and find each item as a percentage to total. Now, here again we will try to do the same thing right now I have just copied the comparative income statement. Let us make a common size statement from it. So, how will you proceed for a common size statement? Let us try to remember. So, here there is no funda of comparing between the two figures or two years. Here we compare with the total. So, we will try to convert all the figures into percentages. Now, in case of income statement we take the sales as the total amount with which it will be compared. So, here you have a data sales is compared with sales. So, obviously it is 100 percent and then other figures you get now as a percentage of sales. We will also do it for 2010. So, are you getting? So, here from the same income statement you get some other insight because you were able to see the cost of production, GP and other information. But now you have a view where you know that how much of the percentage of sales is your cost of production? How much percentage is your gross profit and so on? So, you can see here that cost of production is your major expense. It consists of about 75 percent in 09. Now, it has slightly come down still it is 72 percent. So, this is one of the important costs for the company. Selling costs have remained constant they are around 16 to 17 percent. Their net profit net operating profit is 8.67 now it has slightly increased to 11.18 percentage of sales. PBT remains more or less same from 8 or 9 percent it is now 11 percent and net profit after tax was 6.4 percent it has slightly increased to 8.25 percent. Now, here we have tried to make a common size income statement is it clear to everyone? Now, let us try to understand. So, two major techniques we have done one we were looking at a common size statement the other one which we have learnt is sorry first we learnt comparative statement and the second we have also learnt common size statement. I hope it is clear to you. Let us try to understand the third technique which is known as ratio analysis. Now, in both these statements we have tried to relate one item with another. In ratio analysis the same thing we will do more systematically. So, we will pick up various items from various statements and we will try to find the relationship. So, ratio is nothing but a relationship between one item with the another item. We are talking of financial ratios, but ratios are also common and they can be used with comparing one data from financial statement with some other data with some other statement or you can also have a qualitative ratio. So, we will compare input with output to know the productivity and so on. So, let us try to look at the ratio analysis. This is one of the most important statements one of the most important tools in the financial statement analysis as we have already seen here we are trying to see the relationship between two or more items. Now, we have seen this in the last comparative statement, but have a look at it again. Now, if there are two entities a and b, a earns a profit of 65, b earns a profit of 45. Now, which one is more profitable, a is more profitable or b is more profitable? You may immediately feel that a is more profitable because in absolute terms a has earned a profit of 65 versus b is profit of 45, but if we really try to know profitability or profit earning capacity of the entity, we should compare the profit with sales and then only come out with the conclusions. Now, this sale data is given to you. Now, what do you feel which is more profitable, so a has sale of 650 while b has a sale of 300. So, what do you know now? Now, here it can be seen that if you calculate the ratio of profit upon sales, which is popularly known as net profit ratio, we will come to know that 65 upon 650. That means the net profit ratio is about 10 percent for entity a. Entity b you can see 45 is earned on a sale of 300. So, this gives the net profit ratio of about 15 percent. So, in other words b is more profitable than a. If you look at more profit in absolute terms, yes definitely a is better, but if you look at the profitability, then b is better. I hope it is clear. So, this was an example of a ratio. Now, this type of ratios can be calculated for profit and loss, for balance sheet from across one statement to another or from one item of financial statement to with some other quantitative information and so on. It is a really interesting area. Now, let us try to look at a few ratios and then we will go back to our problem and try to calculate the ratios for the Venkatesh industries, which we have been already studying. So, what happens is a single statement does not give you that much of a information. If you pick up a single accounting figure from one statement, it really does not tell you what it tries to explain. So, we will have to relate it with some other statement, some other statement or some other item and that is something which is run or attempted in ratio analysis. So, here we are not just comparing different numbers from the same statement as we do in common size comparative statement. So, here we may compare with previous year. So, you calculate the ratio and compare with the ratio of the last year or you can calculate the ratio for this company, compare with ratio of another company like we have done in for A and B or you can also calculate the ratio and compare with industry average. This is the way ratio analysis is versatile. It can be used for comparing for the same company earlier year, for one company with another or for one company with the industry. So, it helps all stakeholders, it helps owners, managers, investors, lenders, employees and so on. So, you may want to get various types of conclusion. Somebody may be interested in performance of past, present, future. So, you may be interested in calculating ratios like net profit ratio and so on. It also, there are also certain ratios which talk about strengths and weaknesses and you can take certain decisions about the firm using ratio analysis. That is why ratio analysis is the most popular of all the techniques of financial statements. So, though we have learnt various techniques, whether it is common size, comparative or ratio, all of them should be used together. That gives us a better look of the whole position of the company. Now, try to study different types of ratios. Rationals can be categorized broadly into liquidity, capital structure, activity and profitability. Actually, there are hundreds and hundreds of ratios which can be calculated, but considering that availability of time, we will try to calculate, understand a few ratios. Then you can make more and more ratios as per your need. Let us first look at the liquidity ratios and then we will go back to the problem and try to apply them on the industry or the company which we are studying. So, first example of liquidity ratio is current ratio. This is a very simple ratio which links current assets to current liabilities. You all know what is a current asset. So, in this examples are given that it includes inventories, sundry daters, cash balances, loans, disposable income and so, investment and so on. These are those assets which can be liquidated in maximum one year. You also know what are the current liabilities. These are the items like craters, outstanding expenses, provisions. They are required to be paid within a short time, say 3 months, 4 months, 5 months and not more than one year. So, in current ratio, we try to link current assets and current liabilities. So, what will the ratio tell? Can you imagine now? What is it? You will know from the ratio. So, what we can find is, how many times are the current assets on upon current liabilities? Because for a stable business, in order that it can meet its liabilities, it is very important that it has sufficient current assets and this sufficiency is shown by current ratio. So, the main question that does the business have enough current assets to meet its current debt is answered by current ratio. Usually 2 is to 1 is considered as a acceptable current ratio, but do not take it as a fixed ratio or a standard of 2 is to 1. It significantly varies with the nature of business and also the nature of current assets and liabilities which you have. For example, let us say there is a manufacturing company, there is another IT company. Now, which company will have more current ratio? Can you guess? I think you are guessing it right. Manufacturing company will have significantly high current ratio, because a manufacturing entity is required to maintain various types of stocks like raw material, working progress, finished goods. It also has to deliver goods to its customer and after some months it gets money. So, it also has significant amount of receivables. All these are high amount of current assets which make it essential to have a high current ratio whereas an IT industry there is no need of stocks. What they may have is only debtors or receivables that is why usually their current ratio will be low. So, the standard of 2 is to 1 need not be applied blindly for each industry you have to look at the standard and then apply it. What happens is sometimes the quality of current assets is also important. Suppose your company has current assets which cannot be liquidated very easily. They consist of let us say high extent of advances. It may make sense to have a higher current ratio in this case. There is also another ratio known as quick ratio or asset test ratio. It is quick assets divided by quick liabilities. Now, what is a quick asset? So, quick assets are those current assets which can be easily converted into cash. So, you can see the definition which is given here. Usually current assets minus inventory is defined as a quick asset. But you have to look at the list of assets which are given to you. If there are some items which cannot be readily converted into cash those have to be removed. So, for example, you may want to remove advances because they cannot be readily converted into cash same way quick liabilities. So, those liabilities which need not be paid immediately will be removed reduced from current liabilities. The remaining current liabilities are quick liabilities. So, here I have given it as current liabilities minus bank overdraft. Generally bank overdraft is sanctioned for a period of say 1 year. So, that need not be taken as quick. Other current liabilities are taken as quick. So, these were the two important liquidity ratios. So, quick ratio is more conservative tool than current ratio because this measures the immediate solvency of the company. Current ratio was more broader in nature. You can compare the two ratios. You will realize that in current ratio we were comparing current asset versus current liabilities. In quick ratio we are comparing quick assets versus quick liabilities. So, quick assets are those specific assets which can be readily converted and dem we are comparing with those liabilities which have to be immediately paid. So, if you want to know the immediate liquidity quick ratio will be a better tool. If you want to know overall liquidity current ratio could be a better tool. Anything coming to the ideal current ratio generally a ratio of 1 is to 1 is considered better. Now, it measures as we have seen immediate liquidity that is why it has a shorter or a smaller ratio is enough instead of 2 is to 1 here current ratio of 1 is to 1. Usually the nature of business does not matter so much because whether it is manufacturing or IT company let us say the difference of one having stock another not having stock does not matter because in liquid ratio we are not going to consider stock in any case that is why ratio of 1 is to 1 considered to be a reasonably good ratio. So, now we have seen two liquidity ratios. Now, let us go ahead and look at some other ratios the other type of ratios the second type are known as capital structure or leverage ratios. They indicate how is the financing of the business made. So, if in financing a larger portion is provided by the owners then the owners fund will be more as compared to outsiders funds or borrowed funds. So, in capital structure ratios we try to relate owner fund with the borrowed funds. There are two major ratios one are capital structure the other are coverage ratios in capital structure we focus on how is the financing done. So, you can see the ratio here one of the popular ratio is known as equity ratio which compares the shareholders equity with the total capital employed. There is also another ratio which is known as debt ratio where we compare the total debt with the capital employed sometimes we also have a ratio you can have a look at it. So, in here we compare take the total debt both short term and long term it also includes debt in the form of debentures bonds and so on and it is compared with the capital employed. So, this tells us what is a long term solvency of the business. Now is it better to have a higher ratio let us say this is a debt ratio is it good to have a higher debt ratio or a lower debt ratio what happens is if your debt ratio is high it means that more of your assets are financed by outsiders borrowed money. So, it somewhat questions or somewhat affects the stability of the entity that is why too high a debt ratio may not be good, but if you do not have any debt it hampers the growth of business it may also hamper profitability that is why you should have a decent level of debt ratio neither too high nor too low again the decent level varies from industry. For a manufacturing company a higher debt ratio may be acceptable for a I T company because their business itself is volatile higher debt ratio may not be recommended they also do not need very high amount of capital. So, they need not resort to debt funds that is why there are no standard ratios for equity or debt they may again vary from industry to industry. There are some more ratios like debt equity and some more coverage ratios that we will see in the next session and in the next session we will also try to actually apply them in the real life case. So, in today's session we have understood horizontal analysis which is generally done with a comparative statement, vertical analysis which is done with common size statement and now we are discussing the concept of ratio analysis. Let us stop here we will meet in the next session thank you.


Happy Wednesday guys. It's been an uneventful week so far. Monday obviously Super Monday was not a Super Monday because of the Super Bowl loss, but it was it was okay You know I was happy for the Eagles fans and then Tuesday was uneventful, but last night Tuesday night today is Wednesday I went to the mall Jay had to work late. I went to the mall. I went with a mission in mind I wanted to look for an outfit or a top or something to get some sort of an idea of something to wear For a company event that we have on Friday night and the company event is the awards banquet I don't know if this is picking up the colors and eat. I shot this with my Canon as well And I'll see which one picks up the colors the best. I'm using the Sony right now The event on Friday night is the awards banquet and some people dress up super super dressy You know evening gowns and cocktail attire and some people are just more you know Better work tire and I just wanted something in between. I didn't want to go to evening me I wanted something I could wear on another occasion and so this is what I got. I got these beautiful earrings They are a light shade of pink and they match the pink in this top So if I keep this I'm gonna try it on later. I love the sleeves the sleeves I think really made made it for me. I don't you can see them, but they're really cute So I do love oversized tops so this comes down really low below the butt And then I bought a pair of skinny leg pants not tights or leggings, but regular trouser type of skinny legs So that's what I bought and I'm I'm really I'm gonna try it on. I'm really hoping that it looks good I did try it on in the store, but you know when those store mirrors Nothing looks super good at least on me. So it's Wednesday. We're expecting a nasty snowstorm today 8 to 12 inches in our immediate area of heavy wet snow with ice potential So there's always always the concern about losing power. I am so hoping we don't lose power This is what having a snow day has done to me So for those of you that asked you wanted to see what that little spiky thing looked like I Put it in my hair. So I do a slow turn for you so you can have a good chuckle I asked you I said, what do you think of my new look? and I think he probably thinks I went off the deep end and I probably did but It's kind of you know falling out a little bit. I still I mean I have my short end. So I still have to Do something with them Well, can you see it?  I've Marlene fab and glam you would be proud of me She said, you know when you're not going out when you're not working play around So I took my busy art and this is the oops cashmere I Think I'd like to get minks everyone talks about that But I didn't see that in Sephora when I went to went to Sephora's to get to get my birthday present And how they give you a birthday present. So I went there to get my birthday present.  I hope It's gonna be a nice ride in the morning This is me actually trying to fix my hair. I forgot to put my lipstick on I do have lip liner on yet though, but I just haven't finished the rest of my look I just like crack up when I tease my hair and I walk out in the kitchen or something and Jay goes Are you going out like that? You would think after all these years. He would know we're not going out like this. I absolutely hate Hate I don't know if you can even see this There is a ton of product in there and a ton of product in there When I squeeze this and squeeze it and it won't come out anymore I figure it's pretty well close to empty and do the same thing with my retina I do the same thing with any other stuff in a tube then I slice it open There is a ton of product in there So what I'm gonna do is I put it in a baggie and then tomorrow morning I'll scoop it out of there the baggie helps it from drying out and Makes it so that I can utilize the product it does get a little messy, but it's worth it So I'm I'm letting my car heat up Jay scraped it as you can tell before he left he was out there like a good doobie We had a snow storm yesterday, so it was another day off. I worked from home I was able to get a lot accomplished actually and And it was actually nice But the bad part about a snow day is having to do all the different cancellations than having to make up the schedule and change the dates again, and it's just like I Don't know it's like such a It's such a pain in the butt. So now I'm gonna go out and make my way Across the driveway and then into the office. I have my kaka boots on when I say my kaka boots I'll show you in a minute. I'll insert the picture These are like really secure boots that I wear that are I shovel with they look like crap I usually carry a better pair of shoes when I wear these, but there are no name They're not any kind of a name, but they are very very sturdy, and they're very very warm So my kaka boots and I I taking all my stuff and we're going to the office today, and I have a yoga class tonight I missed last week's yoga class. I can't remember why but there was a reason Oh, yeah, I had the hairdressers, so I knew that I wasn't gonna be able to make that one, but tonight is yoga, so I Hope I like it again. I have all my stuff with me this time all packed So it's Friday guys and my thoughts have been with Sheila like with Lily all morning If you don't know Sheila, I will definitely link her channel below, but she's going through her surgery today, and she has an entire Community on YouTube, and I'm sure an attire her whole entire community where she lives and her friends and family praying for her today So I'm feeling really positive and optimistic and sending Sheila all sorts of love So tonight is our I almost said gold ball because that's the century 21 days when Jane I used to work for century 21 It was actually called the gold ball, but tonight is our wards banquet, and we will it's it's a Dressy event.  I'll show you up close. I Have a little bit of frittiness going on these are my Gootsy fritzy earrings that I got off of Mary glitzy fritzy's Website and these are the diva I love them because they get these little pearl things and they're named after Natalie the beauty diva They're these little pearl things and they get this little crystal-y thing and I Think they're pretty oh in my my necklace This was gifted to me for my mom These are beautiful beautiful beautiful pearls I really wanted to wear these shoes because I just thought it would Make my outfit look a little bit more dressy because Jay kind of looked at me and he says you're wearing that and I went yeah I'm wearing this. I kind of thought it was dressy casual Anyways, so I decided to keep this what I'm gonna back up. I Don't know if you can even see this. I'm maybe out of I Maybe out of the I can't tell I can't tell if I'm out of the swing or not, but So I decided to wear the sweater keep the sweater and you know the sleeves that I love the little pinky earrings my Apple watch band that I had shown in a previous video my Burnt um that had shown in a previous video. So if I could just wear these I Feel a lot more comfortable But now just as a fair warning when I come back. I'm gonna have my fur coat on so you might not want to watch This is my my fur coat oh I'm gonna twirl so you can see what I did to my hair if you care Anyways, I'm wearing my fur coat and I'm wearing boots instead of mine. Where did the lie these at least at 20 years old Look at these heels. These are like a vintage piece. I Wouldn't even have thought to wear them except that They really Again I decided to wear them so it's Monday. I think this is going to be like a crazy Yeah, definitely, I think a crazy vlog because It might be super long. I don't know when it's going to be published The weekend was really kind of low key on Saturday. You didn't do much of anything But on Sunday, I recorded my birthday video. I had really Really been planning to do a birthday video ever since I saw Mary Ellen after 60s do hers but I hadn't really put together what I was gonna do and I I knew that I had a Diary so I searched for it and I put that together. So I'm heading to work Jay just carried all my bags out to the car so that I wouldn't have to carry them out He's such a good do be doing that for me But I'm gonna head to work and he's working to photo bombed photo. It's a video bomb video bombed Video bomb. How do I smell? Are you sure you have to go to work? He still likes that perfume that's a good thing anyways, I lost my whole train of thought men. Oh Yeah, so he's working tonight and so after work. I'm gonna go to the mall I've got a couple of things. I want to return to Macy's so I'm gonna go get that done And who knows what my day is gonna bring but I have a crazy week I'm renewing your presentation at one of our board of realtors on Social media best practices and I haven't even put the presentation together So I don't know when this vlog will be published. It might be Saturday I may add a bits of that day in or I may end it sooner, but that's my Monday later guys So I've been I've been kind of reflecting all week. It is today's Tuesday, by the way, February 13th and Tomorrow is going to be my birthday February 14th, and I the song is just been going through my mind You know when I'm 64 will you still love me or whatever the you know the Beatles song the words and And I remember, you know, I remember hearing listening to that song when I was younger much younger a kid and I just remember thinking oh that is It's so old. Yeah, I certainly never I don't know When I was a kid, I just really couldn't even envision being 64.  I accomplished anything What about regrets do I have any regrets do I You know, what do I still want to do with my life? I mean, it's not like I'm thinking it's all over and it really isn't What do I still want to do with my life? I still have goals. I still have dreams and I really think that my goals and my dreams can be a reality when I'm 64 Oh my gosh, I hate to admit it, but I'm kind of afraid of Of getting beyond this stage and I know I shouldn't be but And I know I look good for my age and I know a lot of people can't even believe how old I am but You know, there are every day I look in the mirror and I see, you know wrinkles and I see signs and I see little little things that say yeah, you know, you're an old lady and Yeah, yeah, the fear of aging does anyone have the fear of aging? I cannot be alone in that fear of aging It's like wow Next year will be 65 10 years from now will be 75 And and I know I mean my mom and dad my mom is gonna be 90 next month My dad's a little younger than her. He'll be 90 in August and Up until the last year or two for my dad. He's been extremely healthy So I know I have at least partially good genes for aging I've been uncle of my dad's side. That's you know, 110 and going strong. He's 110 or 105. I don't know, but anyways, um, I keep saying it's just a number Monica The crap it really is more than just a number It really is it's more than just a number And why am I afraid? Anyone else worrying about that? Anyone else have a fear of aging anyone else? Feel that way or am I just being silly? Reflecting on the day before my birthday and now I had to really go to work because I have a full day And I think at noon time. I'm gonna do a teacher max run And then I'm gonna try to clip my blog together because we went to the Award ceremony and you saw the clips Unless you felt fast forwarded through the fur coat But we just had a great time and at the table that I sat at We there were two other and this goes into play with being you know, aging There were two other girls ladies that we all went to Salem High School We all went to the same high school One was in the same class as me. We've known each other since we were kids so Jane and I graduated in 70 72 and Linda graduated in 1970 and It's like wow and then one of the guys at our table was a graduate of 1980 Salem High School So it was like a Salem High School alumni night in a way because there's so many people I mean that went to Salem High School but I really enjoyed sitting and You know having fun with both of my Salem High School pals This is a fun fun event and I ended up wearing those shoes as I think I mentioned and I hadn't planned on it But I ended up going on stage and having to be the Vanna of the night meaning that I helped give out the awards Which I normally do but this year When I asked about it nobody everyone acted like no, you know, we're gonna do it I guess differently or whatever so I wasn't planning on it So if you get if I wore those sexy shoes I wasn't gonna have to walk around or be on stage and stand for a long time Wrong my feet killed me.  So I think I'm gonna end it. I kind of felt naked all day. I didn't have earrings on But yeah, I think I'm gonna end the vlog at this point the day before my birthday only Because by the time you see this video by the time I piece it all together It probably will be the Saturday after my birthday. So Yeah You'll have seen my birthday video So no need to drag this out Yeah, I'm gonna be 64. Oh well by the time you see it and now I'm 64 Holy cow


So the metaphor is, it's quite early in the text when he talks about the ego's uses of the body, the Holy Spirit's uses of the body. I guess I mean, what I'm questioning is when you put in the context of seeing everything that happened to me brought me to where I am now. You know, that past, when you're looking at the past from that perspective, how does the Holy Spirit use that? What's the Holy Spirit's use for that? Well, it's symbolic. In other words, words are the past. These teaching sessions are the Holy Spirit's use of the past.  And we've talked about this before. It's from the deceived mind we can't talk about. We're talking about the past right now. We think this is the present. I don't get that, but that's because I'm deceived. It's the reference point. Picture it this way as a symbol. Here's the cosmos, time-space cosmos. If you perceive yourself as within the time-space cosmos, we'll say in a galaxy, in a solar system, on a planet, call it Earth. In a continent, call it North America. In a state, Michigan, in a city limits of Traverse City, in a home, in an upper room of a home, in a bedroom, sitting on a couch, in a six-foot-two body. Okay? That reference point, we'll say you're observing the cosmos, the time-space cosmos from, it seems to be from behind two eyes and between two ears. It seems to be a lot of times that the sense of self is perceived to be, you know, in the head even. If you had to even zoom it in to a body part. That is a, you're perceiving the cosmos from the reference point, from that specific reference point within the cosmos. It's possible to perceive the cosmos, you could call it like from a pinnacle or a point, that's not within it. Above it, for instance. Back from it. Even the words above and back, you could say the dreamer of the dream is the mind that is watching the images including these images and those images and all the images of the cosmos. All the images that seem to take place in history. The images of Abraham Lincoln's and Gandhi's and Julius Caesar's and Jesus Christ and Confucius and all this and that. All the images that seem to be coming in the future. The dreamer is watching that all simultaneously? Well, it doesn't matter what specific part of the cosmos is being seen, it's known that they're all, there's an awareness that they're all the same. If you had like a giant structure that had all these different facets, little bits and facets on it as you turned it around, it didn't matter what particular facet seems to be in front at any given moment, so to speak. It's all, they're all seen as the same. So how do you get to that awareness or to that point from being in, feeling like you're inside, getting outside of it? Well, realize that first of all you don't value judgment, you don't value ordering of thoughts. Everything we go into is starting to talk about preferences, we talk about ordering of thoughts, we talk about judgments. This is not valuable. Judgment is a device for maintaining the experience of being within the cosmos. Giving up, or the relinquishment of judgment, coming to the point of seeing that not only don't I have to give it up, but I never had it. Just realizing, I can't judge, yay, I'm capable of judging. Isn't that wonderful? Well, that's the release point. Not that you're giving up something that's real, not that you're giving up something that you had and are now losing, but that you never had it. You are incapable of judging. And that's the point of perceiving it not as within the cosmos, but you could call it the dreamer of the dream perspective. And is there a way to see that? I mean, to me it seems, you know, I seem to enjoy ice cream, chocolate, hot fudge on it. Is that a judgment? How can I see that? Are you saying that I don't enjoy that? I mean, I'm really having a hard time because I don't want it to be an idea. I don't want to say, well, I'm going to try and play mind games. I want to understand how that's achieved, if it can be achieved or what it is that you do or don't do.  It's questioning the perception, you know, the eye that perceives that it enjoys what did you say? Ice cream. Ice cream with fudge on it is a construct. So you're saying if I just start to question even that idea, it will fall apart on its own. Or it will undo itself. I just start to be more aware of all the little judgments that I make. It will do it itself. That is symbolic of unwinding yourself or of coming to clarity or discernment between what is real and what is unreal. This came up on the recent journal where there was a question that it was saying, but I like nature. Just like you're saying with the ice cream with the fudge, I like nature. And I feel wrong because I like nature. It's like you follow the metaphysics of this and it's kind of like just question that eye that seems to like nature. Just question that eye that seems to like the ice cream with the fudge. Follow it in. I mean for me it was like I began questioning my roles and I began questioning what I was doing, why I was doing it. Well, I'm doing this because it's my job. Well, why do I have this job? Well, I took the job because I need money. Well, why do I need money? Well, I need money so I can have these things. Why do I need these things? Well, if you trace it back down, if you keep tracing it down, you can start to see I believe in this body identity. Right, and I feel like I've done all that with the job and the roles and the relationships to other bodies. I started to question that because I can see when it comes down to that that there's no purpose, then I don't want to have it do with it. When it gets down to I can get as far as the body, and then if I don't have an experience of not being a body, I don't see how I can get beyond that. Unless by questioning the experience will come. That's what I guess that's the question is, do the questions bring on the experience? Well, the questions are still coming from the ego, but when you start questioning your beliefs and your thinking, those are very meaningful questions in the seeming process of awakening. And yeah, you are asking, you are desiring the experience, an experience that will take the place of you as Keith. And by your desire that experience will be brought to you. It will seem to come first through miracles. It's like a mini version. We could say the experience that I am the Holy Son of God, not Keith and not confined to this world in any way, you could talk about the Holy Instant as the experience of that. So you'll seem to have miracles that will precede that. Those are just those, you had one the other day, so to speak, when you came in and you said, I was just resting up here in the session room, and just for an instant, it was this beautiful feeling of detachment, total release, not worried about anything, not concerned, you know, a miracle. That's a miracle, you know. It felt great. It came to you by your desiring that. It came to you because you desired it.  Just like your desire for the Holy Instant will bring it nearer to your awareness. And that's why when we say there's nothing you can do, moving your eyes over a book isn't going to bring you the Holy Instant. It may be symbolic if you're really desiring it, and you're really reading it with attention, and you're really opening your mind to go beyond the words, to really look at what the meaning of some of the ideas are and everything. And that's just a reflection of a person reading a book and doing that. It's just out on the screen. That's just a symbol. But the desire is in the core of your being. And that's what the questions are too. They're a symbol of that desire. They might get past everything else. So the questions aren't causative either. Now asking the question isn't causative. It's the desire that would have you ask the question. Let's bring in time for a second. If I believe, if I'm believing with the ego that the past is who I was, and that I'm guilty in the past, and I think the present seems too miniscule, it seems to get covered over so easy, and that there's no real power, there's no opportunity for change in the present. The past is like solid granite. The present is like this little teeny blip that's easily covered over, and that the future is just a repetition of the past. Guilt, guilt. Fear, fear. If I really believed that, why would I question it all? You know, that belief in linear time, that belief in the reality of linear time inhibits questioning. If I don't believe there's a hope of ever getting out of the pattern, if I believe I'm locked in, if everything is set and determined, that I'm just condemned to a life of sin and guilt and misery and upset, if I believe that, then why would I even raise a question? Mind is closed. It's already concluded. Life is hell.  I mean, if that's my conclusion, then why question? Now, the questioning comes in when there's a sense that there's more than meets the eye, there's something more than all of this. Mind is not so convinced, completely convinced that it knows everything, that it knows everything that there is to know. So then the questioning begins, and the questioning begins more and more and more of questioning inwardly, questioning the mind and the beliefs and thoughts and everything. And then one has to come to a point, though, to the edge of the cliff where one leaps off the cliff into certainty. There is no questioning in certainty. Christ is not a questioner, so questions aren't, like, inherently valuable because Christ asks no questions. I assume that we'll, that I will know when I'm at that cliff, because I don't feel like right now I'm at the cliff and I could just jump from this point that I'm at. You don't feel it and you don't believe it.


May 2011, researchers published an investigation into the prevalence of multi-drug resistant staff bacteria in the U.S. meat supply. Antibiotics are used extensively in food animal production for growth promotion and disease prevention due to the stressful overcrowded, unhygienic conditions in which they're often confined. Surveys conducted by NARMS, the CDC monitoring system, indicate that retail meat and poultry products are frequently contaminated with multi-drug resistant campylobacter, salmonella, endurococcus, and E. coli. But what about staff infections, which in people can cause everything from skin infections to pneumonia and meningitis? Researchers collected and tested a total of 136 meat and poultry samples from five U.S. cities, encompassing 80 unique brands from 26 grocery stores. They tested retail beef, chicken, pork, and turkey. Any guess as to which was most contaminated? Staff contamination was most common among turkey samples, followed by pork, chicken, and then beef. Three quarters of retail turkey tested, and overall 47% of U.S. retail meat tested, was found contaminated with staff. And multi-drug resistance was common. Here are 18 different common clinical antibiotics used in human medicine across the top, important drugs like erythromycin, penicillin, ampicillin, seftriacin, and then going down, these are some of the staff bacteria they found in turkey, pork, chicken, and beef. Orange means intermediate resistance to the antibiotic, red means complete resistance, and black is multi-drug resistance to three or more classes of antibiotics. These bugs were not from some hospital ICU, but right off of grocery store shelves. Conclusion Conventional concentrated animal feeding operations, CAFOs, so-called factory farms, provide all the necessary components for the emergence and proliferation of multi-drug resistant zoonotic, or animal to human pathogens. In the United States, billions of food animals are raised in densely stocked CAFOs, where antibiotics are routinely administered in feed and water for extended periods to healthy animals. The CDC has shown that multi-drug resistant E. coli and enterococcus species are prevalent among U.S. meat and poultry products. Our findings indicate that multi-drug resistant staph aureus should be added to the list of antibiotic resistant pathogens that routinely now contaminate our food supply.


So I love connecting people and I have made a big mistake over the years when I've tried connecting people and I've also been on the receiving end of this mistake that I'm about to share with you. The mistake is simply this. I connected two people before asking each of them privately for their permission to introduce them. Now you might say, well, George, why wouldn't two people that you think are perfectly wonderful, friendly people who you think you could see the benefit of these two people connecting? So why wouldn't you just quickly send an email or a LinkedIn message or a Facebook message to both of them saying, hey, Bob, meet Mary. I think you two would get along. So I used to think the same thing, like what's the big deal? I just connected, you know what I even did? Because I know a lot of different people's birthdays over the years, clients and friends and whatever. Sometimes I see two people have the same birthday. I'm like, oh yeah, I could see them maybe connecting about something with mutual interests maybe. So I just introduced them.  I don't know, maybe a few of you have done that too. Over the years I did that. And it was only when people started introducing me to other people more frequently that I realized, oh, I've been making a mistake. And so here's the thing. As I have gotten busier in my business as I've gotten more connections and just more requests for my time. So in other words, I'm kind of becoming an influencer just in a small way. I'm definitely not one of those big influencers, but I'm a small influencer. I realized that it's like the people that you want to most have on your side that can make the biggest difference in your business. If they promoted you, if they shared you, if they referred you, the influencers, right? You most need to be careful before making an introduction between them and somebody else. So let me help you to think through before you make another introduction introducing two people. Let me help you think through this. There are two points I want to help you think through. One is that actually three points. One is what type of person would be most beneficial to introduce to somebody else, especially if they're an influencer, okay? Or they have a business, they could probably benefit the other person. Okay, so number one, let's talk this through. Number one, let's say you're interested, I'm just gonna use myself as an example so that it's a clearer example. So let's say that you wanted to introduce somebody to me, all right? You have to think through what kind of person I want to be introduced to. And if you don't know, you should ask me. Well, you don't have to ask me because I'm going to tell you in this video, right? But the more successful someone becomes in their career or business, the more clear they have become structure in terms of the types of people they work with. So there are basically three types of people that I want to be introduced to or most people want to, most people with a business, established business want to be introduced to, three types of people. One, potential clients, okay? Potential clients at this point, yeah, so I'll just say this, potential client. So potential client, if you're introducing a potential client to me, I need two things to happen. One, do you know my business well enough to know what kind of person would be a potential client for me, right? So if you're not sure, you should ask that person and I'll just tell you what that is for me. Basically potential client is somebody who has gotten started in business, has a bit of a following, but would like to become much more systematic in how they are growing their following and growing their business. That would be my ideal client. My ideal client is not somebody who is just getting started. Although anybody who's just getting started would be my ideal students or potential students. They could take my courses, but they would not become my client, right? So I have clients versus students. Students are of all different levels, beginner, not even thinking about business yet, all the way to advanced, whereas clients are more intermediate slash advanced. Anyway, okay, so potential client is one type of person you would introduce to someone like me or another influencer that you know. Second type is resource. Resource means somebody who services you've used that you think would be great for my business too. So, oh, I didn't mention one thing. With the potential client thing, I said there's two things you need to know. One is who is my ideal client. And second, does that person, that potential client want to use my services? Because you can't just introduce a friend, your friend Mary to me. And Mary doesn't even barely knows me and has said that she likes my blog post, but now you're making the introduction saying, hey, George, Mary is a potential client. And that's not appropriate, right? You have to make sure Mary says, no, I do want to be introduced to George. I do want to use the services. I think I'm a good fit above all, right? So potential client is the first type. The second type is a resource. A resource is somebody that you think would be beneficial as a service provider for me, which means that you need to know what kind of resource I'm looking for, right? Like you can't just go, hey, George, I've been using the services of this tarot card reader and you should hire her.  I mean, I believe they can be beneficial, but I can't remember the last time I hired a tarot card reader and I'm not in the market for that right now. So you see what I mean? Like you wouldn't just introduce, just because you like somebody's service, doesn't mean I am even looking for it. And now you're just adding the burden, because here's the thing. If you introduce someone to me and I haven't been asked to introduce to that person, okay? Then you're creating a burden for me. You're actually making me look bad. You're painting me into a corner because now what I don't want to be introduced to this person and now what am I gonna say? Hi, sorry, you're not the right fit for me. I mean, one of my, it makes it awkward for me. Do you see what I mean? You're introducing me as an example. Think about it when you're introducing two people of, you know, in the future. So the second type is a resource. You have to know that the person, the resource you're introducing to the business owner, you need to know that the business owner actually is looking for this type of resource. And then that resource, you know is a good match for the business owner, okay? Like a vetted freelancer, right? Second type. Third type is referral source. Referral source is somebody who could refer business to me, could refer students or clients to me, right? So a referral source could be somebody who has an audience, probably has an audience already or is a very good networker and has a lot of people who listen to, you know, their recommendations. So referral sources. Now again, let's, referral sources are right now what I am most looking forward to be introduced to. So if you know somebody who has a similar sized audience as me and who also talks about business or marketing or possibly personal development but sometimes business and marketing introduce them to me. Now only if, only if there is a right match of audience. Let me explain.  You have to realize that influencers like me have pretty much unlimited opportunities to be interviewed on podcasts. Like I could approach somebody because if someone interviews me on a podcast, right? I feel the natural obligation to share that interview with my audience. If you interview me on a podcast, I'm gonna share your podcast with my audience. That just a natural reciprocity because I'm a, well, because I'm a giver. I'm at least a matcher, if not a giver. I'm not a taker.  Of course I would want to introduce, I would want to at least share your interview of me to my people so that my people discover your podcast or your YouTube channel or whatever. But why would I let you interview me? Because that's actually, if you were just starting out and you said, George, I want to interview you.  So what, you and your best friend and your mother are gonna find out about me, right? I could run Facebook ads for $10 and reach a thousand of the right people. Why would I want to spend half an hour even speaking to somebody and be introduced to three random people who are not even potential clients of mine, right? You see what I mean? So to an influencer, an influencer has unlimited opportunities pretty much to be introduced, but they have to vet them carefully. So someone like me has to be very careful what I say yes to in terms of who I want to spend time, even being promoted for, because then I feel the obligation to promote them back in some way, right? So that's why you got to think about the audience match. Now you might say, well, what's the right sized audience George, right? Well, a simple rule of thumb is 50% to 200% of someone's audience. So here's what you do. Go and look at both people. You want to introduce these two people. Maybe person one can introduce an interview person B or maybe they can swap interviews with each other. Look at both of these people and where they share interviews of other people, okay? So if this person does interviews, go look at where this person shares their interviews and then notice how many people are consuming that interview, how do you know how many people? You just simply look at how many likes they're getting for the interview or how many, if you go on YouTube, you can see how many views they're getting for interviews, right? So if you go to my YouTube channel, let me just show you an example. I'm actually gonna go to my YouTube channel on the screen right now, just if you're studying me, for example, and whether or not I have the right audience for you, right? If you go to my YouTube channel and click on videos, so you're looking at my recent videos, look at where I'm interviewing somebody. So here I interviewed Angela Johnson and I got her 130 views, okay? 130 views, great. Here I'm interviewing Caroline Leon and got her 174 views, right? Further down. Here I'm interviewing Tad Hargrave and got 94 views. I'm actually, that should be more, but anyway, 94 views, there it is. And Eric Ben-Susson, 100 views. So I'm in Rachel K. Albers, 54 views, okay? So if you average them together, maybe it's something like 100 to 120 views. Further down. Patty Kaye, 148 views. Jonah, 80 views. Dorota, 244 views, et cetera. So let's just say that if I interview you, I will get maybe an average of 120 views. So 120 of my people are watching and learning about you, okay? So then 50 to 200% audience means that it would be worth it for you and I to trade interviews. If you're, when you interview other people, if you can get between 60 to 240 views on average per video, then it makes sense. 60 to 240 is the within range of how many views I get for you. You see what I mean? So that's how I'm thinking through what's worth a collaboration or getting connected to somebody, right? Now, if somebody bigger than me wants to interview me, I'm so honored, right? If somebody usually gets hundreds or thousands of views when they interview people or listens on their podcast, podcast is a little harder because you can't tell if someone only downloaded it or they actually listened. On YouTube, you can see, and Facebook, you can see how many views a video got. That's very clear that they at least played the video for at least a few seconds. On a podcast, though, all we can see is download numbers. So if you got 300 downloads, you know, some, a lot of podcast software, they automatically download things, right? How do you know how many people listened? You only know the download numbers. You don't know the listen numbers. So it's harder for podcasts. It's easier to match audiences when you talk about views or if you're either promoting each other via social, would be an email list, how many opens on average per email. Anyway, so I'm talking through some of these are details, but the basic premise is to, here's the basic premise. I just want to end this video now. Do not introduce two people unless you have privately asked each person whether they would like to be introduced to each other. And if one of those people is an influencer, meaning they have more of an audience than the other person, you need to make sure you don't burden that influencer like me. Just like you have a hundred people you want to introduce me. Don't ask me about all a hundred people. You have to think carefully and maybe ask me about three people. Hey, I'd like to, George, I'd like to introduce you to these three people. I thought about this and I think these three would be good to introduce you. What do you think? Now, if you introduce good people to me and it's a really good match, I will remember you forever, right?  And some people have made very good matches for me and I'm so grateful to them, right? So anyway, I hope this helps you and maybe some of you know exactly how that feels to be introduced to somebody before they've gotten your permission. And so I welcome you to, I wrote an article that kind of explains everything. If you look above or below this video, depending on where you're watching this, there is a link to an article and I encourage you to share that article. I'm not just saying this because I want you to share my articles. I want you to share the article with other connectors that you know, like people typically who are enthusiastic, they're warm, but they haven't quite thought through these kinds of dynamics that are really important so that you don't create strain on relationships. That's the main thing. You wanna do net carrying. You wanna do thoughtful, wise net carrying, not just enthusiasm. Oh my God, these two people are wonderful. Let me introduce them to each other. No, no, don't do that. So I hope this is helpful. Share this article with the connectors you know so that they can make better connections and thereby really help others and thereby become more valuable, more useful to others in their network. So I hope this is helpful. I hope this is interesting. Any questions you have about any of this, please go ahead and comment below and let me know. And thank you for being in my community. Those of you who don't know, I'm George Kau, authentic business coach. I don't always, I'm not always this eco-centered talking about myself and how great I know. But I just use myself as an example because that's very obvious to me. But anyway, I usually talk about how do we build a business with heart, truly be of service to other people and to feel really good doing it. So anyway, I hope to see you in another video. Take good care.


Right so we're just leaving the circuit. It was a tough race, didn't have a great first lap, lost quite a bit of ground initially from a one stop we went to a two stop and the car came back alive in the last tinned, put some air balance on so we just need to analyse what why is that and I'm sure we're gonna get stronger in Japan so yeah it's a tough race but we came back pretty hard at the end we weren't far away from P10 so there is some some encouragement in there yeah I think I think Japan will be better fast and I think we've learned a lot this weekend so looking forward to jump back in the car even though right now a bit tired but yeah Japan Suzuka is my favorite circuit so very very much looking forward to that one and see what we can do so I hope we have enjoyed the video behind the scene of the weekend maybe next time I give the camera to Simzi can be the filmmaker and we see what else we can we can show you from our life outside of the racing inside the cockpit so I'll see you soon