Response paper Assignment Example | Topics and Well Written Essays - 750 words - 2

Response paper - Assignment Example However, the main cause of the decline of the empire can be attributed to what experts call Hypertrophy. The empire was busy crushing potential rivals. In the end, the empire had no money to finance wars or pay armies. Eventually, the empire could not protect itself from external attacks. Couple this with the fact that the cities produced nothing; all production was left for rural people. In fact the government was providing financial incentives and entertainment for urban dwellers to quell instances of revolts. Therefore, the urbanites ate free bread from government and spent all their time watching games and plays; without paying taxes. After the collapse of the Roman Empire under barbaric tribes from Germany, the church became heavily dependent on the barbarians. As Europe was under the barbaric rule, King Charles or Charlemagne became the executive rule of the new empire. Under his leadership and of Pope Gregory, many barbarians were converted to Christianity. Ironically, the church became more barbaric and as the culture deteriorated, so were the morals of the clergy. Bishops had slaves and concubines and practiced perverted sexual fantasies. They also wore swords and mils, which they used to dispose the poor of their wives and possessions. They were licentious and drunkards who preached the exact opposite of their actions. During Gregory‘s papal reign, violence, torture and corruption was the order of the day. The only reprieve for people were the saints who selflessly came to their aid. The saints had supernatural powers and could heal the sick. Many people therefore ran to them. Saints were subsequently persecuted with the exception of few powerful saints like Saint Martin who were feared by the emperor. While there was extreme corruption both physically and spiritually, the dark ages also marked a time of prosperity especially in northern Europe. Better means of farming had been

Finance Case Study Example | Topics and Well Written Essays - 1000 words - 1

Finance - Case Study Example GE’s first criterion of loan application is that the company applying for loan should have minimum three years’ operational working. The CCL has more than three years’ existence starting from 1987 until the year ending December 31, 2002. Thus, CCL clearly passes the first criterion. Second criterion laid down by GE is of paramount importance as it ascertains whether the applicant would have enough cash generation in his or her business to repay the loan. It is necessary to do a complete analysis related to this aspect. Rendl wants to know about the cash generated from the operations so as to be assured of the loan repayment by CCL. This can be given by net earnings after tax plus depreciation charged ($72,795+$79,132 = $151,927). Depreciation is not a cash outgo and remains with the company and hence counted in the cash generated. CCL’s previous loans have been disbursed for the repayment period of 48 months. Assuming same repayment period of 48 months for the loan of 270,000, CCL will have monthly installment of 270,000/48 = $5,625/month. Thus, in a year CCL would need to pay 5625Ãâ€"12 = $67,500 toward its new loan; however, for its two old loans CCL has been already paying 7000+800 = $7800 per month. Thus, the outgo per annum for these two old loans would be $93,600. Added a new loan repayment, total repayment comes out to be $161,100 per year. Cash likely to be generated in the year ended 2003 (as calculated above) at $151,927 is marginally short of this repayment requirements. While Rendl reviewing CCL application for $270,000 on April 15 2003 for likely new loan disbursement from May 1 2003, the CCL would have reduced debt in the first four months by 7800Ãâ€"4= $31,200 and net long term liability at the time of new loan disbursement would be 225,000(from balance sheet year ended 2002) – 31200 + 227000(new debt) = $420,800.