But not everyone sees a dead mall as a negative development.
"Our country has six times more retail space per capita than any other county," said Ellen Dunham-Jones, director of the architecture program at Georgia Institute of Technology.
"We're just cannibalizing our existing stores by building more stores even when sales aren't increasing," she said. "We were long due for a retail correction and we're going through it now."
In finance, a warrant is a security that entitles the holder to buy stock of the company that issued it at a specified price, which is usually higher than the stock price at time of issue.
Warrants are frequently attached to bonds or preferred stock as a sweetener, allowing the issuer to pay lower interest rates or dividends. They can be used to enhance the yield of the bond, and make them more attractive to potential buyers. Warrants can also be used in private equity deals. For instance, it was a common practice during the height of the dot-com bubble for a landlord of sought-after commercial real-estate to demand warrants from high-tech startups as part of the lease agreement. Frequently, these warrants are detachable, and can be sold independently of the bond or stock.
Warren Buffett said the economy is still in a recession and unlikely to improve before 2009 but that stocks appear better valued than a year ago.
The billionaire investor also said there is a "reasonable chance" shareholders of Fannie Mae (FNM.N) and Freddie Mac (FRE.N) may be wiped out in any government bailout of the mortgage financiers.
Speaking on Friday on CNBC television, Buffett said some housing-related businesses in his Berkshire Hathaway Inc (BRKa.N)(BRKb.N) conglomerate are struggling as the economy works off past excess in making credit available.
"You always find out who's been swimming naked when the tide goes out. We found out that Wall Street has been kind of a nudist beach," said Buffett, who in March was called the world's richest person by Forbes magazine.
He also said Federal Reserve Chairman Ben Bernanke has no "magic wand" to boost an economy facing weak growth prospects, mounting inflation and deteriorating credit. "In my judgment it won't be any better five months from now," he said.
Buffett nevertheless said U.S. stocks are broadly "more attractive" than a year ago. He also said Berkshire has completely unwound a once $21 billion bet against the U.S. dollar, helping boost the greenback in Friday morning trade.
In May, Buffett said Berkshire still had a stake in one currency, the Brazilian real.
The Omaha, Nebraska-based company bought $3.98 billion of stock in other companies in the second quarter, and Buffett said it has added in recent months to its big stake in either American Express Co (AXP.N) or Wells Fargo & Co (WFC.N), but did not say which one.
Shares of both rose in early trading, as did major stock indexes.
Buffett reiterated his support for Barack Obama, the presumptive Democratic nominee, in November's U.S. presidential election, but admires Republican rival John McCain. "President Obama is going to have plenty on his plate in January," he said.
HOUSING EXPOSURE
Since 1965, Buffett has transformed Berkshire from a failing textile company into a $180 billion conglomerate.
Berkshire is best known for insurance holdings such as Geico and sells such products as ice cream and underwear.
But its 76 businesses also include housing-related units Acme bricks, Clayton manufactured homes, Shaw carpeting and the Home Services of America Inc real estate brokerage.
"What we're seeing in business, in our retail businesses, or anything having to do with housing, is even a further slowing down in June and July, both in terms of credit experience where people first got in trouble with house payments, and now credit card payments," Buffett said.
Some economists say a recession occurs when the economy contracts for two straight quarters. Buffett said it occurs when people are doing less well than before.
In morning trading on the New York Stock Exchange, Berkshire Class A shares rose $1,650 to $116,650, and its Class B shares rose $50 to $3,885. American Express shares rose $1.42 to $38.43, Wells Fargo rose 99 cents to $29.43.
The CNBC interview was tied to the national roll-out of the documentary "I.O.U.S.A.," which argues that the nation might face economic disaster if it doesn't curtail mounting debt.
Buffett is interviewed in the movie.
"THE GAME IS OVER"
Fannie and Freddie shares have plummeted as speculation grows about a government bailout of the companies, which own or guarantee almost half of U.S. mortgages. Shares of both have fallen more than 90 percent in the last year.
Buffett called them "too big to fail" and said "the game is over" for them as independent companies. "In a practical sense, as institutions, they don't have any net worth," he said.
Buffett said he has not been approached to assist in any bailout, which he said would be too big to come from the private sector. Though he said "nothing is going to happen" to investors in Fannie's and Freddie's insured mortgages or debt, but "the equity and preferred stock is another question."
Berkshire is trying to reduce the $31.16 billion of cash on its balance sheet, and Buffett said he is being approached by a growing number of "distressed" companies rather than viable takeover candidates.
Buffett said he recently tried to invest $500 million in a Chinese stock he declined to name, but was turned down.
He also said he erred in selling 61 percent of Berkshire's stake in Anheuser-Busch Cos (BUD.N) for $61 to $62 per share, ahead of the U.S. brewer's July agreement to be taken over by Belgium's InBev NV (INTB.BR) for $70 per share.
"It was about valuation and whether I thought the deal would go through," Buffett said. "In retrospect, I was wrong to decide to partially sell."
(Additional reporting by Euan Rocha and Vivianne Rodrigues; Editing by Steve Orlofsky/Jeffrey Benkoe/Daniel Trotta)
The Pareto method, derived from the Pareto principle, is to cycle count inventory by percentage of inventory value. This leads to the expensive items being counted most frequently.
This traditional approach may appeal to accountants by minimizing the variance in inventory value.
Cycle counting by usage states that items more frequently accessed should be counted more often, irrespective of value. Every time an employee adds or removes an item, there is a risk of introducing inventory variance. Logical inventory zones can be set up to distinguish items depending on how frequently they are touched. Volume consumed and volume transacted and volume moved are all ways of determining this.
When carrying out an ABC analysis, inventory items are valued (item cost multiplied by quantity issued/consumed in period) with the results then ranked. The results are then grouped typically into three bands. These bands are called ABC codes.
The accrual method -
The cash method -
According to Financial Web -
When seeking funding for your small business, it can be a tremendous advantage to know exactly what the lender is looking for in a financing opportunity. Generally speaking, there are five basic aspects of your business that every lender will evaluate when considering a loan to you:
Your credit profile and history. This, of course, is one of the primary factors considered in any institutional lending situation. Lenders are going to scrutinize your credit profile – both your business and personal credit. Therefore, before searching for a business loan, it's wise to obtain a copy of your credit report from all three major credit reporting services: TransUnion, Equifax, and Experian (one free annual copy of your personal credit report can be ordered from each bureau through the Federal Trade Commission's website). Check your reports closely for errors and omission of any good credit you may have that wasn't submitted to the credit bureaus, and do your best to repair any discrepancies before you apply for the loan.
Although your personal credit score is tied to your Social Security number, business credit reports are associated with the company's Employer Identification Number, or EIN (also known as a Federal Tax ID Number). If your business doesn't already have one, you can obtain an EIN from the Internal Revenue Service.
Your vested interest in the company. Lenders want you to have a reasonable amount of equity invested in your company. They tend to feel that they're in a more secure position knowing that your money is on the line right along with theirs, and this drives the assumption that you'll work even harder to make the venture a success.
The amount of working capital that the business possesses. Working capital can be defined as the business's cash on hand, the funds available to pay your company's current debts and operational expenses. If cash on hand is below the levels necessary to meet these present needs, it significantly increases the risk (not only to your organization, but to the lender as well) that your business may fail, and greatly reduces the chances that the lender will approve your loan.
Your ability to repay the loan. Virtually all business lenders normally require at least two possible sources of repayment. The primary source is directly from the company's revenues (its cash flow). The second, or alternate, method is through the sale of collateral pledged by the business against the loan. In addition, lenders will require you to provide the company's current and past financial statements and balance sheets, profit and loss statements, and accounts receivable. Records of your personal assets, liabilities, and tax returns (along with those of any partners in the business) will also be necessary. If you can show on paper that your business has consistently made a profit, your odds of getting the requested financing will dramatically increase.
Your own personal business experience. Lenders definitely prefer that loan applicants for new businesses possess experience in the particular business that they're going into. If you do not personally have such experience, the lender will likely want you to partner with (or at least hire) those who have the necessary expertise. Nevertheless, you should at least be able to show the lender that you do possess a keen business insight and management experience.
