ࡱ> Y AbjbjWW W]==7]\\\\\\\,\< < $\  \\ <    \ \ \\\\   -|\\ p м$ы Student lecture notes CHAPTER 3 FINANCIAL STATEMENTS FROM THE ACCOUNTING EQUATION Primary financial statementsPurpose is to reportBalance sheet Profit and loss account Cash flow statements  The balance sheet The balance sheet reflects the accounting equation in the form: Assets minus Liabilities equals Ownership interest minus equals  The assets are subdivided into fixed assets and current assets. Liabilities are subdivided into current liabilities (due within one year) and longer-term liabilities (due after one year). Ownership interest may also be subdivided. Current assets and current liabilities are grouped close to each other. Structure of a balance sheet plus minus minus equals Capital at start of year plus/minus plus  Balance sheet presentation The following list of assets and liabilities of P. Masons legal practice was prepared from the accounting records of transactions summarised at 30 September Year 5. Show the presentation of the information using the accounting equation. List of assets and liabilities at 30 September Year 5:P. Masons legal practice Balance sheet at 30 September Year 5Land and buildings250,000Fixed assetsOffice furniture30,000Debtors for fees1,200Prepayment of insurance premium540Total fixed assets Cash at bank 15,280Total assets (A)297,020Current assetsTrade creditors for supplies2,800Long-term loan150,000Total liabilities (L)152,800Ownership interest (A-L)144,220Total current assetsCurrent liabilitiesCurrent assets less current liabilitiesLong-term liabilitiesNet assetsOwnership interest The profit and loss account The profit and loss account reflects that part of the accounting equation which defines profit. Profit equals revenue minus expenses  minus equals  Profit and loss account The accounting records of P. Masons legal practice at 30 September Year 5 showed that the ownership interest could be explained as follows. Present the information in the format of a profit and loss account. Profit and loss account presentation The accounting records of P. Masons legal practice at 30 September Year 5 showed that the ownership interest could be explained as follows (using brackets to show negative items): P. Masons legal practice Profit and loss account for the month of SeptemberCapital contributed at start of month140,000Increases in claimRevenuesFees8,820 FeesDecreases in claimExpensesComputer rental and on-line searches(1,500)Computer rental and on-line searchesGas(100)GasElectricity(200)ElectricityTelephone/ Fax(1,000)Telephone/faxSalary of assistant(1,800)Salary of assistantTotal expensesNet profit of the monthOwnership interest at end of month144,220 The cash flow statement Liquidity is measured by the cash and near-cash assets and the change in those assets, so a financial statement which explains cash flows should be of general interest to user groups. Cash flow = cash inflows to the enterprise minus cash outflows from the enterprise.The cash flow statement will appear in a vertical form: minus equals  Subdivisions of: Operating activities: provision of ., and the manufacturing, buying and selling of ... Investing activities: buying and selling .. for .. purposes. Financing activities: raising and repaying the of the business. Structure of a cash flow statement Operating activities minus PlusInvesting activities minus PlusFinancing activities minus Equals  P Masons legal practice Cash flow statement for the month of September Year 5 Year 5Operating activitiesCash receivedSept. 1Capital contributed by P. Mason140,000 1Loan from bank150,000 19Fees received from clients 7,620Net inflow from operations 5,280Total cash received297,620Cash paidInvesting activities 1Land and buildings250,000 5Prepayment of insurance premium540 26Creditor for office furniture30,000Net outflow for investing activities(280,000) 30Salaries 1,800Total cash paid282,340Financing activitiesCash remaining at Sept. 30 15,280Net inflow from financing activities290,000Increase in cash at bank over period15,280 P. Masons legal practice Profit Cash flowEXPLANATIONRevenues Fees/cash received8,8207,620ExpensesComputer rental and on-line searches (1,500) nilGas(100)nil Electricity(200)nil Telephone/Fax(1,000)nil Salary of assistant(1,800)(1,800) Payment for insurance premium ______ (540)Total expenses/total cash paid 4,600 (2,340)Net profit/cash flow4,220 5,280  Using the accounting equation to analyse transactions The list of transactions is as follows: Sept. 1P. Mason deposits 140,000 in a bank account to commence the business under the name P. Masons legal practice.  1P. Masons legal practice borrows 150,000 from a finance business to help with the intended purchase of a property for use as an office. The loan is to be repaid in five years time.  1A property is purchased at a cost of 75,000 for the land and 175,000 for the buildings. The full price is paid from the bank account.  3Office furniture is purchased from Stylecraft at a cost of 30,000. The full price is to be paid within 90 days.  5An insurance premium of 540 is paid in advance. The insurance cover will commence on Oct. 1.  8An applicant is interviewed for a post of legal assistant. She agrees to start work on Sept. 10 for a salary of 24,000 per annum.  " 11Invoices are sent to some clients for work done in preparing contracts for them. The total of the invoiced amounts is 8,820. Clients are allowed up to 30 days to pay.  19Cheques received from clients in payment of invoices amount to 7,620.  26Payment is made to Stylecraft for the amount due for office furniture, 30,000.  28Bills are received for computer rental and on-line searches 1,500; gas 100; electricity 200 and telephone/fax 1,000.  30Legal assistant is paid salary of 1,800 for period to end of month. Assets equal Liabilities plus Ownership interest DEBIT ENTRIES IN A LEDGER ACCOUNTCREDIT ENTRIES IN A LEDGER ACCOUNTLeft-hand side of the equationAssetIncrease DecreaseRight-hand side of the equationLiabilityDecreaseIncreaseOwnership interestExpenseRevenueCapital withdrawnCapital contributed Analysis of each transaction Sept. 1 P. Mason deposits 140,000 in a bank account to commence the business under the name P. Masons legal practice. The business acquires an asset (cash in the bank) and an ownership interest is created through contribution of capital. Transaction number: 1DEBIT CREDIT Asset Ownership interest   Sept. 1 P. Masons legal practice borrows 150,000 from a finance business to help with the intended purchase of a property for use as an office. The loan is to be repaid in five years time.  The business acquires an asset of cash and a long-term liability is created. Transaction number: 2DEBIT CREDIT Asset Liability  Sept. 1 A property is purchased at a cost of 75,000 for the land and 175,000 for the buildings. The full price is paid from the bank account. The business acquires an asset of land and buildings (250,000 in total) and the asset of cash in the bank is reduced. Transaction number: 3DEBIT CREDIT Asset  Sept. 3 Office furniture is purchased from Stylecraft at a cost of 30,000. The full price is to be paid within 90 days. The business acquires an asset of furniture and also acquires a liability to pay the trade creditor, Stylecraft. Transaction number: 4DEBIT CREDIT Asset Liability  Sept. 5 An insurance premium of 540 is paid in advance. The insurance cover will commence on Oct 1. The business acquires an asset of prepaid insurance (the benefit of cover exists in the future) and the asset of cash at bank is reduced. Transaction number: 5DEBIT CREDIT Asset  Sept. 8 An applicant is interviewed for a post of legal assistant. She agrees to start work on Sept. 10 for a salary of 24,000 per annum. The successful outcome of the interview is an event and there is an expected future benefit from employing the new legal assistant. The employee will be controlled by the organisation through a contract of employment. The organisation has a commitment to pay her the agreed salary. It could be argued that the offer of employment, and acceptance of that offer, create an asset of the human resource and a liability equal to the future salary. That does not happen because the recognition conditions are applied and it is felt to be risky to recognise an asset when there is insufficient evidence of the future benefit. Commercial prudence dictates that it is preferable to wait until the employee has done some work and pay her at the end of the month for work done during the month. The accounting process is similarly prudent and no accounting recognition takes place until the payment has occurred. Even then it is the expense of the past which is recognised, rather than the asset of benefit for the future. Sept. 11 Invoices are sent to some clients showing fees due for work done in preparing contracts for them. The total of the invoiced amounts is 8,820. Clients are allowed up to 30 days to pay. Earning fees is the main activity of the legal practice. Earning fees makes the owner better off and is an example of the more general activity of increasing the ownership interest by creating revenue. The clients have not yet paid and therefore the business has an asset called a debtor. Transaction number: 6DEBIT CREDIT Asset Ownership interest (revenue) Sept. 19Cheques received from clients in payment of invoices amount to 7,620. When the customers pay, the amount due to the business from debtors will be decreased. So the asset of debtors decreases and the asset of cash in the bank increases. Transaction number: 7DEBIT CREDIT Asset  Sept. 26 Payment is made to Stylecraft for the amount due for office furniture, 30,000. The asset of cash in the bank decreases and the liability to Stylecraft decreases to nil. Transaction number: 8DEBITCREDITAsset Liability  Sept. 28 Bills are received for computer rental and on-line searches 1,500; gas 100; electricity 200 and telephone/fax 1,000 (Total 2,800). The computer rental, on-line searches, gas, electricity and telephone have been used up during the period and are all expenses which reduce the ownership interest. Transaction number: 9DEBITCREDITLiability Ownership interest  Sept. 30Legal assistant is paid salary of 1,800 for period to end of month. The asset of cash at bank decreases and the salary paid to the legal assistant is an expense of the month. Transaction number: 10DEBITCREDITAsset Ownership interest  Summarising the debit and credit entries One line for each transaction. One column for each item: (each type of asset, each type of liability, revenue, expenses, owners capital contributed. Write Dr or Cr against each entry. Add all the Drs and then add all the Crs of each column. Spreadsheet of transactions for P. Masons legal practice, September A S S E TS =L I A B I L I T I E S +O W N E R S H I P C L A I MNoLand & buildingsOffice furnitureDebtorsPre-paymentsCash at bankTrade creditorsBank loanRevenueExpensesOwners capital contributed12345678910Total debit entries in each columnTotal credit entries in each columnSurplus of debits over credits (or credits over debits) Spreadsheet of transactions for P. Masons legal practice, September A S S E TS =L I A B I L I T I E S +O W N E R S H I P C L A I MNoLand & buildingsOffice furnitureDebtorsPre- pay-mentsCash at bankTrade creditorsBank loanRevenueExpensesOwners capital contributed1140,000 Dr140,000 Cr2150,000 Dr150,000 Cr3250,000 Dr250,000 Cr430,000 Dr30,000 Cr5540 Dr540 Cr68,820 Dr8,820 Cr77,620 Cr7,620 Dr830,000 Cr30,000 Dr92,800 Cr2,800 Dr101,800 Cr1,800 DrTotal debit entries in each column250,000 Dr30,000 Dr8,820 Dr540 Dr297,620 Dr30,000 Drnilnil4,600 DrNilTotal credit entries in each columnnilnil7,620 CrNil282,340 Cr32,800 Cr150,000 Cr8,820 Crnil140,000 CrSurplus of debits over credits (or credits over debits)250,000 Dr30,000 Dr1,200 Dr540 Dr15,280 Dr2,800 Cr150,000 Cr8,820 Cr4,600 Dr140,000 Cr Turning the spreadsheet back to a vertical listing, using the debit column for items where the debits exceed the credits, and using the credit column for items where the credits exceed the debits, the list becomes as in Exhibit 3.10: Summary of debit and credit entries for each category of asset, liability and ownership interest Debit Credit ASSETSLand and buildings250,000Office furniture30,000Debtors1,200Prepayment540Cash at bank15,280LIABILITIESTrade creditors2,800Long-term loan150,000OWNERSHIP INTERESTRevenue8,820Expenses4,600Capital contributed140,000Totals301,620301,620 (The totals of each column have no particular meaning, but they should always be equal because of the symmetry of the debit and credit records and so are useful as an arithmetic check that no item has been omitted or recorded incorrectly.) PAGE  Financial and Management Accounting, Third Edition Student notes 3. PAGE 1 P Weetman and P Gordon. Copyright Pearson Education Limited 2003 Financial and Management Accounting, Third Edition Student notes 3. PAGE 3 P Weetman and P Gordon. Copyright Pearson Education Limited 2003 Financial and Management Accounting, Third Edition Student notes 3. PAGE 4 P Weetman and P Gordon. Copyright Pearson Education Limited 2003 Financial and Management Accounting, Third Edition Student notes 3. PAGE 5 P Weetman and P Gordon. Copyright Pearson Education Limited 2003 Financial and Management Accounting, Third Edition Student notes 3. PAGE 6 P Weetman and P Gordon. Copyright Pearson Education Limited 2003 Financial and Management Accounting, Third Edition Student notes 3. PAGE 8 P Weetman and P Gordon. Copyright Pearson Education Limited 2003 Financial and Management Accounting, Third Edition Student notes 3. PAGE 13 P Weetman and P Gordon. Copyright Pearson Education Limited 2003 Financial and Management Accounting, Third Edition Student notes 3. PAGE 15 P Weetman and P Gordon. Copyright Pearson Education Limited 2003 PAGE 44 Financial and Management Accounting Lecturers Guide by P Weetman and P Gordon Copyright ( Pearson Education Limited 1999 Financial and Management Accounting, Third Edition Student notes 3. PAGE 16 P Weetman and P Gordon. Copyright Pearson Education Limited 2003  !Tpq &3>Pb3N@Ax$ & L d e t ~  & ) * 3 4 6 P U V _ t x z    # A >*5>*5>*6>*5:OJQJ56>*mH CJW !STqDl`/$$l40 ::$$ !STq defhijklrstuv}ytpkfa                !"456  7  8  MN  O  P  hi  j  k  yz    & defhijklrstuvwx $$l4N $$vwxBmļ~ytokfb]X                  !"  '(  )  *  +  ,-K    :   z {|  }  ~        "Bm0$$l4}$$ & F&',-./0123NO>?@Ax|xsnid_Z                                                 #&',-./0123NO>?@Ax $ !$$l4}$$x(tndh$M$$l4ֈ c)/5 = "O$H$$"$$!$$l406CC$$ k     " # $ % & ' G K L d e f g t } ~  |wsnid_Z                                $  56  7  8  9  :  A  RS  T  U  b  c  k  ~"    " # $ tpM$$l4ֈ c)/5 = "O $Hdh$dh$ $"dh$$ % & ' G K L d e f g t } ~  l $"dh$dh$M$$l4ֈ c)/5 = "O $Hdh$      * 2 3 4 5 6 7 V ^ _ t |wrnid_Z                     ;<  =  >  ?  @  H  WX  Y  Z  [  \  b                "  pM$$l4ֈ c)/5 = "O $Hdh$ $"dh$dh$     * 2 3 4 5 6 7 V ^ _ t u v  $"dh$M$$l4ֈ c)/5 = "O $Hdh$dh$t u v w x y z |wrmid_Z  q  r  st  u  v  w  x  y  z{  |  }                                    "v w x y z h $Hdh$ $"dh$dh$$H$$"$$M$$l4ֈ c)/5 = "O pM$$l4ֈ c)/5 = "O $Hdh$ $"dh$dh$           ! " # $ |wrmhda]Z   !  "  5  6  7  89  :  ;  <  =  >  ?@  A  B  M  N  O  PQ  R  S  T  U  V  WX  Y  Z  p# D $"dh$M$$l4ֈ c)/5 = "O $Hdh$dh$           ! " # d $Hdh$ $"dh$dh$M$$l4ֈ c)/5 = "O# $ % A B $$l4" $$$$l44$x$$ % A B   Ŀ|yvspmjf EFGH456  7  8  9  :;  BC  D  E  F  GH  NO  P  Q  R  STUV  W  &A    CDEGH\]fhi)*RShp2F|6lu5>*mH 56>*>*5:6 5OJQJOJQJ5W     : $Z$V$$$$$$l4"    :   ;CDEFGH[\]fghintu}þ}xsoje`[  i  j  p  uv  w  x                                    !  "  #    "   ;(jbdh$M$$l4ֈ#(h.K3 $Z$ Z$ C$,$$l4Fh.7G$Z$ ;CDEFGH[\]fghint\dh$dh$M$$l4ֈ#(h.K3 dh$ $Zdh$ Zdh$ Ctu}~X Z$ C$$dh$ dh$ CM$$l4ֈ#(h.K3 dh$ $Zdh$}~ ()*+:BC|wrmid_Z                                          =>  ?  @  I  J  K  ^_  `  a" H~v$dh$dh$ $Zdh$ Zdh$ Cdh$M$$l4ֈ#(h.K3 $Z$$$$ ()*+:BCQRSThpdh$M$$l4ֈ#(h.K3 $dh$dh$ $Zdh$ Zdh$ CCQRSThpq|wrmhd_Z                #$  %  &  >  ?  @  AB  C  D  S  T  U  VW  X  Y  m  n  v        "pqTx{ $dh$ dh$ Cdh$M$$l4ֈ#(h.K3 $dh$dh$ $Zdh$ dh$ Cdh$M$$l4ֈ#(h.K3  $Zdh$dh$ $dh$  UVWXYZ`abcdelmnopq12|}|yvspmjgdx  qr                      ./           &  UVW~$$$$l4!!xx$ M$$l4ֈ#(h.K3  $dh$WXYZ`abcdelmnopq12|} $$l4p*$$}6lmt{wtmjgd_                             *+  01  2  3  :  ;<  QRw$,X(X($x$$$l4p*$$$$l4p*x$6lmtuwx $$$$$$$l4p*$$$$l4p*tuwx $-.IQR|wrmhc^Z                  !  )  8  CD  E  F  G  O  o  xy  z  {  |  }  ~            "uw$-HKQgos|~#HISgp  7>]}e"q5* Q !!""#5mH >*CJ>*CJCJ6CJ6CJ>*>*65::VP $(dh$$dh$dh$M$$l4ֈ06f $-.IQL $(dh$M$$l4ֈ06fdh$$dh$ QRSgopqrsNM$$l4ֈ06f$dh$dh$U$$l4ֈ06f RSgopqrs}~#$ISĿ{wrmhc^Y            ()  *  +  ,  0  P  [\  ]  ^  _  g  z                          "s}~$dh$dh$M$$l4ֈ06f$$$#$ISM$$l4ֈ06f$dh$dh$ ST^gpqrstu|wsnid_Z  C  D  E  F  GH  I  J  K  L  M  NO  P  Q  R  [  v  wx  y                      "ST^gpqrstNM$$l4ֈ06f$dh$dh$U$$l4ֈ06f tu $(dh$M$$l4ֈ06f$dh$dh$M$$l4ֈ06f $(dh$dh$      7>?@B\]^ +NOnopqw56>?                             <     NM$$l4ֈ06f$dh$dh$U$$l4ֈ06f 7>?@B\]^fp|$Z$$Z$$$M$$l4ֈ06f $(dh$dh$|}~s47$$l4\VV5 }|$Z$ Z$ C Z$ C$7$$l4\VV5  }  |   ǐs4le`$$$ C$ C7$$l4\VV5 }|$Z$ Z$ C Z$ C$7$$l4\VV5 }|  !Ddt$$$ C Z$ C$7$$l4\VV5 }| !/7;<=>RZbcde$$ $ C7$$l4\VV5 }| $$$ C Z$ C$ǔ$Z$ Z$ C$$$ $ C Z$ C$7$$l4\VV5 }| "#$LMNOPX!$$l40,"$$ !7$$l4\VV5  }  |  #$%.   NOPYPڨ<H!$$l40,"$ +NOnl<,$$l4Fv9!\ i $$!$$l40,"nopqwhόt,$$l4Fv9!\ i ,$$l4Fv9!\ i $56>?Ҡx!$$l40," !,$$l4Fv9!\ i $,$$l4Fv9!\ i  ?) * A H P Q W X Y Z [ o p q r s t | } 8!9!:!!!!!!!!!!!!!!!!!!!!!\"]"^"""""""""###### ########$$$ $&$'$($)$*$4$5$6$7$8$9$A$B$$$$,%-%D%K%S%T%Z%[%  b) * A H P Q W X Y Z [ o p q r s t (`,$$l4Fv &f! $ @ ,$$l4Fv &f! $ @ $ *vt | } 8!9!:!!!!!!!!!!!!!!!(8,$$l4Fv &f! $ @ !$$l40,"$!!!!!!!\"]"^""""""""v!$$l40,",$$l4Fv &f! $ @ $""###### ########$$(v!$$l40,"$ !$$$,$$l4Fv f! ~  $$ $&$'$($)$*$4$5$6$7$8$9$A$B$$(8$ !,$$l4Fv f! ~  ,$$l4Fv f! ~  $# $-%T%''B+f+++++"-I- .0.//000023g4445Q99::;;;;;;;<.</<5<6<7<8<<<<<<<<<<==G=X=Y=_=`=a=b==========>>?>q>>>>>>>>> 0JCJmH0JCJj0JCJUCJ6CJ0J j0JUmH 56S$$$,%-%D%K%S%T%Z%[%\%]%^%_%g%h%%%%(,$$l4Fv f! ~  $v!$$l40,"[%\%]%^%_%g%h%%%%))))***++++++,,,,,$,%,&,',(,1,x,y,z,!-"-9-@-H-I-O-P-Q-R-S-T-]-^---- . .".(./.0.6.7.8.9.:.D.E.F.G.H.I.R.S....//////////////////000000 c%))))***++++++,,,,(,$$l4Fv !   !$$l40,"$v,,$,%,&,',(,1,x,y,z,!-"-9-@-H-Ҁv!$$l40,"$,$$l4Fv !   H-I-O-P-Q-R-S-T-]-^---- .(wsv!$$l40,"$ ,$$l4Fv !   $,$$l4Fv !    . .".(./.0.6.7.8.9.:.D.E.F.G.H.I.R.S..(8,$$l4Fv !2 2  $.../////////////////8\,$$l4Fv !2 2  $v!$$l40,"//000000000000000000(\,$$l4Fv f!   v!$$l40,"$00000000000000000111111192:2F2H22222223333333333 3!3"3#3$3&3'3(3)3*3+3,3-3.3/3031323435363738393:3;3<3=3>3?3@3B3C3D3E3F3G3H3I3J3K3L3M3N3P3Q3R3S3T3U3V3W3X3Y3 a00000111111192:2F2H2g22$$$$,$$l4Fv f!   222222222222223@$B$$l4rL&7& 3333333333 3o8e]]]]]]]]$dh$ $dh$$$l4  L{ MT!&z, 27 3!3"3#3$3&3'3(3)3*3+3g8] $dh$$$l4  L{ MT!&z, 27$dh$ +3,3-3.3/3031323435363g8] $dh$$$l4  L{ MT!&z, 27$dh$ 63738393:3;3<3=3>3?3@3g8$$l4  L{ MT!&z, 27$dh$ @3B3C3D3E3F3G3H3I3J3K3L3M3$dh$ $dh$ M3N3P3Q3R3S3T3U3V3W3X3o8e]]]]]]]]$dh$ $dh$$$l4  L{ MT!&z, 27 X3Y3Z3[3\3^3_3`3a3b3c3g8] $dh$$$l4  L{ MT!&z, 27$dh$ Y3Z3[3\3^3_3`3a3b3c3d3e3f3g3h3i3j3l3m3n3o3p3q3r3s3t3u3v3w3x3z3{3|3}3~333333333333333333333333333333333333333333333333333333333333333444 cc3d3e3f3g3h3i3j3l3m3n3g8] $dh$$$l4  L{ MT!&z, 27$dh$ n3o3p3q3r3s3t3u3v3w3x3g8$$l4  L{ MT!&z, 27$dh$ x3z3{3|3}3~33333333$dh$ $dh$ 33333333333o8e]]]]]]]]$dh$ $dh$$$l4  L{ MT!&z, 27 33333333333g<] $dh$$$l4  L{ MT!&z, 27$dh$ 333333333333g4$$l4  L{ MT!&z, 27$dh$ 33333333333gadh$$$l4  L{ MT!&z, 27$dh$ 333333333333334$dh$$$l4L7@8 334444 4 4 4oiR4JJJJJ$dh$$$l4L7@8dh$$$l4  L{ MT!&z, 2744 4 4 4 4 4444444K4L4M4N4O4P4Q4R4S4T4U4V4W4X4Y4Z4[4\4]4^4_4`4a4b4c4d4e4f4444444445 55&5+555B5C5S5]5e5n555555555555555555555555555555555555555 b 4 4 4444444K4gadh$$$l4  L{ MT!&z, 27$dh$ K4L4M4N4O4P4Q4R4S4T4U4V4W4X44$dh$$$l4L7@8 X4Y4Z4[4\4]4^4_4`4a4b4c4o4gggggggggg$dh$$$l4  L{ MT!&z, 27 c4d4e4f4444444gd_Z__Z$$$$$$$l4  L{ MT!&z, 27$dh$ 4445 55&5+555B5C5S5]5e5n55H$B$$l4rL&7& 55555555555oe]]]]]]]]$dh$ $dh$$$l4  LbN T!&z, 273 55555555555g] $dh$$$l4  LbN T!&z, 273$dh$ 55555555555g]Wdh$ $dh$$$l4  LbN T!&z, 273$dh$ 55555555555g$$l4  LbN T!&z, 273$dh$ 55555555666 6 6666666666$6%6&6'6(6)6*6+6-6.6/68696:6;6<6=6F6G6H6I6K6L6M6V6W6`6a6b6c6d6e6f6g6i6j6k6l6m6w6x66666666666666666666666666666666666666 c55555666 6 6666$dh$ $dh$ 6666666$6%6&6'6ohe]]]]]]]]$dh$ $dh$$$l4  LbN T!&z, 273 '6(6)6*6+6-6.6/68696:6gx] $dh$$$l4  LbN T!&z, 273$dh$ :6;6<6=6F6G6H6I6K6L6M6gx] $dh$$$l4  LbN T!&z, 273$dh$ M6V6W6`6a6b6c6d6e6f6g6g$$l4  LbN T!&z, 273$dh$ g6i6j6k6l6m6w6x666666$dh$ $dh$ 66666666666oxe]]]]]]]]$dh$ $dh$$$l4  LbN T!&z, 273 66666666666g|] $dh$$$l4  LbN T!&z, 273$dh$ 666666666666g4$$l4  LbN T!&z, 273$dh$ 66666666666gadh$$$l4  LbN T!&z, 273$dh$ 6666666666667 777&7'7175797B7F7G7k7l7m7q7u7~77777777777778 888%8&8/8:8C8L8W8X8Y8Z8[8\8]8^8_8`8a8b8c8d8e8f8P9Q9999999999999999999: : : :::::&:*:   a6667 777&7'7175797B7F7H$dh$$$l4L7@8 F7G7k7l7m7q7u7~77oiR@JJJJJ$dh$$$l4L7@8dh$$$l4  LbN T!&z, 2737777777777gadh$$$l4  LbN T!&z, 273$dh$ 7778 888%8&8/8:8C8L8W8$dh$$$l4L7@8 W8X8Y8Z8[8\8]8^8_8`8a8b8o4gggggggggg$dh$$$l4  LbN T!&z, 27? b8c8d8e8f8P9Q99999geeeee_\$dh$$$l4  LbN T!&z, 27?$dh$ 999999999999999: : : ::::(th@Zdh$$dh$dh$,$$l4F8 @ $::&:*:+:,:9:@:A:B:N:O:P:Q:a:b:h:i:x:y:::DX<`dXdh$$dh$Zdh$,$$l4F8 @ *:+:,:9:@:A:B:N:O:P:Q:a:b:h:i:x:y::::::::::::::::::::::::;6<7<9<<<<=`=c====>>>>> ?#?i????L@P@@@mAqAAAAA  H::::::::::::::::::::::@Dx`Zdh$,$$l4F8 @ $dh$dh$:;;;;9<<<<==c====>>?>>>> !$h !8h ! [ !f!@8h !8[ !f!h !!h&`#$>???? ?!?"?i?j?????????@2@D@E@K@L@N@O@@@@@@@@@@AA"AUAeAfAlAmAoApAAAAmH  j60JmH j0JU0J 0JCJmH0JCJj0JCJUCJ6CJ/>#?i?j???@P@@@@@!A"AqAAA  ! !7h !p5  !p5&#$1 [ !f!@8  !$7 !$[ !$ !$[ !f!  !$@8AAA& 00P. A!"#$%& 0&P 0A .!Q"#$% &P,. A!p"#$.%'&P 0PA .!n"n#$%$&P P. A!"#n$n%'&P 0PA .!n"n#$%$&P P. A!"#n$n%#0PA .!n"n#$% &P . A!"#$% [4@4 NormalCJ_HmH sH tH N@N Heading 1$<@&5CJ OJQJmH sH uR@R Heading 2$<@&56CJOJQJmH sH u4@4 Heading 3$@&6CJ:@: Heading 4$$@&a$5CJ0@0 Heading 5$@&CJ>@> Heading 6$$dh@&a$6]00 Heading 7$@&CJ0BB Heading 8$@&5CJOJQJ\^J2 @2 Heading 9 $@&5\<A@< Default Paragraph Font,@, Header  !, @, Footer  !&)@& Page Number.B". Body Text5CJ4828 endnote text mH sH u`CB` Body Text Indent %7^7`CJmH sH uHRRH Body Text Indent 20^`0A# -f4=\(\P\r\\\\]5] 555555______      BA u#>A%<Omx$  v # ;tpWQsSt|!nt !"$$%,H- ../023 3+363@3M3X3c3n3x3333333 4K4X4c44555556'6:6M6g666666F777W8b89:::>AA&(*,-/0235689:=?@ACDFGIJLMPQRTUWXY[\]^_`abcdefhijklnpqrstuwxyz{|}~v t $ }C}tRS?[%0Y3456*:A')+.147;>BEHKNSVZgovNUWx 8?Adkn!!!!!!!!!!! Q[Y`6@""""$$%%1(8(q){))),,-->.?.00+1/141777.888;8B88888X9b9e9l9999:::::;";%;,;;;;;D<O<R<Y<<<e=p=s=z=== /cB2> b  %-02aj{XHN #'#`##{%%%%S*****T+b++,-777.88888X9b999::;";;;D<O<<<e=p===Jarrett@C:\My Documents\Fakenham Photosetting\Weetman IM\SLs\Ch03SLa.docJarrettKC:\WINDOWS\Application Data\Microsoft\Word\AutoRecovery save of Ch03SLa.asdJarrett@C:\My Documents\Fakenham Photosetting\Weetman IM\SLs\Ch03SLa.docFakenham Photosetting LtdKC:\WINDOWS\Desktop\WORK\PE4409 Weetman IM\Student lecturer notes\Ch03SL.doclizt'C:\TEMP\AutoRecovery save of Ch03SL.asdliztU\\ukedgas06\download$\HE Websites (CWS-SDS)\Editors-Production\Weetman-AT\Ch03_SL.docliztU\\ukedgas06\download$\HE Websites (CWS-SDS)\Editors-Production\Weetman-AT\Ch03_SL.docliztU\\ukedgas06\download$\HE Websites (CWS-SDS)\Editors-Production\Weetman-AT\Ch03_SL.docliztl\\ukedgas06\download$\HE Websites (CWS-SDS)\Editors-Production\Weetman-AT\Student lecturer notes\Ch03_SL.doc Melanie Beardh\\ukedgas06\Download$\HE Websites (CWS-SDS)\Sites\Weetman\student\Student lecture notes\Ch03_lecnote.docZ_v*% /pHZRi_DA_ e_ex(uhh^h`o(() hh^h`OJQJo(::^:`o(()>^`>o(()hh^h`o(()@^`56>*CJOJQJo(() v*%/pHA_ eZi_ex@E=@GTimes New Roman5Symbol3& ArialC"MS Sans Serif"1hrkrkjF.b!0d8LECTURE HANDOUT (Chapter 3) Paul D Gordon Melanie BeardOh+'0 ,8 T ` l xLECTURE HANDOUT (Chapter 3)ECTPaul D GordonT aulaul Normal.dotoMelanie BeardT 2laMicrosoft Word 8.0a@@6A@ы@ы.՜.+,D՜.+,\ hp  Heriot-Watt Universityb8j LECTURE HANDOUT (Chapter 3) Title 6> _PID_GUIDAN{44CFE340-DA97-11D6-9ADD-004095304522}  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~Root Entry Fы[Iы1TablexWordDocumentW]SummaryInformation(DocumentSummaryInformation8CompObjjObjectPool[Iы[Iы  FMicrosoft Word Document MSWordDocWord.Document.89q