Cash Flow Statements: Indirect Method

Cash Flow Statements: Indirect Method a) International Accounting Standard 7 (IAS 7) lays down the standards expected by companies when presenting information about changes in cash or cash equivalents. Under IAS 7, a company is required to present a statement of cash flow showing the changes in cash and cash equivalents from the three key areas of operating, investing and financing (Wheetman, 2006)[1]. The definition of cash and cash equivalents includes cash, as well as any other investments that are considered high liquidity and can be easily converted into a known amount of cash. When presenting cash flow statements, there are two main ways that are recognised by IAS 7: direct and indirect, although a preference is shown for the direct method. The direct method involves reporting the cash flow gross, as it happens, so that all cash out and all cash in are simply taken gross without any adjustments made for other factors. On the other hand, the indirect method shows the net cash flows once all other factors have been taken into account. It is not necessary for companies to use the direct method and due to the costly process of looking through all receipts and expenses, it is much more common for companies to use the indirect method (Schwartz, 1996)[2] . b) China World Limited (CWL), as is the case with many large companies, has opted to report its cash flow statements in an indirect way. The cash flow statement in the published accounts year ended 31st December 2007 reflects this choice fully; however, there is no discussion as to why the direct method was not used. During the preparation of the accounts, CWL has made several assumptions in order to produces the cash flow statements. For example, depreciation is accounted for during the cash flow statement, as it is not a true expense. When the profit figure, which is the starting point for the cash flow statements, is calculated, the depreciation is taken into account based on the depreciation policies being followed by the company. In the case of CWL, the property owned by the company is depreciated over 20 years, fixtures and fittings over a range of 5 to 10 years and motor vehicles over a period of 5 years. As these amounts are merely policy choices and are done on a straight line method, the actual amount allocated to depreciation has no immediate bearing on the actual cash flow statement and is, therefore, added back on to the ultimate net profit figure during the indirect method calculation. A similar approach is taken with amortisation of intangible assets where the initial costs of thes e assets are spread across the expected life span of the asset. This is not an actual cash movement and is, therefore, added back on to the final profit figure during the cash flow statement (Mills, 1991)[3]. Additional adjustments are then made to include cash based transactions such as interest receivable in an attempt to show a truly accurate picture of cash flow movement. Changes in inventory levels are assumed to reflect the amount of cash available, directly. This is not necessarily the case and it is merely an assumption that CWL has made for the benefit of the cash flow statement (Mills Yanamura, 1998)[4]. Other assumptions that have been made are likely to have an impact on the cash flow. For example, when calculating the net profits, there is an allowance made for bad debtors. This figure is purely an estimate based on previous experiences and the perceived risks associated with the various creditors that are related to the company at any time. In using the indirect method, these assumptions will still bear some relevance to the bottom line, meaning that a change of policy or assumption can have a direct impact on the way in which the cash flow statement looks (Barth, 2006)[5]. As CWL has international operations, it has to deal with the currency fluctuations that occur throughout the year. As the consolidated accounts are presented in pounds sterling, cash values in local currency need to be converted at the exchange rate between the country in which the transaction occurs and British sterling. CWL takes the approach of averaging the exchange rate over the period in which the transactions took place. This assumption is necessary as it simply is not possible to take an accurate exchange rate at the exact point in which a transaction is undertaken. However, it does have a potentially misleading impact on the cash flow statement. Appendix 1 contains a copy of CWL’s accounts as they would appear, had the direct cash flow approach been taken. c) The cash flow statement is merely one aspect of the financial analysis of the company’s financial status. Although cash flow and the liquidity of the company is vital in the overall health of the company, it is not the only measure of success. Firstly, let us consider the liquidity of the liquidity position of CWL. One of the most commonly used ratios is that of the liquidity ratio known as the current ratio. This shows the company’s ability to meet its current liabilities with its current assets. For true financial health, a company wishes to see a ratio that is as high as possible, and at an absolute minimum at least 1:1. In the case of CWL the ratio in 2007 was 1.905, which in itself is particularly healthy and is even healthier when it is compared with the previous year’s figure of 1.734. This increase in the current ratio is primarily due to better management of the money owed by creditors to the company. A further liquidity test is that of the acid test, which is similar in nature to the current ratio but shows a much starker picture as it looks at the ability of the company to meet its current liabilities purely by the use of cash or cash equivalents. In reality, this is a more realistic view of the company’s liquidity position as its main aim is to be able to pay any liabilities that are imminently due, without the need to cash in any other assets, even if they are considered current. In analysing the acid ratio, it is possible to see a different picture of CWL. Although the current ratio shows a particularly healthy liquidity position, it is clear that much of the current assets of CWL are tied up in inventories or in receivables (Chirinko Schaller, 1995) [6]. CWL should aim to manage receivables and inventories better in order to bring the quick ratio closer to the desirable 1:1 position. Although the figure of 0.508 falls considerably short of this ideal ratio, it is a v ast improvement on the 2006 figure of 0.383. As well as liquidity the profitability of the company should be considered. This is the view of how well the company is using its assets to produce a suitable rate of return. The main profitability ratio is that of gross profit margin. As CWL is a manufacturing based company, it is expected that the figure will be at the lower end of the scale; however, the figure of 35.95% is relatively healthy and shows a good rate of profit. Despite this, attention should be given to the cost of sales relative to revenues as they have dropped substantially since 2006 where the figure was 50.19%. This could be attributed to the acquisition of a new subsidiary. Therefore, it is anticipated that, in time, better use of the cost of sales will be made and the gross profit margin will recover to a figure closer to 50%. A final ratio of importance is that of the return on equity. As CWL relies heavily on the shareholders’ equity, it is of considerable importance whether or not the shareholders are receiving a good return on their investment. In its broadest terms, the return on equity ratio shows how much return the company is generating in return for every pound that is put into the company. As a general rule, the higher the return on equity ratio, the better the company is doing, although it should be noted that some companies that require little in the way of financial investment such as consulting firms will almost always have a better return on equity ratio than manufacturing firms such as CWL (Costales Szurovy, 1994)[7]. Once again, in studying the return of equity in relation to CWL, a downward trend between 2006 and 2007 can be seen. This is almost entirely due to the new acquisitions. Therefore, the direct investment in the consolidated company is considerably higher; yet, there has been insufficient time to allow this cash injection to be suitably used to generate increased returns. In a similar way to the gross profit margin, it would be expected that this figure would return to the 2006 figure rapidly and would in the long term be an improvement on the 2006 figures. It should be noted that when looking at these ratios the consolidated accounts have been used. There was a large acquisition made during the year within the group and this has had an impact on the ratios, during 2007. The overall health of the company in terms of liquidity and profitability is good and the slight apparent wobble in the figures will be reversed in the years to come due to the increasing investments being put into the ongoing expansion of the company. The calculations and details of the ratios referred to above are contained in Appendix 2. Appendix 1  Direct Cash Flow Cash flows from operating activities Cash receipts from customers 2,336,967 Cash paid to suppliers and employees (1,496,917) Cash generated from operations (sum) 840,050 Interest paid (8,615) Income taxes paid (52,188) Net cash flows from operating activities 779,247 Cash flows from investing activities Proceeds from the sale of equipment/assets (60,247) Interest received 3,336 Acquisition of subsidiaries (88,209) Net cash flows from investing activities (145,120) Cash flows from financing activities Issue of ordinary share capital 202,500 Costs of issue (13,750) Investment from minority interests 48,360 Interest paid (8,615) Proceeds from bank borrowings 138,172 Net cash flows from financing activities  366,667 Appendix 2 – Ratios Relating to CWL Ratio Calculation Figures Result Current ratio 2007 Current assets / current liabilities 2,284,972 / 1,199,264 1.905 Current ratio 2006 Current assets / current liabilities 1,187,951 / 684,896 1.734 Quick Ratio 2007 Current assets (cash equivalents) / Current liabilities 609,391 / 1,199,264 0.508 Quick Ratio 2006 Current assets (cash equivalents) / Current liabilities 262,080 / 684,896 0.383 Gross Profit Margin 2007 (Revenue Cost of sales) / Revenue (2,336,967 -1,496,917) / 2,336,967 35.95% Gross Profit Margin 2006 (Revenue Cost of sales) / Revenue (1,064,479 530,234) / 1,064,479 50.19% Return on Equity 2007 Net income / total equity 266,372 / 3,148,576 8.46% Return on Equity 2006 Net income / total equity 155,506 / 1,133,966 13.71% Bibliography Barth, Mary E., Including Estimates of the Future in Todays Financial Statements, Accounting Horizons, Vol. 20, 2006 Carslaw, Charles A., Mills, John R., Developing Ratios for Effective Cash Flow Statement Analysis, Journal of Accountancy, Vol. 172, 1991 Chirinko, Robert S., Schaller, Huntley, Why Does Liquidity Matter in Investment Equations? Journal of Money, Credit Banking, Vol. 27, 1995 Costales, S.B., Szurovy, Geza, The Guide to Understanding Financial Statements, McGraw-Hill Professional, 1994 Elliott, Barry, Elliott, Jamie, Financial Accounting, Reporting and Analysis: International Edition, Pearson Education, 2006 Mills, John R., Yamamura, Jeanne H., The Power of Cash Flow Ratios, Journal of Accountancy, Vol. 186, 1998 Schwartz, Donald, The Future of Financial Accounting: Universal Standards,  Journal of Accountancy, Vol. 181, 1996 Shim, Jae K., Siegel, Joel G., Financial Management, Barrons Educational Series, 2000 Weetman, Pauline, Financial Accounting: An Introduction, Pearson Education, 2006 Footnotes [1] Weetman, Pauline, Financial Accounting: An Introduction, Pearson Education, 2006 [2] Schwartz, Donald, The Future of Financial Accounting: Universal Standards, Journal of Accountancy, Vol. 181, 1996 [3] Carslaw, Charles A., Mills, John R., Developing Ratios for Effective Cash Flow Statement Analysis, Journal of Accountancy, Vol. 172, 1991 [4] Mills, John R., Yamamura, Jeanne H., The Power of Cash Flow Ratios, Journal of Accountancy, Vol. 186, 1998 [5] Barth, Mary E., Including Estimates of the Future in Todays Financial Statements, Accounting Horizons, Vol. 20, 2006 [6] Chirinko, Robert S., Schaller, Huntley, Why Does Liquidity Matter in Investment Equations? Journal of Money, Credit Banking, Vol. 27, 1995 [7] Costales, S.B., Szurovy, Geza, The Guide to Understanding Financial Statements, McGraw-Hill Professional, 1994

“the Rapid Expansion of International Financial Market Since Early 1980s Have Integrated the World Economy”. Discuss.

â€Å"The rapid expansion of international financial market since early 1980s have integrated the world economy†. Discuss. The international financial system is a structure of markets within which organizations and individuals trade to support economic commitments made across national borders where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade.The international financial market expands rapidly including money and derivatives since early 1980s. The increased integration of financial systems has involved greater cross-border capital flows, tighter links among financial markets, and greater presence of foreign financial firms around the world. The expansion in international financial market also means that establishment and expansion of inte rnational investment banks/ firms such as Crosby, Morgan Stanley, JP Morgan, UBS, Franklin, Templeton, Barney & Smith, Union Bank in Swiss etc.Such firms created varieties of investment fund such as hedge fund and mutual trusts. The expansion of such investment funds has enhanced volume of foreign policy initiative (FPI) in the world economy. The role of short term (mainly portfolio capital) increased in world economy. Capital in the international financial market can be classified into two types, which is short-term Intra-Bank Loan, which maturity less than one year and portfolio investment (investment in money, bond, stock and derivatives). Mobility of these investment very high, outflow and inflow very fast.Besides that, volume of short-term capital mobility (STC) also increased dramatically in the world economy. Currency used in trading in international capital market which dominated by industrial/rich nations are in US Dollar (US$), DM/Euro and Yen. US dollar is the main vehicl e currency used in the market (above 55%). There are few reasons why STC/FPI dominated international economy. The first factor is elimination of capital and currency controls or liberalisation of capital account of Balance of Payments. This has stimulated inflow of STC to international capital market including capital market in developing countries, i. emerging economies. Next, technology development information increases the rapid development of international market and the speed of transaction in the market. The technology enables a deal done within a minute. Furthermore, no international financial and architecture (IFA) to supervise or control movement of portfolio capital including activities and expansion of financial institutions is another determinant of domination of STC/FPI in the economy. The rapid expansion of financial market is due to parity established at Bretton Woods in 1960s this crisis marked the breakdown of the system.An attempt to revive the fixed exchange rates failed, and by March 1973 the major currencies began to float against each other. The speculative pressure force closure of international foreign exchange markets for nearly two weeks, the market reopen on floating rate for major industrial countries. The Jamaica Agreement by IMF further legalizes the floating exchange system and increased the role of US currency in international economy. As a result, gold is demonetize as a reserve asset, the role of US$ in international economy increased thereafter.International financial market factors enable expanding and creation of various instruments or product of financial market including derivative (swaps, option, future, forward). At the same time, many countries have encouraged inflows of capital by dismantling restrictions and controls on capital outflows, deregulating domestic financial markets, liberalizing restrictions on foreign direct investment, and improving their economic environment and prospects through the introduction of ma rket-oriented reforms The rapid expansion of international financial markets had brought several impacts to the world economy.International financial market indirectly integrated. The rapid expansion of international financial market will lead to volatility in most of financial products/ portfolios such as currency, interest rate, equities are larger. Moreover, the speed of trading will become very fast and in large scale. For example the new money fueled a level of inflation never before seen in modern Mexico; the inflation rate eventually surpassed 100 percent annually. The administration chose to ignore warning signs of inflation and opted instead to increase spending.Apart from that, movement of asset prices may relate to â€Å"herding behavior†, irrational behavior of investors and caused contagion in the markets. Contagion refers to the transmission of a currency crisis throughout a region. Contagion effect of international financial markets is more severe and fast than to commodity markets. In addition, if crisis emerged in major markets it spread quickly to other regions. For instance, any shocks to financial sector in developed countries let say New York Stock Exchange drop will affect or bring other stock bourses around the world.Furthermore, transmission from the financial market to the real sector will be affected subsequently. The expansion of financial markets have bring benefits which are rapid spreading of technological advances, financial innovation as well as, more generally, financial performance to the various parts of the globe. In a global financial market, technological advances in payment, settlement and trading systems as well as in financial information systems can be made available to all market participants instantaneously.And advances in financial technology such as trades and other derivatives have made it possible to take advantage of many new financing opportunities. Reductions in the â€Å"costs of transport and transmi ssion of data† as well as the cost of acquiring, processing and storing information have played a significant role in furthering the process of globalization. Besides that, the expansions of financial market will led financial institutions compete with each other to provide benefits to the domestic financial market.The bigger, more robust the market, the more attractive it will be to competitors. There are still many competitors large enough to attempt to secure a prominent position in the market, though the identity of these competitors has changed considerably over time. Therefore, in open financial markets the entry of foreign financial institutions into domestic financial markets can bring sizeable benefits, as increased competition can help to enhance efficiency in the financial sector. In conclusion, a new global economic and financial system is evolving at a rapid pace right before our eyes.Financial integration has given access to world capital markets to more people, providing for a better allocation of savings and investment as well as more and sophisticated instruments to better manage risks. At the same time, however, it has also brought new global challenges. It can be overcome in two dimensions: on the internal side, by strengthening its macroeconomic fundamentals and continually revising its legal and regulatory frameworks; and, on the external side, by adopting a more active role within the global community of central banks, regulators and other uthorities to improve the international financial architecture. References: Stijn Claessens and Sergio L. Schmukler. (2007). IMF Working Paper: International Financial Integration through Equity Markets: Which Firms from Which Countries Go Global? Retrieved from http://www. imf. org/external/pubs/ft/wp/2007/wp07138. pdf Otmar Issing. (2000). The globalisation of financial markets. Retrieved, from http://www. ecb. int/press/key/date/2000/html/sp000912_2. en. html Fukao. M and Hanazaki. M.Internatio nalisation of Financial Markets and The Allocation of Capital. Retrieved from www. oecd. org/dataoecd/21/19/35589290. pdf Roy C. S. Globalisation of Financial Market. Chapter 1: Integration of World Financial Markets: Past, Present, and Future. Retrieved from http://media. wiley. com/product_data/excerpt/10/04712292/0471229210. pdf Rodrigo, d, R. (2007) International Monetary fund. Economic Growth and Financial Market Development: A Strengthening Integration. Retrievedfrom http://www. imf. org/external/np/speeches/2007/082207. htm

What Is the Immigrants American Dream?

?NANA YAA DWUMAAH ENG 102 B PROPOSAL What Is The Immigrants American Dream? If one is asked the future of this country, it is going to be a long debate and an unending talk about the failures and achievements of America. This is because different people see the same subject in different light. The phrase â€Å"American Dream† has made thousands of people leave their native country boldly in search of all that they deem impossible in their country to be possible here. This is why when asked, what the future of this country holds for its people, it will leave the people divided. Dr. Martin Luther King best defines the American dream when he exquisitely explains the Declaration of Independence. He highlights the fact that the American dream is not for a specific race or religion and that all its benefits, that is a right to life and right to liberty includes all mankind. These majestic words within which lies the American dream is what people everywhere search for in their country. They thirst for this dream, making the American dream a dream for all mankind and not only its natives. This is why America is country of people from so many racial and national backgrounds in search of a dream. Whereas Americans do not see how far this country has come, it takes only the immigrants to have them truly value their country. Being an American, yet growing up in Africa makes this issue very interesting since I can relate to both sides. The idea of the American Dream is rooted in the second sentence of the Declaration of Independence which states that â€Å"all men are created equal†. This statement is also backed by James Truslow Adams interpretation of the American Dream which states that, citizens of every rank should be able to achieve a â€Å"better, richer, and happier life. † Hence there are no exceptions to who can and cannot pursue the American dream. In the American dream, Dr. Martin Luther King states, â€Å"Never before in history of the world have so many national backgrounds assembled together in one nation. And somehow if we can’t solve the problem in America the world can’t solve the problem, because America is the world in miniature and the world is America writ large. And God set us out with all of the opportunities. † He then further states, â€Å"Are we taking this seriously? ‘All men are created equal. ’† (Juchartz 105). This is what I also question. This dream, I feel has been misinterpreted by immigrants, or better still immigrants have been lured at the forefront to hold on to this dream because it states â€Å"All men are created equal,† and perceive themselves as equal citizens of America. In reality, there are so many barriers rooted in the American system including racism, strict immigration laws that have prevented immigrants from sharing in this dream. It should be taken into account that if an individual is not a citizen he or she cannot benefit from what the country has to offer. Though the dream includes all men, race and religion, immigrants or the person outside the white American mainstream are perceived as threats to empire building and remain outsiders. This is what I mean when I retort that, the dream has been misinterpreted across various levels of people in America. I believe that the upper class and the lower class do not have the same benefits from this dream, but have similar notions of what it should be, equality for everyone. Even though some immigrants might have managed to make a better life out of this dream some immigrants living in this country can barely make ends meet just because the American dream no longer provide a hope for a better, richer and happier life. In today terms it is just about living in a western country and experiencing perhaps modernity. It beats my imagination when I think about the forces that drive immigrants to leave their native country in search of this dream sometimes risking their lives, leaving loved ones behind irrespective of the difficulties ahead. Maybe it is just to pursue a better education like myself or to earn money.

Tiger Beetles The Fastest Bugs on Six Legs

Tiger beetles are stunning insects, with distinct markings and brilliant colors. They sit tantalizingly close, sunning themselves on wide forest trails or sandy beaches. But the moment you try to move in for a closer look, theyre gone. Tiger beetles are among the fastest insects youll ever encounter, making them difficult to photograph and even harder to catch. How Fast Are Tiger Beetles? Fast! The Australian tiger beetle, Cicindela hudsoni, was clocked running at a remarkable 2.5 meters per second. Thats the equivalent of 5.6 miles per hour and makes it the fastest running insect in the world. Running a close second is another Australian species, Cicindela eburneola, which ran an impressive 4.2 miles per hour. Even the relatively pokey North American species, Cicindela repanda, scampers at speeds reaching 1.2 miles per hour. That may seem slow compared to its brethren down under, but a Cornell University study found this tiger beetle runs fast enough to temporarily blind itself. Cornell entomologist Cole Gilbert noticed tiger beetles tend to stop and go a lot while pursuing prey. It didnt make much sense. Why would the tiger beetle take a break, mid-chase? He discovered the tiger beetles were running so quickly, they couldnt focus on their target. Tiger beetles literally run so fast, they blind themselves. If the tiger beetles move too quickly, they dont gather enough photons (illumination into the beetles eyes) to form an image of their prey, explains Gilbert. Now, it doesnt mean they are not receptive. It just means that at their speed during the chase, theyre not getting enough photons reflected from the prey to make an image and locate the prey. That is why they have to stop, look around and go. Although it is temporary, they go blind. Despite being temporarily incapacitated, tiger beetles run fast enough to make up the distance and still capture their prey. You might wonder how a beetle that runs so fast it cant see can manage to do so without bumping into obstacles. Another study, this time of the hairy-necked tiger beetle (Cicindela hirticollis), found the beetles keep their antennae positioned straight ahead, in a firm V shape, while running. They use their antennae to detect objects in their paths and are able to change course and run over the obstacle the second they feel it. What Do Tiger Beetles Look Like? Tiger beetles are often iridescent, with well-defined markings. Most species are metallic tan, brown, or green. They have a distinct body shape that makes them easy to recognize. Tiger beetles are small to medium in size, usually ranging between 10 and 20 millimeters in length. Beetle collectors prize these shiny specimens. If you have the good fortune to observe one closely (no easy feat given how fast they flee), youll notice they have large eyes, and long, slender legs. Their large compound eyes enable them to detect either prey or predators quickly, even from the side, which is why theyre so quick to escape when you try to approach them. If you watch one carefully, youll notice the tiger beetle may run and even fly from you, but it will usually land just 20 or 30 feet away, where it will continue to keep its eyes on you. On closer examination, you will also see that tiger beetles have large, powerful mandibles. Should you manage to capture a live specimen, you may experience the power of those jaws, because they sometimes bite. How Are Tiger Beetles Classified? In the past, tiger beetles were classified as a separate family, Cicindelidae. Recent changes to the classification of beetles rank the tiger beetles as a subfamily of the ground beetles. Kingdom – AnimaliaPhylum – ArthropodaClass –  InsectaOrder –  ColeopteraFamily – CarabidaeSubfamily – Cicindelinae What Do Tiger Beetles Eat? Tiger beetle adults feed on other small insects and arthropods. They use their speed and long mandibles to snatch their prey before it can escape. Tiger beetle larvae are also predaceous, but their hunting technique is quite the opposite of the adults. The larvae sit and wait in vertical burrows in sandy or dry soil. They anchor themselves with special hook-like appendages on the sides of their abdomen, so they cant be dragged away by a larger, stronger arthropod. Once in position, they sit, with jaws open, waiting to slam them shut on any insect that happens to pass by. If the tiger beetle larva successfully catches a meal, it retreats into its burrow to enjoy the feast. The Tiger Beetle Life Cycle Like all beetles, tiger beetles undergo complete metamorphosis with four life stages: egg, larva, pupa, and adult. The mated female excavates a hole up to a centimeter deep in the soil and deposits one egg before filling it in. The hatched larva constructs its burrow, expanding it as it molts and grows through three instars. The tiger beetles larval stage may take several years to complete.  Final instar larvae pupate in the soil. Adults emerge, ready to mate and repeat the life cycle. Some tiger beetle species emerge as adults in the fall, just before the first frost. They hibernate during the winter months, waiting until spring to mate and lay eggs. Other species emerge in the summer and mate immediately. Special Behaviors and Defenses of Tiger Beetles Some tiger beetles produce and release cyanide when facing the imminent threat of being eaten by a predator. These species typically use aposematic coloration to give a friendly warning that they arent particularly palatable. If a predator has the misfortune of catching a tiger beetle, it wont soon forget the experience of getting a mouth full of cyanide. Many tiger beetle species inhabit extremely hot environments, like sand dunes and salt flats. How do they survive without being cooked on the hot, white sand? These species are usually white or light tan in color, which enables them to reflect the sunlight hitting their backs. They often also have hairs on the undersides of their bodies to insulate them from the heat radiating off the surface of the sand. And they use their long, thin legs as stilts to lift them from the ground and allow air to flow around their bodies. Where Do Tiger Beetles Live? An estimated 2,600 species of tiger beetles live throughout the world. In North America, there are about 111 described tiger beetle species.   Some tiger beetle species require very specific environmental conditions, which limits their ranges considerably. Their restrictive habitats put some tiger beetle populations at risk, as any disturbance to environmental conditions can imperil their survival. In fact, tiger beetles are so sensitive to such changes they are considered bio-indicators of environmental health. They may be the first species in a particular ecosystem to decline in response to pesticide use, habitat disturbance, or climate change. In the U.S., three tiger beetle species are listed as endangered, and two are threatened: Salt Creek tiger beetle (Cicindela nevadica lincolniana) – endangeredOhlone tiger beetle (Cicindela ohlone) – endangeredMiami tiger beetle (Cicindela floridana) – endangeredNortheastern beach tiger beetle (Cicindela dorsalis dorsalis) – threatenedPuritan tiger beetle (Cicindela puritan) - threatened Sources Borror and DeLongs Introduction to the Study of Insects, 7th edition, by Charles A. Triplehorn and Norman F. Johnson.Beetles of Eastern North America, by Arthur D. Evans.Bugs Rule! An Introduction to the World of Insects, by Whitney Cranshaw and Richard Redak.Chapter 39: Fastest Runner, by Thomas M. Merritt, Book of Insect Records, University of Florida. Accessed online January 31, 2017.Subfamily Cicindelinae – Tiger Beetles, Bugguide.net. Accessed online January 31, 2017.When tiger beetles chase prey at high speeds they go blind temporarily, Cornell entomologists learn, by Blaine Friedlander, Cornell Chronicle, January 16, 1998. Accessed online January 31, 2017.Listed Invertebrate Animals, Environmental Conservation Online System, U.S. Fish and Wildlife Service website. Accessed online January 31, 2017.Tough, Tiny Tiger Beetles, Arizona State University website. Accessed online January 31, 2017.Static antennae act as locomotory guides that compensate for visual motion blur in a diurnal, keen-eyed predator, by Daniel B. Zurek and Cole Gilbert, in the Proceedings of the Royal Society B, February 5, 2014. Accessed online January 31, 2017.