http://www.thestar.com/business/article/709304--siemens-gets-ontario-wind-turbine-order
Summary
Siemens AG has been picked to supply 250 wind turbines, worth US$ 888 million, to the United States and Canada. One fourth of the orders are going to unspecified projects in Ontario, while the other turbines will be sent to California, Oklahoma, Washington, and Wyoming. To undergo this project, Siemens in North America needs all 900 workers, and is planning to increase that amount. Wolfgang Dehen, chief executive of Siemens, said that this proves a lot to the wind industry. He believes that the wind industry has a definite standing in the market and having the support from Canada and US is helping out the wind project development.
Connections
There are 3 relations to the book. Firslty, when Siemens AG sells these turbines to the various places, Siemens AG will find out its profit by subtracting the expenses used to create the wind turbines with the actual worth of the turbines. That is called the net income. The net income is then debited to the cash account on the balance sheet, and credited to the retained earnings. Secondly, selling these 250 wind turbines is considered an operating activity because the wind turbines being produced are eventually going to be sold, generating profit (or loss). Selling these assets will cause an increase in the cash flow statement of Siemens AG, resulting in an increase in the retained earnings. Finally, when Siemens AG pays wages to their 900+ workers, the transaction that will be recorded is a credit to cash account and a debit retained earnings(expenses).
Reflection
The wind project development’s goal is to use natural power, in this case the wind, to generate the electricity we use. I love how US, and Canada, are supporting the wind project development. This sends a message to the rest of the world that the leading producer of carbon dioxide, the US, is turning towards becoming green country. Right now, as the economy is trying to recover from the slump it was in last year, it is all about business. In order to get people to start buying, factories, agencies, offices, and stores need to be open up a later than usual, therefore consuming more electricity. Where is this electricity going to come from? By generating this electricity with wind, expenses used to keep the wind turbines would be kept low, and a lot more within the business world can be done.
Clement Ip
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Finally we can see changes being made to our country’s energy resources. It is interesting how both Canada and the U.S. ordered turbines together. I wonder if it was the decision of Obama or Harper who realized that their country needed alternative energy resources. As you mentioned in your reflection, I myself also like how the two countries are supporting the wind project development and how the United States is setting an example for the rest of the world. Countries such as China should recognize this act and consider modifying their current energy resources as well. Wind turbines sound like a great idea but the most evident problem with this technology is that it only works most efficient depending on the season of the year. For example during summer months the sky is usually less breezy compared to the fall or winter. I hope that we are making the right decision investing in this wind development project.
ReplyDelete- Aaron W.