Answer:
C
Explanation:
Inflation is a persistent rise in general price level
Rise in Inflation rate = 220 / 200 - 1 = 10%
Rise in tuition fees = 115 / 100 - 1 = 15%
From the calculations, the percentage change in tuition fees is higher than the percentage change in inflation rate
briefly explain goals of business
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 480,000 $ 405,000 $ (75,000 ) ANC Corporation 450,000 480,000 30,000 Totals $ 930,000 $ 885,000 $ (45,000 ) Long term: Drake Corporation $ 480,000 $ 560,000 $ 80,000 Aaron Industries 720,000 660,000 (60,000 ) Totals $ 1,200,000 $ 1,220,000 $ 20,000 Required: 1. Prepare appropriate adjusting entry at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry
Answer:
1. 31 Dec 2021
Dr Net unrealized holding gain/loss 25,000
Cr Fair value adjustment 25,000
2. None
Explanation:
Preparation of Journal entry
First step is to calculate for the unrealized loss
Unrealized loss=Short term loss-Long term gain
Unrealized loss=45,000-20,000
Unrealized loss=25,000
Journal entry
31 Dec 2021
Dr Net unrealized holding gain/loss 25,000
Cr Fair value adjustment 25,000
(To record unrealized loss on available for sale securities)
2. No amount would be reported in the income statement at December 31, 2021 because the Net unrealized holding gain/loss will be reported in other comprehensive income .
The Lexington Partnership has a depreciable business asset (personal property) that it originally purchased for $81,800. The asset now has an adjusted basis of $49,080 and a market value of $98,160. The partnership has no other potential hot assets. Ambroz sells his 25% interest in the partnership. a. How much is Lexington's depreciation recapture potential
Answer:
Question b: How much ordinary income does Ambroz recognize when he sells this partnership interest?
a. Since the market value is more than its original cost, therefore, the completed depreciation can be potentially recaptured
Lexington's depreciation recapture potential = $81,800 - $49,080
Lexington's depreciation recapture potential = $32,720
b. Ambroz recognizes Ordinary income of: $32,720*25% = $8180
Wyle Co. has $3.9 million of debt, $1 million of preferred stock, and $2.1 million of common equity. What would be its weight on preferred stock
Answer:
Weight of Preferred stock = 0.1428571429 or 14.28571429% rounded off to 14.29%
Explanation:
The capital structure of a business is made up of at least one or at most all of the following components namely Debt, Preferred Stock and Common Equity. The ratio in which each of these components form the capital structure might differ from business to business. The weightage of each component in the capital structure can be calculated by dividing the market value of each component by the sum of the market value of all the components.
Weight of a component = Market Value of component / Sum of market value of all components
Weight of Preferred stock = 1,000,000 / (3,900,000 + 1,000,000 + 2,100,000)
Weight of Preferred stock = 0.1428571429 or 14.28571429% rounded off to 14.29%
By how much does GDP rise in each of the fol- lowing scenarios? Explain. (a) A computer company buys parts from a local distributor for $1 million, assembles the parts, and sells the resulting computers for $2 million. (b) A real estate agent sells a house for $200,000 that the previous owners had bought 10 years earlier for $100,000. The agent earns a commission of $6,000. (c) During a recession, the government raises unemployment benefits by $100 million. (d) A new U.S. airline purchases and imports $50 million worth of airplanes from the European company Airbus.
Answer:
a. GDP increases by $2 million. Only final good and services are included in GDP. the parts used in making the computer represents intermediate goods. Intermediate goods are not included in the calculation of GDP.
b. GDP would increase by $6000. Only goods produced in the current year are included in GDP. The house wasn't built in the current year so it would not be included in GDP. So, only the agent's fees would be included
c. 0 Transfer payments are not included in GDP
d.0. Imports would increases and net export would decrease. Also, business spending would increase. Taking these two effects together, there would be no change in GDP
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
services not rendered to oneself
Activities not reported to the government
illegal activities
sale or purchase of used products
sale or purchase of intermediate products
Examples of how to improve perceptual acuity include: A. A CEO meets with other CEOs of non-competing companies to examine the world from multiple perspectives and then shares the results with his own management team. B. A CEO meets with the company management team regularly to analyze current world events and their potential impact on the company. C. A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies. D. Outsiders are brought in to the board meeting to critique the company strategy, which considers the new information in its potential revamping of the strategy.
Answer:
The answer is "Option C".
Explanation:
It was its human detector for seeing confusion through the fog because you can respond until others use it. Only a tiny portion of future executives look in and peek over the horizon towards their businesses from the outside to collect signs that could be bringers of shift.
It is also known as the psychological or mental preparedness throughout the external environment that can "see around corners" and spot potentially important phenomena, inconsistencies, and oddities before the others do. To see through all the fog of doubt, it is a radar. so, that you can act first, that's why the choice c is correct.
In your own words define the political structure as presented by Bolman and Deal
and give an example of a political issue you found in the Wall Street Journal, cite
your example.
Answer:
According to Bolman and Deal, the organizational structure can be defined as the idea of the convergence of four aspects of institutional, human resources, political and symbolic aspects that function together.
Explanation:
. If a T-bill promises to repay $10,000 in one year and the market interest rate is 6 percent, how much will the bill sell for in the market?
Answer:
market price = $9,433.96
Explanation:
a T-bill is basically a zero coupon bond, and the formula we can use to calculate its market price is:
market price = face value / (1 + i)ⁿ
face value (value at maturity) = $10,000i = 6%n = 1market price = $10,000 / (1 + 6%) = $10,000 / 1.06 = $9,433.96
Your grandpa doesn't trust "young 'uns" so you are set to inherit a $1,000,000 trust fund on your 50th birthday. Your Grandpa also doesn't like banks so he has buried the cash somewhere on his 40-acre farm in a location that will be revealed to you by his lawyer since Grandpa will not be around when you turn 50. If you could possibly get your hands on it now (when you are 20), you could put it in a bank at 6% annual interest. If you were able to dig up the money now, how much would you have when you turn 50?
Answer:
FV= $5,743,491.17
Explanation:
Giving the following information:
Present value (PV)= $1,000,000
Number of periods (n)= 30 years
Annual interest= 6% = 0.06
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1+i)^n
FV= 1,000,000*(1.06^30)
FV= $5,743,491.17
A company produces a single product. Variable production costs are $12.90 per unit and variable selling and administrative expenses are $3.90 per unit. Fixed manufacturing overhead totals $45,000 and fixed selling and administration expenses total $49,000. Assuming a beginning inventory of zero, production of 4,900 units and sales of 4,050 units, the dollar value of the ending inventory under variable costing would be:
Answer:
$10,965
Explanation:
Computation for the dollar value of the ending inventory under variable costing
First step is to find the Units in ending inventory
Using this formula
Units in ending inventory = Units in beginning inventory + Units produced−Units sold
Let plug in the formula
Units in ending inventory= 0 units + 4,900 units−4,050 units
Units in ending inventory = 850 units
Last step is to find the Value of ending inventory under variable costing
Using this formula
Value of ending inventory under variable costing = Unit in ending inventory × Variable production cost
Let plug in the formula
Value of ending inventory under variable costing= 850 units × $12.90 per unit
Value of ending inventory under variable costing = $10,965
Therefore the dollar value of the ending inventory under variable costing would be $10,965
On April 1, 2020, the City of Southern Ponds issued $5,000,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $4,990,000 was used to construct the police station, which was completed before December 31, 2020, the end of the fiscal year. The remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2020, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $250,000 is due April 1, 2021. In addition to reporting Bonds Payable and (unamortized) Bond Premium in the government-wide Statement of Net Position, how would the bond sale be reported
Answer:
$100,000
$350,000
Explanation:
The bond sale be reported as debt service expenditures for 2020 and 2021 can be calculated as follows
The Amount would be reported as debt service expenditures for 2020
= $5,000,000 x 4% x 1/2 year
= $100,000
The amount would be reported as debt service expenditures for 2021
= $5,000,000 x 4% + $250,000
= $350,000
Last year Janet purchased a $1,000 face value corporate bond with an 10% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 13.84%. If Janet sold the bond today for $994.79, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
33.8%
Explanation:
Purchase price of the bond will be computed using the formula below.
[tex]p=\frac{A(1-(1+r)^{-n} }{r} + \frac{F}{(1+r)^{n} }[/tex]
where A = annual coupon = 10% * 1000 = 100
r = yield to maturity = 0.1384
n = time to maturity = 20 years
F = face value = $1,000
p = price of the bond.
[tex]p=\frac{100(1-1.1384^{-20} }{0.1384} + \frac{1,000}{(1.1384)^{20} }\\p = 668.4721 + 74.8346\\p = 743.31[/tex]
Therefore, if Janet sold the bond a year later for $994.79,
the profit on sale = [tex]\frac{994.79}{743.31} -1=0.3383[/tex]
= 33.8% profit (rate of return).
you can acquire an existing business for $2 million. You are uncertain about future demand. There is a 40% chance of high demand, in which case the present value of the business will be $3 million. There is a 25% chance of moderate demand, and the associated present value is $1.5 million. Finally, there is a 35% chance of low demand, in which case the present value is $1 million. Draw a decision tree for this problem. What is the expected net present value of the business
Answer:
Expected net present value of the project = $1,925,000
Explanation:
The cost of acquiring business = $2,000,000
Expected net present value of the project = High demand NPV*High demand percent + Moderate demand NPV*Moderate demand percent + Low demand NPV*Low demand percent
Expected net present value of the project = $3,000,000 *40% + $1,500,000*25% + $1,000,000*35%
Expected net present value of the project = $1,200,000 + $375,000 + $350,000
Expected net present value of the project = $1,925,000
Conclusion: The cost of acquiring business is more than expected net present value, it is advisable not to invest in the project.
When determining the value of a firm, which of the following statements is true? Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks. Investors love risk. Other things being equal, they prefer to pay more for stocks that are riskier and have uncertain cash flows. Investors are risk neutral. Other things being equal, they prefer to pay more for stocks that are less risky and have uncertain cash flows.
Answer:
Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks
Explanation:
A risk averse investor is an investor that would want lower returns from investments would lower risks
A risk neutral investor in neutral towards risks. They can invest in projects with high or low risks
A risk loving investor in an investor who prefers a person prefers risky return over guaranteed return
Cellular Access Inc., is a cellular telephone service provider that reported net operating profit after tax (or unlevered net profit) of $250 million for the most recent fiscal year. The firm had depreciation expenses of $100 million, capital expenditures of $200 million, no interest expense, and an income tax rate of 30%. Working capital increased by $10 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year.
Answer: $65 million
Explanation:
The Free Cash Flow will be calculated as:
= EBIT(1-t) + Dep & Amortisation- Changes in Working Capital- Capital Expenditure
= 250(1-30%) + 100 - 200 - 10
= 250(0.7) + 100 - 200 - 10
= 175 + 100 - 210
= $65 million
Assume you purchase a Harley-Davidson Corporation bond that pays 5 percent or annual interest of $50 and has a face value of $1000. Also, assume new corporate bond issues of comparable quality are currently paying 6 percent. What is the approximate market value?
Answer:
$833.33
Explanation:
Annual Interest Paid = $50
Market Interest rate = 6%
The approximate market value = Annual interest paid / Market Interest rate
The approximate market value = $50 / 6%
The approximate market value = $50 / 0.06
The approximate market value = 833.3333333333333
The approximate market value = $833.33
la) State clearly 1 consumer need which is met by "Canadian Living" magazine. Be careful to remember that needs are "states of deprivation" felt by a person
Pls help
Answer:
Need to perform everyday tasks like cooking.
Explanation:
For example, Canadian Living magazines has a record of often publishing articles related to new cooking recipes that are cheap and affordable.
Many consumers often need information that can help that can assist them in cooking nutritional foods at the best price possible.
Sherman, Inc. manufactures chainsaws that sell for $65. Each chainsaw uses $14 in direct materials and $9 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Sherman made 225 chainsaws, using 1,125 machine hours in 45 batches. What is the gross profit for one chainsaw
Answer: $18
Explanation:
Based on the information,
Sales revenue = $65 × 225 = $14625
Cost of goods sold = (45 × $20) + (1125 × $4) + (225 × $14) + (225 × $9)
= $900 + $4500 + $3150 + $2025
= $10575
Gross profit = Sales revenue - Cost
= $14625 - $10575
= $4050
The gross profit for one chainsaw will be:
= $4050/225
= $18
Yoshi Co.'s 12/31/2020 inventory on a FIFO basis was $980,000. The following information is available: Estimated selling price is $1,020,000; Estimated cost of disposal is $40,000; Normal profit margin is $120,000; and Current replacement cost is $900,000. At 12/31/2020, assuming Yoshi uses the loss method, what amount of loss should Yoshi record from applying LCM
Answer:
Yoshi Co.
The amount of loss that Yoshi Co. should record from applying LCM (the lower of Cost or Market price) is:
$40,000
Explanation:
a) Data and Calculations:
FIFO inventory on 12/31/2020 = $980,000
Current replacement cost = $900,000
Net realizable value = $980,000 ($1,020,000 - $40,000)
Normal profit margin = $120,000
Loss to be recognized based on current replacement cost = FIFO purchase cost minus Current replacement cost
= $80,000 ($980,000 - $900,000)
b) Under the US GAAP (generally accepted accounting principles) of prudence and conservatism, the loss of $80,000 must be recognized in the current period, since the inventory will be booked at $900,000, its current replacement cost, which is lower than the FIFO purchase cost of $980,000.
[Same investments as the prior question] Suppose two local start-ups are raising funding by issuing shares of equity at $10,000 per share. One start-up is a whiskey distillery; the other is a beer brewery. You estimate the expected returns on your investment to be 50% over five years in both cases. You also believe that the likelihood of being paid out $20,000 per share is greater with the distillery than with the brewery. Suppose now that you hold a portfolio of many other risky assets, and that this would be your N 1 investment. Which investment do you prefer to make, the distillery or the brewery
Answer:
you should purchase the brewery's stock
Explanation:
First of all, as investors we should always try to maximize our returns while avoiding risks. It is really hard to balance both, but we must compare stocks to see which may represent a higher gain while posing the lesser or same risk.
Initial investment in each = $10,000 (equal for both)expected returns over 5 years = $5,000 (equal for both)but there is a higher possibility of the distillery's stock being more valuable, and that makes a difference.Both stocks seem equally risky, but they are not. When you calculate expected returns, you multiply the possible returns by their probability. I'm not sure how they calculated the expected returns of the above stocks, but the following can help you understand my point:
stock B return probability expected return
great 100% 25% 25%
normal 50% 50% 25%
bad 0% 25% 0%
total 100% 50%
stock D return probability expected return
great 100% 30% 30%
normal 50% 40% 20%
bad 0% 30% 0%
total 100% 50%
Both stocks have the same expected return, but stock B is less risky because the chance of being a bad investment is lower.
Hlleym762 Inc. is a merchandising company. Last month the company's cost of goods sold was $62,600. The company's beginning merchandise inventory was $16,600 and its ending merchandise inventory was $25,200. What was the total amount of the company's merchandise purchases for the month?
Answer:
Purchases = $71200
Explanation:
Using the Cost of Goods Section from the Income statement, we can calculate the Purchases of merchandise for the month. The cost of Goods sold is calculated as follows,
Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory
As we already have values for Cost of Goods Sold, Opening inventory and closing inventory, we can plug the values in the above formula to calculate the value of purchases.
62600 = 16600 + Purchases - 25200
62600 + 25200 - 16600 = Purchases
Purchases = $71200
How are the four areas of operations control interrelated?
Cycle Time and Velocity In the first quarter of operations, a manufacturing cell produced 85,000 stereo speakers, using 20,000 production hours. In the second quarter, the cycle time was 10 minutes per unit with the same number of production hours as were used in the first quarter. Required: 1. Compute the velocity (per hour) for the first quarter. If required, round your answer to two decimal places. fill in the blank 1 units per hour 2. Compute the cycle time for the first quarter (minutes per unit produced). If required, round your answer to two decimal places. fill in the blank 2 minutes per unit 3. How many units were produced in the second quarter
Answer:
1. Velocity per hour= 4.35 units per hour
2. Cycle time=0.24
3. Units produced= 120,000 units
Explanation:
1.Computation for the velocity (per hour) for the first quarter.
Velocity per hour=85,000 units / 20,000 hour
Velocity per hour= 4.35 units per hour
2.Compution for the cycle time for the Frst quarter
Cycle time =20,000 hour/85,000 units
Cycle time=0.24
3. Calculation for How many units were produced in the second quarter
Units produced =60 minutes / 10 minutes per units * 20,000 Hours
Units produced= 120,000 units
II. In order to establish a p-chart with 3-sigma control limits, you have collected the following 10 samples of size 300.
Sample Defects Sample Defects
1 25 6 15
2 22 7 14
3 17 8 15
4 42 9 16
5 16 10 16
Required:
a. Determine CL, UCL, and LCL for the p-chart.
b. Is the process in statistical control? Explain.
Answer and Explanation:
Please find answer and explanation attached
A bank offers 8.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually?Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))
Answer:
Effective Annual Rate = 8.1600%
Explanation:
The effective annual rate the interest rate that is adjusted for compounding over a given period of time. It is given by the formula:
[tex]r = (1+\frac{i}{n})^n -1\\where:\\r = effective\ annual\ rate\\i = nominal\ interest\ rate\ = 8.00\% = 0.08 \\n = number\ of\ compounding\ periods\ per\ year\ = 2\ (semi-annually)[/tex]
[tex]r = (1+\frac{0.08}{2})^2 -1\\r = (1\ +\ 0.04)^2 - 1\\r = (1.04)^2 - 1\\r = 1.0816 - 1\\r = 0.0816\\r = 8.1600 \%[/tex]
Nash Company reported 2020 net income of $152,900. During 2020, accounts receivable increased by $17,160 and accounts payable increased by $9,582. Depreciation expense was $48,000. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) NASH COMPANY Cash Flow Statement choose the accounting period select an opening section name select an item $enter a dollar amount Adjustments to reconcile net income to select a subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the adjustments select a closing section name $enter a total amount for the section
Answer:
$112,478
Explanation:
Cash flows from operating activities
Net income $152,900
Adjustments to reconcile net income
Depreciation expense $48,000
Increase in accounts payable $9,582
Increase in accounts receivable $ (17,160) $40,422
Net cash provided by operating activities $112,478
Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 15 years Coupon rate: 7 percent Semiannual payments Calculate the price of this bond if the YTM is 9 percent.
Answer:
$837.11
Explanation:
The computation of the present value is shown below:
Given that
Future value = $1,000
NPER = 15 × 2 = 30
PMT = $1,000 × 7% ÷ 2 = $35
RATE = 9% ÷ 2 = 4.5%
The formula is shown below:
= -PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $837.11
The same is to be considered
On January 1, 2020, Echo Company issued $550,000, 16 year, 9%, annual, callable bonds for $475,000. On December 31, 2025, Echo Company redeemed (called) the bonds at 102. REQUIRED: 1. Prepare the Journal Entry to record the Issuance of the Bond 2. Determine the amount of the Discount/Premium that is still not amortized (using the Straight-Line Method) 3. Prepare the Journal Entry to record the Retirement (Redemption) of the Bond.
Answer:
1. Prepare the Journal Entry to record the Issuance of the Bond
January 1, 2020, bonds issued at a discount
Dr Cash 475,000
Dr Discount on bonds payable 75,000
Cr Bonds payable 550,000
2. Determine the amount of the Discount/Premium that is still not amortized (using the Straight-Line Method)
total bond life = 16 years, 5 years have passed
amortization of bond discount per coupon payment = $75,000 / 16 = $4,687.50
so $51,562.50 have not been amortized yet
3. Prepare the Journal Entry to record the Retirement (Redemption) of the Bond.
Before being able to redeem the bonds, the remaining discount must be amortized:
December 31, 2025, amortization of bond discount
Dr Interest expense 51,562.50
Cr Discount on bonds payable 51,562.50
the journal entry to record the redemption of the bonds
December 31, 2025, bonds redeemed at a loss
Dr Bonds payable 550,000
Dr Loss on retirement of debt 11,000
Cr Cash 561,000
Hatch Corporation's target capital structure is 40% debt, 50% common stock, and 10% preferred stock. Information regarding the company's cost of capital can be summarized as follows: The company's bonds have a nominal yield to maturity of 7%. The company's preferred stock sells for $40 a share and pays an annual dividend of $4 a share. The company's common stock sells for $25 a share and is expected to pay a dividend of $2 a share at the end of the year (i.e., D1 = $2.00). The dividend is expected to grow at a constant rate of 7% a year. The company has no retained earnings. The company's tax rate is 40%. What is the company's weighted average cost of capital (WACC)?
Answer:
WACC = 0.1018 or 10.18%
Explanation:
The WACC or Weighted average cost of capital is the cost of a firm's capital structure that can be made of one or all of the following components namely debt, preferred stock and common equity.
The formula to calculate is as follows,
WACC = wD * tD * (1- tax rate) + wP * rP + wE * rE
Where,
w represents the weight of each component in capital structurer represents the cost of each componentD, P and E represents debt, preferred stock and Common Equity respectively.Cost of bond = 7%
Cost of preferred stock = 4/40 = 10%
Cost of Common Equity :
25 = 2 / (r - 0.07)
25 * (r - 0.07) = 2
25r - 1.75 = 2
25r = 2 + 1.75
r = 3.75 / 25
r = 0.15 or 15%
WACC = 0.4 * 0.07 * (1 - 0.4) + 0.1 * 0.1 + 0.5 * 0.15
WACC = 0.1018 or 10.18%
The theory of the term structure of interest rates, which suggests that long-term rates are determined by the average of short-term rates expected over the time that a long-term bond is outstanding, is the
Answer:
Expectations Theory
Explanation:
Victor Vroom's Expectancy Theory deals with motivation and management. Vroom's theory assumes that behaviour is a result of conscious choices among alternatives. The goal of options is to maximize pleasure and minimize suffering. Along with Edouard Lawler and Lyman Porter, Vroom suggested that the relationship between people's behaviour at work and their goals was not as straightforward as other scientists had first imagined it. Vroom realized that employee performance is based on different factors such as personality, skills, knowledge, experience and abilities.
Expectation theory states that people have different sets of goals and can be motivated if they have certain expectations.
EXPECTATIONS OF THE THEORY OF EXPECTATIONS include the following:
There is a positive correlation between effort and performance.The favourable performance will result in a desirable reward.The reward will satisfy a critical need.The desire to satisfy the need is strong enough to make an effort meaningful.