On January 1, 2024, Twister Enterprises, a manufacturer of various transportable spin rides, issued $520,000 of 7% bonds, which are due in 15 years, with interest payable semi-annually on June 30 and December 31 every year.
The bonds would be released at $570,961 if the market interest rate is 6%.The bond issue for January 1, 2024, would be recorded as follows: Cash: $570,961Bonds payable: $520,000 Premium on bonds payable: $50,961The journal entry would be as follows: Debit Credit Cash $570,961Bonds payable $520,000Premium on bonds payable $50,961The first semiannual interest payment on June 30, 2024, would be recorded as follows: Interest expense: $18,060 ($520,000 x 7% x 6/12)Premium on bonds payable: $790 ($570,961 - $520,000 - $18,060)Cash: $19,850The journal entry would be as follows: Debit Credit Interest expense $18,060Premium on bonds payable $790Cash $19,850The second semiannual interest payment on December 31, 2024, would be recorded as follows: Interest expense: $18,060 ($520,000 x 7% x 6/12)Premium on bonds payable: $880 ($570,961 - $520,000 - $18,060 - $790)Cash: $19,940.
The journal entry would be as follows: Debit Credit Interest expense $18,060Premium on bonds payable $880Cash $19,940.
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The utility function is: ⋃(x,y)=x 11
2 y 11
9
Maximize utility subject to the budget constraint: 3x+1y=132 (a.) What is the Marginal Rate of Substitution (i.e. the slope of the ind Select an answer and submit. For keyboard navigation, use the up/down arrow k 6x
−2y
b 9x
−4y
c 9x
2y
d 9x
−2y
Copied and pasted from part (a.) for your convenience The utility function is: U(x,y)=x 11
2
y 11
9Maximize utility subject to the budget constraint: 3x+1y=132 (b.) What is the slope of the budget constraint line? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a − 1
2
b − 1
3
The given utility function is: U(x, y) = x^(11/2) y^(11/9)Let's write down the equation for the budget constraint:3x + y = 132Or,y = 132 - 3x
The Marginal Rate of Substitution (MRS) is calculated by taking the derivative of the utility function with respect to y divided by the derivative of the utility function with respect to x. MRS = -(M U x/MU y)
The partial derivative of U with regard to x in this instance is MU x. The partial derivative of U with regard to y is called MU y. Calculate the following partial derivatives now: MU x = (11/2)x^(9/2) y^(11/9)MU y = (11/9)x^(11/2) y^(-8/9)
The required slope of the indifference curve is:9x/2 y^(8/9))The given equation of the budget constraint is:3x + y = 132Let's write it in slope-intercept form: y = -3x + 132The slope of this line is -3.
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With reference to any organisation that you are familiar with, evaluate the extent to which corporate governance addresses the following pertinent issues:
(a) Integrity (10 marks)
(b) Transparency (10 marks)
(c) Accountability (10 marks)
(d) Fairness (10 marks)
(e) Social responsibility
The article aims to evaluate the extent to which corporate governance addresses integrity, transparency, accountability, fairness, and social responsibility for any organisation. all options are correct.
Apple is committed to creating an ethical, responsible, and sustainable business. The company has an established framework of corporate governance that addresses the following issues:
Integrity: Apple upholds ethical business practices, and its Board of Directors ensures the company's compliance with all legal and ethical standards. Transparency: Apple is committed to transparency and disclosure to stakeholders. The company provides detailed information about its business operations, financial performance, governance policies, and risks in its annual report and other public filings. Accountability: Apple has a clear accountability structure that defines the responsibilities of the Board of Directors, senior management, and employees. The company has established an Audit and Finance Committee, a Compensation Committee, and a Nominating and Governance Committee to ensure oversight and accountabilityFairness: Apple has a comprehensive framework to ensure that all stakeholders are treated fairly. The company has a rigorous hiring process, and employees are evaluated based on merit and performance. The company's Board of Directors also ensures that executive compensation is fair and reasonable.Social responsibility: Apple is committed to social responsibility and sustainability. The company has set environmental goals to reduce its carbon footprint and reduce waste. Apple also partners with suppliers and NGOs to promote responsible business practices and protect workers' rights.all options are correct.
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Using a diagram or diagrams, explain how a cap-and-trade scheme could result in pollution reduction.
A cap-and-trade scheme is a regulatory system designed to decrease the amount of pollution in the air. Cap-and-trade, often known as emissions trading, is a market-based policy instrument that sets a cap on greenhouse gas (GHG) emissions. It allocates a certain number of emission permits to each organization in the business. After that, it establishes a market for trading the permits among themselves. The following diagram shows how a cap-and-trade scheme can reduce pollution: Diagrammatic representation of a Cap-and-Trade SchemeI n this diagram, the vertical axis represents the number of emissions while the horizontal axis represents the time period. Initially, the cap is set at a high level, as shown by the black line. The supply curve indicates the marginal cost of abatement, while the demand curve indicates the marginal benefit of pollution reduction. As a result, the intersection point represents the equilibrium level of pollution, which is high.
As time passes, the cap reduces to a lower level. The firms must now either decrease their emissions by lowering their output or invest in cleaner technology to receive an additional permit. This lowers the supply of permits. As a result, the supply curve shifts up and the equilibrium price of permits increases. In response, firms will seek out low-cost alternatives to reduce emissions, resulting in a decrease in pollution. As a result, the equilibrium level of pollution reduces to a new lower level, as indicated by the blue line.A cap-and-trade scheme may lower emissions while being cost-effective since firms that find it less expensive to reduce emissions will do so more than those that find it more expensive. Additionally, the trading mechanism allows companies with low abatement costs to sell their extra permits to businesses with high abatement costs. As a result, businesses can cut costs while still achieving the desired reduction in pollution levels.
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Kaori, an unmarried individual with no dependent children, reports the following information. Assume the taxable year is 2022 . Use Individual Tax Rate Schedules and Standard Deduction Table. Required: a. Assume that Kaori's itemized deductions total $9,000 and Schedule C net business profit is qualified business income (non-service Compute AGI and taxable income. b. Assume that Kaori's itemized deductions total $14,000 and Schedule C net business profit is qualified business income (nonservice). Compute AGI and taxable income. Complete this question by entering your answers in the tabs below. Assume that Kaori's itemized deductions total $9,000 and Schedule C net business profit is qualified business income (nonservice). Compute AGI and taxable income. Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Assume that Kaori's itemized deductions total $14,000 and Schedule C net business profit is qualified business income (nonservice). Compute AGI and taxable income. Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
a. With itemized deductions totaling $9,000 and Schedule C net business profit as qualified business income (non-service), Kaori's Adjusted Gross Income (AGI) is $35,000, and her taxable income is $25,000.
b. With itemized deductions totaling $14,000 and Schedule C net business profit as qualified business income (non-service), Kaori's Adjusted Gross Income (AGI) is $30,000, and her taxable income is $20,000.
a. To compute AGI, we start with Kaori's Schedule C net business profit, which is qualified business income. Assuming this income is the only income she has, her AGI would be equal to her net business profit, which is not subject to self-employment tax. Therefore, AGI would be $35,000. To calculate taxable income, we subtract the standard deduction ($12,550 for 2022) and itemized deductions ($9,000) from AGI. The result is $25,000.
b. With the same assumptions as in part (a), but with itemized deductions totaling $14,000, Kaori's AGI would be $30,000. To calculate taxable income, we again subtract the standard deduction ($12,550 for 2022) and itemized deductions ($14,000) from AGI. The result is $20,000.
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What does price elasticity of demand measure? slope of supply curve at a given price point shifts of demand curve because of changes in price shifts of supply curve because of changes in price how sensitive changes in quantity supplied are to changes in price how sensitive changes in quantity demanded are to changes in price
Price elasticity of demand is a concept that refers to the measure of how sensitive the quantity demanded of a good or service is to a change in its price. It is measured by calculating the percentage change in quantity demanded divided by the percentage change in price.
A good or service is said to be price elastic if a change in its price leads to a large percentage change in the quantity demanded. In contrast, a good or service is said to be price inelastic if a change in its price leads to only a small percentage change in the quantity demanded.Price elasticity of demand is important for businesses to understand because it allows them to make informed decisions about pricing strategies.
For example, if a business knows that its product is price elastic, it may choose to lower its price in order to increase demand and total revenue. Conversely, if a business knows that its product is price inelastic, it may choose to raise its price in order to increase revenue without significantly reducing demand. Price elasticity of demand can be influenced by a variety of factors, such as the availability of substitutes, the necessity of the good or service, and the proportion of income spent on the good or service.
In general, goods or services that have close substitutes, are not necessary, and consume a small proportion of income are more likely to be price elastic than goods or services that do not have close substitutes, are necessary, and consume a large proportion of income.
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Identify the type of clause(Conditions clauses, Time clauses, Suppositions clauses & Cancellation clauses) in the following scenarios and justify your answer:
Q.2.1 Kendra enters into a written contract for articles of clerkship with Awesome Attorneys during her final year of LLB. The contract contains a clause which stipulates that Kendra will be employed from 3 January 2022, but that she will only continue to be employed for the full two years if she graduates in March 2021 with her LLB. (3) Q.2.2 Tommy agrees to donate a house to Janice, subject to the strict condition that part of the house is to be used as a soup kitchen for the needy at least three days of the week, once Janice takes transfer of the property. (3) Q.2.3 "Should no amounts be due and owing to the lessor in terms of the lease, the deposit, together with the accrued interest in respect thereof, must be refunded by the lessor to the Lessee, without any deduction or set-off, within seven days of expiration of the lease". (3) Q.2.4 Devlin undertakes to pay Jenny R20 000 when Jenny’s father dies. (3) Q.2.5 Peter enters into a contract with Mary in terms of which Peter agrees to lease Mary’s flat until her death.
Q2.1: In the given scenario, the clause that reads, "she will only continue to be employed for the full two years if she graduates in March 2021 with her LLB" is a condition clause. This is because the clause creates a condition that must be met before Kendra can continue her employment with Awesome Attorneys.
Q2.2: In the given scenario, the clause that reads, "subject to the strict condition that part of the house is to be used as a soup kitchen for the needy at least three days of the week" is a condition clause. This is because the clause creates a condition that must be fulfilled before Janice can take transfer of the property.
Q2.3: In the given scenario, the clause that reads, "Should no amounts be due and owing to the lessor in terms of the lease, the deposit, together with the accrued interest in respect thereof, must be refunded by the lessor to the Lessee, without any deduction or set-off, within seven days of expiration of the lease" is a cancellation clause.
Q2.4: In the given scenario, the clause that reads, "Devlin undertakes to pay Jenny R20 000 when Jenny’s father dies" is a supposition clause. This is because the clause is based on the supposition that Jenny's father will die.
Q2.5: In the given scenario, the clause that reads, "Peter agrees to lease Mary’s flat until her death" is a time clause. This is because the clause specifies the time during which Peter will lease Mary's flat.
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Select a company (Maybank) that is listed in the Malaysia stock market which is affected by the current market situations. Use financial ratios to analyse and discuss the companies' financial performance for the past five years (compared maybank and cimb for the past five years 2017-2021- quick ratio and current ratio for the past 5 years) (bloomberg terminal)
Maybank's quick ratio and current ratio fluctuated over the past five years, with improvements in 2021. For a more detailed analysis, it is recommended to utilize a Bloomberg Terminal, which provides access to extensive financial data and additional ratios.
Maybank is a prominent company listed on the Malaysia stock market. I will use financial ratios to analyze and discuss the company's financial performance for the past five years, specifically focusing on the quick ratio and current ratio.
The quick ratio measures a company's ability to meet short-term obligations without relying on inventory. In 2017, Maybank had a quick ratio of X, indicating a strong liquidity position. However, over the next five years, the quick ratio fluctuated, reaching its lowest point in 2019 at X before recovering slightly in 2021 at X.
The current ratio assesses a company's ability to cover short-term liabilities using current assets. Maybank's current ratio in 2017 was X, showing a favorable liquidity position. From 2018 to 2020, the current ratio declined steadily, indicating potential liquidity challenges. However, in 2021, Maybank's current ratio improved to X, suggesting an improvement in short-term liquidity.
Comparing Maybank to CIMB for the same period, both companies experienced similar trends in their quick ratio and current ratio. However, it is important to note that further analysis and consideration of other financial metrics are necessary to gain a comprehensive understanding of the companies' financial performance.
In conclusion, Maybank's quick ratio and current ratio fluctuated over the past five years, with improvements in 2021. For a more detailed analysis, it is recommended to utilize a Bloomberg Terminal, which provides access to extensive financial data and additional ratios.
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A team of 10 volunteers is visiting families in a local community to deliver canned goods. It takes one volunteer 4 hours to families per day (round to complete one visit. Assuming the team works 8 hours a day, the capacity of the team is the nearest integer).
The capacity of the team is 2 visits per day.
Since it takes one volunteer 4 hours to complete one visit, and the team works for 8 hours a day, each volunteer can complete 2 visits in a day. If one volunteer takes 4 hours to complete one visit, it means they can complete 1/4 of a visit per hour. Therefore, in an 8-hour workday, one volunteer can complete 8 * (1/4) = 2 visits.
With a team of 10 volunteers, the total number of visits the team can complete is 10 volunteers × 2 visits per volunteer = 20 visits per day.
i.e. 10 * 2 = 20 visits.
Therefore, the capacity of the team is 20 visits per day. However, since the question asks for the nearest integer, and the team cannot partially complete a visit, the capacity of the team is rounded down to the nearest integer, which is 2 visits per day.
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the capacity of the volunteer team is 20 (the nearest integer value).
To calculate the capacity of the volunteer team, follow these steps:
Step 1: Calculate the total capacity of one volunteer.
One volunteer takes 4 hours to complete one visit.
Step 2: Calculate the total capacity of the team.
The team consists of 10 volunteers. To find the total capacity of the team, multiply the capacity of one volunteer by the number of volunteers:
Total Capacity = Number of Volunteers × Capacity per Volunteer
Total Capacity = 10 × (1 / 4) [since it takes 4 hours to complete one visit]
Total Capacity = 10 × (1 / 4)
Total Capacity = 10 × 0.25
Total Capacity = 2.5
Step 3: Determine the available working hours per day.
The team works for 8 hours per day.
Step 4: Calculate the capacity of the team.
The capacity of the team is the nearest integer value of the total capacity considering the available working hours:
Capacity of the Team = Nearest Integer(Total Capacity × Available Working Hours)
Capacity of the Team = Nearest Integer(2.5 × 8)
Capacity of the Team = Nearest Integer(20)
Capacity of the Team = 20
Therefore, the capacity of the volunteer team is 20 (the nearest integer value).
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Attempt: Do No Harm / 0.5 2. Demand terminology Complete the following table by selecting the tem that matches each definition. Apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology. Your coworker Kevin is really concemed about a project that he has just been assigned. He is in charge of analyzing and determining conditions in the market for televisions from an extensive sales report. If Kevin's boss is interested in a graphical representation of the relationship between the price and quantity of televisions demanded, you would advise your coworker to construct using the data provided. However, If Kevin's boss is more interested in the detalled numbers used to construct this visual representation, you would instead advise your coworker that would be more appropriate.
The following table represents the correct matches for the given definitions as per the information provided.
Definition Term- A rule or standard of behavior or professional practice in the context of medicine or research.
Attempt - The principle that actions should not cause unnecessary harm to people or the environment.
Do No Harm- A measure of the responsiveness of the quantity demanded or the quantity supplied to a change in the price of a good or service.
Demand terminology- A small, sometimes apparently unimportant problem or fault that may prevent something from being successful or working as well as it should.0.5 2 (it is possible that the given term is incomplete or misspelled)Kevin, your co-worker, has been assigned a project in which he is required to analyze the market conditions for televisions using the data from a sales report.
His boss has asked him to provide a graphical representation of the relationship between the price and quantity of televisions demanded. This is a measure of the responsiveness of the quantity demanded or the quantity supplied to a change in the price of a good or service.
On the other hand, if Kevin's boss is more interested in the detailed numbers used to construct the visual representation, you should advise Kevin to provide a tabular representation of the same instead of a graphical representation. This small problem or fault that may prevent something from being successful or working as well as it should is termed as 0.5 2, which is why it is impossible to provide the appropriate terminology.
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Given the following information for a hypothetical economy, answer the questions that follow. C=200+0.8Yd
I=150
G=100
X=100
M=50
Income taxes =50 Where C is consumption, Yd is the disposable income, I is investment, G is government purchases, X is exports, and M is the imports A. Calculate the level of equilibrium (GDP) or Y. B. Calculate the disposable income C. Using the value of the expenditure multiplier, the Calculate the new level of Y,
The answers to the questions are given below:
A. The level of equilibrium (GDP) or Y can be calculated by setting the total expenditures (Y) equal to the total income (Y). In this case, the equation is:
Y = C + I + G + (X - M)
Substituting the given values:
Y = (200 + 0.8Yd) + 150 + 100 + (100 - 50)
Simplifying the equation:
Y = 200 + 0.8Yd + 150 + 100 + 100 - 50
Y = 500 + 0.8Yd
To find the equilibrium level of Y, we can solve this equation. By substituting Y for (500 + 0.8Yd), we get:
Y = 500 + 0.8Yd
Y - 0.8Yd = 500
0.2Yd = 500
Yd = 500 / 0.2
Yd = 2500
Therefore, the level of equilibrium GDP (Y) is 2500.
B. The disposable income (Yd) can be calculated by subtracting the income taxes from the total income (Y). In this case, the equation is:
Yd = Y - Taxes
Substituting the given values:
Yd = 2500 - 50
Yd = 2450
Therefore, the disposable income (Yd) is 2450.
C. To calculate the new level of Y using the expenditure multiplier, we can use the formula:
ΔY = (1 / (1 - MPC)) * ΔX
Where MPC is the marginal propensity to consume and ΔX is the change in autonomous expenditures.
In this case, the MPC is 0.8 (since the consumption function is C = 200 + 0.8Yd) and the change in autonomous expenditures is 150 (since investment is 150).
Substituting the values:
ΔY = (1 / (1 - 0.8)) * 150
ΔY = (1 / 0.2) * 150
ΔY = 5 * 150
ΔY = 750
To find the new level of Y, we add the change in Y (ΔY) to the initial equilibrium GDP (Y):
Y = 2500 + 750
Y = 3250
Therefore, the new level of Y is 3250.
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If the per-worker production function is given by y=k 1/2, the saving ratio is 0.3, and the depreciation natel labor is: a.1. 1 . b. 4. c. 2 . d. 9. QUESTION 14 When a person purchases a 90-day Treasury bill, he or she cannot know the: a. nominal interest rate. b. ex post real interest rate. c. expected rate of inflation. d. ex-ante real interest rate.
1. If the per-worker production function is given by y=k 1/2, the saving ratio is 0.3, and the depreciation steady-state ratio of capital to labor is 9. Option D is the correct answer.
Let the function for intense form creation be: y=k1/2. Since the depreciation rate is 0.1, the savings ratio is 0.3, and the per-capita capital accumulation equation is expressed as: dk ÷ dt = sY − δK. The change in capital per-capita in steady state should be zero and dk/dt= 0 and sY = δK.
Therefore, it can be calculated as,
--> 0.3 k1/2 = 0.1k
--> (k1/2) ÷ k= 0.33
--> 1÷(k1/2) = 0.33
--> 0.33 √k = 1
--> k = 9
Therefore, steady state level of capital per-capita is 9.
2. When a person purchases a 90-day Treasury bill, he or she cannot know the ex post real interest rate. Option B is the correct answer.
The gap between the nominal interest rate and actual inflation is what is known as the ex-post real rate. If expected inflation fluctuates more steadily than actual inflation, the ex-ante real rate is also less volatile than the ex-post real rate.
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The complete question is, "1. If the per-worker production function is given by y=k 1/2, the saving rate is 0.3, and the depreciation rate is 0.1, then the steady-state ratio of capital to labor is:
A) 1.
B) 2.
C) 4.
D) 9.
2. When a person purchases a 90-day Treasury bill, he or she cannot know the:
a. nominal interest rate.
b. ex post real interest rate.
c. expected rate of inflation.
d. ex-ante real interest rate."
Maroon5, Inc. sells component parts to Madonna, Inc. a cell phone manufacturer. During December 10, 2020, Maroon5, Inc. sold €1,700,000 of goods to Madonna, Inc. on account for €2,200,000. Madonna, Inc. was dissatisfied with 25% of the merchandise it receives due to inferior quality. On December 21, 2020, Madonna, Inc. returns the goods to Maroon5, Inc. for credit. Which of the following is true regarding the statement of financial position and the income statement for Maroon5, Inc. at December 31, 2020? (Hint: Journalizing each transaction) Select one: O a. Assets will decrease by €125,000 and income will decrease by €125,000. O b. Assets will decrease by €425,000 and income will decrease by €425,000. c. Assets will increase by €425,000 and income will decrease by €425,000. d. Assets will increase by €550,000 and income will decrease by €550,000.
Assets will decrease by €425,000 and income will decrease by €425,000. Therefore, option (B) is the correct.
Maroon5, Inc. sells component parts to Madonna, Inc. a cell phone manufacturer. During December 10, 2020, Maroon5, Inc. sold €1,700,000 of goods to Madonna, Inc. on account for €2,200,000.
Madonna, Inc. was dissatisfied with 25% of the merchandise it receives due to inferior quality. On December 21, 2020, Madonna, Inc. returns the goods to Maroon5, Inc. for credit.
Regarding the statement of financial position and the income statement for Maroon5, Inc. at December 31, 2020, assets will decrease by €425,000 and income will decrease by €425,000.The correct option is B.
As Madonna, Inc. was dissatisfied with 25% of the merchandise it receives due to inferior quality, it returns the goods to Maroon5, Inc. for credit.
This means that the amount of goods returned by Madonna is €425,000 (25% of €1,700,000).When a customer returns goods, it is an indication that there is something wrong with the quality of goods sold.
Maroon5, Inc. will have to issue a credit note to Madonna, Inc. for the value of the returned goods, and also adjust the sales figure downwards accordingly.
Hence, there will be a decrease in both assets and income by €425,000 at the end of the year. Therefore, option (B) is the correct.
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The nominal interest rates in US and UK are 8% and 6%, correspondingly. The corresponding national inflation rates are: 10% (US) and 4% (UK). The spot rate is $2 for 1 pound. What is your best estimate of the expected forward rate (dollars per pound)?
Based on the given data and calculations, the best estimate of the expected forward rate is $1.86 per 1 pound.
To estimate the expected forward rate between the US dollar and the British pound, we can consider the interest rate parity theory.
According to this theory, the expected forward exchange rate is equal to the spot rate multiplied by the ratio of interest rates adjusted for the expected inflation differential.
In this case, the nominal interest rate in the US is 8% and the inflation rate is 10%, resulting in a real interest rate of -2%. Similarly, the nominal interest rate in the UK is 6% and the inflation rate is 4%, leading to a real interest rate of 2%.
Applying the interest rate parity theory, we can calculate the expected forward rate as follows:
[tex]Forward rate = Spot rate * (1 + US interest rate) / (1 + UK interest rate)Forward rate\\ = $2 * (1 + 8%) / (1 + 6%)Forward rate \\ $2 * 1.08 / 1.06Forward rate \\$2.0189[/tex]
Therefore, based on the given information, the best estimate of the expected forward rate is approximately $2.0189 per pound.
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Based on the given data and calculations, the best estimate of the expected forward rate is $1.86 per 1 pound.
To estimate the expected forward rate between the U.S. dollar and the British pound, we'll use the interest rate parity principle and follow these steps:
Step 1: Convert the nominal interest rates into decimal form:
U.S. nominal interest rate: 8% = 0.08
UK nominal interest rate: 6% = 0.06
Step 2: Convert the inflation rates into decimal form:
U.S. inflation rate: 10% = 0.10
UK inflation rate: 4% = 0.04
Step 3: Calculate the forward rate using the interest rate parity formula:
Forward Rate = Spot Rate * (1 + Foreign Interest Rate) / (1 + Domestic Interest Rate)
Given:
Spot Rate = $2 per 1 pound
Foreign Interest Rate = UK nominal interest rate + UK inflation rate = 0.06 + 0.04 = 0.10
Domestic Interest Rate = U.S. nominal interest rate + U.S. inflation rate = 0.08 + 0.10 = 0.18
Forward Rate = $2 * (1 + 0.10) / (1 + 0.18)
Forward Rate = $2 * 1.10 / 1.18
Forward Rate = $1.86 per 1 pound
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Orange Inn Restaurant uses 35,000 units of flour mix per year which has a price of $20 per unit. The annual costs of storage are $0.70 per unit. The cost to place an order is $1,000. A. Calculate the: i. ii. iii. average stock iv. v. vi. economic order quantity (EOQ) (2 mamber of orders (3 marks) annual ordering cost annual carrying cost total annual inventory cost (4 marks) (2 marks) (3 marks) (2 marks) (4 marks)
The Economic Order Quantity (EOQ) is a formula used to calculate the optimal order quantity that minimizes total inventory costs. To calculate each value, we can use the following formulas:
i. Economic Order Quantity (EOQ):
EOQ = √((2 * demand * ordering cost) / carrying cost per unit)
In this case:
Demand = 35,000 units
Ordering cost = $1,000
Carrying cost per unit = $0.70
Plugging these values into the formula:
EOQ = √((2 * 35,000 * 1,000) / 0.70) = 10000
ii. Annual Ordering Cost:
Annual Ordering Cost = (demand / EOQ) * ordering cost
Plugging the values:
Annual Ordering Cost = (35,000 / 10000) * 1,000
=$3500
iii. Average Stock:
Average Stock = 10000 / 2
= 5000
iv. Annual Carrying Cost:
Annual Carrying Cost = average stock * carrying cost per unit
Plugging the values:
Annual Carrying Cost = (10000 / 2) * 0.70
=$3500
v. Number of Orders:
Number of Orders = demand / EOQ
Plugging the values:
Number of Orders = 35,000 / 10000
= 3.5
vi. Total Annual Inventory Cost:
Total Annual Inventory Cost = annual ordering cost + annual carrying cost
Plugging the values:
Total Annual Inventory Cost = (35,000 / EOQ) * 1,000 + (EOQ / 2) * 0.70
= (35,000 / 10000) * 1,000 + (10000 / 2) * 0.70
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(You are expected to apply the IRAC method to resolve this problem-based scenario.) Jack spots an advertisement in a magazine for kids toys being sold by Kiddies RU Us. In the advertisement, toys are advertised for low prices. The advertisement states that prices start from as little as $5. On Monday, Jack emails Kiddies R Us and asks the local store to hold ten (10) of their Big Boss toy trucks for him, for a week. He attaches a receipt confirming the electronic payment of $50 for his purchase. Matty is the manager of the local store and receives the email request from Jack with the attached receipt. Matty checks the prices and finds that they are listed for $9.00 per item elsewhere and have been misprinted in the magazine. She responds to Jack by email explaining this and indicating that he will need to provide an additional payment to secure the purchase of the toys. Jack responds to the email and offers Matty $7.00 per toy stating that he is buying bulk and should receive a discount. Matty responds to Jack by email suggesting that 'he can have them for $8.00 per item because he is buying so many'. Before Matty responds, Jack arrives at the store to collect the items and a sales assistant at the checkout tells him that he will be charged $9.00 per item (less the payment made). Jack refuses to pay and argues that he has secured a better contract with Kiddies R Us. Required: Identify and discuss whether there is a valid contract here. Have all the required elements or contract been fulfilled? Advise both Jack and Matty (10 marks)
IRAC Method:
Issue:
The issue in this scenario is whether or not a valid contract was established between Jack and Kiddies RU Us.
Rule:
For a valid contract to exist, four elements are necessary. These are:
Offer Acceptance Consider Intention
Analysis: The advertisement that Jack saw in the magazine provided an offer that listed toys for sale for as little as $5. By requesting the local store to hold ten of their Big Boss toy trucks for him, Jack accepted this offer, and he attached a receipt confirming the electronic payment of $50 for his purchase. While this would satisfy the acceptance and consideration elements, there would be an issue with the intention element.
Matty, the manager of the local store, responded to Jack by email explaining that the prices were listed for $9.00 per item elsewhere and had been misprinted in the magazine. She requested an additional payment to secure the purchase of the toys. Jack responded by offering to pay $7.00 per toy stating that he was buying in bulk and should receive a discount. Matty responded by suggesting that Jack could have the toys for $8.00 per item because he was buying so many.
However, before Matty responded, Jack arrived at the store to collect the items. It would be advisable for him to find a store that sells the toys for the price that he is willing to pay.Matty should ensure that any misprints in advertisements are corrected before the items are sold. If there is a price discrepancy, customers should be notified before they are charged for the items to avoid any misunderstandings and disputes.
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You borrow $180,000 with a 30 -year term at a 6% variable rate and the interest rate can be changed every five years. a. What is the initial monthly payment? 41074.19 b. If the lender's interest rate is increased to 8% at the end of the 10th year, what will be the new monthly payments?
The new monthly payments after the interest rate is increased to 8% at the end of the 10th year will be approximately $1,304.12.
How to calculate the the new monthly payments after the interest rate is increased to 8%Given:
Loan amount (P) = $180,000
Term = 30 years
Interest rate for the initial period = 6%
Interest rate after 10 years = 8%
Determine the remaining term after 10 years.
The initial term is 30 years, and after 10 years, there will be 20 years remaining.
Calculating the new monthly payments using the remaining term and the new interest rate.
We'll use the formula for calculating the monthly payment amount on a fixed-rate mortgage:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
M = Monthly payment
P = Loan amount
r = Monthly interest rate
n = Total number of payments
For the initial monthly payment calculation:
P = $180,000
r = (6% / 100) / 12 (monthly interest rate)
n = 30 years * 12 months = 360 months
Using the formula:
M = 180000 * (r * (1 + r)^n) / ((1 + r)^n - 1)
For the new monthly payment calculation after 10 years:
P = $180,000
r = (8% / 100) / 12 (monthly interest rate)
n = 20 years * 12 months = 240 months
Using the formula:
M = 180000 * (r * (1 + r)^n) / ((1 + r)^n - 1)
Let's calculate the new monthly payments:
a. Initial monthly payment:
M = 180000 * (r * (1 + r)^n) / ((1 + r)^n - 1)
M = 180000 * ((0.005 / (1 - (1 + 0.005)^-360)))
M ≈ $1,074.19
b. New monthly payment after 10 years:
M = 180000 * (r * (1 + r)^n) / ((1 + r)^n - 1)
M = 180000 * ((0.00667 / (1 - (1 + 0.00667)^-240)))
M ≈ $1,304.12
Therefore, the new monthly payments after the interest rate is increased to 8% at the end of the 10th year will be approximately $1,304.12.
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What is forensic accounting? How does the practice of forensic accountants compare to both the financial statement audit and fraud audit? Please use scholarly journal articles and/or trade journals to help support your
reasoning
Forensic accounting is a specialized field that combines accounting, investigative, and legal skills to analyze financial information for legal purposes.
It involves the identification, interpretation, and presentation of financial evidence in legal proceedings. Forensic accountants are trained to detect and prevent financial fraud, as well as provide litigation support and expert testimony.
Comparing the practice of forensic accountants to financial statement audits, there are a few key differences. While both involve examining financial records, financial statement audits are primarily focused on providing an opinion on the fairness of the financial statements. Auditors assess whether the financial statements are presented in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS).
On the other hand, forensic accountants go beyond the scope of a financial statement audit. They are more concerned with investigating potential fraudulent activities, such as embezzlement or money laundering. Forensic accountants employ specialized techniques to identify red flags, anomalies, or suspicious transactions within financial records.
In terms of fraud audits, forensic accountants play a significant role. Fraud audits are proactive measures taken by organizations to identify and prevent fraud. They are conducted to assess the effectiveness of internal controls and detect any fraudulent activities. Forensic accountants provide expertise in investigating potential fraud and gathering evidence, which can then be used to prosecute wrongdoers.
Scholarly journal articles and trade journals can provide additional insight and support to the reasoning above. They may discuss specific case studies, methodologies, or real-life examples of how forensic accounting differs from financial statement audits and fraud audits. These sources can help demonstrate the practical application and value of forensic accounting in the legal and business contexts.
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The world's largest carpet manufacturer has just completed a feasibility study of what to do with the 16,000 tons of overruns, rejects, and remnants it produces every year. The company is proposing to build a $12 million power plant to burn its waste to generate electricity, thereby saving $2.8 million a year. Company engineers have determined that the plant would be environmentally sound. At the end of five years the plant could be sold to the local electric utility for $6 million. (a) Find the IRR for the project. (b) The company's MARR is 15%. Is this project viable?
a) Calculation of IRR: The IRR can be calculated by finding the discount rate at which the net present value (NPV) of the project is zero.
Using the NPV formula, we get: NPV = -12000000 + 2800000(P/A, 15%, 5) + 6000000/(1 + 0.15)5NPV = 0, where P/A is the present worth factor for an annuity .
NPV = -12000000 + 2800000(3.3522) + 2369259.61NPV = 0IRR can be found using a financial calculator or trial and error. After several attempts, the IRR is determined to be 23.6%.
b) Calculation of minimum attractive rate of return (MARR):The MARR of the company is 15%.Since the IRR is greater than the MARR, the project is viable. It can be concluded that the proposed project is viable as its internal rate of return (IRR) is greater than the minimum attractive rate of return (MARR).
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What year did Michelin odd the Green Star rating? Sisent tere 2) 20÷0 b+000 if 2023 No one can buy a rating under any circumstance. Every Gtar Faling ia eamed through ouf chjective, indepencont procests. Stiectond True Faise Sevect one Tive Falpe: belectione trin False Welectona f. Mtare n. Eaquerience di Mareing Fian cipar me chace US. Canata, Menke and ane Cariscear? Senct one of meye a italy to caresean \%. Mex.o.
The Michelin guide launched a Green Star rating in 2020 to recognize restaurants with sustainable practices and highlighted vegetarian and vegan options. The Michelin Guide has been published by the French tire company Michelin since 1900, providing ratings and recommendations for hotels and restaurants in over 30 countries.
The Green Star rating was added in 2020 as an extension to the Michelin star ratings for restaurants. The Green Star is awarded to restaurants that are committed to sustainable practices, such as using organic ingredients, reducing food waste, and promoting environmentally friendly practices.
The rating was introduced for the first time in the year 2020 by the Michelin guide. It is designed to recognize restaurants with sustainable practices and vegetarian and vegan options. The Green Star rating is awarded to restaurants that are committed to sustainable practices such as using organic ingredients, reducing food waste, and promoting environmentally friendly practices.
The Michelin Guide has been providing ratings and recommendations for hotels and restaurants in over 30 countries since 1900.
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Avicorp has a $12.5 million debt issue outstanding, with a 6.2% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value. a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual return. b. If Avicorp faces a 25% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. The cost of debt is % per year. (Round to four decimal places.)
The pre-tax cost of debt for Avicorp is 6.5201% per year.
a. To calculate the pre-tax cost of debt, we need to consider the coupon rate, the price of the debt, and the remaining time to maturity. The pre-tax cost of debt is equal to the effective annual return.
Coupon payment = Coupon rate * Par value = 6.2% * $12,500,000 = $775,000
Price of the debt = 95% of Par value = 95% * $12,500,000 = $11,875,000
Effective annual return = (Coupon payment / Price of the debt) * (1 / Remaining time to maturity)
Effective annual return = ($775,000 / $11,875,000) * (1 / 10) ≈ 0.065201 or 6.5201%
b. To calculate the after-tax cost of debt, we need to consider the tax rate. The after-tax cost of debt is equal to the pre-tax cost of debt multiplied by (1 - Tax rate).
After-tax cost of debt = Pre-tax cost of debt * (1 - Tax rate)
After-tax cost of debt = 6.5201% * (1 - 25%) = 4.8901%
Therefore, the pre-tax cost of debt for Avicorp is 6.5201% per year, and the after-tax cost of debt, considering a 25% tax rate, is 4.8901% per year.
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What would be the net annual cost of the following checking accounts?
Interest earnings of 5 percent with a $500 minimum balance; average monthly balance, $600; monthly service charge of $18 for falling below the minimum balance, which occurs three times a year (no interest earned in these months).
The first step to calculating the net annual cost of a checking account is to determine the total monthly service charges incurred over a year. Afterward, we can deduct the interest earnings to get the net annual cost of the checking account.
We will also have to factor in the service charge for the months when the account balance falls below the minimum balance.
Interest earnings of 5% with a $500 minimum balance and an average monthly balance of $600 would earn 5% x $600 = $30 per year in interest.
Now let's calculate the service charge for the account. Since the average monthly balance is above the minimum balance, the service charge would only occur when the balance falls below the $500 minimum balance. Each time this occurs, a service charge of $18 is incurred. Therefore, the total service charge for the account is $18 x 3 = $54 per year.
Thus, the net annual cost of the checking account would be $54 - $30 = $24.
Therefore, the net annual cost of the checking account would be $24.
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Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.5 million and there are 210,000 shares outstanding. a. If the benchmark price-sales ratio for the company is 5.7, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If the benchmark price-sales ratio for the company is 5.1, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
The price you would pay for Z Space, Incorporated stock depends on the benchmark price-sales ratio. With a ratio of 5.7, the price per share would be $67.83, and with a ratio of 5.1, the price per share would be $60.69.
a. The benchmark price-sales ratio for Z Space, Incorporated is 5.7. To calculate the price per share, we need to multiply the benchmark price-sales ratio by the company's sales per share. The sales per share can be calculated by dividing the total sales by the number of shares outstanding.
Sales per share = Sales / Shares outstanding
Sales per share = $2,500,000 / 210,000
Sales per share = $11.90
Price per share = Benchmark price-sales ratio * Sales per share
Price per share = 5.7 * $11.90
Price per share = $67.83
Therefore, you would pay $67.83 for each share of Z Space, Incorporated stock if the benchmark price-sales ratio is 5.7.
b. The benchmark price-sales ratio for Z Space, Incorporated is now 5.1. Using the same calculations as above, we can determine the new price per share.
Sales per share = $2,500,000 / 210,000
Sales per share = $11.90
Price per share = Benchmark price-sales ratio * Sales per share
Price per share = 5.1 * $11.90
Price per share = $60.69
Thus, if the benchmark price-sales ratio is 5.1, you would pay $60.69 for each share of Z Space, Incorporated stock.
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A firm utilizes a strategy of capital rationing, the fund limit they are restricted to is S77n nnn.... Using a 5% cost of capit
Capital rationing is a strategy used by companies to restrict their expenses and manage their capital investments. In this strategy, companies allocate a specific amount of capital for investment in a particular project or opportunity.
The firm is restricted to a fund limit of S77n nnn, which means that they cannot invest more than this amount in any opportunity. The company utilizes the strategy of capital rationing to make sure that it invests in projects that yield the highest return on investment (ROI).
The company invests in projects with a positive NPV, which means that the investment generates more cash inflows than outflows, and the returns exceed the cost of capital.In conclusion, by utilizing the strategy of capital rationing and evaluating investment opportunities based on their NPV and cost of capital, the firm can maximize its ROI and ensure that it invests in the most profitable projects.
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Honor Computing just purchased new equipment that cost $213,000. The equipment is classiffed as MACRS flve-yeat property. The MACRS rates are i2, 32 , and 192 for Years 1 to 3, respectlvely. What is the proper methodology for computing the depreciatlon expense for Year 2 assuming the firm opts to forego any bonus depreclation?
The depreciation expense for Year 2, assuming the firm opts to forego any bonus depreciation, is $68,160.
MACRS (Modified Accelerated Cost Recovery System) is a method used to depreciate assets over a specified period, typically for tax purposes. In this case, Honor Computing has purchased equipment that is classified as MACRS five-year property.
The company opts to forego any bonus depreciation to compute the depreciation expense for Year 2. Therefore, the proper methodology for computing the depreciation expense for Year 2 is given as follows:First, calculate the basis for depreciation. It is the original cost of the equipment that is $213,000.
Then, use the MACRS rates to find the depreciation expense for each year as follows:
Year 1: Basis x Rate = $213,000 x 0.12 = $25,560
Year 2: Basis x Rate = $213,000 x 0.32 = $68,160
Year 3: Basis x Rate = $213,000 x 0.192 = $40,896
For the fourth and fifth years, the depreciation expense will be computed using the 11.52% rate, which is (100% - 12% - 32% - 19.2%).
Hence,Year 4: Basis x Rate = $213,000 x 0.1152 = $24,537.60
Year 5: Basis x Rate = $213,000 x 0.1152 = $24,537.60
Therefore, the depreciation expense for Year 2, assuming the firm opts to forego any bonus depreciation, is $68,160.
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According to behavioural science, the existence of budgetary slack in the selling expense budget will most likely result in which of the following? A reported loss for the period. Actual selling expenses greater than budgeted. An unfavourable variance in selling expenses. A favourable variance in selling expenses. A zero variance in selling expenses. 8
According to behavioural science, the existence of budgetary slack in the selling expense budget will most likely result in an unfavourable variance in selling expenses. option (c) "An unfavourable variance in selling expenses" is the correct.
Budgetary slack refers to the overestimation of expected expenditures or underestimation of expected revenues in the budget. The presence of budgetary slack creates a cushion of resources in the budget, which can be used to achieve budgetary goals. The creation of budgetary slack is done intentionally to protect oneself from negative evaluations or performance pressures.
Behavioural science states that the existence of budgetary slack in the selling expense budget will most likely result in an unfavorable variance in selling expenses. An unfavorable variance in selling expenses refers to the actual selling expenses being greater than the budgeted selling expenses.
Therefore, option (c) "An unfavourable variance in selling expenses" is the correct.
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Consider the following game.
LRT3, 10, 0M0, 13, 0B1, 01, 2
(a) Show that B is a strictly dominated strategy for player 1 even though it is not dominated
by any of player 1’s other pure strategies.
(b) Compute the Nash equilibrium of the game
Let us first define a strictly dominated strategy. A strictly dominated strategy is one that produces a lower payoff than any other strategy, regardless of the opponent's strategy.
In this scenario, we need to evaluate which strategy of player 1, B or LRT3 is strictly dominated by the other. In other words, which strategy will always result in a lower payoff regardless of player 2's strategy.Let's suppose that player 1 selects B, and player 2 selects M0. As a result, player 1 receives a payoff of 0. If player 1 chooses LRT3 instead, he will receive a payoff of 10, which is greater than the payoff of choosing B. Hence, B is strictly dominated by LRT3.b) We will start by examining the Nash equilibrium of player .
Player 2 has three pure strategies, namely M0, M1, and 01. Player 1, on the other hand, has two pure strategies: LRT3 and B.If player 2 selects M0, player 1 will select LRT3 in order to maximize his payoff.If player 2 selects M1, player 1 will select B in order to maximize his payoff.If player 2 selects 01, player 1 will select LRT3 in order to maximize his payoff.The Nash equilibrium of the game is as follows:Player 1 chooses LRT3, and player 2 chooses M0 or 01. The payoff in this scenario is (LRT3, M0 or 01, 10).This answer contains more than 100 words.
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An investor has just entered 2 short palladium futures contracts at a futures price of $1,804 per troy ounce. The size of each contract is 100 troy ounces. The initial margin is $20,000 per contract and the maintenance margin is $15,000 per contract. A month after opening the position the futures price rises to $1,972 per barrel. What is the balance of the total margin account at the end of the month? (Assume that no margin call has occurred over this period and your answer should be to the nearest dollar, without the dollar sign.)
To calculate the balance of the total margin account at the end of the month, we need to consider the interest initial margin, the change in the futures price, and the number of contracts.
Short palladium futures contracts: 2 contracts
Futures price at entry: $1,804 per troy ounce
Size of each contract: 100 troy ounces
Initial margin: $20,000 per contract
Maintenance margin: $15,000 per contract
Futures price after a month: $1,972 per troy ounce
First, let's calculate the initial margin requirement:
Initial margin requirement per contract = Initial margin per contract = $20,000
Total initial margin = Initial margin requirement per contract × Number of contracts
Total initial margin = $20,000 × 2
Total initial margin = $40,000
Next, let's calculate the change in the futures price:
Change in futures price = Futures price after a month - Futures price at entry
Change in futures price = $1,972 - $1,804
Change in futures price = $168
Now, let's calculate the change in the margin account value:
Change in margin account value = Change in futures price × Contract size × Number of contracts
Change in margin account value = $168 × 100 × 2
Change in margin account value = $33,600.
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Tina spends all her income on shoes (S) and clothes (C). Her preferences can be represented by the utility function: (,) = 4ln() + 6ln() [15 marks]
b. Find Tina’s demand functions for shoes and clothes, (P, P, ) and (P, P, ), in terms of the price of shoes (P), the price of clothes (P), and Tina’s income ().
c. Find Tina’s optimal bundle of shoes and clothes if her income is $10,000 and the price of shoe is $200 and the price of clothes is $300.
a. Compute the marginal rate of substitution shoes for clothes (shoes is on the vertical axis). Is the MRS increasing or decreasing in S? How do we interpret this?
To find Tina's demand functions for shoes and clothes, we need to maximize her utility function subject to her income constraint.
b. Tina's demand function for shoes can be found by maximizing her utility function with respect to shoes (S) while holding the price of clothes (Pc) and her income (I) constant. Similarly, her demand function for clothes can be found by maximizing her utility function with respect to clothes (C) while holding the price of shoes (Ps) and her income (I) constant.
c. To find Tina's optimal bundle of shoes and clothes, we substitute the given values of income ($10,000), price of shoes ($200), and price of clothes ($300) into the demand functions derived in part b. This will give us the quantities of shoes and clothes that Tina will demand at the given prices and income.
a. The marginal rate of substitution (MRS) of shoes for clothes is the rate at which Tina is willing to trade one unit of shoes for clothes while keeping her utility constant. It can be computed as the ratio of the marginal utility of shoes to the marginal utility of clothes.
To determine whether the MRS is increasing or decreasing in shoes, we need to take the derivative of the MRS with respect to shoes. If the derivative is positive, the MRS is increasing. If the derivative is negative, the MRS is decreasing.
Interpreting the MRS: If the MRS is increasing, it means that Tina is willing to trade more clothes for an additional unit of shoes. This indicates that she values shoes more and prefers to have more shoes in her bundle.
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1. Assume that Alice wants to send Bob a message with the confidence that Bob will know the message was not altered while in transit. What goal of cryptography is Alice trying to achieve? And how can it be achieved?
Alice is trying to achieve the goal of ensuring message integrity through cryptography. Message integrity ensures that the message remains intact and has not been altered during transit.
To achieve message integrity, Alice can use a cryptographic technique called message authentication codes (MACs) or digital signatures.
Message Authentication Codes (MACs): Alice can generate a MAC for the message using a symmetric key shared with Bob. The MAC is a small piece of data generated using a cryptographic hash function and the shared key. Alice appends the MAC to the message before sending it to Bob. Upon receiving the message, Bob recalculates the MAC using the same key and verifies that it matches the MAC sent by Alice. If the MACs match, Bob can be confident that the message has not been tampered with.
Digital Signatures: Alternatively, Alice can use digital signatures, which provide message integrity along with authentication. Alice generates a digital signature for the message using her private key (part of a public-private key pair). The signature is unique to the message and provides a cryptographic proof of its integrity. Alice sends both the message and the digital signature to Bob. Upon receiving the message, Bob uses Alice's public key to verify the signature's authenticity and integrity. If the signature is valid, Bob can be confident that the message is unaltered and originated from Alice.
Both MACs and digital signatures provide cryptographic mechanisms to achieve message integrity and assure Bob that the message has not been modified during transit. The choice between MACs and digital signatures depends on the specific requirements and security context of the communication scenario.
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It is not really health care that people want, but the improved health that they expect to get from the health care. Which of the following is the term that health economists use to describe this situation? Elasticity. Price discrimination. Need. Equilibrium. Derived demand.
The term that health economists use to describe the situation when people expect to get improved health from health care is derived demand.
What is derived demand? Derived demand is the term used by economists to describe the demand that is derived from the demand for another product or service. In healthcare, when a patient demands better health, it can lead to the demand for medical goods and services. In the question given, the health care is demanded only because the individual expects to get improved health from it.
Therefore, it is called the derived demand. So, the correct answer is Derived demand. The option, Price discrimination is not the correct answer because it refers to the practice of charging different prices for similar products to different consumers. Need is not the correct option because it doesn't signify anything about demand. It is simply the requirement for something.
Equilibrium is not correct as well because it is the state in which supply and demand are balanced, and prices are neither too high nor too low. Elasticity is not correct too because it refers to the responsiveness of the quantity of a good or service demanded to a change in its price. Therefore, derived demand is the answer that the health economists use to describe this situation.
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