Answer:
Amount insurer pays = $7000
Amount Ashley pays = $3000
Explanation:
Given that
Deductible = 1000
Incured medical Bill's = 10,000
On a 80-20 coinsurance clause
The insurer pays 80% of incured cost minus deductible and Ashley pays 20% of incured cost plus deductibles.
Therefore
Amount insurer pays = (10000 × 0.8) - 1000
= 8000 - 1000
= $7000
Amount Ashley Pays = (10000 × 0.2) + 1000
= 2000 + 1000
= $3000
Answer:
The number of units the company would have to manufacture during the year would be 780,000 units
Explanation:
To find out how much purchase is made, first we have to calculate the production level. The equation for production level is shown below:
Production level = Closing stock of finished goods + Sales - Opening stock of finished goods
= 76,000 + 730,000 - 26,000
= 780,000 units
Rest cost like opening and ending balance of raw material , required gram is irrelevant for computation part. Thus, it is not considered.
Hence, The number of units the company would have to manufacture during the year would be 780,000 units
Answer:
Leverage buyout
Explanation:
Leverage buyout refers to the acquisition of another company using debt as the main source of financing the deal. The acquiring company borrows from various sources and will often use the assets of the acquired company as collateral. In leverage buyout, the acquiring entity borrows up to 80 percent or more and finances the balance with its equity.
The use of debt enhances the rate of return of the acquiring firm. Greystone Group is using 5 million of its funds and borrowing 20 million. The debts represent 80 percent of the cost of acquisition. The acquiring entity can achieve a higher rate of return by using as little of its funds as possible.
Answer:
False
Explanation:
Given that,
Accounts receivable = $30,000
Factoring fee charged = 2%
Therefore,
Factory fee = 2% of Accounts receivable
= 2% × $30,000
= $600
The amount $600 has to be subtracted from the accounts receivable.
Hence, the journal entry is as follows;
Cash A/c ($30,000 - $600) Dr. $29,400
Factory fee Expense A/c Dr. $600
To Accounts Receivable $30,000
(To record the account receivable)
Answer:
Purchases= 302,000 units
Explanation:
Giving the following information:
Production= 100,000 units
Production of one unit of product R requires three units of material B.
For material B:
Beginning inventory= 22,000
Desired inventory= 24,000
<u>To calculate the purchases, we need to use the following formula: </u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= 100,000*3 + 24,000 - 22,000
Purchases= 302,000 units
