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2 years ago

Which factor would most likely increase the risk of being underinsured?

Business

1 answer:

Elina [12.6K]2 years ago

7 0

The factor that increase the risk of being underinsured includes:

non-reviewing of sum insured
inflation etc

<h3>What is an underinsurance?</h3>

An underinsurance refers to a circumstance of insurance coverage whiuch leaves the policyholder responsible for a large percentage of a total loss.

An underinsurance happens when the sum insured is less than the market value of the property.

In conclusion, the insured is left to borne to loss if any occur.

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The following information was available for the year ended December 31, 2019 Net sales Cost of goods sold Average accounts recei

Tom [10]

Answer:

a. Inventory Turnover:

= Cost of goods sold / Average inventory for the year

= 642,400 / 210,000

= 3.06

b. Number of days' sales in inventory

= Ending inventory / (COGS / 365)

= 156,409 / (642,400 / 365)

= 88.9 days

c. Accounts receivable turnover

= Net sales / Average Accounts Receivable

= 1,022,000 / 43,000

= 23.77 times

d. Number of days sales in accounts receivable

= Accounts Receivable at year end / (Net sales / 365)

= 22,400 / (1,022,000 / 365)

= 8 days

3 0

3 years ago

On March 1, Pimlico Corporation (a U.S.-based company) expects to order merchandise from a supplier in Sweden in three months. O

luda_lava [24]

Answer and Explanation:

The computation is shown below:

a. As a premium expense

= ($0.460 - $0.44) × 695,000

= $13,900

b. As a difference of 3 months spot rate and spot rate

= ($0.455 - $0.44) × 695,000

= $10,425

The first one represents the premium expense for $13,900 and the second part represents the adjustment to the net income in a positive way

7 0

3 years ago

Farmers selling some of their soybeans in storage because they anticipate a lower price of soybeans in the near future would cau

AlladinOne [14]

Answer:

D. rightward shift in the current supply of soybeans.

Explanation:

A shift in the supply curve is caused when factors other than price either increase the supply of a good (a shift to the right), or decrease the supply of the good (a shift to the left).

In this case, a factor other than price, the expectations of farmers (they are expectations because the lower prices have not materialized) has increased the supply of soybeans, causing a rightward shift of the supply curve of that good.

8 0

3 years ago

The Fabricating Department started the current month with a beginning Work in Process inventory of $11,200. During the month, it

SVETLANKA909090 [29]

Answer:

The ending balance of the Work in Process Inventory account for the Fabricating Department is: $11,200

Explanation:

To determine Ending Balance of Work in Process Inventory, <em>Prepare a Manufacturing Cost Statement</em>.

Opening Work in Process Inventory $11,200

<em>Add </em>Cost Added During the Period :

Direct materials $77,200

Direct labor $25,200

Factory overhead ( $25,200 × 50%) $12,600

Total Manufacturing Costs $126,200

<em>Less </em>Transfer to Next Department ($115,000)

Closing Work in Process Inventory $11,200

Conclusion :

Therefore, the ending balance of the Work in Process Inventory account for the Fabricating Department is: $11,200

6 0

3 years ago

Moon Software Inc. is planning to issue two types of 25-year, noncallable bonds to raise a total of $6 million, $3 million from

defon

Answer:

It will issue 34,407 bonds

Explanation:

The Original Issue Discount state that the interest are accrued during the life of the bond and included in the face value.

This means in 25 years, it will receive 1,000 dollars, how much will it pay for that now ?

we have to find the present value which makes the YTM equal to 10%

$\frac{Face \: Value }{(1 + rate/m)^{time \times m} } = PV$

where m are the times it compound per year

in this case a semiannualy rate is compounding 2 times per year

the rate will be 0,10 percent

the face value will be 1,000

and time equal to 25 years

$\frac{1,000}{(1 + 0.1/2)^{25\times2} } = 87.20$

If it needs to raise 3,000,000 It will issue:

3,000,000/87.20 = 34406.669 = 34,407 OID bonds

6 0

4 years ago