Need to understand problem solutions to the attached. Thanks.

Langley Clinics, Inc. buys $400,000 in medical supplies a year (at gross prices) from its major supplier, Consolidated Servi Currently, Langley is paying the supplier the full amount due on Day 45, but it is considering taking the discount, paying o a. What is the amount of free trade credit that Langley obtains from Consolidated Services? (Assume 360 days per year t Note: Format is $xx,xxx.xx $10,833.33 Format is $xx,xxx.xx b. What is the amount of costly trade credit? Note: Format is $xx,xxx.xx $37,916.67 Format is $xx,xxx.xx c. What is the approximate annual PERCENT cost of the costly trade credit? Note: Format is xx.x% 26.4% Format is xx.x% d. Assuming Langley can obtain a bank loan for 15%, should the frm replace its costly trade credit with the bank loan? Note: Format is Yes or No YES Format is Yes or No e. Should Langley replace ALL of its trade credit with the bank loan? NO Note: Format is Yes or No Format is Yes or No ANSWERS: d c 400,000/360 = $1,111.11 $1,111.11(10) = $11,111.11 $1,111.11(45) = $49,999.95 Credit breakdown 49,999.95-11,111=$38,888.84 Yes Yes Discoun % x a. b c. 26.4% 360 1-Discount % 2.50% 1-2.5% c. (Net days - Discount Days) x 360% 45-10 3% x 10.28571 26.4% plier, Consolidated Services, which ofers Langley terms of 2.5/10, net 45. ng the discount, paying on Day 10, and replacing the trade credit with a bank loan that has a 10 percent annual cost. ume 360 days per year throughout this problem.) dit with the bank loan? $ 2,777.78 a. $ 27,777.78 10 days $ 125,000.00 45 days b. d. Yes e. NO $ 97,222.22 costly trade credit $ 144,000,000 $ 140,400,000 Jones Surgicenter uses 90,000 bags of IV solution annually. The optimal safety stock (which Each bag costs the center $1.50, inventory carrying costs are 20 percent, and the cost of pla a. What is the economic order quantity? Note: Format is x,xxx 3,000 Format is x,xxx b. What is the maximum inventory of IV solution bags? 4,000 Note: Format is x,xxx Format is x,xxx c. What is the center's average inventory of IV solution bags? 2,500 Note: Format is x,xxx Format is x,xxx d. How ofen must the center order (in days)? Note: Round DOWN to the nearest day for this problem. Format is: xx days 12 days Total Inventory Costs TIC=Total Carrying Costs + Total Ordering Costs s c P F Safety Stoc a. 90,000 bags of solution 20% carrying cost $15 purchase price $1.50 cost per order 1,000 bags EOQ = max inven average inv 4,500 bags of solution, econonic order quantity ptimal safety stock (which is on hand initially) is 1,000 bags. rcent, and the cost of placing an order with its supplier is $15. Assume 365 operational days per year. t is: xx days SQRT 3000 4,000 2500 300 rational days per year. Fargo Memorial Hospital has annual net patient service revenues of $14.4 million. The hospital's patient accounts manager estimates that 10 percent of third party payers pay on Day 30, 60 percent pa a. What is Fargo's average collection period? (Assume 360 days per year throughout this problem.) 66 Format is xx days. Format is xx days. b. What is the frm's current receivables balance? Format is $xxx,xxx 2,640,000 Format is $xxx,xxx c. What would be the frm's new receivables balance if a newly proposed electronic claims system resulted in collecti Format is $xxx,xxx 2,100,000 Format is $xxx,xxx d. Suppose the frm's annual cost of carrying receivables was 10 percent. If the electronic claims system costs $30,00 Format is 'Adopt' or 'ReFormat is 'Adopt' or 'Reject' 24,000 Yes you adopt it. Net Pt Service Revenue $14.4 10% pay on day 30 60% pay on day 60 30% pay on day 90 360 days Annual purchases Days/year Daily gross purchases = 14,400,000 360 $ 40,000.00 on Day 30, 60 percent pay on Day 60, and 30 percent pay on Day 90. ystem resulted in collecting from third-party payers in 45 and 75 days, instead of in 60 and 90 days? ims system costs $30,000 a year to lease and operate, should it be adopted? (Assume that the entire receivables balance has to be f coursehero bles balance has to be fnanced.)