Financial accounting question Blake Factoring Company purchased $200,000 of accountsreceivable from Smith Manufacturing for $185,000. Thereceivables were to be collected within 60 days. After 75 days,Blake was able to collect $192,000 of the receivables. What wasBlake Factoring Company's annualized rate of return on thisinvestment?

Step 1: Define Annualized Rate of ReturnThe annualized rate of return measures the annual profit…

Answered: Blake Factoring Company purchased…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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Vaughn Manufacturing assigns $7300000 of its accounts receivables as collateral for a $2.64 million 9% loan with a bank. Vaughn Manufacturing also pays a finance fee of 2% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables?
A company factored $100,000 of accounts receivables. The factor discounted the receivables for 9% for the one year planned to take to collect the receivables. Using an annual interest rate of 9%, the present value of the receivables is $100,000 x 0.917 = $91,700. How much cash should the company expect to receive? $91,700 $91,000 $100,000 $108,300
LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in two years. a. Assuming annual compounding of interest, what rate of interest is being paid on the loan? Use Excel function Rate to calculate the rate. b. What would be the purchase price of the machine had LEW negotiated a single payment of $120,000 in two years, using the same effective rate? Use excel only..
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Falco Inc. financed the purchase of a machine with a loan at 3.34% compounded semi-annually. This loan will be settled by making payments of $7, 100 at the end of every six months for 7 years. a. What was the principal balance of the loan? b. What was the total amount of interest charged?
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