Please need answer the accounting question De la Mare Company has $140,000 in accounts receivable that willbe collected within 75 days. Since De la Mare needs cashimmediately, it has decided to factor in them and has received$130,000.Donne Factoring Company, which took the receivables, could collectonly $135,000 after 90 days.Find the rate of return on this investment for Donne.

Step 1: Define Accounts ReceivableAccounts receivable is a current asset account that includes all…

Answered: De la Mare Company has $140,000 in…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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De la mare company has $14000 in account
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Suppose that LilyMac Photography has annual sales of $230,000, cost of goods sold of $165,000, average inventories of $4,500, average accounts receivable of $25,000, and an average accounts payable balance of $7,000.Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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What is the excel function and formula for this question? Off-The-Books Investment Firm, LLC, has offered you an investment it says will return to you $20,000 in 2 years. To get in, you'll need to make a $10,000 deposit to their receivables account and promise not to tell anyone about it. What is the annual return on this investment?

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