Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Poutine Cheez Company has yearly sales of $410,000 and an average collection period of 30 days. A factoring company is offering a 30-day receivables loan equal to 84% of the accounts receivable at 6.5% along with a commission fee of 0.75% of the receivables. The firm estimates that by taking the offer, it could save $150 in collection costs and 0.5% in bad debt costs, as a percentage of sales. What is the annual savings (in $ terms) of the arrangement to Poutine Cheez?
Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Poutine Cheez Company has yearly sales of $410,000 and an average collection period of 30 days. A factoring company is offering a 30-day receivables loan equal to 84% of the accounts receivable at 6.5% along with a commission fee of 0.75% of the receivables. The firm estimates that by taking the offer, it could save $150 in collection costs and 0.5% in bad debt costs, as a percentage of sales. What is the annual savings (in $ terms) of the arrangement to Poutine Cheez?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Fast pls solve this question correctly in 5 min pls I will give u like for sure
Surbh
Poutine Cheez Company has yearly sales of $410,000 and an average collection period of 30 days. A factoring company is offering a 30-day receivables loan equal to 84% of the accounts receivable at 6.5% along with a commission fee of 0.75% of the receivables. The firm estimates that by taking the offer, it could save $150 in collection costs and 0.5% in bad debt costs, as a percentage of sales. What is the annual savings (in $ terms) of the arrangement to Poutine Cheez?
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