None Peak Industries has $420,000 in accounts receivable that will be collectedwithin 60 days. The company needs cash urgently and decides to factor them,receiving $395,000.Mountain Factoring Company, which took the receivables, collected$435,000 after 75 days.Find the rate of return on this investment for Mountain.

Step 1: Definition of Rate of ReturnThe rate of return (ROR) on an investment measures the profit…

Answered: Peak Industries has $420,000 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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Suppose that LilyMac Photography has annual sales of $233,000, cost of goods sold of $168,000, average inventories of $4,800, average accounts receivable of $25,600, and an average accounts payable balance of $7,300.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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