Wilson Finance purchased $200,000 in accounts receivable from Harrison Manufacturing for $185,000. After 120 days, Wilson Finance was able to collect $195,000 from the receivables. Determine the rate of return on this investment for Wilson Finance.
Wilson Finance purchased $200,000 in accounts receivable from Harrison Manufacturing for $185,000. After 120 days, Wilson Finance was able to collect $195,000 from the receivables. Determine the rate of return on this investment for Wilson Finance.
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
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Transcribed Image Text:Wilson Finance purchased $200,000 in accounts
receivable from Harrison Manufacturing for $185,000.
After 120 days, Wilson Finance was able to collect
$195,000 from the receivables.
Determine the rate of return on this investment for
Wilson Finance.
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