Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: Yoyo is a company providing delivery services for the food and beverages sector. Yoyo's management is considering the use of factoring to reduce the cost of credit control by €55,000 per annum. The identified factoring company will charge a fee of 2.5% of sales. It will provide an advance to company ABC of 80% of its receivables and charge interest on this advance of 10% per annum.
i.Assess whether it is financially beneficial for Yoyo to enter this factoring arrangement, considering that it currently has average trade receivables of €350,000 and annual sales of €1.2 million. Show all your workings.
ii.Considering your answer to the previous point, as well as wider aspects, discuss the possible advantages and disadvantages of factoring.
b.Explain why an organisation might decide to:
i.lease an asset instead of buying it for its expansion plans ii.finance expansion through retained earnings rather than a new issue of shares iii.discard retained earnings as a viable option to finance an expansion plan.
A firm is considering a project that requires an initial investment. If the cost of capital is 10%, should the investment be undertaken?
Prepare the appropriate journal entry(s) to account for DTC Watches Incorporated operating activities for Fiscal Year(January - December) 2012.
Stock B has a beta of .80 and an expected return of 7.85%. The current risk-free rate is 2.4% and the market risk premium is 7.2%. Are the stocks priced correct
1/15, net 35. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP?
On July 1st stock was issued to shareholders totaling $100,000. Draft a balance sheet as of July 31st for the Big Sports Apparel Company.
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct labor usage is: Debit Work in Process Inventory $171,000; credi..
The required return on this stock is 20 percent. From a strict valuation standpoint, should Jane buy the stock? Provide the expected price of the stock E(P0)
Richard, a single taxpayer, has adjusted gross income of $40,450. His AGI includes $4,000 of qualified dividends. Richard has no dependents and does not itemize deductions. What is his 2008 federal income tax
FC granted the customer a price reduction of $3,000. The customer paid the outstanding bill on April 15. The journal entry to be made by FC on April 15 is ?
FNS40217-Certificate IV in Accounting and Bookkeeping-RMIT University Australia-List some of the errors and discrepancies you might find when preparing reports.
Purpose a direct materials budget for the seasoning, by month an in total for the second quarter. Be sure to include both the quantity to be purchased and its cost for each month.
ABC Ltd acquires some machinery at a cost of $250 000 on 1 July 2021. Provide the journal entries to reflect the revaluation decrement
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd