What is the dollar cost of the factoring service

Assignment Help Financial Accounting
Reference no: EM132987655

Question - Blossom, Inc., sells $201,000 of its accounts receivable to factors at a 2 percent discount. The firm's average collection period is 90 days.

What is the dollar cost of the factoring service?

What is the simple annual interest cost of the loan?

What is the effective annual interest cost of the loan?

Reference no: EM132987655

Questions Cloud

What is the market price of a face value bond : Krusty Krab, Inc. offers a 7 percent coupon bond with semiannual payments and a yield to maturity of 7.73 percent. What is the market price of a face value bond
Cause for taking disciplinary action : How does an arbitrator determine that a company had just cause for taking a disciplinary action?
What measures can be used to reduce the costs : Question - How do agency conflicts arise? What are the costs related to the conflicts? What measures can be used to reduce the costs
Self-monitoring personality factor : Discuss the pros and cons of possessing this self-monitoring personality factor. Identify how performance of the employee can be improved and properly assessed
What is the dollar cost of the factoring service : Blossom, Inc., sells $201,000 of its accounts receivable to factors at a 2 percent discount. What is the dollar cost of the factoring service
Collective bargaining : By what means can collective bargaining agreements be enforced? Discuss five principles that govern the arbitration of grievances under collective bargaining.
Prepare the december year-end adjusting entry : Prepare the December 31 year-end adjusting entry for wages expense and record payment of the employees' wages on Friday, January 4
Show the discontinued operations section : The applicable tax rate is 24%. Show the discontinued operations section of Flores's statement of comprehensive income
Walmart corporation analysis : To what extent is its performance attributable to industry attractiveness and to what extent is it attributable to competitive advantage?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the average life of a debt issue

What is the average life of a debt issue with a $100 million par value and a 10-year maturity with a sinking fund making equal payments in years 7 through 10?

  Considering a change in its quality control system

The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $182 with a resulting contribution margin of $71. Brisbane's management is considering a change in its quality control system. Currently, Brisbane spen..

  Different methods of inventory accounting

Create a balance sheet from a trial balance-Create a comparison of net income based on different methods of inventory accounting.

  Journalize the preceding transactions on the books of coburn

Journalize the preceding transactions on the books of Coburn Furniture Company. The company uses the perpetual inventory system.

  Grande incorporated a window installation company is

grande incorporated a window installation company is preparing its annual financial statements for the year ended

  Calculate the deferred tax asset and liability

Tiger’s tax depreciation exceeds book depreciation by $80,000. Calculate the current, deferred, and total tax expense for 2014 and prepare the journal entry needed to record this. Calculate the deferred tax asset/liability for 2014 and prepare the jo..

  Analyze how the financial statements are interrelated

Analyze how the financial statements (the income statement, statement of retained earnings, balance sheet and statement of cash flows) are interrelated.

  What factors would you need to consider in making decision

After Year 3, the investors are interested in your company expanding internationally to possibly outsource labor or to reduce manufacturing costs. What factors would you need to consider in making this decision?

  How much patent amortization expense would bethany deduct

Bethany incurred $22,250 in research and experimental costs for developing a specialized product during July of year 1. Bethany went through a lot of trouble and spent $31,500 in legal fees to receive a patent for the product in August of year 3. How..

  Calculate net income or loss for the year

At the beginning of the current fiscal year, the balance sheet of Tiger’s Bounce Company, showed owners’ equity of $524,000. During the year, liabilities increased by $27,000 to $236,000; paid-in capital increased by $42,000 to $175,000; and assets i..

  Determine what the current account balance equals

The Krug Company's Accumulated Depreciation account has a $15,500 balance to start the year. Determine what the current account balance equals

  Calculate the amount that recorded for closing inventory

A business supplies the following information in regards to its inventory - Calculate the amount that would be recorded for closing inventory

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd