User Account

All Pages

What is the effective annual cost of the factor arrangement

Assignment Help Accounting Basics
Reference no: EM133037885

Question - EastShore Inc. has an ACP of 60 days and daily credit sales of $75,000. A factor offers a 60-day accounts receivable loan equal to 90 percent of accounts receivable. The quoted interest rate is 10 percent and the commission fee is 1.5 percent of accounts receivable of the firm. As a result, the firm will save $3,000 and have a 1-percent reduction in bad debt losses, which are $500,000. What is the effective annual cost of the factor arrangement?

Reference no: EM133037885

Questions Cloud

Calculate the debt-to-assets ratio : Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.8. Calculate the debt-to-assets ratio
Advantages and challenges associated with diversity : Describe some of the advantages and challenges associated with diversity and inclusion initiatives as presented by Bateman and give an example
Christian worldview on new treatment : Christian Worldview on new treatment and rehabilitation services offered throughout the corrections industry
Discuss in detail the evidence against Wayne Williams : Discuss in detail the evidence against Wayne Williams. What forensic evidence existed against him? What role did fiber evidence play in his conviction?
What is the effective annual cost of the factor arrangement : The firm will save $3,000 and have a 1-percent reduction in bad debt losses, which are $500,000. What is the effective annual cost of the factor arrangement
Sustainable development goals : Which Sustainable Development Goals are particularly pertinent to tourism, and why?
Describe in detail Mass Spectrometry process : Describe in detail the Mass Spectrometry process. Gas chromatography is one of the basic analysis procedures for the crime lab.
Discuss how tourism visitors numbers can change : Discuss how tourism visitors numbers can change in relation to crisis events (Why do they change, how do they change) at local/national/international levels.
What is the expected profit : Now assume that the additional patients will add 200,000 in total to the centers fixed costs? Now what is the expected profit on 20 new patients

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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