QUESTION 6 This year your company has $34 million of credit sales and average receivables of $7 million. Your company factor receivables by discounting 1%. What is the APR of factoring the receivables? O 1.01% O 1.00% 4.91% O 5.00% O 4.80%
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- Your credit card company charges you 1.32 percent per month. What is the APR on your credit card?Multiple Choicea. 17.04%B. 16.44% C. 17.89%D. 15.05%E. 15.84%This year your company has $34 million of credit sales and average receivables of $7 million. Your company factor receivables by discounting 1%. What is the APR of factoring the receivables? A 1.00% B 1.01% C 4.80% D 4.91% E 5.00%MULTIPLE CHOICE Milch Corporation sells on terms of net/90. Their accounts receivable are on average 20 days past due. If annual credit sales are P650,000, what is the company’s average investment in accounts receivable? *A. P168,611.11B. P178,611.11C. P188,611.11D. P244,444.00E. P198,611.11
- Item 2 of 25 Sixty percent of Jesse's annual sales of P900,000 is on credit. If its year-end receivables turnover is 4.5, what is the average collection period and the year- end receivables, respectively (assume a 365-day year)? Select the correct response: 73 days and P108,000. 81 days and P200,000. 73 days and P120,000. 81 days and P120,000.RECEIVABLES INVESTMENT McDowell Industries sells on terms of 3 10, net 30. Total sales for the year are $912,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 40 days after their purchases.a. What is the days sales outstanding?b. What is the average amount of receivables?c. What is the percentage cost of trade credit to customers who take the discount?d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 40 days?e. What would happen to McDowell’s accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 30th day?Your company has been offered credit terms on its purchases of 4/30, net 90days. What will be the nominal annual cost of trade credit if your companypays on the 35th day after receiving the invoice? (Assume a 365-day year.)a. 30%b. 304%c. 3%d. 87%e. 156%
- Find the APR (true annual interest rate), to the nearest half percent, for the following loan. Finance Number of Monthly Payments Charge $1110 Amount Financed $5700 48 Click the icon to view the annual percentage rate table. The annual percentage rate is %.so.4 A credit card has a $730 balance and a 18.44% annual percentage rate the minimum required monthly payment is 2.83% of the balance estimate the credit card balance after 54 payments.A company has a collection period of 40 days and factors all receivables immediately at a discount of 1.8 percent. What is the effective annual cost of borrowing? Assume 365 days per year. Multiple Choice 18.03% 16.70% 17.68% 15.71% 16.73% Please answer fast i give you upvote.
- Question 1Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount � for paying cash. For credit card purchases, the company receives 97% of the purchase price one-half month later. Determine the value of � that would make the two payment methods equivalent if the company’s annual rate of return is 14%What is the annual rate of interest being charged on a 9-month note receivable of $54,000 if the total interest is $1,620? Multiple Choice O 4% 3% 6% 7%Question 1 Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount x for paying cash. For credit card purchases, the company receives 97% of the purchase price one-half month later. Determine the value of x that would make the two payment methods equivalent if the company's annual rate of return is 14%. (4 morks)