If company ABC Ltd. reports credit sales of $500 million over its financial year andalso reports accounts

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If company ABC Ltd. reports credit sales of $500 million over its financial year andalso reports accounts receivable of $100 million on the date it publishes its balancesheet,

a) What is the turnover of receivables for ABC Ltd.?

b) What is the effective rate of interest on this short-term funding of customers ofABC Ltd. if it factors its receivables by discounting them at 2%?

c) Discuss the pros and cons for ABC Ltd. to retain the services of a factoringcompany.

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Apr 14, 2023 03:29 AM

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If company ABC Ltd. reports credit sales of $500 million over its financial year andalso reports accounts

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Income Tax Fundamentals 2013

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