Question: QUESTION THREE [ 2 5 ] 3 . 1 A client has sought your advice on whether to accept a factoring arrangement proposed by one

QUESTION THREE

[25]

3.1

A client has sought your advice on whether to accept a factoring arrangement proposed by one of your colleagues. The following financial data has been provided for evaluation:

\

table

[[

Total credit sales:,R

1 950000], [

Normal payment terms of the company:,

30

days

], [

Average collection period:,

56

days

], [

Overdraft facility:,

2 %

above prime

], [

Prime at assessment date:,

11 %

QUESTION THREE [ 2 5 ] 3 . 1 A client has sought

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