Intro You have the following balance sheet and income statement information for NorCal Inc.: Balance sheet...
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Intro You have the following balance sheet and income statement information for NorCal Inc.: Balance sheet Accounts receivable (A/R) Inventory Accounts payable (A/P) 3+ decimals Beginning End 2,900 2,320 4,100 4,920 630 945 All sales and purchases were on credit. The company factors all receivables immediately at a 6% discount. Assume that there are no defaults. Submit Income statement Sales 8,200 COGS 6,560 Part 1 What is the effective annual cost of factoring (EAR)? Attempt 1/3 for 10 pts. Intro You have the following balance sheet and income statement information for NorCal Inc.: Balance sheet Accounts receivable (A/R) Inventory Accounts payable (A/P) 3+ decimals Beginning End 2,900 2,320 4,100 4,920 630 945 All sales and purchases were on credit. The company factors all receivables immediately at a 6% discount. Assume that there are no defaults. Submit Income statement Sales 8,200 COGS 6,560 Part 1 What is the effective annual cost of factoring (EAR)? Attempt 1/3 for 10 pts.
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The effective annual cost of factoring EAR is the true cost of borrowing money when the ... View the full answer
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