The Spices factory its receivables at a discount rate of 1.2 percent right away. The average time
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Question:
The Nescafe Sdn Bhd have a RM800,000 line of credit with a 10 percent compensating balance requirement. The quoted interest rate is 7 percent. They need to borrow RM215,000 for inventory for three years. How much do Nescafe Sdn Bhd need to borrow?
San' Antiquities currently has a 31.6-day cash cycle. Assume the company changes its operations such that it decreases its receivables period by 2.1 days, increases its inventory period by 0.8 days, and increases its payables period by 1.2 days. What will the length of the cash cycle be after these changes?
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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