An article in the Wall Street Journal indicated that companies are selling their receivables at a record

Question:

An article in the Wall Street Journal indicated that companies are selling their receivables at a record rate. Why do companies sell their receivables?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting Tools for business decision making

ISBN: 978-0470534779

6th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

See More Books

Question Posted: Sep 22, 2011 08:51 AM

See More Questions

An article in The Wall Street Journal indicated that dressmaker Fallo Me (name changed) backdated invoices to record revenue in the quarter before sales were actually made. As long as sales remained...
An article in The Wall Street Journal (March 18, 2011) reported the 2010 U.S. market share of leading sellers of carbonated soft drinks, summarized in the following pie chart: a) Is this an...
An article in the Wall Street Journal reported that Western European brewers such as Heineken, Carlsberg, and Anheuser-Busch InBev are increasing their production and marketing of nonalcoholic beer....
A stream of particles of one size are 80% converted (SCMIash diffusion control, uniform gas environment) on passing through a reactor. If the reactor is made twice the size but with the same gas...
Knowing that P = Q = 150 lb, determine (a) The distance a for which the maximum absolute value of the bending moment in beam AB is as small as possible, (b) The corresponding value of max||.M (See...
For the unity feedback system shown in Figure P8.3, where do the following: a. Find the location of the closed-loop dominant poles if the system is operating with 15% overshoot. b. Find the gain for...
Suppose x is a random variable best described by a uniform probability distribution with c = 20 and d = 45. Find the followmg probabilities: a. ~(20 5 x 5 30) b. ~(20 < x 5 30) c. P(X 2 30) d. ~(x 3...
Determine the magnitude of force F so that the resultant FR of the three forces is as small as possible. What is the minimum magnitude of FR? Units Used: kN = 1000 N Given: F1 = 5 kN F2 = 4 kN...
Direct Material Standard: 7 square yards at $4.90 per yard Direct Manufacturing Labor Standard: 3 hours at $11.90 per hour Price Variance = (Actual price Budgeted price actual grantity of 7 square...
Below are monthly rents paid by 30 students who live off campus. (a) Find the mean, median, and mode. (b) Do the measures of central tendency agree? Explain. (c) Calculate the standard deviation. (d)...
JCPenney Company accepts both its own credit cards and national credit cards. What are the advantages of accepting both types of cards?
Calico Corners decides to sell $400,000 of its accounts receivable to First Central Factors Inc. First Central Factors assesses a service charge of 3% of the amount of receivables sold. Prepare the...
Why is it important to avoid the use of punishment as a means of directing work behaviors?
Mijka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: 1. earned cash revenues of $32,500 2. paid cash expenses of $14,500 3....
Q2. Find the equations of the tangent and normal to the curve x3 + y = 2 at (1, 1). Q3. Find if y dx y= :xsinx + (sinx)cosx [10] [10]
Assume you have been given $400,000 CAD with access to all listed stocks, bonds, futures, and options worldwide. You can trade in options and futures, in combination with the underlying asset....
The formula weight (FW) of a gas can be determined using the following form of the ideal gas law FW = g R T / PV where g is the mass in grams, R is the gas constant, T is the temperature in Kelvin, P...
Consider a game in which a fair die is thrown. The player pays $5 to play and wins $2 for each dot that appears on the roll. Define X = number on which the die lands, and Y = player's net profit...
A drought in the Midwest would cause to shift , which would real GDP. a. aggregate demand; left; decrease b. aggregate demand; right; increase c. aggregate supply; left; increase d. aggregate...
What is your opinion of advertising awards, such as the Cannes Lions, that are based solely on creativity? If you were a marketer looking for an agency, would you take these creative awards into...
Arrange the following four alkyl halides in descending order with respect to the E2 elimination to S N 2 substitution product ratio expected in their reactions with sodium ethoxide in ethyl alcohol....
Sue Hartley recently accepted a job in the production department at Tootsie Roll. Before she starts work, she decides to review the companys annual report to better understand its operations....
Lori Milner is the bookkeeper for Philco Company, Inc. Lori has been trying to get the companys balance sheet to balance. She finally got it to balance, but she still isnt sure that it is correct....
Rules governing the investment practices of individual certified public accountants prohibit them from investing in the stock of a company that their firm audits. The Securities and Exchange...
The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes...
?? A local college is deciding whether to conduct a campus beautification initiative that would imvolve various projects, such as planting trees and remodeling bulidings, to make the campus more...
A company has net income of $196,000, a profit margin of 9.7 percent, and an accounts receivable balance of $135,370. Assuming 70 percent of sales are on credit, what is the companys days sales in...

An article in the Wall Street Journal indicated that companies are selling their receivables at a record

Question:

Step by Step Answer:

The reasons companies sell their receivables are 1 For co...View the full answer

Financial Accounting Tools for business decision making

Students also viewed these Accounting questions