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Accounts receivable as collateral Kansas City Castings (KCC) is atlempting to obtain the maximum loan possiblo using accounts receivable as collateral, The firm extends net-30-day

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Accounts receivable as collateral Kansas City Castings (KCC) is atlempting to obtain the maximum loan possiblo using accounts receivable as collateral, The firm extends net-30-day credit. The amounts that are owed KCC by its 12 crecit customers, the average age of each account, and the customer's average peyment period a as nhown in tho following table: a. If the bank will accept all accounts that can be collected in 45 days or loss as long as the customer has a history of paying within 45 days, which accounts will be acceplable? What is the total dollar amount of accounts recoivable collateral? (Note: Accounts receivable that have an averago age gratase than the custcmer's average payment period are also excluded.) b. In adcition to the conditions in part a, the bank recognizes that 10% of credit sales wil be lost to retums and allowances. Also, the bank will iend only go\% of the acceptable collateral (after adjusting for returns and allowances). What level of funds would be made avallable through this lending source? a. If the bank will accept all accounts that can be collected in 45 days or less as long as the custorser has a history of paying within 45 days, which acoounts will be acceptable? (Select the best answer below.) A. B, D, F, G,, K B. D, E, F, H,J,K C. A,E,H,I,K,L D. A,B,C,G,1,L Accounts recelvable as collaterat Kansas City Castings (KCC) is attempting to obtain the maximum loan possible using accounis receivable as collateral. The fin What is the total dollar amount of accounts recelvable collateral? (Solect the best answer below.) A. $169,000 B. $150,000 C. $198,000 D. $194,000 b. In addition to the conditions in part a, the bank recognizes that 10% of crodit sales will be lost to returns and allowances. Also, the bank will lend only go\% of the acceptable collateral (after adjusting for returns and allowances). What level of funds would be made avallable through this lending source? (Select the best answer below.) A. $160,380 B. $157,140 C. $136,890 D. $121,500 \begin{tabular}{cccc} \hline Customer & AccountsReceivable & Averageageofaccount & Averagepaymentperiodofcustomer \\ \hline A & $25,000 & 50 days & 35 days \\ B & $37,000 & 55 days & 70 days \\ C & $24,000 & 35 days & 50 days \\ D & $12,000 & 26 days & 30 days \\ E & $35,000 & 21 days & 30 days \\ F & $26,000 & 35 days & 40 days \\ G & $31,000 & 50 days & 65 days \\ H & $14,000 & 25 days & 35 days \\ I & $25,000 & 40 days & 40 days \\ J & $16,000 & 28 days & 30 days \\ K & $47,000 & 42,000 & 60 days days \end{tabular}

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