Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Factoring: BML Ltd., sells R150000 of its accounts receivable to factoring company XYZ. XYZ charges a commision of 2.875%, an annual interest rate on advances
Factoring: BML Ltd., sells R150000 of its accounts receivable to factoring company XYZ. XYZ charges a commision of 2.875%, an annual interest rate on advances of 12% per annum, and requires a 10% reserve. BML Ltd's average collection period is 75 days. What amount of funding from XYZ will be available for advance? (round to the nearest rand) R150000 R145688 R130688 R127465
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started