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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)
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Introduction To Accounting An Integrated Approach
Authors: Penne Ainsworth, Dan Deines
5th Edition
0073527009, 9780073527000
