Heading 3 Heading 4 Normal AalbCcDc AaBbci Aal I No Spac... Heading 1 Hea Paragraph Styles The Piel Corporation was founded by a UAE fashionista and beauty blogger, Salama Al Ameti. The business has begun by producing small quantities of unique ancient style, hand-made wallets and bags. It has eventually grown to become a publicly listed company, trading on the Abu Dhabi Stock Exchange. Last year, the firm generated a healthy Sales Revenue stream of $178,000, of which the company's end-of-year Accounts Receivable amounted to $40,000. The applicable corporate tax rate applied to the Piel Corporation is currently 20%. The management of the Piel Corporation is considering factoring out the firm's Accounts Receivable to an external party to raise the cash needed to finance the company's growth and potential expansion into a new target market. . a. The factoring company imposes a 5% discount and charges an additional 2% for each expected 10-day average collection period over 40 days. Calculate the dollar amount that the management of the Piel Co. would receive for their Accounts Receivable from the factoring company, if the firm's collection period was 40 days or less. (1 point) b. Estimate the dollar amount that the management of the Piel Co. would receive for their Accounts Receivable from the factoring company, if the firm's average collection period was 60 days. (1 point) c. Compute the average collection period trounded to the nearest number), if the revenue generated had been evenly distributed throughout the year with the firm's average Accounts Receivable. (1 point) d. Using the average collection period from part (c) above, and given the original terms stated in part (a) of the question, calculate the dollar amount that the Piel Co. would receive for its Accounts Receivable from the factoring company. (1 point) Heading 3 Heading 4 Normal AalbCcDc AaBbci Aal I No Spac... Heading 1 Hea Paragraph Styles The Piel Corporation was founded by a UAE fashionista and beauty blogger, Salama Al Ameti. The business has begun by producing small quantities of unique ancient style, hand-made wallets and bags. It has eventually grown to become a publicly listed company, trading on the Abu Dhabi Stock Exchange. Last year, the firm generated a healthy Sales Revenue stream of $178,000, of which the company's end-of-year Accounts Receivable amounted to $40,000. The applicable corporate tax rate applied to the Piel Corporation is currently 20%. The management of the Piel Corporation is considering factoring out the firm's Accounts Receivable to an external party to raise the cash needed to finance the company's growth and potential expansion into a new target market. . a. The factoring company imposes a 5% discount and charges an additional 2% for each expected 10-day average collection period over 40 days. Calculate the dollar amount that the management of the Piel Co. would receive for their Accounts Receivable from the factoring company, if the firm's collection period was 40 days or less. (1 point) b. Estimate the dollar amount that the management of the Piel Co. would receive for their Accounts Receivable from the factoring company, if the firm's average collection period was 60 days. (1 point) c. Compute the average collection period trounded to the nearest number), if the revenue generated had been evenly distributed throughout the year with the firm's average Accounts Receivable. (1 point) d. Using the average collection period from part (c) above, and given the original terms stated in part (a) of the question, calculate the dollar amount that the Piel Co. would receive for its Accounts Receivable from the factoring company. (1 point)
