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Suppose some units are bought and sold as shown by the down arrows. Then, cash is collected as shown by the up arrows. Jan Feb
| Suppose some units are bought and sold as shown by the "down" arrows. | |||||||||||||||||
| Then, cash is collected as shown by the "up" arrows. | |||||||||||||||||
| Jan | Feb | March | Feb | March | Apr | March | Apr | May | |||||||||
| Buy , Sell | Buy , Sell | Buy , Sell | |||||||||||||||
| 1,082 | 1,086 | 1,090 | |||||||||||||||
| units | units | units | |||||||||||||||
| Collect | Collect | Collect | Collect | Collect | Collect | Collect | Collect | Collect | |||||||||
| 5% | 44% | the rest | 5% | 44% | the rest | 5% | 44% | the rest | |||||||||
| Sales price per unit | 3,200 | ||||||||||||||||
| 1 How much cash will you collect during March? | |||||||||||||||||
| A Between 1,000,000 and 3,100,000 | |||||||||||||||||
| B Between 3,100,000 and 3,300,000 | |||||||||||||||||
| C Between 3,300,000 and 3,600,000 | |||||||||||||||||
| D Between 3,600,000 and 4,000,000 | |||||||||||||||||
| 2 Assume that early in April you decide to "factor" | |||||||||||||||||
| some of your March Accounts Receivables. | |||||||||||||||||
| You factor 60.0% of them, and the factor charges a 5.0% fee. | |||||||||||||||||
| How much cash would you receive from the factor? | |||||||||||||||||
| A Between 1,000,000 and 2,300,000 | |||||||||||||||||
| B Between 2,300,000 and 2,900,000 | |||||||||||||||||
| C Between 2,900,000 and 3,800,000 | |||||||||||||||||
| D Between 3,800,000 and 5,000,000 |
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Management And Cost Accounting
Authors: Colin Drury
5th Edition
1861525362, 978-1861525369
