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zoom in and it's clear. Thanks Charming Paper Company sells to the 12 accounts listed here. Average Age of the Account Over the Last Year
zoom in and it's clear. Thanks Charming Paper Company sells to the 12 accounts listed here. Average Age of the Account Over the Last Year Account 44 18 60 Receivable Balance Outstanding $ 62,700 174,000 74,800 21,100 53,600 317,000 34,600 343,000 41.400 92,600 229,000 69,200 33 57 16 Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less, 80 percent for account balances between 31 and 40 days, and 70 percent for account balances between 41 and 45 days. Customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. The current prime rate is 8.50 percent, and Capital charges 3.50 percent over prime to Charming as its annual loan rate. a. Determine the maximum loan for which Charming Paper Company could qualify. Maximum loan amount b. Determine how much one month's interest expense would be on the loan balance determined in part a. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) 21,100 53.600 317,000 34,600 343.000 41.400 92.600 229,000 69,200 Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less, 80 percent for account balances between 31 and 40 days, and 70 percent for account balances between 41 and 45 days. Customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. The current prime rate is 8.50 percent, and Capital charges 3.50 percent over prime to Charming as its annual loan rate. a. Determine the maximum loan for which Charming Paper Company could qualify. Maximum loan amount b. Determine how much one month's interest expense would be on the loan balance determined in part a. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Interest expense
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