Sunny coast enterprises b sunny coast enterprises has been


Question: Sunny Coast Enterprises (B). Sunny Coast Enterprises has been approached by a factor that offers to purchase the Hong Kong Media Imports receivable at a 16% per annum discount plus a 2% charge for a nonrecourse clause.

a. What is the annualized percentage all-in cost of this factoring option?

b. What are the advantages and disadvantages of the factoring option compared to the options in Sunny Coast Enterprises (A)?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Sunny coast enterprises b sunny coast enterprises has been
Reference No:- TGS02504107

Now Priced at $15 (50% Discount)

Recommended (95%)

Rated (4.7/5)