1Your firm has a average collection period of 34 days. Current price is to factor all receivables immediately at a 2% discount. What is the effective cost of borrowing in this case? Assume that the default is extremely unlikely.
2 Calculating Cycles: Consider the following financial statements information:
- inventory beginning 8,732 and ending 9,418
- accounts receivable 3,3721 and ending 4,162
- accounts payable 4,384 and ending 4,791
- cit's of goosold old 86,313