Your firm factors its accounts receivable immediately at a 3% discount. The average collection period is 41.95 days. Assume that all accounts are collected in full. What is the effective annual interest rate on this arrangement?
A) 27.9%
B) 30.3%
C) 31.7%
D) 32.9%
E) 34.3%
Correct Answer:
Verified
Q72: Salem Inc.has an inventory turnover of 15
Q85: Pluto,Inc. has a beginning cash balance of
Q87: Martinique and Son have a 60 day
Q88: Birds Unlimited has a 45 day accounts
Q89: The Jetson Co. has an $80,000 line
Q91: Weisbro and Sons purchases its inventory one
Q92: D & F,Inc. expects sales of $620,$650,$730
Q93: ABC,Inc. has a beginning receivables balance on
Q94: A firm currently has a 43 day
Q95: The Babco Co. has a $200,000 line
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents