This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: MovieTone, Inc. is a producer and distributor of specialty DVDs. It sells directly to large retail ... (Read 150 times)

kamilo84

  • Sr. Member
  • ****
  • Posts: 495
on: May 1, 2019
MovieTone, Inc. is a producer and distributor of specialty DVDs. It sells directly to large retail firms on terms of net 60 and has average monthly sales of $350,000. It has recently decided to pledge all of its accounts receivable to its bank. The bank advances up to 80 percent of the face value of these receivables at a rate of 4 percent over the prime rate, while charging 2.5 percent on all receivables pledged for processing to cover billing and collection services. Prior to this arrangement MovieTone was spending $50,000 a year on its credit department. The prime rate is 6 percent.
a.What is the average level of accounts receivable?
b.What is the effective cost of using this short-term credit for one year?
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by kamilo84 on May 1, 2019

polinasid

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: May 1, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 64% of students answer this correctly


kamilo84

  • Member
  • Posts: 495
Reply 2 on: May 1, 2019
Thanks for the timely response, appreciate it

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Alligators are apex predators capable of killing large terrestrial prey. This large AAmerican alliga Alligators are apex predators capable of killing large terrestrial prey. This large AAmerican alliga
Color enhanced X ray of large malignant tumor in the right lung. Color enhanced X ray of large malignant tumor in the right lung.
GI series. (a) Upper GI series begins with a barium swallow, barium shake, or barium meal. (b) Lower GI series. (a) Upper GI series begins with a barium swallow, barium shake, or barium meal. (b) Lower
Large intestine Large intestine
The approval of a new drug is a four-stage process: (1) preclinical investigation, (2) clinical inve The approval of a new drug is a four-stage process: (1) preclinical investigation, (2) clinical inve
Video: Splitting of Sugar, Oxidation/ Reduction & ATP Generation

For a complete list of videos, visit our video library