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 206 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
Excellent

ktidd

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Vacuoles in Plant Cells Are Usually Large Vacuoles in Plant Cells Are Usually Large
The Red-bearded Bee-eater Nyctyornis amictus is a large species of bee-eater found in the Indo-Malay The Red-bearded Bee-eater Nyctyornis amictus is a large species of bee-eater found in the Indo-Malay
Color enhanced X ray of large malignant tumor in the right lung. Color enhanced X ray of large malignant tumor in the right lung.
Pupil assessment; B, moving penlight directly in front of pupil. Pupil assessment; B, moving penlight directly in front of pupil.
Oil Refineries Are Large and Complex Facilities Oil Refineries Are Large and Complex Facilities
Specialty Suits Specialty Suits
Video: Resting membrane potential - electrical polarity and maintenance requirements

For a complete list of videos, visit our video library