Answer:
a)Maximum Loan Amount | |
Average receivable days' range | Loan Amount |
30 days or less | 90% x ($63400+77300+32200+229000) = $361,710 |
Between 31 days & 40 days | 80% x ($297000 + $40100 + $63000) = $320,080 |
Between 41 days & 45 days | 70% x ($165000+ $50000) = $150,500 |
over 45 days | $0 |
Maximum loan amount | $832,290 |
b) Annual loan rate = Prime rate + extra charges over prime = 16.50% + 4.50% = 21% | |
Monthly interest expense = $832,290 x 21% x 1/ 12 = $14,565.075 or $14,565.08 |
Charming Paper Company sells to the 12 accounts listed here. Average Age of the Account Over the Last Year Account 29 4...
Charming Paper Company sells to the 12 accounts listed here. Average Age of the Account Over the Last Year 25 43 19 57 42 39 24 67 32 59 Receivable Balance Outstanding $ 63,600 133,000 73,300 29,100 56,100 253,000 33,400 349,000 45,300 90,600 237,000 61,000 Account A B K 15 37 Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70...
Charming Paper Company sells to the 12 accounts listed here. Account Receivable Balance Outstanding Average Age of the Account Over the Last Year A $ 64,300 27 B 212,000 43 C 74,900 13 D 20,300 61 E 56,600 42 F 260,000 32 G 35,200 25 H 321,000 68 I 49,900 31 J 92,000 51 K 284,000 18 L 66,000 33 Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less; 80...
Charming Paper Company sells to the 12 accounts listed here. Account A B C 0 E F G H I Receivable Balance Outstanding $ 62,300 174,000 77,000 27,100 59,300 257,000 34,600 340,000 42,900 96,900 305,000 66,400 Average Age of the Account Over the Last Year 29 44 12 61 43 35 20 67 35 53 23 38 K Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less. 80 percent for account balances...
$1,000,000 3 Requested loan amount HEDRICK COMPANY Comparative Balance Sheet This Year Last Year 9 Assets 10 Current assets: 11 Cash 12 Marketable securities 13 Accounts receivable, net 14 Inventory 15 Prepaid expenses $320,000 $420,000 100,000 600,000 1,300,000 800,000 60,000 2,600,0001,980,000 3,100,000 2,980,000 5700,000 4960,000 80,000 16 Total current assets 17 Plant and equipment, net 18 Total assets 19 20 Liabilities and Stockholders' Equity 21 Liabilities: 22 Current liabilities 23į Bonds payable, 10% 24 Total liabilities 25 Stockholders' equity 26...