ompany is contemplating factoring its accounts receivable. The factor will acquire P250,000 of the company’s accounts receivable every 2 months. An advance of 75 percent is given by the factor on receivables at an annual charge of 18 percent. There is a 2 percent factor fee associated with receivables purchased. What is the cost of the factoring arrangement? choose the letter of the correct answer a. P30,000.00 b. P33,750.00 c. P63,750.00 d. P103,000.00
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Company is contemplating factoring its accounts receivable. The factor will acquire P250,000 of the company’s accounts receivable every 2 months. An advance of 75 percent is given by the factor on receivables at an annual charge of 18 percent. There is a 2 percent factor fee associated with receivables purchased. What is the cost of the factoring arrangement?
choose the letter of the correct answer
a. P30,000.00
b. P33,750.00
c. P63,750.00
d. P103,000.00
e. P125,000.00
Step by step
Solved in 2 steps
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