XYZ Factoring Ltd. has agreed to finance receivable of IFK Ltd. on a term of advances 80% of the receivables with 10% p.a. interest and 2% commission as factoring. Based on the below information, find the net amount to b
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · December 2023
XYZ Factoring Ltd. has agreed to finance receivable of IFK Ltd. on a term of advances 80% of the receivables with 10% p.a. interest and 2% commission as factoring. Based on the below information, find the net amount to be remitted by XYZ Factoring Ltd. Annual credit sales = ₹ 1 crore Average collection period = 60 days Saving in administration cost = ₹ 1,00,000 Bad debts = Nil. Assume 365 days in a year for calculation purpose.
Topics: Factoring
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