Poutine Cheez Company Has Yearly Sales of $550,000 and an Average

question 76

Essay

Poutine Cheez Company has yearly sales of $550,000 and an average collection period of 35 days.A factoring company is offering a 35-day receivables loan equal to 85% of the accounts receivable at 9% along with a commission fee of .45% of the receivables.The firm estimates that by taking the offer, it could save $300 in collection costs and a full half of one percent in bad debt costs, as a percentage of sales.What is the annual cost (in percent)of the arrangement to Poutine Cheez?

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Definitions:

Whole Child

An educational approach focusing on nurturing all aspects of a child's development, including physical, emotional, social, and cognitive growth.

Perspective

An attitude towards or a way of regarding something; it is a particular point of view.

Family-Centered Approach

An approach in various professional fields that emphasizes the importance of involving family members in decision-making, planning, and implementing services to strengthen and support the family unit.

Collaboration

The action of working with someone to produce or create something, often seen in professional, artistic, and academic contexts.