14 June 2008
Sales Rs.120lac of which 75% on credit, contribution ratio is 20%.The credit terms are 2/3 net 30.Current bad debts are 1%, Companies administration cost is Rs.120000.Past Experience indicate that 60% of the customes avail the cash discount.the remaining customers pay on an average of 60 days sfter the date of sales.the debtors of the company are presently being financed in the ratio of 1:1 by a mix of bank borrowing & own funds which costs 15% & 14% resp.afactoring firm offered to buy the debtors on the following terms:-
29 September 2009
If this query is still pending then please post it again by updating......Good wishes.....or you can also send me a PM. Otherwise it is already resolved.
CAclubindia
