1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Scilla [17]
3 years ago
9

Lacuna Inc. factors $12,000,000 of its accounts receivables with recourse for a finance charge of 3%. The finance company retain

s an amount equal to 10% of the accounts receivable for possible adjustments. Lacuna estimates the fair value of the recourse liability at $600,000. What would be recorded as a loss on the transfer of receivables
Business
1 answer:
Elena L [17]3 years ago
5 0

Answer:

The loss on transfer of receivables is $960,000

Explanation:

Sales amount                                       $12,000,000

Finance charge 3%*$12 million              ($360,000)

Retention amount 10%*$12 million           ($1,200,000)

Cash upfront                                           $ 10,440,000

The recourse liability is $600,000,which means that additional liability of $600,000 would be incurred by Lacuna Inc, if the total amount from the receivables is not received owing to the fact that the factoring is with recourse.

The loss on transfer of receivables is shown as:

Finance charge                    $360,000

Recourse liability                  $600,000

total loss                                 $960,000

You might be interested in
Which of the following is an example of a relationship with a negative slope?
iren [92.7K]

Answer:

c. ​ More items purchased when prices drop

Explanation:

Lets determine the two variables and their relation in each of the cases.

a)

Quality decreases. Quantity purchased decreases. Both item decreasing is a positive relation and thus would not yield a negative slope.

b)

Spending rises. Income rises. Both items increasing is a positive relation and thus would not yield a negative slope.

c)

Purchases increase. Price decrease. One item increases while the other decreases and thus is a negative relationship with a negative slope.

d)

Qty sold increases. Quality increases. Both items increasing is a positive relation and thus would not yield a negative slope.

Hope that helps.

5 0
3 years ago
GINNY: I think itâs safe to say that, in general, the savings rate of households in todayâs economy is much lower than it really
zhuklara [117]

Answer:

Taxing polluters is one of the best ways to protect the environment

Explanation:

6 0
3 years ago
What agency provides over 25,000 government publications?
shepuryov [24]

Answer:

Correct Answer:

4. The Government Printing Office

Explanation:

The United States Government Publishing Office is an agency of the legislative branch of the United States federal government with the mandate to inform the Nation by producing, procuring, and disseminating printed and electronic publications of the Congress as well as the executive departments and establishments of the Federal Government.

7 0
3 years ago
Whats the purpose for people to connect to products
MAVERICK [17]
So they will want to buy them if someone sees a product they like and maybe feels a connection to buy it then they will buy it
7 0
3 years ago
Read 2 more answers
Which of the following is most likely to be a constraint to implementing your suggested solution?A. Sales reps who are unwilling
pentagon [3]

<u>Explanation</u>:

       i. Limited cash on hand to make changes

              It is apparent from the case that the company is experiencing a drop in the sales from the past 5 years and thus, the financial reserves will be a constraint in the accomplishment of the idea.

       ii. Costumers purchase lifestyle products from people who they know and who have expertise

It is the idea that the director of the company mark always encourages direct interaction with the clients and personal selling rather than retail or online sales considering personal relation makes exposure to the experts and their advice.

      iii. Meet with mark, your direct supervisor, about how to establish your credibility with the owner

Being a newbie to the company, it is a wise option to follow the instructions of the reporting authority to establish rapport with the owner of the organization.

      iv. Sales have declined because customers have lower disposable income

It is also evident from the case of the financial crisis and recession in going in the market due to which the customer has a lower income to make purchases.

       v. Suggesting techniques to help our sales reps become more trusted advisors

It is the time to perform a forward step by the sales reps to take the role of the advisors i.e. trusted ones for the customer in recommending the best of all.  

6 0
4 years ago
Other questions:
  • The amounts to calculate ratio of liabilities to stockholders' equity can be found on
    11·2 answers
  • On January 2, 2020, Concord Corporation began construction of a new citrus processing plant. The automated plant was finished an
    7·1 answer
  • On May 31, 2018, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the ent
    12·1 answer
  • Consumer protection laws might result in:
    14·2 answers
  • According to the information provided in english 120, why might a subject encyclopedia be useful to start a research project?
    11·1 answer
  • Usually, price elasticities of supply areA) positive, because higher prices yield larger quantities supplied.B) considered short
    7·1 answer
  • A stability strategy is a grand strategy that involves little or no significant organizational change. For example, Love Forever
    13·2 answers
  • Kendra and Amelia operate an art gallery, owned as a partnership. Kendra disappeared. A few days later, Amelia learned that Kend
    8·1 answer
  • Economic Condition
    11·2 answers
  • What is the difference between gross &amp; net pay
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!