Cash Flow from Financing Activities (CFF): Formula and Calculations

Credit Policy & Receivables

Smooth Yogurt, Inc. has average receivables of 80,000, which turn over once every 60 days. It pledges all of its receivables to a bank that advances 80% of the total at 4% over prime and charges a 2% administrative fee on the total amount pledged. If prime is 10.5%, what effective interest rate is Smooth paying for its receivables financing?

Accounts Receivables - Meaning, Accounting, Examples

Commercial Receivables Management

Types of Receivables Explained: Definition, Examples, Practice & Video Lessons