Planning to factor some of its receivables

Reference no: EM131051233

Moon Hardware is planning to factor some of its receivables. The cash received will be used to pay for inventory purchases. The factor has indicated that it will require "recourse" on the sold receivables. Explain to the controller of Moon Hardware what "recourse" is and how the recourse will be reflected in Moon's financial statements after the sale of the receivables.

Reference no: EM131051233

Questions Cloud

Evaluating woodlawn racetrack for a potential loan : You are evaluating Woodlawn Racetrack for a potential loan. An examination of the notes to the financial statements indicates restricted cash at year-end amounts to $100,000. Explain how you would use this information in evaluating Woodlawn's liq..

Question regarding the price of gilders : The combined marginal costs of the firms in the gilder industry are: MC = 11+ 0.2Q.a. Graph the market demand and MC curves, and indicate the MR curve for the firms in the industry below. How much is produced in the industry and what is the price ..

Global research analyst settlement : The semi-strong form of the efficient markets hypothesis supports _____________.Global Research Analyst Settlement (2003) did which of the following? Required companies release material information simultaneously to all market participants. Separated..

A security with a beta of zero is risk free : The Glass-Steagall act of 1993 separated commercial banking from investment banking. A security with a beta of zero is risk free. If a stock liew above the securities market line, it is overvalued. There is an overwhelming majority of evidence agains..

Planning to factor some of its receivables : Moon Hardware is planning to factor some of its receivables. The cash received will be used to pay for inventory purchases. The factor has indicated that it will require "recourse" on the sold receivables. Explain to the controller of Moon Hardwar..

Present a summary of your recommendations on culture : You are required to present a summary of your recommendations on culture, communication and cultural competence

Basic macroeconomic topic : First find an article that is about a basic macroeconomic topic. The article can be from the internet, newspaper, or a magazine. The topic of the paragraph is what the article is about.

Describe how the processor computes the tag : Based on your results in parts (a) and (b), design and describe a simple routing scheme for distributed control of the Omega network. A message will carry a routing tag computed by the sending processor. Describe how the processor computes the tag..

Federal reserve takes actions that increase risk-free rate : BLW Corporation is considering the terms to be set on the options it plans to issue to its executives. Which of the following actions would decrease the value of the options, other things held constant? The exercise price of the option is increased. ..

User Account

All Pages