Neco 2023 Commerce Question 34
Practice objective / multiple choice question 34 from the 2023 Neco Commerce examination.
A manufacturing firm records monthly sales of \(\text{₦}8,000,000\), of which 60\% are cash sales and the remaining 40\% are credit sales collected in 30 days. The firm is considering factoring all its credit sales. The factor charges a fee of 2\% of the invoice value and offers an additional discount of 1\% for early payment. If the firm factors its credit sales, determine (i) the net cash received each month from the factored sales and (ii) the percentage change in cash flow compared with collecting the credit sales in 30 days.
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About This Question
This is Neco 2023 Commerce Question 34. It is one of the objective questions from the 2023 Neco Commerce examination.
Difficulty level: Medium .
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