[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for BEC.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[monikernc]

I chose A on prior page before i read the answer. The shortcut is just (new sales price – old sales price)* 20,000 = 600,000

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[payaza2000]

@monikernc

Combination of both.

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[Blue.auditor]

@monikernc Thank you
NASBA Central got updated, and marked my attendance 🙂
I think it means that they received my exam data.

FAR 90 - 11/16/2015
BEC 81 - 2/14/2016
REG 87 - 5/23/2016
AUD - 8/8/2016

[Anonymous]

Ugh two weeks till exam and still feeling unfomtarble. BEC has a lot of nonsense mixed in together. I feel like all the stuff that could not be fitted in the other tests got thrown and mixed in BEC.

[monikernc]

Cortes, i am in the same boat but i am so ready to finish with BEC that i will just see what it takes to finish on the 27th and pray for a 75 when it is over. Ready or not!!!

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[monikernc]

39 new questions added to BEC. just found out from other post. looks like they have been added in all sections. so i am back to doing a round of new questions and getting these under my belt now.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

@moniker:
Have you mastered Factoring yet? I can never get get all the steps right, and even when I do I feel I am just memorizing it instead of learning it.

The Frame Supply Company has just acquired a large account and needs to increase its working capital by $100,000. The controller of the company has identified a source of funds which is given below:

Pay a factor to buy the company's receivables, which average $125,000 per month and have an average collection period of 30 days. The factor will advance up to 80 percent of the face value of receivables at 10 percent and charge a fee of 2 percent on all receivables purchased. The controller estimates that the firm would save $24,000 in collection expenses over the year. Assume the fee and interest are not deductible in advance. Assume a 360-day year in all of your calculations.

The cost of factoring is:

a. 12.0 percent.
b. 14.8 percent.
c. 16.0 percent.
d. 20.0 percent.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[FAR_WARS]

“The shortcut is just (new sales price – old sales price)* 20,000 = 600,000”

so (75-45)*20 = 60

But where do the 75 and 45 come from?

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

factoring, the bane of my existence. This one is tricky because $24000 savings is annual but everything else is monthly and it wants the % cost at an annual rate. They are factoring all receivables but being advanced only 80%. They will be paid up to the 125,000 depending on collections. Factoring will save $24000 year.
First calculate the costs:
125,000*.8= 100,000, this is the monthly amount advanced and interest will be based on it. 100,000*.10*30/360 = 833.33. use the 30 day avg collection period/360 day year because both are given in the problem.
125,000*.02=2,500. They are factoring the total amount of receivables per month so the 2% is charged against that amount.
Total cost per month = 833.33+2500=3333.33
Savings per month= 24000/12 = 2000
3333.33-2000=1333.33 net cost per month
1333.33/100,000= .01333 or 1.333% per month. The denominator is the amount on which interest is paid.
.01333*12=16% per year

Now do nina mcq 454

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[monikernc]

the $75 new sales price was given in the problem. The old sales price was what ajax sold to bradley for. Total sales = 900,000/20,000 units = $45 per unit.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

thanks- overlooked where the $75 given. I don't have ninja but if you want to post 454 I will try it.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

Wow! I thought everyone has ninja mcq

A company enters into an agreement with a firm which will factor the company's accounts receivable. The factor agrees to buy the company's receivables, which average $100,000 per month and have an average collection period of 30 days. The factor will advance up to 80% of the face value of receivables at an annual rate of 10% and charge a fee of 2% on all receivables purchased. The controller of the company estimates that the company would save $18,000 in collection expenses over the year. Fees and interest are not deducted in advance. Assuming a 360-day year, what is the annual cost of financing?

Select an answer:
A.10.0%

B.12.0%

C.16.0%

D.17.5%

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Anonymous]

Hey guys I hate factoring too. I have found easier to convert the % of fees to the annual amount and do the rest of the calculation without convertion:

100,000* .80*.10= 8,000
100,000*.02*12= 24,000
8.000+24,000= 32,000 total cost

32,000
-18,000. savings
14,000 net cost

14,000/80,000= 17.5%

Everybody is different and should go with what is most comfortable to them obviously.

[Anonymous]

I am looking for the Safety Stock formula apparently I lost it on my notes, can anyone share it?

[monikernc]

that is so much easier
shoul your first line be 100,000*.8*10%=8,000?

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Author]

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