zieba, I am not sure if you are asking about factoring your accounts receivables or of selling a note receivable. I'm thinking its the latter since that is a more complicated calculation. Is it this:
If I have a $100,000 note from a customer at 10% interest rate payable in six months, and I hold it for two months and then sell it to the bank (because I need cash now); the bank offers to pay me 12% interest for the note, how much cash do I receive?
Step 1: determine total value of note: Add to Face value: (100K x .10 x 6/12) = 105,000
Step 2: determine bank interest: (105,000 x .12 x 4/12) = 4,200
Step 3: subtract 1 from 2 = Proceeds received from bank: 100,200
this is in Beckers chapter 4 (pg 19 as someone previously said). “factoring” of receivables is in chapter 4 as well, on page 16.
REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83
Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)
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