Sfm supplementary problem doubt in financial services in ind

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Dear sir,

 

​I have a doubt in SFM problem,

 how 

​"​

cost of long term fund invested in debtors

​"​

 is calculated in solution image 

​I​

 mean Rs 943.8 crores and Rs 882.42 crores for recourse/non recourse options under fine bank proposal

thank u advance

 

 

​Regards,

 

vamshi


Attached File : 623103 20170605132320 new doc 2 1.jpg downloaded: 144 times
Replies (1)

It is the total amount of advance received during the year:

(1,100 - 27.50) x 88% = 943.80,

(1,100 - 49.50) x 84% = 882.42.

"Cost of funds invested in debtors" is the interest cost on amount of debtors less advance received from factor, or on net debtors that remain due for 30 days.

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