Moksha International has a total sale of Rs.100 lacs, of which 75% is on credit. The average collection period is 80 days. The past experience indicates that bad debt losses are around 1.5% of the credit sales. The firm spends about Rs.1,50,000 per annum to administer its credit sales. These are avoidable as a pay advance against receivables to the firm at an interest rate of 18% after withholding 10% as reserve. (Assume 360 day year)Question 21:- What is the total credit Sales of Moksha International? a) Rs. 80 lacs b) Rs. 75 lacs c) Rs. 70 lacs d) Rs. 65 lacs Question 22:- What are the Average Receivables? a) Rs. 80,00,000 b) Rs. 22,22.222 c) Rs. 16,66,667 d) Rs. 13,89,990 Question 23:- What is the disbursable amount to the firm by the factor? a) Rs. 16,66,667 b) Rs. 14,58,333 c) Rs. 16,58,999 d) Rs. 18,92,992 Question 24:- What is the Total Interest Chargeable by the factor? a) Rs. 58,333 b) Rs. 41,667 c) Rs. 1,66,667 d) Rs. 83,192 Question 25:- What is the Effective Cost of Factoring? a) 4.23% b) 3.51% c) 6.54% d) 2.86% ​