BU440 Financial Management II Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, a

BU440 Financial Management II                           
Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar.   
Respond to the items below.                               
Part A: Cash Flow of Accounts Receivable                   
Myers and Associates, a famous law office in California, bills its clients on the first of each month. Clients pay in the following fashion: 40% pay at the end of the first month, 30% pay at the end of the second month, 20% pay at the end of the third month, 5% pay at the end of the fourth month, and 5% default on their bills. Myers wants to know the anticipated cash flow for the first quarter of 2009 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are as follows.                   
        Fourth Quarter Actual Billings            First Quarter Anticipated Billings       
Oct.    Nov.    Dec.    Jan.    Feb.    Mar.
$392,000     $323,000     $296,000     $340,000     $360,000     $408,000
                   
Part B: Straight Bank Loan                   
                   
Right Bank offers EAR loans of 9.38% and requires a monthly payment on all loans.                   
                   
What is the APR for these monthly loans?                   
What is the monthly payment for the following?