average, Stuff or Less is able to sell their inventory in 23 days. Stuff for Leser h takes 60 age to pay for their purchases. On the other hand, their averae charges their purchase on a credit card whereby payment is rece what is the length of operating cycle? A. 45 days B. 75 days C. 68 days D. 8 days E. 38 days ived in 15 days. Given this intio 35. Chief Industries expects sales of August, respectively. T $720. $680, $750, and $800 for the months of May through he firm collects 10 percent of sales in the month of sale, 60 percent in the month following the month of sale, and 27 percent in the second month following the month of sale. The remaining 3 percent of sales is never collected. How much money does the firm expect to collect in the month of July? A. $682.50 B. $702.50 C. $713.60 D. $698.50 E. $677.40 36. Barkely's has a line of credit with a local bank in the amount of $125,000. The loan agreement calls for interest of 8 percent with a compensating balance of 4 percent, which is based on the total amount borrowed. The compensating balance will be deposited into an interest-free account. What is the effective interest rate on the loan if the firm needs to borrow $58,000 for one year to cover operating expenses? A. 8.17 percent B. 7.68 percent C. 8.00 percent D. 8.33 percent E. 7.81 percent