Use the data in Problem and Case 8.2 to prepare calculations for each company to determine the total cost of factoring its accounts receivables.
In problem

verage annual accounts receivables Average collection period in days Annual bad debt write-offs Marginal interest rate for accounts receivables % factor fee on receivables % of receivables advanced by factor Interest rate charged by factor Reduced collection period with factor in days Annual accounts receivable credit administration savings Larry Ltd Curly Ltd. Moe Ltd. 375,000 $125,000 $65,000 75 $6,000 7% 4% 85% 3% 30 $5,000 42 $22,000 10% 10% 90% 5% 20 $2,000 $8,000 15% 6% 80% 2% 25 $6,000