calculating cycles and factoring receivables

1-Your firm has a average collection period of 34 days. Current price is to factor all receivables immediately at a 2% discount. What is the effective cost of borrowing in this case? Assume that the default is extremely unlikely.

 

2- Calculating Cycles: Consider the following financial statements information:

inventory beginning 8,732 and ending 9,418

accounts receivable 3,3721 and ending 4,162

accounts payable 4,384 and ending 4,791

net sales 138,503

cit’s of goosold old 86,313