101 6. Calculating Cycles. Consider the following financial statement information for the Amaryliss Corporation: Item Beginning Ending Inventory Accounts receivable Accounts payable Net sales Cost of goods sold $9,605 4,093 4,822 $11,302 4,994 5,749 $124,652 77,681 Assume all sales are on credit. Calculate the operating and cash cycles. How do you interpret your answer? L03 7. Factoring Receivables. Your firm has an average collection period of 38 days. Current practice is to factor all receivables immediately at a 2 percent discount. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely. fallaviie nale