Assume that the operation of your business resulted in sales of $730,000 last year. Year end recievables are $100,000. You are considering factoring the the recievables to raise cash to help finance your ventures growth. The factor imposes a 7 percent discount and charges an additional 1 percentfor each expected ten-day average collection period over thirty days.

1. 1. < 30 day collection?
2. 2. =60 day collection?
3. 3. 8% discount and .5% per 15 days?
4. 4. Average collection period?