calculate me (b) You've worked out a line of credit arrangel $100 million at any time. The interest rate is 0.4 percent per month. lh 5% of the amount that you borrow must be deposited in a non-interest bearing account (i.e. a compensating balance). Assume that your bank uses compound interest on its line of credit loans. What is the effective annual rate (EAR) on the loan? What is the APR on the loan? Which rate would the bank advertise - the APR or the EAR? 21. Use the following financial statement information: Beginning $1,500 2,300 1,400 Ending $1.800 2.600 1.100 ltem Inventory Accounts Receivable Accounts Payable $18.250 $14.500 Credit Sales Cost of goods Sold Calculate the inventory period The receivables period -49 days. Calculate the operating cycle. In a very short sentence. interpret the result. The accounts payable period 31 days. Calculate the cash cycle. In a very short sentence, interpret the result. 22. A firm has an average collection period of 25 days. It has a policy of keeping at least S10 on hand as minimum cash balance, and has a beginning cash balance for the first quarter of S20. Beginning receivables for the first quarter amount to S35. Sales for the first and second quarters are expected to be $110 and S125, respectively, while purchases amount to 80% of next quarter's forecasted sales. The account payable period is 90 days (1 quarter) (i) Determine whether the firm has a cash surplus or deficit for the first quarter. (ii) Write down the beginning accounts receivable and calculate cash collections for the second quarter. 23. A firm receives 12 checks per month from customers. Average payments and clearing times are: 5 days. Assume a 30-day month. 4 checks for S11.000 (per check) 2 days; and 8 checks for $17.000(per check). (i) What are average daily receipts? (i) What the weighted average delay of the receipts (iii) What is the average daily float? one-sentence interpretation of the result in part (ii