considered liquid and reasonably good collateral. The book value of the inventory is $426,000, of which $170,400 is finished goods. (Note: Assume a 365 -day year.) liquidated as inventory is sold, the average amount owed over the month is expected to be $101,747. (2) Sun State Bank will lend $142,000 against a floating lien on the book value of inventory for the 1-month period at an annual interest rate of 12.7%. be liquidated as inventory is sold, the average loan balance is expected to be $85,200. a. Calculate the dollar cost of each of the proposed plans for obtaining an initial loan amount of $142,000. b. Which plan do you recommend? Why? a. The dollar cost of the trust receipt loan is (Round to the nearest cent.)