in factor their picture new Credit UMFUIS 8.12 The three companies shown below have gathered data to deten companies shown below have gathered data to determine whether they should fact accounts receivable. Great Ski Ltd. Rich Yard Inc. Bob Ore Mines $30 $160 Current receivables policy Unit sale price Contribution margin per unit Annual sales on credit Average collection period in days Bad debts per year Interest rate on line of credit $50 $820,000 $345,000 $55 $25 $1,500,000 120 $70,000 12% 75 $24,000 $17,000 11% Proposed new receivables policy Revised average collection period in days Cost % reduction in sales $30,000 $20.000 $60,000 3% 8% Chapter 8 Financing a Business 1. Sources of Funds 317 Required: Prepare calculations to determine whether any of these companies would be better off to factor its receivables the