Inventory financing Raymond Manufacturing faces a liquidity crisisit needs a loan of $132,000 for 1 month. Having no source of additional unsecured borrowing, the firm must find a secured short-term lender. The firm's accounts receivable are quite low, but its inventory is considered liquid and reasonably good collateral. The book value of the inventory is $396,000, of which $158,400 is finished goods. (Note: Assume a 365-day year.) (1) City-Wide Bank will make a $132,000 trust receipt loan against the finished goods inventory. The annual interest rate on the loan is 11.4% on the outstanding loan balance plus a 0.19% administration fee levied against the $132,000 initial loan amount. Because it will be liquidated as inventory is sold, the average amount owed over the month is expected to be $98,357 (2) Sun State Bank will lend $132,000 against a floating lien on the book value of inventory for the 1-month period at an annual interest rate of 12.5%. (3) Citizens' Bank and Trust will lend $132,000 against a warehouse receipt on the finished goods inventory and charge 14.9% annual interest on the outstanding loan balance. A 0.65% warehousing fee will be levied against the average amount borrowed. Because the loan will be liquidated as inventory is sold, the average loan balance is expected to be $79,200. a. The dollar cost of the trust receipt loan is $ (Round to the nearest cent.) Inventory financing Raymond Manufacturing faces a liquidity crisisit needs a loan of $132,000 for 1 month. Having no source of additional unsecured borrowing, the firm must find a secured short-term lender. The firm's accounts receivable are quite low, but its inventory is considered liquid and reasonably good collateral. The book value of the inventory is $396,000, of which $158,400 is finished goods. (Note: Assume a 365-day year.) (1) City-Wide Bank will make a $132,000 trust receipt loan against the finished goods inventory. The annual interest rate on the loan is 11.4% on the outstanding loan balance plus a 0.19% administration fee levied against the $132,000 initial loan amount. Because it will be liquidated as inventory is sold, the average amount owed over the month is expected to be $98,357 (2) Sun State Bank will lend $132,000 against a floating lien on the book value of inventory for the 1-month period at an annual interest rate of 12.5%. (3) Citizens' Bank and Trust will lend $132,000 against a warehouse receipt on the finished goods inventory and charge 14.9% annual interest on the outstanding loan balance. A 0.65% warehousing fee will be levied against the average amount borrowed. Because the loan will be liquidated as inventory is sold, the average loan balance is expected to be $79,200. a. The dollar cost of the trust receipt loan is $ (Round to the nearest cent.)