Page 8.2 The three companies shown below have gathered data to determine whether they should factor t accounts receivable. Average annual accounts receivables Larry Ltd. Curly Ltd. Moe Ltd $375,000 $125,000 $65,000 Average collection period in days 12 42 55 75 Annual bad debt write-offs $22,000 $8,000 $6,000 Marginal interest rate for accounts receivables 10% 15% 7% % factor fee on receivables 10% 6% 4% % of receivables advanced by factor 90% 80% Interest rate charged by factor 5% 2% 85% 13 3% Reduced collection period with factor in days 20 20 25 25 30 30 Average collection period in days 42 12 55 Annual bad debt write-offs $22,000 $8,000 Marginal interest rate for accounts receivables 10% 15% % factor fee on receivables 10% 6% % of receivables advanced by factor 90% 80% Interest rate charged by factor 5% 2% 906 Reduced collection period with factor in days 20 20 25 25 Annual accounts receivable credit administration savings $2,000 $6,000 $5,00 Required: Prepare calculations for each company to determine the total cost of collecting its own receivables