Rauch Co. has the following selected information from its most recent annual financial statements:

	20X8 $	20X7 $
Accounts receivable	223,400	226,700
Inventories	121,700	151,600
Accounts payable	177,400	153,900
Sales (all on credit)	779,800	798,300
Cost of goods sold	350,910	359,235
Operating expenses*	77,400	78,900

*Operating expenses include depreciation and amortization of $10,500 in 20X8 and

$10,100 in 20X7. The company pays 8% annual interest on borrowings from its bank.

What is the interest cost on the cash required to finance the companys estimated cash conversion cycle in 20X8? (For calculations, use 365 days in a year and round all calculations to the nearest day.)

a) $12,819

b) $17,433

c) $18,117

d) $22,221