The annual sales of a cocmpany is $$485,000.$ The company uses a markup fo $18\%,$ and all sales are on credit. The average inventory is $$28,545$ and the average accounts receivable is $26,945.$

$1-$ What is the annual COGS?

$2-$ With Accounts Receivable turnover and invetory turnover ratios in mind, what is the annual rate of return when operating capital is borrowed at $32\%$ annual interest?