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Charming Paper Company sells to the 12 accounts listed here. Average Age of the Account Over the Last Year Account A L Receivable Balance Outstanding $ 66,400 143,000 71,200 20,900 59,500 237,000, 39,200 352,000 42,600 94,100 234,000 64,400 26 43 19 Maximum loan amount 52 43 39 18 72 35 55 18 36 Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less, 80 percent for account balances between 31 and 40 days, and 70 percent for account balances between 41 and 45 days. Customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. The current prime rate is 10.50 percent, and Capital charges 3.50 percent over prime to Charming as its annual loan rate.. a. Determine the maximum loan for which Charming Paper Company could qualify Check my work
a. Determine the maximum loan for which Charming Paper Company could qualify. Maximum loan amount b. Determine how much one month's interest expense would be on the loan balance determined in part a. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Interest expense