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  3. your firm's cost of goods sold (cogs) average $2,0

Your firm's cost of goods sold (COGS) average $2,000,000 per month, and it keeps inventory...

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Your firm's cost of goods sold (COGS) average $2,000,000 per month, and it keeps inventory equal to 45% of its monthly COGS on hand at all times. Using a 365-day year, what is its inventory conversion period? Weiss Inc. arranged a $9,000,000 revolving credit agreement with a group of banks. The firm paid an annual commitment fee of 0.5% on the unused balance of the loan commitment. On the used portion of the revolver, it paid 1.5% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 9% during the year. If the firm borrowed $5,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total dollar annual cost of the revolver

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