Reference no: EM132908426

Company A has the following selected information from its most recent annual financial statements:

2008 2007

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 2008 and $10,100 in 2007. The company pays 8% annual interest on borrowings from its bank.

What is the interest cost on the cash required to finance the company's estimated cash conversion cycle in 2008? (For calculations, use 365 days in a year and round all calculations to the nearest day.)