thus recoverable. I disagree. Factoring is simply a means of facilitating cash flow, which allowed Peters to realize cash for sales immediately upon the taking of an order, without having to wait until it shipped the jackets to a buyer, and the buyer forwarded payment in return. It was not necessary for Peters to factor the jackets in order to sell them; Peters used a factor to improve its own financial position. Moreover, inasmuch as Peters never paid Eska for the jackets, factoring actually provided a windfall to Peters, because it was able to borrow money and improve its cash flow by assigning accounts receivable on goods for which it had not expended any money. Accordingly, Peters should not be given credit for factors' commissions.
Taking all of the various items of expenses into account, Peters is entitled to a total credit of $ 21,548.00.
Eska is entitled to legal interest on the money Peters realized on the sale of its jackets.
From September, 1972, to August, 1973, Peters realized $ 51,324.50 from the sale of Eska's jackets. This amount must be reduced by the credits to which Peters is entitled for the legitimate expenses it incurred chargeable to this period. First, expenses for freight, taking inventory, invoicing, and deodorizing tests, totalling $ 3,534.00, are allocable to this period, because these were expenses that Peters incurred in connection with its rightful rejection of the goods immediately after taking delivery.
Sales commissions on the first year's sales, in the amount of $ 3,079.00, must also be deducted. Furthermore, storage charges for the first three years are allocable to this period, in the amounts of $ 3,785.00 for October, 1970, to September, 1971, $ 3,672.50 for September, 1971, to September, 1972, and $ 3,562.50 for September, 1972, to September, 1973. Thus, a total of $ 17,633.50 in credits are allocable to the first year's sales, which means that Peters netted $ 33,691.00 on which Eska is entitled to legal interest.
Simple interest on this amount at a rate of 6%, comes to $ 2,021.00 per year. Calculating the interest from September, 1973, through January, 1980, the interest due Eska on the 1972-73 sales amounts to $ 12,798.00.
From September, 1973, to September, 1974, Peters realized $ 23,835.00 from the sale of Eska's jackets. Commissions on these sales were $ 1,430.00. Storage charges allocable to this period were $ 1,655.00. Thus, Peters netted $ 20,750.00 on which Eska is entitled to interest.
Simple interest on this amount at a rate of 6% comes to $ 1,245.00 per year. Calculating interest from September, 1974, through January, 1980, the interest due Eska on the 1973-74 sales is $ 6,640.00.
Finally, between September, 1974, and September, 1975, Peters realized $ 7,368.00 from the sale of Eska's jackets. Commissions on these sales were $ 442.00. Storage charges allocable to this period were $ 387.00. Thus, Peters netted $ 6,539.00 on which Eska is entitled to interest.
Simple interest on this amount at a rate of 6% comes to $ 392.00 per year. Calculating interest from September, 1975, through January, 1980, the interest due Eska on the 1974-75 sales is $ 1,698.00.
Thus, the total amount of interest due to Eska from Peters is $ 21,136.00.
III. CONCLUSIONS OF LAW
1. Eska's action is not barred by the statute of limitations, 12A Pa.Stat.Ann. § 2-725.
2. Peters is not liable to Eska for the tort of conversion.
3. Peters is liable to Eska for its failure to account for the proceeds of the sale of Eska's jackets. 12A Pa.Stat.Ann. § 2-706.
4. Peters' gross proceeds from the sale of Eska's jackets amounted to $ 82,528.50.
5. Peters is entitled to credit for expenses incurred in the handling, storage, and sale of Eska's jackets in the amount of $ 21,548.00. 12A Pa.Stat.Ann. §§ 2-711, 2-603.
6. Peters is liable to Eska for $ 60,980.50, the amount which it realized from the sales in excess of its allowable expenses under the Code. 12A Pa.Stat.Ann. § 2-706.
7. Peters is liable to Eska for legal interest in the amount of $ 21,136.00.
8. Eska is entitled to judgment against Peters in the total amount of $ 82,116.50.