1. Asahi-Do, K.K. Asahi-Do, K.K., the Japanese subsidiary of a U.S. company has 100,000,000 in accounts receivable for sales billed to customers on terms of 2/30 n/60. Customers usually pay in 30 days.

Super-Do also has 60,000,000 of accounts payable billed to it on terms of 3/10 n/60. Super-Do delays payment until the last minute because it is normally short of cash. Super-Do, K.K. normally carries an average cash balance for transactions of 30,000,000. How much cash could Super-Do, K.K. save by taking the discount?