11.- (Optional) The David Corporation has Sales of $3.5 million last year, and it earned a 5% return (after taxes) on Sales. Recently, the company has fallen behind in its accounts payable. Although its terms of purchase are net 30 days, its account payable represents 60 days' purchases. The company's Treasurer is seeking to increase bank borrowing in order to become current in meeting its trade obligations ( that is, to have 30 days' payable outstanding ). The company Balance Sheet is as follows (in thousands of dollars) A) How much bank financing is needed to eliminate the pas-due accounts payable? B) Assume that the Bank will lend the amount calculated in part A. The terms of the loan offered are 8% simple interest, and the bank uses a 360-day year for the interest calculation. What is the interest charge for 1 month (Assume there are 30 days in a month C) Ignore part b and assume that the bank will lend the amount calculated in part A. The interest rate is 7.5%, add-on interest, to be repaid in 12 monthly installments 1.- What is the total loan amount 2.+- What are the monthly installments 3.- What is the effective rate (annual) of the loan