4.Alices second initiative calls for Fresh & Fruity to obtain a bank loan of a sufficient size to enable the company to take all suppliers discounts. What is the minimum size of this loan? (Hint: To take all suppliers discounts, the average payment period must be 10 days, and net purchases will be purchases (Purchases from Figure 1 x .02). Assume that all this happens, and solve the following formula for the new accounts payable balance, using:

Accounts payable = Average payment period x Purchase per day*

*Based on net purchases/360.

Now compare the accounts payable you just solved with the new accounts payable balance you found in question 3. The difference is the size of the loan that is required.