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a . How large would the accounts payable balance be if Malone takes discounts? Do not round intermediate calculations. Round your answer to the nearest
a How large would the accounts payable balance be if Malone takes discounts? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
How large would the accounts payable balance be if it does not take discounts and pays in days? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
b How large must the bank loan be if Malone takes discounts? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
How large must the bank loan be if Malone doesn't take discounts? Do not round intermediate calculations. Round your answer to the nearest dollar
$
c Assuming a day year, what are the nominal and effective costs of costly trade credit? Do not round intermediate calculations. Round your answers to two decimal places.
Nominal rate:
Effective rate:
What is the effective cost of the bank loan? Round your answer to two decimal places.
Based on these costs, what should Malone do
Select
d Assume number.
$
If Malone's tax rate is then what is the effect on its net income due to the lost discount when it reduces its accounts payable to $ Do not round intermediate calculations. Round your answer to the nearest cent.
The net income select by $
How much would Malone have to borrow? Hint: Malone will receive a tax deduction due to the lost discount, which will affect the amount it must borrow. Do not round intermediate calculations. Round your answer to the nearest cent.
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