Automated Dynamics had sales of $6.5Million last year, and its earned a 4% return, after taxes, on sales. Recently, the company has failen behind in its accounts payable. Although its terms of purchases are net 30 days, its accounts payable represent 60 days' purchases. The company's treasurer is seeking to increase bank borrowings in order to become current in meeting its trade obligations (ie to have 30 days payable outstanding). The company's balance sheet is as follows (in thousands of dollars). Cash Accounts receivable Inventory Current assets Land and buildings Equipment Total assets $200 500 2,000 $2,700 1,000 1,300 $5,000 Accounts payable Bank loans Accruals Current liabilities Mortgage on real estate Common stock Retained Earnings Total Liabilities and equity $900 1,100 400 $2,400 900 500 1,200 $5,000 a. How much bank financing is needed to eliminate the pastdue accounts payable? b. Would you as a bank loan officer make the loan? Why or why not