ern C. Charles Smith recently was hired as president of Delloe Office Equipment Ioc. a small manufacturer of metal office equipment. As his assistant, you have been asked to review the company's short-term financing policies and to prepare a report for Smith and the board of directors. To help you get started, Smith has prepared some questions that, when answered, will give him a better idea of the company's short-term financing policie a. What is short-term credit, and what are the four major sources of this credit? b. Is there a cost to accruals, and do firms have much control over them? c. What is trade credit? d. Like most small companies, Dellvoe ias two primary sources of shont-term debt: trade credit and bank loans. One supplier, which supplies Dellvoe with $50,000 of materials a year, offers Dellvoe terms of 2/10, net 50 (1) What are Dellvoe's net daily purchases from this supplier? What is the average level of Dellvoe's accounts payable to this supplier if the discount is taken? What is the average level if the discount is not taken? What are the amounts of free credit and costly credit under both discount policies? (2) (3) What is the APR of the costly trade credit? What is its EAR