Finance help

Bank Financing The Raattama Corporation had 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 accounts payable thousands of dollars): represent 50 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' payables outstanding). The company's balance sheet is as follows (in Cash $100 Accounts payable $600 Accounts receivable 300 Bank loans 700 Inventory 1,400 Accruals 200 Current assets $1,800 Current liabilities $1,500 Land and buildings 600 Mortgage on real estate 700 Equipment 600 Common stock, $0.10 par 300 Retained earnings 500 Total assets $3,000 Total liabilities and equity $3,000 a. How much bank financing is needed to eliminate the past-due accounts payable? Enter your answer as a positive value. Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $1.23 thousand dollars should be entered as 1,230, not 1.23. Round your answer to the nearest dollar. b. Assume that the bank will lend the firm 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.) Enter your answer as a positive value. Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $1.23 thousand dollars should be entered as 1,230, not 1.23. Round your answer to the nearest dollar. x c. Now ignore part b and assume that the bank will lend the firm the amount calculated in part a. The terms of the loan are 7.5%, add-on interest, to be repaid in 12 monthly installments. Enter your answers as positive values. Do not round intermediate calculations. 1. What is the total loan amount? Enter your answer in dollars. For example, an answer of $1.23 thousand dollars should be entered as 1,230, not 1.23. Round your answer to the nearest dollar. 2. What are the monthly installments? Enter your answer in dollars. For example, an answer of $1.23 thousand dollars should be entered as 1,230, not 1.23. Round your answer to the nearest dollar