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Question 3 (A): (2 Marks) How would the cash budget be affected if our firm's suppliers offered us terms of "2/10, net 30," rather than "net 30," and we decided to take the discount? How does the policy of target cash balance affect the financing requirement? Question 3 (B): (3 Marks)SE Company follows a moderate current asset investment policy, but it is now considering whether to shift to a restricted or perhaps to a relaxed policy. The firm's annual sales are $400,000; its fixed assets are $100,000; its target capital structure calls for 50% debt and 50% equity, its EBIT is $35,000; the interest rate on its debt is 10%; and its tax rate is 40%. With a restricted policy, current assets will be 15% of sales, while under a relaxed policy they will be 25% of sales. What is the difference in the projected ROEs between the restricted and relaxed policies