Malone Feed and Supply Company buys on terms of $1/10,$ net $30,$ but it has not been taking discounts and has actually been paying in $60$ rather than $30$ days. Assume that the accounts payable are recorded at full cost, not net of discounts. Malone's balance sheet follows $($thousands of dollars$)$:

Cash $ $60$ Accounts payable $ $540$

Accounts receivable $480$ Notes payable $60$

Inventory $710$ Accruals $60$

Current assets $ $1,250$ Current liabilities $ $660$

Long$-$term debt $180$

Fixed assets $710$ Common equity $1,120$

Total assets $ $1,960$ Total liabilities and equity $ $1,960$

Malone's suppliers are threatening to stop shipments unless the company begins making prompt payments $($that is$,$ paying within $30).$ The firm can borrow on a $1-$year note $($call this a current liability$)$ from its bank at a rate of $16\%$ discount interest with a $20\%$ compensating balance required. $($Malone$\text{'}$s $$60,000$ in cash is needed for transactions; it cannot be used as part of the compensating balance.$)$ Give your answers as positive numbers.

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 $30$ days? Do not round intermediate calculations. Round your answer to the nearest dollar.

$

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.

$

Assuming a $360-$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$-$