Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by three days. Furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. The bank has a remote disbursement center in Florida. a. If Neon Light Company has $2.50 million per day in collections and $1.10 million per day in disbursements, how many dollars will the cash management system free up? (Enter your answer in dollars not in millions (e.g., $1, 234, 567).) Freed-up funds b. If Neon Light Company can earn 6 percent per annum on freed-up funds, how much will the income be? (Enter your answer in dollars no in millions (e.g., $1, 234, 567).) Interest on freed-up cash c. If the total cost of the new system is $425,000, should it be implemented? Yes No Dome Metals has credit sales of $288,000 yearly with credit terms of net 120 days, which is also the average collection period. Assume the firm adopts new credit terms of 3/18, net 120 and all customers pay on the last day of the discount period. Any reduction in accounts receivable will be used to reduce the firm's bank loan which costs 10 percent The new credit terms will increase sales by 15% because the 3% discount will make the firm's price competitive If Dome earns 20 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted? (Use a 360-day year.) Net change in income Should the firm offer the discount? No Yes