Ohio Valley Homecare Suppliers, Inc. (OVHS), had $20 million in sales in 2009. Its cost of goods sold was $8 million, and its average inventory balance was $2,000,000.

a. Calculate the average number of inventory days outstanding for OVHS.

b. The average days of inventory in the industry is 73 days. By how much would OVHS reduce its investment in inventory if it could improve its inventory days to meet the industry average?

c. OVHS purchases goods from its supplier on terms of 3/15, Net 40. What is the effective annual cost to the firm if it chooses not to take the discount and makes its payment on day 40?

d. What is the effective annual cost to the firm if it chooses not to take the discount and makes its payment on day 50?

(Please, kindly answer all the following questions, also providing the calculation)