Please provide all of the steps and formulas to solve this problem. This is the complete question. Please answer a-e that is in bold.

#10 MCLA buys $275,000 of a particular item (at gross prices) from its major supplier, supplier the full amount due on Day 15 , but it is considering taking the discount, paying on Day 5 and replacing the trade credit with a bank loan that has a 8 percent rate. Assume 360 days per year. a. What is the amount of free trade credit that UCLA obtains from McKesson Health? b. What is the amount of costly trade credit? c. What is the approximate annual cost of the costly trade credit? d. Should UCLA replace its trade credit with the bank loan? Explain your answer. e. If the bank loan is used, how much of the trade credit should be replaced? a. Medical supplies per year (gross) Discount within 5 days Medical supplies (net) Number of days per year Medical supplies per day (net) Days of free trade credit Amount of free trade credit b. Days of costly trade credit Medical supplies per day (net) Total trade credit Amount of free trade credit Amount of costly trade credit c. Approximate % cost = Discount percent Days credit received Days of free trade credit Periodic cost of trade credit Number of discount periods per year Approximate \% cost d. #10 MCLA buys $275,000 of a particular item (at gross prices) from its major supplier, supplier the full amount due on Day 15 , but it is considering taking the discount, paying on Day 5 and replacing the trade credit with a bank loan that has a 8 percent rate. Assume 360 days per year. a. What is the amount of free trade credit that UCLA obtains from McKesson Health? b. What is the amount of costly trade credit? c. What is the approximate annual cost of the costly trade credit? d. Should UCLA replace its trade credit with the bank loan? Explain your answer. e. If the bank loan is used, how much of the trade credit should be replaced? a. Medical supplies per year (gross) Discount within 5 days Medical supplies (net) Number of days per year Medical supplies per day (net) Days of free trade credit Amount of free trade credit b. Days of costly trade credit Medical supplies per day (net) Total trade credit Amount of free trade credit Amount of costly trade credit c. Approximate % cost = Discount percent Days credit received Days of free trade credit Periodic cost of trade credit Number of discount periods per year Approximate \% cost d