PLEASE solve problem 5 and 6 and SHOW YOUR WORK

. . Total current assets: $2,200,000 Total current liabilities: $1,200,000 Cash: $300,000 Inventory: $1,000,000 Accounts Receivable: $800,000 Accounts Payable: $500,000 Net sales is $10,000,000 Variable cost (VCR) is 30% of sales Cost of Goods Sold (COGS) at 40% of sales Average daily cash flow $27,000 Standard deviation of cash flow is $40,000 Its ROE is 25% Total earnings of $500,000, dividend payout of $150,000. Its cost of capital is 7% Line of credit available: $500,000 Its credit terms from supplier is Net 35 (DPO) Its credit terms to customer is Net 45 (DSO) Expenses for credit administration and collection is 5% of sales EXP(-05/CP) Daily interest rate (i) is 7%/365 Collection period for sale is 45 days (CP) t makes the following forecast for 2019: Revenues increase by 10% from 2018 level; Receivables will be 8% of revenues; Inventory will equal to 10% of revenues; Payables are expected at 5% of revenues. 5> Calculate and explain the Lambda based on the information. 6> ABC firm receives an invoice of $1,000,000 from a supplier with the terms 2/10, net 45. It will receive 2% discount if paying by the 10th day, or pay the full amount by the 45th Day. ABC firm has a cost of capital of 7%. Using the PV of trade terms, evaluate if it should take the discount