Short-Term Financing Analysis 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: Cash $ 60,000 Accounts payable $ 450,000 Accounts receivable 390,000 Notes payable Inventory 60,000 60,000 Current assets Fixed assets Total assets 720,000 Accruals $1,170,000 Current liabilities Long-term debt 710,000 Common equity $1,880,000 Total liabilities and equity $ 570,000 150,000 1,160,000 $1,880,000 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 25% compensating balance required. (Malone's $60,000 in cash is needed for transactions; it cannot be used as part of the compensating balance.) a. 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. $ b. How large must the bank loan be if Malone takes discounts? Do not round intermediate calculations. Round your answer to the nearest cent. $ How large must the bank loan be if Malone doesn't take discounts? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. Assuming a 360-day year, what are the nominal and effective rates of costly trade credit? Assume there is 1% discount. Do not round intermediate calculations. Round your answers to two decimal places. Nominal rate: Effective rate: % % What is the effective rate of the bank loan? Round your answer to two decimal places. %