Simple Simon's Bakery purchases supplies on terms of 1.0/10 net 25. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 12.0%on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Use 365 days for a year.)

Ohio Valley Homecare Suppliers, Incorporated (OVHS) had $20 million in sales in 2015. Its cost of goods sold was $8.0

million, and its average inventory balance was $1.7 million.

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

b. The average number of inventory days 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?