Suppose a firm makes purchases of $2.92 million per year under terms of 1/10, net 30, and takes discounts. Assume a 365-

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Suppose a firm makes purchases of $2.92 million per year under
terms of 1/10, net 30, and takes discounts. Assume a 365-day year.
Do not round intermediate calculations.
1. What is the average amount of accounts payable net of
discounts? (Assume that the $2.92 million of purchases is net of
discounts - that is, gross purchases are $2,949,494.95, discounts
are $29,494.95, and net purchases are $2.92 million.) Round your
answer to the nearest dollar.
2. Is there a cost of the trade credit the firm uses?
I. There is no cost of trade credit at this
point. The firm is using "free" trade credit.
II. The cost of the trade credit is
$240,000.
3. If the firm did not take discounts but it did pay on the due
date, what would be its average payables? Round your answer to the
nearest dollar
a)If the firm did not
take discounts but it did pay on the due date, what would be its
nominal cost? Round your
answer to two decimal places.
b) If the firm
did not take discounts but it did pay on the due date, what would
be its effective cost? Round your answer to two decimal places.
4. What would be the firm's cost of not taking discounts if
it could stretch its payments to 44 days? Round your answers to two
decimal places.
Nominal Cost: ? %
Effective Cost: ? %