1. Consider the following financial statement information for the Windbag Balloon Corporation: Item Inventory Accounts receivable Accounts payable Beginning of 2016 S4,925 S3,019 S7,516 Ending of 2016 $5,150 S3,380 $7,952 Net sales Cost of goods sold S47,115 $22,893 (1) Calculate the operating and cash cycles. How do you interpret your answer? (Use the average Inventory, A/R and A/P for 2016 to calculate the cycles) (2) In general, will shortening cash cycle increase a firm's profitability? Why