b. IMC's suppliers offer terms of net 30 . Does it appear that IMC is doing a good job of managing its accounts payable?(Choose the best response below.) A. The firm should be paying after 30 days, if there is no penalty, to take advantage of additional cash on hand. B. The firm is paying too early; it could be earning interest on its money. C. The firm should be paying within 10 days. D. The firm is paying when it should be. INTERNATIONAL MOTOR CORPORATION BALANCE SHEET (in millions) as of December 31 \begin{tabular}{|c|c|c|c|c|c|} \hline & 2018 & 2019 & & 2018 & 2019 \\ \hline Assets & & & Liabilities & & \\ \hline Cash & $3,080 & $6,100 & Accounts payable & $4,183 & $3,82 \\ \hline Accounts receivable & 2,894 & 7,492 & Notes payable & 1,180 & 1,25 \\ \hline Inventory & 5,611 & 7,001 & Accruals & 5,600 & 6,21 \\ \hline Total current assets & $11,585 & $20,593 & Total current liabilities & $10,963 & $11,28 \\ \hline Netplant,property,andequip. & $23,087 & $20,098 & Long-term debt & $6,500 & $7,00 \\ \hline \multirow[t]{5}{*}{ Total assets } & $34,672 & $40,691 & TotalliabilitiesEquity & $17,463 & $18,28 \\ \hline & & & Common stock & $1,657 & $4,50. \\ \hline & & & Retained earnings & $15,552 & $17,90 \\ \hline & & & Total equity & $17,209 & $22,40 \\ \hline & & & Total liabilities and equity & $34,672 & $40,69 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{INTERNATIONALMOTORCORPORATIONINCOMESTATEMENT(inmillions)fortheyearsendingDecember31} \\ \hline & 2018 & 2019 \\ \hline Sales & $60,000 & $75,000 \\ \hline() Cost of goods sold & 52,000 & 61,000 \\ \hline Gross profit & $8,000 & $14,000 \\ \hline (-) Selling and general and administrative expenses & 6,000 & 8,000 \\ \hline Operating profit & $2,000 & $6,000 \\ \hline() Interest expense & 1,400 & 1,300 \\ \hline Earnings before tax & $600 & $4,700 \\ \hline() Taxes & 300 & 2,350 \\ \hline Earnings after tax & $300 & $2,350 \\ \hline \end{tabular} Use the financial statements supplied here for the International Motor Corporation (IMC) to answer the following questions: a. Calculate the cash conversion cycle for IMC for both 2018 and 2019. What change has occurred, if any? All else being equal, how does this change affect IMC's need for cash? b. IMC's suppliers offer terms of net 30 . Does it appear that IMC is doing a good job of managing its accounts payable? (Hint: use a 365-day year.) a. Calculate the cash conversion cycle for IMC for both 2018 and 2019. What change has occurred, if any? All else being equal, how does this change affect IMC's need for cash? The cash conversion cycle (CCC) for 2018 is days. (Round to one decimal place.) The cash conversion cycle (CCC) for 2019 is days. (Round to one decimal place.) (Choose from the drop-down menus.) What change has occurred in the cash conversion cycle, if any? All else being equal, how does this change affect IMC's need for cash? b. IMC's suppliers offer terms of net 30 . Does it appear that IMC is doing a good job of managing its accounts payable?(Choose the best response below.) b. IMC's suppliers offer terms of net 30 . Does it appear that IMC is doing a good job of managing its accounts payable?(Choose the best response below.) A. The firm should be paying after 30 days, if there is no penalty, to take advantage of additional cash on hand. B. The firm is paying too early; it could be earning interest on its money. C. The firm should be paying within 10 days. D. The firm is paying when it should be. INTERNATIONAL MOTOR CORPORATION BALANCE SHEET (in millions) as of December 31 \begin{tabular}{|c|c|c|c|c|c|} \hline & 2018 & 2019 & & 2018 & 2019 \\ \hline Assets & & & Liabilities & & \\ \hline Cash & $3,080 & $6,100 & Accounts payable & $4,183 & $3,82 \\ \hline Accounts receivable & 2,894 & 7,492 & Notes payable & 1,180 & 1,25 \\ \hline Inventory & 5,611 & 7,001 & Accruals & 5,600 & 6,21 \\ \hline Total current assets & $11,585 & $20,593 & Total current liabilities & $10,963 & $11,28 \\ \hline Netplant,property,andequip. & $23,087 & $20,098 & Long-term debt & $6,500 & $7,00 \\ \hline \multirow[t]{5}{*}{ Total assets } & $34,672 & $40,691 & TotalliabilitiesEquity & $17,463 & $18,28 \\ \hline & & & Common stock & $1,657 & $4,50. \\ \hline & & & Retained earnings & $15,552 & $17,90 \\ \hline & & & Total equity & $17,209 & $22,40 \\ \hline & & & Total liabilities and equity & $34,672 & $40,69 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{INTERNATIONALMOTORCORPORATIONINCOMESTATEMENT(inmillions)fortheyearsendingDecember31} \\ \hline & 2018 & 2019 \\ \hline Sales & $60,000 & $75,000 \\ \hline() Cost of goods sold & 52,000 & 61,000 \\ \hline Gross profit & $8,000 & $14,000 \\ \hline (-) Selling and general and administrative expenses & 6,000 & 8,000 \\ \hline Operating profit & $2,000 & $6,000 \\ \hline() Interest expense & 1,400 & 1,300 \\ \hline Earnings before tax & $600 & $4,700 \\ \hline() Taxes & 300 & 2,350 \\ \hline Earnings after tax & $300 & $2,350 \\ \hline \end{tabular} Use the financial statements supplied here for the International Motor Corporation (IMC) to answer the following questions: a. Calculate the cash conversion cycle for IMC for both 2018 and 2019. What change has occurred, if any? All else being equal, how does this change affect IMC's need for cash? b. IMC's suppliers offer terms of net 30 . Does it appear that IMC is doing a good job of managing its accounts payable? (Hint: use a 365-day year.) a. Calculate the cash conversion cycle for IMC for both 2018 and 2019. What change has occurred, if any? All else being equal, how does this change affect IMC's need for cash? The cash conversion cycle (CCC) for 2018 is days. (Round to one decimal place.) The cash conversion cycle (CCC) for 2019 is days. (Round to one decimal place.) (Choose from the drop-down menus.) What change has occurred in the cash conversion cycle, if any? All else being equal, how does this change affect IMC's need for cash? b. IMC's suppliers offer terms of net 30 . Does it appear that IMC is doing a good job of managing its accounts payable?(Choose the best response below.)