Company ABC is in the business of buying & selling widgets. It bought a packaging equipment for $15 MM in 2014 to streamline its operations. The marginal tax rate for Company ABC is 30%. Relevant items that appear on Company ABC's Income Statement are as follows: 2014 (in $ millions) 580 Sales 240 COGS Selling, General & Administrative Expenses 150 50 Interest Expense Depreciation & Amortization 10 Relevant items that appear on Company ABC's Balance Sheet are as follows: + 2013 (in $ millions) 2014 (in $ millions) 400 Current Assets Current Liabilities 300 250 300 Utilizing this information and the tables above, please answer the following questions: 1. What's the Company's gross margin? What's the Company's operating margin? 2. What's the Company's net income? 3. What's the Company's free cash flow to firm? 4. If inventories and accounts receivable each account for 35% of the current assets and accounts payable is 50% of the current liabilities, calculate the cash conversion cycle for Company ABC. Give a qualitative interpretation of the cash conversion cycle