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lal c 2019 11 INTERNATIONAL MOTOR CORPORATION INCOME STATEMENT (in millions) for the years ending December 31 2018 Sales $60,000 (-) Cost of goods sold 52,000 Gross profit $8,000 Selling and general and administrative expenses 6,000 Operating profit $2,000 (-) Interest expense 1,400 Eamings before tax $600 (-) Taxes 300 Farnings after tax $300 $75,000 61,000 $14,000 8,000 $8,000 1,300 $4,700 2,350 $2,350 ti iar no 2018 2019 Assets Cash Accounts receivable Inventory Total current assets Net plant, property, and oquip. Total assets INTERNATIONAL MOTOR CORPORATION BALANCE SHEET (in millions) as of December 31 2018 2019 Liabilities $3,080 $6,100 Accounts payable 2,173 7,073 Notes payable 6.167 7,272 Accruals $11,420 $20,445 Total current liabilities $23,087 $20,098 Long-term debt $3,377 1,180 5,600 $10,157 $6,500 $4,620 1,250 6,211 $12,081 $7,000 $34,507 $40,543 $16,657 $19,081 Total liabilities Equity Common stock Retained earnings Total equity Total liabilities and equity $2,298 $15,552 $17 850 $34,507 $3,560 $17,902 $21.462 $40,543 wuston Help 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? Alelse being equal, how does this change wifect IMC need for cash2 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? Alleise being equal, how does this change atfext IMC'S nood 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 ono decimal place) (Choose from the drop down menus) What change has occurred in the cash conversion cycle, if any? All otse being equal, how does this chans affect IMC need for The cash cycle has not changed b. IMC's suppliers offer terms of net 30 Does it appear that IMC ts payable(Choose the best response below) The cash cycle has increased A. The firm is playing when it should be The cash cycle has decreased B. The firm is paying too early it could be earning interest on my c. The firm should be paying within 10 days OD. The firm should be paying after 30 days, if there is no penalty, to take advantage of additional cash on hand