PART -A The shipping industry provides freight transport services through their fleet of seacraft, voyaging to domestic and international destinations. The industry is part of the shipping value chain, which includes suppliers as well as distributors of the main service provider, the shipping company. The chain is set up to cater to the needs of the ultimate commodity market around the world. Victorian Shipping Corporation (VSC) is the designated second largest cargo carrier company in Australia. It operates both interstate and internationally. The company operates 300 cargo ships, has assets of $18.6 billion and employs 19,200 staff. VSC, is the dominant local cargo service with 42.5% market share. In Australia, the only other significant competitor is Shippers Lid distant second with 57.5%. Ships require fuel which is a major cost factor in their operations. Fuel can account for more than 60% of a shipping operating costs. Supplying VSC its fuel requirements are petroleum refiners and wholesalers delivering to ports where VSC ships are departed from. The following figures were extracted from the annual reports of Victorian Shipping Corporation (Cargo carrier company) Figures in $M Victorian Shipping Corporation (VSC) Yr 2021 2020 2019 Revenue 16,057 16,200 Cost of Sales 8,897 7,859 Net Profit 853 1,029 Cash and cash equivalents 1,775 1,980 Receivables 784 795 689 Inventories (ships operating materials) 351 336 305 Other current assets 209 347 Total Current Assets 3,119 3,458 Payables 1,250 1,370 1, 190 Revenue received in advance 3,685 3,525 Short-term borrowings 330 338 Other current liabilities 1,013 1, 179 Total Current Liabilities 7,095 7,028 Ships operating materials used 3,436 3,346 Purchases 9,949 10,332REQUIRED: a. Explain the value chain of VSC and discuss how value chain analysis benets organisations such as VSC. b. Calculate the working capital ratios for the relevant Yr 2021 and 2020 of VSC and Average Age of Inventory (AAI), Average Collection Period (ACP), Average Payable Period (APP) and the company Cash Conversion Cycles (000). Show formulas used and workings. c. Calculate funding required to support VSC's Cash Conversion Cycles (000), comments on company performance