QUESTION 4 (25 MARKS) The sales of Oringantano was $32 million in 2009. The cost of goods sold was $20 million. The balance sheet for the firm appears as below: Balance Sheet As of December 31, 2009 (s thousands) Assets Liabilities and Equity Cash $ 2,000 Accounts payable $ 1,500 Accounts receivable 3,950 Notes payable 1,000 Inventory 1,300 Accruals 1,220 Total current assets $ 7,250 Total current liabilities $ 3,720 Long-term debt 3,000 Net plant, property, Total liabilities $ 6,720 and equipment $ 8,500 Common equity 9,030 Total assets $ 15,750 Total liabilities and equity S 15,750 a. Calculate the Oringantano's net working capital in 2009. (4 marks) b. Calculate the cash conversion cycle of the Oringantano in 2009. (7 marks) c. Oringantano matches the industry average for accounts receivable days. If the industry average accounts receivable days is 30 days, calculate the cash conversion cycle for the Oringantano. (4 marks) d. Please explain the trade-off of a firm choosing long-term debt in comparison to short-term debt to finance its working capital (5 marks) e. Please evaluate and discuss the following statement: "An increase in a firm's cash cycle certainly shows poor cash management by the firm