Use the financial statements shown below for the International Motor Corporation (IMC) to answer the following questions: a Calculate the cash conversion cycle for IMC for both 2019 and 2020. What change has occurred, if any? All else being equal, how does this change affect IMC's need for cash Answer: The cash conversion cycle (CCC) for 2019 is days. (Round to one decimal place.) Answer. The cash conversion cycle (CCC)for 2020 is days (Round to one decimal place.) Answer: The cash cyde has Answer increased decreased" or "not changed) Answer: All else being equal, this change for lack of change) Canswer increases": "decreases", or "does not change") the amount of cash needed. b. IMC's suppliers offer terms of net 30. Does it appear that IMC is doing a pood job of managing its accounts payable? (Hint: use a 365-day year) Choose from the following (Answer "A" "B" "Cor 'D') A The firm is paying too early: It could be earning interest on its money, B. The firm should be paying after 30 days. If there is no penalty, to take advantage of additional cash on hand C. The firm should be paying within 10 days. D. The form is paying when it should be INTERNATIONAL MOTOR CORPORATION INCOME STATEMENT (in millions) for the years ending December 31 2019 2020 Sales 560,000 $75,000 Cost of goods sold 52.000 61.000 Gross pront $8,000 $14,000 -) Selling and general and administrative 6,000 8,000 cxpenses Operating pront 52.000 56.000 Interest expense 1.400 1.300 Earings before tax $600 $4,700 Taxes 300 2350 Earnings after tax $300 $2,350 INTERNATIONAL MOTOR CORPORATION BALANCE SHEET (in millionsas of December 31 2019 2020 2019 2020 Assets Liabilities Cash $3.080 56,100 Accounts payable $3,600 $4,600 Accounts receivable 2.800 6,900 Notes payable 1,180 1.250 Inventory 6,200 6,600 Accruals 5,600 6211 Total current assets 512080 $19.000 Total current liabilities $10,380 $12,061 Net plant, property, and equip. $23,087 $20.098 Long term debt $6,500 57.000 Total assets $35 167 539 698 Total abilities $16,680 519.061 Equity Common stock $2.735 $2.735 Retained earnings $15,552 517.902 Total equity $18.287 520,637 Totalbies and equity 535.167 539.698