Use the financial statements supplied below for International Motor Corporation (IMC) to answer the following questions. a. Calculate the cash conversion cycle for IMC for both 2017 and 2018. What change has occurred, if any? All else being equal, how does this change affect IMC's need for cash? b. IMC's suppliers offer terms of net 30. Does it appear that IMC is doing a good job of managing its accounts payable? INTERNATIONAL MOTOR CORPORATION Income Statement for the years ended December 31 ($ million) 2017 2018 Sales Cost of goods sold Gross profit Selling and general and administrative expenses Operating profit $60,000 52,000 8,000 6,000 2,000 1,400 $ 75.000 61.000 14.000 8,000 Interest expense 600 Earnings before tax Taxes Earnings after tax 6,000 1,300 4.700 2,350 $ 2,350 300 $ 300 International Motor Corporation Balance Sheet as of December 31 ($ million) 2017 2018 2017 2018 Assets $ 3,080 $ 6,100 $ 3,600 1,180 5,600 S 4,600 1,250 6,211 Cash Accounts receivable Inventory Total current assets Net plant, property, and equipment Total assets 2,800 6,200 12,080 6,900 6,600 19,600 Liabilities Accounts payable Notes payable Accruals Total current liabilities Long-term debt Total liabilities Equity Common stock Retained earnings Total equity Total liabilities and equity 10,380 6,500 16,880 12,061 7,000 19,061 23,087 $35,167 20,098 $39,698 2,735 15,552 2,735 17,902 20,637 $39,698 18,287 $35,167