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 2015 and 2016. 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? a. Calculate the cash conversion cycle for IMC for both 2015 and 2016. The cash conversion cycle for 2015 is days. (Round to the nearest integer.) 1 Data table INTERNATIONAL MOTOR CORPORATION Income Statement (in millions) for the years ending December 31 2015 2016 Sales $60,000 $75,000 (-) Cost of goods sold 52,000 61,000 Gross profit $8,000 $14,000 (-) Selling and general and administrative 6,000 8,000 expenses Operating profit $2,000 $6,000 (-) Interest expense 1,400 1,300 Earnings before tax $600 $4,700 (-) Taxes 300 2,350 Earnings after tax $300 $2,350 INTERNATIONAL MOTOR CORPORATION Balance Sheet (in millions) as of December 31 2015 2016 2015 Liabilities 2016 Assets non inn A... Assets Cash $3,738 $4,647 Liabilities $3,080 $6,100 Accounts payable 3,010 7,007 Notes payable 1,180 1,250 5,600 6,211 $10,518 $12,108 Accounts receivable Inventory Total current assets Net plant, property, and equip. Total assets 6,271 7,398 Accruals $12,361 $20,505 Total current liabilities $23,087 $20,098 Loirg-term debt $6,500 $7,000 $17,018 $19,108 $35,448 $40,603 Total liabilities Equity Common stock Retained earnings Total equity Total liabilities and equity $2,878 $3,687 $15,552 $17,902 $18,430 $21,589 $35,448 $40,603