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?

FINANCIAL STATEMENT:

Data Table $75,000 61.000 $14.000 1.000 35.000 1.300 51.700 2.350 32.350 2015 Se S60.000 (Cost of 19.000 ross profit $8.000 Selling end generated ministrative expenses 6.000 Operating 57000 (-) expert 1,400 Caming before 3000 -) 300 Earnings her INTERNATIONAL MOTOR CORPORATION Balance Sheet in millions of December 31 2015 2016 2015 Auate Leben Cash 33.000 $5.700 Accounts payable $3.99 Accounts receive 2787 7.213 No payable 1.100 ry 6.316 7.277 Acor 5.600 Total current $12.163 $20.00 Total cuenta 510 TS Natant property and equip $20.000 Longtemet 18.500 55550 340.688 Totes $17.250 Equity Common stock Retained earning 515,562 Toy 517.29 Totes and equity $35.250 2010 S4062 6.211 $11.913 ST.000 35513 $3177 $21.00 $40.00 Print Done Data Table $75,000 61.000 $14.000 1.000 35.000 1.300 51.700 2.350 32.350 2015 Se S60.000 (Cost of 19.000 ross profit $8.000 Selling end generated ministrative expenses 6.000 Operating 57000 (-) expert 1,400 Caming before 3000 -) 300 Earnings her INTERNATIONAL MOTOR CORPORATION Balance Sheet in millions of December 31 2015 2016 2015 Auate Leben Cash 33.000 $5.700 Accounts payable $3.99 Accounts receive 2787 7.213 No payable 1.100 ry 6.316 7.277 Acor 5.600 Total current $12.163 $20.00 Total cuenta 510 TS Natant property and equip $20.000 Longtemet 18.500 55550 340.688 Totes $17.250 Equity Common stock Retained earning 515,562 Toy 517.29 Totes and equity $35.250 2010 S4062 6.211 $11.913 ST.000 35513 $3177 $21.00 $40.00 Print Done