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 2012 and 2013. What change has occurred if any? Alelse 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? (Hint use a 365-day year) SS se 2013 ula ur c sh INTERNATIONAL MOTOR CORPORATION INCOME STATEMENT (in Millions) for the years ending December 31 2012 Sales $60,000 (-) Cost of goods sold 52,000 Gross profit $8,000 (-) Selling and general and administrative expenses 6,000 Operating profit $2,000 (-) Interest expense 1,400 Earnings before tax 5600 (-) Taxes 300 Earnings after tax $300 INTERNATIONAL MOTOR CORPORATION BALANCE SHEET (in millions) as of December 31 2012 2013 2012 $75,000 61,000 $14,000 8,000 $6,000 1,300 $4,700 2,350 $2,350 2013 our 2012 2013 MC Assets Cash Accounts receivable Inventory Total current assets Net plant, property, and equip Total assets INTERNATIONAL MOTOR CORPORATION BALANCE SHEET (in millions) as of December 31 2012 2013 Liabilities $3,080 56,100 Accounts payable 2,797 7 474 Notes payable 5,485 6,995 Accruals $11.362 $20,569 Total current liabilities $23.087 $20,098 Long-term debt $4, 244 1,180 5,600 $11,024 $6,500 $4,059 1.250 6,211 $11,520 $7,000 $34,449 $40.667 $17.524 $18,520 Total liabilities Equity Common stock Retained earnings Total equity Total liabilities and equity $1,373 $15,552 $16.925 $34.449 $4.245 $17,902 $22,147 $40,667