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 2018 and 2010. 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? (Hint: use a 305-day year.) A B B c D D INTERNATIONAL MOTOR CORPORATION 2 INCOME STATEMENT (in $ millions) for the years ending December 31 3 14 Sales 5 ) Cost of goods sold 5 Gross profit (-) Selling and general and administrative expenses 3 Operating profit ) Interest expense Earnings before tax 1 (-) Taxes 2 Earnings after tax 2018 60000 52000 8000 6000 2000 1400 600 300 300 2019 75000 61000 14000 8000 6000 1300 4700 2350 2350 2. Calculate the cash conversion cycle for IMC for both 2018 and 2010. What change has occurred it any? All else being equal, how does this change affect IMC's need for cash? The cash conversion cyde (CCC) for 2018 is days. (Round to one decimal place) The cash conversion cycle (CCC) for 2019 is days. (Round to one decimal place.) (Choose from the drop-down menus.) What change has occurred in the cash conversion cycle. 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?(Choose the best response below) OA The firm should be paying within 10 days, OB. The firm should be paying after 30 days, if there is no penalty, to take advantage of additional cash on hand. OC. The firm is paying when it should be D. The firm is paying too early, it could be earning interest on its money