Use the financial statements supplied here LOADING...

for the International Motor Corporation(IMC) to answer the followingquestions:

The Graph Provided in the Question:

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 expenses

6,000

8,000

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

2016

Assets

Liabilities

Cash

$3,080

$6,100

Accounts payable

$3,984

$4,587

Accounts receivable

2,520

7,659

Notes payable

1,180

1,250

Inventory

5,755

7,000

Accruals

5,600

6,211

Total current assets

$11,355

$20,759

Total current liabilities

$10,764

$12,048

Netplant, property, and equip.

$23,087

$20,098

Long-term debt

$6,500

$7,000

Total assets

$34,442

$40,857

Total liabilities

$17,264

$19,048

Equity

Common stock

$1,626

$3,881

Retained earnings

$15,552

$17,902

Total equity

$17,178

$21,783

Total liabilities and equity

$34,442

$

a. Calculate the cash conversion cycle for IMC for both 2015 and 2016. What change hasoccurred, ifany? All else beingequal, how does this change affectIMC's need forcash? Calculate the cash conversion cycle for IMC for both 2015 and 2016. The cash conversion cycle for 2015 is

________days. (Round to the nearestinteger.)

b.IMC's suppliers offer terms of net 30. Does it appear that IMC is doing a good job of managing its accountspayable?