You have the following balance sheet and partial income statement for Springton Ltd. All sales are made on credit. (a) Do Springton's customers pay on time assuming credit terms of net 45? Explain. (b) If Springton change its credit terms from net 45 to 2/20, net 45, would their customers be likely to forego the cash discount if their bank borrowing rate were 10% per year? Explain. (c) It takes Springton 83 days on average to manufacture, warehouse and ultimately sell a finished good. The raw materials are purchased on credit and are usually paid after 40 days. Calculate Springton 's operating cycle and cash conversion cycle