You have the following consolidated BlockEra Company's Balance Sheet and Income Statement in $ millions: December 31 2019 2020 Assets Current Assets: Inventories 25,250 28,950 Accounts receivables, net 30,000 32,500 Liabilities and Equity Current Liabilities: Accounts payable 31,700 31,200 December 31 2019 2020 Total Revenue 280, 150 300,890 Cost of Goods Sold 240,500 258,000 Gross Profit 39,650 42,890 (10 marks) a Calculate BlockEra's operating cycle in 2020. b. Calculate BlockEra's cash cycle in 2020. (5 marks) In 2020, BlockEra keeps a cash balance of $34,500 a week. At the end of the week, BlockEra runs out of cash and sell its short-term securities to replenish its cash balance. The fixed order cost is $40. The interest annual interest rate is 10%. c. Calculate the optimal cash balance using the Baumol Model