ALSO: PLEASE PUT YOUR NAME ON YOUR WORK! A look at the Balance sheet and Income Statement of Steeple, Inc. in 2016 yields the following information (in thousands): Item Beginning Balance ' Ending Balance Accounts Receivable $4,155 a. $4,650 Accounts Payable $5,200 $5,750 Inventory $2,150 Credit Sales $57,450 COGS 45,100 c. 1 (10 points possible)the operating cycle of Steeple, Inc. 2 (10 points possible)the cash conversion cycle of Steeple, In. Use the foom'ng information to answer questions 3 5 below. Iimmy 8t Timmy's Corp (ITC) have annual credit sales of $255,000. Their credit terms are 2/18, net 30. 3 (5 points possible)If 50% of their customers take the discount and pay on day 18 and 50% pa)r on day 30, what is their investment in Accounts Receivable? (Assume a 360-dayyear.) 4 (5 points possible)If a new and aggressive competitor enters their market area, what is likely to happen to the gure you calculated in #5, all else the same? Will it be larger? Smaller? Not change? Be sure to fullybut conciselystate your reasoning. 5 (5 points possible)Assume that, in response to rising interest rates, ITC's main customers tighten credit terms. (Put another wax [TCS customers will now require earlierpaynrent'oin tb_e1rcustomers.) All else the same, what effect will this likely have on ITC's investment in Accounts Receivable? Please be sure to fully explain your reasoning in a concise fashion