Introduction The problem sets are designed to build upon the skills that are developed during your review of the course material and while completing the homework. The questions are designed to be completed during the entire time period before the due date. Do not wait until the last week to begin these problems. Question 1: Understanding Financial Statement Quality and the Cash Conversion Cycle Background PRA Group, Inc. ("PRAA") is a financial services company that purchases "charged-off" debt and then attempts to collect from the borrowers. "Charged-off" debts are debt obligations that the lender has decided are uncollectable. PRAA purchases these debts and then undertakes collection efforts against the borrowers. Review PRAA's 2024 Form 10-K. For the required items, focus on PRAA's Core operations in the United States and PRAA's income statements. The required items focus upon the financial information presented and the associated notes to the financial information. There is no need to reference the amounts presented in the financial statements or to perform any calculations to provide the required items. Required 1. Describe PRAA's cash conversion cycle. 2. Describe PRAA's revenue recognition policy. 3. Identify the significant factors that affect PRAA's net income under GAAP. 4. Discuss how GAAP may decrease the quality of PRAA's financial statements. What information does PPRA provide that may offset the decrease in financial statement quality related to GAAP?