QUESTION 6 (20 MARKS) Eagle Paints Selected Income Statement Items, 2014 Cash Sales $2,500,000 Credit Sales $9,500,000 Total Sales $12,000,000 COGS $7,000,000 Eagle Paints Selected Balance Sheet Accounts 12/31/2014 12/31/13 Change Accounts Receivable $550,000 $400,000 $150,000 Inventory $275,000 $250,000 $25,000 Accounts Payable $150,000 $110,000 $40,000 (a) Using the information provided, what is the inventory turnover for Eagle Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle? (8 marks) (b) Ali is the only official supplier of soccer balls for games and practices at all levels of play in the Northwest region. It expects to sell 150,000 soccer balls this year. If carrying costs are $1.50 per soccer ball per year and ordering costs are $93 per order, what is the firm's EOQ for this product? (Please round your answer to the nearest whole number of balls.) (4 marks) (c) Discuss about JIT inventory management? (8 marks)