Today is January $2,2022$ Mr$.$ Thomas, the new financial manager for New Word Electnc Bicycles Inc, is trying to figure out the current condition of the company s short$-$term financial plan. He wants to start by analyzing the company's operating and cash cycles. His boss, Mr$.$ Simpson, has provided her with the following financial statements for New World Electric Bicycles;New World Electric BlcyclesStatement of Comprehensive Income as of December $31,2021$Sales$$250,000$Cost of goods sold$150,000$Gross profit$$100,000.\mathrm{.}40,000$EBIT$$60,000$Interest expense$1,307$EBT$$58,793$Income taxes$23,477$Net income$$35,316$Now Worid Electric Bicycles Inc$\mathrm{.}2828$Statement of Financial Position as of December $31,2020$ and December $31,2021202120202021$$$8\mathrm{.}840$Cast$$5,000$$$26,000$Accounts payable$38,200???18,725???$Notes payable$10,000$Accounts receivable inventory$15,00018,000$Total current labities$$18,200???$Totel current assets$$38,725???$Fixed assets$$50,000$$$50,000$Long$-$term debt$$40,000$$$40,000$Stockholders' equityS$30,525$$$65,841$Total assels$$88,725773$ Total fabilifies & equity$$88,725???$SearchThe company frantes is accounts receivables with short$-$term borrowing. Credit sales made up $78\%$ of the total sales for the year$2021.$ Through careful research, Ms$.$ Thomas detemines that the publishing industry nors for operating and cash cycles are $60$ days and $35$ days, respectively. Assume $365$ days a year.Mr$.$ Simpson is looking far arwers to the following questions:&$.$ New Word Sette Blydes las a net $30$ credit palicy on its credit sales. Sirty$-$fire per cent of its credit customers pay within the medit period, sta the rest of be credit customers delaying their payments by $10$ days past the credit penod. Use an aging schedule tocalaulate the axtount rece rable for the year end of $2021.$b$.$ Dn aveage tow long does merthantise stay around before it i sold?c$.$ On assage how long does it take hew Word Eletric Bicyces to colett on its receivables?d$.$ On average how long does the company take to pay is bile? e iNtat is New World Electic Bicyder's operatung cyde?E$.$ What is New Word Electric Bicyder's cash cy de$?$g$.$ Deine operating cyde and cost cycleWhat does companng the company's cash cyce with the industry norm tell us about the company's credit policy? Is there a problem with the company's short$-$term financing policy? Why or why not? If there is a problem with the company's short$-$term financing policy, how could this problem be addressed?