Learning Goal: I'm working on a management writing question and need an explanation and answer to help me learn.SHORT-TERM FINANCING AND INTERNATIONAL CORPORATE FINANCEBuddha Tamang is the manager in charge of short-term finance and planning for Exotic Cuisines Inc, a restaurant chain that specializes in exotic main dishes, using ingredients such as alligator, buffalo, and ostrich. The restaurant operates in the United States and plans to open another chain in an emerging country, called Zana. The board of the company is considering ways to improve the working capital management of the company. They are also discussing various sources of short-term financing and the minimum amount of money to borrow in the short-term to finance inventory and accounts receivable associated with revenue growth. Buddha met the board in a meeting yesterday and opened the meeting with the statement that the company must investigate its cash cycle and find ways to improve it because he has noticed a deterioration in the cash flow management of the firm.Buddha was worried that the inventory period of the company increased from 50 days two years ago to 60 days in previous year and the accounts receivable period also increased from 27 days last two years to 30 days the previous year whilst the accounts payable period remains the same at 40 days. He explained that if the two components of cash cycle i.e., operating cycle and accounts payable period are not improved, the company might need to borrow $2.5 million short-term next year to fill the gap between short-term cash inflows and cash outflows.Buddha has collected the following information for Exotic Cuisines Inc for the year 2020.ItemBeginningEndingInventory 6,000 8,200Accounts receivable 2,800 3,200Accounts payable 3,820 5,840Credit sales for the year just ended were $75,000, and cost of goods sold was $40,000.Buddha explained that the company can change some aspects of its short-term financial policy and find alternative financing policies to fund current assets to improve its working capital management.1. Calculate the following utilization ratios for Exotic Cuisines Inc. i. inventory period ii. receivables periodiii. payables period2. Using the utilization ratios, the board chairman wants you to calculate the following and explain what they mean: i). Operating cycle of the company for 2020 ii). Cash cycle of the company for 20203. The company wants to increase its cash position. Explain to the board if the following activities increase or decrease cash:i. increasing long-term debtii. increasing current liabilitiesiii. increasing current assets other than cashiv. increasing equity (i.e., selling some stock)v. increasing cash dividend payments4. The board is concerned that the net working capital might be declining and not meet the $2 million minimum requirement of the company. The company has a cash balance of $3 million and other current assets of $2.8 million and current liabilities of $3.3 million. Should the board worry about the company’s net working capital?5. The cash budget shows that the Exotic Cuisines will need $2.5 million to finance its working capital needs in next three years. List five sources of short-term financing the company can use to raise the money.6. Exotic Cuisines Inc. is considering the establishment of a manufacturing plant in Zana, a small West African country with a population of about 30.5 million. The cost of the project is $5 million. The country’s currency is the cedi, and it is traded against most foreign currencies including the U.S. dollar. The exchange rate between the cedi and the U.S. dollar is quoted in the forex market as: U.S. $1 = ZC5.50.Based on the exchange rate between the cedi and the U.S. dollar, what is the cost of the project in Zanaian cedis?7. According to the theory of relative purchasing power parity, if inflation in Zana is predicted to be 9% over the next three years whereas the U.S. inflation rate will be 3%, what will be the exchange rate in three years?8. Based on the answer to question 7 above, the board wants to know whether the cedi will depreciate or appreciate. (Choose one: depreciate or appreciate) and why?9. The shareholders of Exotic Cuisines Inc. want to know the benefits of doing international business in emerging economy like Zana. List four advantages that can convince the shareholders of Exotic Cuisines to accept the project in Zana.10. The shareholders also want to know some of the risks associated with doing business in emerging economies like Zana. Explain three risks Exotic Cuisines Inc. is likely to face if it goes ahead with the project in Zana?