7. Analyzing accounting data for managerial decisions Accounting data are used to analyze cash flows, and this analysis is critical for decision making. Consider the following case: 38H Corp. recently hired Jeffrey, His immediate mandate was to analyze the company. He has to submit a report on the company's operetionai efficiency and estimate potential investment in working capital, He has the income statement from last year and the foliowing information from the company's financial reports as well as some industry averages. - Last year, J8H Corp. reported a book value of $300 million in current assets, of which 25% is cash, 27% is short-term invertments, and the rest is accounts receivable and inventory. - The company reported $255.0 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year, There were no changes in the accounts payables during the reporting period. - The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $480 millian in long-term assets last year. Based on the information given to Jeffrey, he submits a report on January 1 with some important caiculations for management to use, both for analysis and to devise an ection plan. Which of the following statements in his report are true? Check all that apply. Based on the information on industry averages, JsH Corp. would generate Nigher profits than the other plavers in the industry if all plaven were of a similar size and had no debt or held no financial assets. The firm uses $444.0 million of total net operating capital to run the busineis. The company has no notes payabie reported in its batance sheet, so all its current liabilities are its operating liabities. Bosed din the information on industry averages, other players in the industry would ounerate higher profits than JsH Corp. if they fad no debt and held no financial astets. The company is using $36,0 millien in net operating working capital acquired by imvestor-supolied funds