ABC Manufacturing is assessing its working capital requirements. The following information is available:

• Accounts Receivable: $25,000
• Inventory: $35,000
• Accounts Payable: $15,000
• Cash: $10,000
• Short-term Debt: $5,000

Requirements:

1. Calculate the Net Working Capital.
2. Determine the Current Ratio and Quick Ratio.
3. Analyze the liquidity position.
4. Suggest improvements for working capital management.

Evaluate the impact of a proposed change in credit policy.