ASSUMPTIONS (current assets shaded) Cash & Equivalents Accounts Receivable Inventory Net Fixed Assets Total Assets Problems J. WASHAM CALCULATORS BALANCE SHEETS 2007 2008 2009 2010 $75 $75 $90 $100 300 400 600 550 150 250 350 250 525 575 610 540 $1,050 $1,300 $1,650 $1,440 2011 $100 500 250 465 $1,315 $125 $250 $175 162 165 178 (current liabilities shaded) Accounts Payable Notes Payable Accrued Operating Exp Long-Term Debt Shareholders Equity Total Liabilities & NW 60 165 161 400 $225 $200 136 99 89 76 100 50 890.2 890.2 $1,440 $1,315 898 300 500 200 $1,050 402 757.2 $1,650 $1,300 42 | Short-Term Financial Management $1,500 600 $2,250 900 INCOME STATEMENTS $3,000 $2,000 $1,500 1,200 800 600 895 750 725 600 797 35 50 65 70 75 Revenues (Sales) Cost of Goods Sold Operating Expenses Depreciation Interest Taxes Net Profit Dividends 30 33 28 25 10 94 188 325 142 36 141 282 487.2 213 54 40 80 132 80 54 40 80 132 80 54 1. Use the information contained in J. Washam's financial statements to solve the following problems. a. Calculate the current ratio, quick ratio, net working capital, and working capital require- ments for each of the five years. Discuss and interpret the trends observed. b. Calculate the cash conversion period for each year and interpret the trend