Based on your review of the financial statements, what was the major reason that the company's borrowing need increased in 20Y3?

A) increase in inventory

B) dividends paid

C) fixed asset purchases

Part B Revolutionary Designs, Inc. Revolutionary Designs, Inc. Balance Sheets (Common Size) in $000s) As At December 31 20Y2 20Y1 Current assets Cash and equivalents Accounts receiva $ 310 95 1,194 36.6 230 7.8 221 8.6 794 311 846 288 501 15.4 452 13.9 146 4.5 1.099 33.7 611 20.8 409 13.9 156 5.3 1176 40.0 440 17.2 275 10.8 156 6.1 871 34.1 Raw materials Work in process Finished goods Total inventory Other current assets 23 0.9 36 1.1 2,639 80.9 41 1.4 2.293 78.1 Total current assets 1,909 74.7 Gross fixed assets 699 214 723 24.6 99 3.4 624 21.2 701 274 89 3.5 612 24.0 Less: Accumulated depreciation Net fixed assets 582 178 Patents and trademarks 40 1.2 20.7 34 1.3 TOTAL ASSETS s 3,261 1000 2,937 100.0 2,555 100.0 LIABILITIES AND EQUITY Current liabilities Current portion-LTD Notes payable Note payable Jack Newsome-subordinated $ 19 0.6 19 0.6 $ 810 24.8 200 6.1 1053 32.3 288 8.8 11 0.3 2,381 73.0 775 26.4 200 6.8 834 28.4 207 7.0 25 0.9 2.060 70.1 745 29.2 200 78 551 21.6 155 6.1 Accounts payable Accrued expenses Other current liabilities 12 0.5 1,682 65.8 Total current liabilities 169 5.8 0.1 175 6.8 Long term debt Other noncurrent liabilities 162 5.0 3 0.1 Total liabilities 2,546 2,232 1,860 wners' equity 715 21.9 705 24.0 695 27.2 TAL LIABILITIES AND EQUITY 3,261 100.0 2,937 100.0 2,555 100.0