Below are the working capital accounts for HIG, Inc. as of the end of 2018 and 2019. Sales for 2018 and 2019 were $6,500,000 and $7,000,000, respectively. Cost of goods sold for 2018 and 2019 was $3,950,000 and $4,500,000, respectively.

1) Based on the changes in these accounts, what is the change of cash from working capital in 2019?

2) What was the days sales outstanding in accounts receivable for 2019?

3) What is the inventory turnover for 2019?

4) If days sales in accounts receivable were reduced, is this better or worse working capital management?

5) If inventory turnover was reduced, is this better or worse working capital management?

$ Accounts receivable Inventory Prepaid expenses Accounts payable Accrued expenses 2018 535,000 $ 619,000 38,000 516,000 264,000 2019 562,000 $ 605,000 43,000 562,000 254,000 Cash + (-) (27,000) 14,000 (5,000) 46,000 (10,000)