During the wake of the financial crisis, Ben Bernanke, chairman of the Federal Reserve, said that "shortening the cash cycle and better use of working capital" are the most important factors as private-sector businesses struggle to overcome the current economic volatility and difficulty in accessing capital markets (1BM Global Business Services, "Managing Working Capital in the New Economic Environment," http://www935.ibm.com/services/uk/bcs/pdt/working_capital_paper.pdf). Considering how important working captal management is, Universal Drapers inc. decided to evaluate the amount of working capital being used in the firm and explore the prospects of how its working capital will be financed. Universal Drapers Inc. reported the following resuls for current assets and liabilities on its most fecent balance sheets. tnterestingly, the company/s sales did not change-it reported sales of $27,750 for 2021 as well as for 2020 . Using the information given and a 365 -doy year, calculate days of working capital, net working capital, and net operating working capital for Universal Drapers Inc. Use your calculations to complete the following statements: - Universal Drapers Inc's days of working capital improved frem dars in 2020 to dars at the end of 2021 . - The company's net working cepital increased from $8,750.00 in 2020 to at the end of 2021 . - Universal Drapers Incis net operating working capital increased from in 2020 to $18,750.00 at the end of 2021 . capital" are the most important factors as private-sector businesses struggle to overcome the current economic volatility and difficulty in accessing capital markets (IBM Global Business Services, "Managing Working Capital in the New Economic Environment," http://www935.lbm.com/services/uk/bes/pdf/working_capital_paper.pdf). Considering how important working capital management is, Universal Drapers Inc. decided to evaluate the amount of working capital being used in the firm and explore the prospects of how its working capital will be financed. Universal Drapers Inc. reported the following results for current assets and liabilities on its most recent balance sheets. Interestingly, the company's sales did not change-it reported sales of $27,750 for 2021 as well as for 2020 . Using the information given and a 365-day year, calculate days of working capital, net working capital, and net operating working capital for Universal Drapers Inc. Use your calculations to complete the following statements: - Universal Drapers Inc.'s days of working capital improved from days in 2020 to days at the end of 2021 . - The company's net working capital increased from $8,750.00 in 2020 to at the end of 2021. - Universal Drapers Incis net operating working capital increased from in 2020 to $18,750.00 at the end of 2021
