Given the importance of working capital management, consider the case of Speedy Duck Motor Inc. and both the amount of working capital that it is using being used in the firm and explore the prospects of how its working capital will be financed. Speedy Duck Motor Inc. reported the following results for current assets and liabilities on its most recent balance sheets. Interestingly, the companys sales did not changeit reported sales of $11,100 for its most recent year as well as for last year.

The columns labeled Ending ($) show results at the end of the most recent year, and the columns labeled Beginning ($) show results at the end of the previous year:

Beginning Ending Current assets

Cash $2,600 $5,000

Accounts receivable 5,000 4,000

Inventory 3,900 3,400

Current liabilities

Accounts payable $4,800 $4,900

Notes payable 3,200 3,600

Accruals 0 0

Using the information given and a 365-day year, calculate days of working capital, net working capital, and net operating working capital for Speedy Duck Motor. Use your calculations to complete the following statements, and round your numerical responses to two decimal places.

Speedy Ducks days of working capital improved from 292.67,101.94,202.23,134.82 days in the previous year to 115.09,98.65,123.32,82.21 days at the end of the most recent year.

The companys net working capital increased from $3,500.00 in the previous year to 4,680.00,3900.00,4400.00,3000.00 at the end of last year.

Speedy Ducks net operating working capital increased from 8,040.00,5360.00,4020.00,6700.00 in the previous year to $7,500.00 at the end of last year. Consider the following statement: Assuming that other things like sales remain constant, Speedy Duck can lower its days of working capital by reducing accounts receivable and inventory and increasing its accounts payable.

Based on your understanding of Speedy Duck Motors working capital, operating assets, and nonoperating assets, is this statement true or false? This statement is true. This statement is false.