J&H Corp. recently hired Jeffrey. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate potential investment in working capital. He has the income statement from last year and the following information from the company's financial reports as well as some industry averages Last year, J&H Corp. reported a book value of $750 million in current assets, of which 10% is cash, 12% is short-term investments, and the rest is accounts receivable and inventory . The company reported $637.5 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year. There were no changes in the accounts payables during the reporting period . The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $1,200 million in long-term assets last year. Income Statement For the Year Ended on December 31 (Millions of dollars) Industry Average J&H Corp. $2,300 1,840 92 1,932 $368 37 $331 132 $199 $2,875 2,300 115 2,415 $460 69 $391 156 $235 Net sales Operating costs, except depreciation and amortization Depreciation and amortization Total operating costs Operating income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net income J&H Corp. recently hired Jeffrey. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate potential investment in working capital. He has the income statement from last year and the following information from the company's financial reports as well as some industry averages Last year, J&H Corp. reported a book value of $750 million in current assets, of which 10% is cash, 12% is short-term investments, and the rest is accounts receivable and inventory . The company reported $637.5 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year. There were no changes in the accounts payables during the reporting period . The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $1,200 million in long-term assets last year. Income Statement For the Year Ended on December 31 (Millions of dollars) Industry Average J&H Corp. $2,300 1,840 92 1,932 $368 37 $331 132 $199 $2,875 2,300 115 2,415 $460 69 $391 156 $235 Net sales Operating costs, except depreciation and amortization Depreciation and amortization Total operating costs Operating income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net income