Page 1 Case Link Question (10) Directions: click the Case Link above and use the information provided in Brook Plumbing Supply Company, Inc, Part B, to answer this question: Which of the following contributed most to Brook Plumbing's financing need in 20Y3? This is a single choice question. Selections are automatically selected as you use arrow to move. Change due to the 4.19 day increase in inventory days on hand tlays for dividend payments or owners' withdrawals O Change in amount of net income O Change in the amount of financing provided by accounts payable and accrued expenses Mark for review Submit Brook Plumbing Supply Company, Inc. Brook Plumbing Supply Company, Inc. The following case information includes: . Part A Company information . Part B Balance sheets > Income statements Monthly sales figures Quick cash flow . Part C Agings of accounts receivable > Brook Plumbing Supply Company, Inc. Part B Brook Plumbing Supply Company, Inc. Balance Sheets in $000s) As At December 31: 20Y3 20Y2 ASSETS Current assets Cash and equivalents Accounts receivable Inventory Other current assets $ 110 154 s 97 770 785 1,075 40 2,010 885 1,020 Total current assets 1,870 2,025 Fixed assets Gross fixed assets Less: Accumulated depreciation 331 100 231 335 Net fixed assets Other noncurrent assets 97 95 TOTALASSETS $ 2,325 2,2002,358 LIABILITIES AND EQUITY Current liabilities Accounts payable Accrued expenses Other current liabilities Notes payable Current portion-LTD $473 $ 528 $ 551 136 91 592 62 1,354 143 490 Total current liabilities 1,322 Long-term debt 143 277 Other noncurrent liabilities 35 37 Owners' equity 793 636 663 TOTAL LIABILITIES AND EQUITY $ 2,325 2,200 2,358 Brook Plumbing Supply Company, Ine. Part B Brook Plumbing Supply Company, Inc. Income Statements in $000s) Years Ended December 31 20Y3 20Y2 20Y1 Sales Cost of goods sold $ 6,504 5,801 5,120 3,661 1,459 1.690 1543 1.684 4,258 1,543 4,814 Gross profit General and administrative expense Selling expense Interest expense 417 5851 197 Profit before taxes Provision for income taxes 146 Net income 157$ 102 $ Depreciation in general and administrative expenses Brook Plumbing Supply Company, Inc. Monthly Sales (in $000s) 20Y3 20Y2 405 398 January February 405 450 455 496 575 610 615 545 570 590 August September 459 November December 465 grook Plumbing Supply Company, Ine. Part B Quick Cash Flow (in $000s) y Name Br GFA (U S 20Y2 20Y3 Net profit Plus: Depreclation, amortization expense Plus (or less A Working investment 157 102 12 198 Plus for less) A Gross fixed assets Less: Dividends declared Less Current portion long-term debt (orior year65 Equa's: Cash after operating cycle Equals: Cash after capital investment cycle Equals: Cash available for al debt repayment Equals: Cash available for other debt repayment Change in working investment Accounts receivable (net) Plus: Inventory Less: Accounts payable Less: Accrued expenses 236 BEGINNING ENDING 885 1.020 551 155 1,199 902 528 143 1,001 Equals: Working investment Beginning working investment Less: Ending working investment 1.199 1,001 198 Equals working investment 20Y2 Change in working investment Accounts receivable (net) Plus: InventorY Loss: Accounts payable Less: Accrued expenses BEGINNING ENDING Equals Working investment Beginning working investmert Less: Ending working investment 20Y3 Equals: A Working investment Change in working investment Accounts receivable (net) Plus Inventory Less Accounts payable Less Accrued expenses BEGINNING ENDING Equals: Working investment Beginning working investment Less: Ending working investment Equals: A Working investment Are any changes in income taxes payable, interest payable, prepaid expenses, investments, or miscellaneous other accounts large enough to distort quick cash flow? mbing Supply Company, Inc. plu Part C Brook Plumbing Supply Company, Inc. Agings of Accounts Recelvable 20Y3: March 31 June 30 Days from Date Total Invoices of Invoiceoutstanding Days from Date of Invoice Total Invoices 0-30 31-60 61-90 90+ Total accounts $250,000 310,000 130,000 0-30 31-60 61-90 90+ Total accounts receivable Outstanding $ 360,000 330,000 70,000 receivable $790100 December 31 September 30 Days from Date of Invoice 0-30 31-60 61-90 90+ Total accounts receivable Total Invoices Days from Date of Invoice Total Invoices Outstanding 0-30 31-60 61-90 90+ Total accounts $ 300,000 310,000 125,500 s345,000 205,000 185,000 $ 785.400 receivable 95,500 Note: Terms are net 60 days