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Please answer even the one that is selected. I have updated the question Universal Drapers Inc. reported the following results for current assets and liabilities
Please answer even the one that is selected. I have updated the question
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 $22,200 for its most recent year as well as for last year. The columns labeled "Ending ($)" 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 ($) Beginning ($) Ending ($) Current assets Cash Accounts receivable Inventory 5,200 10,000 7,800 10,000 8,000 6,800 Current liabilities Accounts payable Notes payable Accruals 9,600 6,400 0 9,800 7,200 0 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 the previous year to days at the end of the most recent year. The company's net working capital increased from $7,000.00 in the previous year to at the end of last year. Universal Drapers Inc.'s net operating working capital increased from in the previous year to $15,000.00 at the end of last year. Consider the following statement: Assuming that other things like sales remain constant, Universal Drapers Inc. can lower its days of working capital by reducing accounts receivable and inventory and increasing its accounts payable. Based on your understanding of working capital, operating assets, and nonoperating assets, identify whether the preceding statement is true for Universal Drapers Inc. This statement is true for Universal Drapers Inc. This statement is false for Universal Drapers IncStep by Step Solution
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