Problem 3 ABC Manufacturing Current Assets: Cash in the bank: $100,000 . Outstanding accounts receivable: $400,000 . Inventory: $500,000 ABC Manufacturing Current Liabilities: Outstanding accounts payable: $300,000 Short-term debt payments due this year: $30,000 Portion of long-term debt due this year: $25,000 Other accrued expenses for this year (e.g., rent, payroll, etc.): $400,000 Compute the net working capital Problem 4 The following data are taken from the financial statements of Duncan Company: 2003 2002 Monthly average accounts receivable $ 520,000 $ 500,000 Net sales on account 5,200,000 4,500,000 Terms for all sales are 210, nl30 Instructions (a) Compute the accounts receivable turnover and the average collection period for both years. (b) What conclusion can an analyst draw about the management of the accounts receivable? Problem 5 Determine optimal number of needles to order D = 1,000 units 8 = $10 per order H = $.50 per unit per year