Problem 5-5 (similar to) Consider the financial statements for Ace Inc. B. Given the following data: Inventory days Receivable days Payable days Year 1 38.2 44.7 31.0 Year 2 44.1 41.6 35.0 Estimate the working capital gap for each year. The working capital gap for year 1 is days. (Round to one decimal place.) Year 2 Ace Inc. Income Statements (5000s) Year 1 Sales $250,990 Cost of goods sold 164,890 Gross margin 86,100 Selling & admin expenses 68,220 Depreciation 13,330 Operating income 4,550 Interest expense 910 Profit before tax 3,640 Income tax (at 35%) 1,274 Net income $2,366 $289,130 172,500 116,630 75,550 14,630 26,450 830 25,620 8,967 $16,653 Common dividend paid $1,010 $1,010 Ace Inc. Balance Sheets at December 31 (5000s) Year 1 Year 2 Cash $2,310 $3,483 Accounts receivable 30,720 32,960 Inventories 17.250 20,820 Total current assets 50,280 57,263 Net property & equipment 19.920 23.090 Total assets $70,200 $80,353 Notes payable: bank Accounts payable Total current liabilities Long-term debt Common equity Total liabilities and equity $20,180 14.020 34.200 21,890 14.110 $70,200 $13,490 16.520 30.010 20,590 29,753 $80,353