Question 1 - 6 marks The following items were taken from the February 29, 2020 financial statements of Emily Inc. Emily Inc's year end is February 29, 2020 Account Name Amount Accounts payable 57,000 Accounts receivable 86,500 Accumulated Depreciation-Equip. 30,000 Administrative Expenses 73,400 Advertising Expense 24,000 Bad Debts Expense 10,800 Capital Stock 40,000 Cash 17,800 Cost of Goods Sold 143,000 Equipment 60,000 Inventory 122,800 Land 36,000 Notes payable (due July 30, 2029) 103,600 Salaries Expense 96,000 Sales 400,200 Supplies 23,200 Unearned Revenue 52,600 The retained earnings balance at the beginning of the year was $18,100. Dividends of $8,000 were paid during the year. Required: Prepare financial statements (Balance Sheet and Income Statement) Calculate working capital. What is the significance of Emily Inc's working capital