Questions : 1 Using the balance sheet on the next slide can you: 1. illustrate the balance sheet identity? 2. compute the net working capital? Use Year 2 values. Understanding a Balance Sheet o Miller Tooling Balance Sheets Assets Liabilities & Owners' Equity Year 1 Year 2 Year 1 Year 2 Cash $208 $257 Accounts payable $273 $ 303 Accounts receivable 517 489 Notes payable 325 Inventory 784 1,118 Total 598 303 Total 1,509 1,864 Long-term debt 820 1,205 Net fixed assets 2,4381 2,501 Total 1,418 1,508 Common stock & surplus 1,200 1,350 Retained earnings 1,329 1,507 Total 2,529 2,857 Total assets $3,947 $4,365 Total liabilities and equity $3,947 $4,365