SEASONAL VS. PERMANENT WORKING CAPITAL ACTIVITY 5-4: IDENTIFYING SEASONAL VS. PERMANENT WORKING CAPITAL NEEDS Using Payne Equipment's Interim Data for FY 02/14 from CS 5-3. Complete the following steps below: Step 1: Review the NP-Bk line (Notes Payable - Bank) and circle the lowest and highest amount of notes payable in use during the fiscal year. Step 2: Review the Adj WC line (Adjusted Working Capital) and circle the lowest and highest amount during the fiscal year. Using the information you circled, please answer the following questions: 1. What is the dollar difference between the low point and high point of Payne's adjusted working capital (AWC)? 2. What causes the increase in AWC to the high point and the subsequent reduction by fiscal year-end? 3. What is the dollar difference between the low point and high point of Notes Payable-Bank? 4. What is the revolving credit being used to support as it increases through the year? 5. How was Payne able to reduce the Notes Payable-Bank after borrowings reached their high point? 6. Was the revolving credit fully repaid during the year? 7. What was the revolving credit supporting at the low point of usage? Is the revolving credit an appropriate facility to meet this need? 8. What sources might be available and appropriate to support permanent working capital? PAYNE EQUIPMENT LLC (000) - INTERIM DATA