Solve the Dilemma Below Glasspray Corporation is a small firm that makes industrial fiberglass spray equipment for a range of firms: Mom-and-pop boat makers Major industrial giants (overseas and here at home) Nearly every molded fiberglass resin product is constructed with the help of one or more of the companys machines Repeatedly runs into trouble with regard to the management of its current assets and liabilities as a result of extremely rapid and consistent increases in year-to- year sales President and founder Stephen T. Rose: Lamented the sad state of his firms working capital position Our current assets arent and our current liabilities are! To the top officers: We cant afford any more increases in sales! Were selling our way into bankruptcy! Frankly, our working capital doesnt!

Critical Thinking Questions Using complete sentences, please answer these questions related to the dilemma

7. What are the important components of a firms working capital-- current assets? 8. What are the important components of a firms working capital-- current liabilities?