t or f?

Year-end #1: Cash 0 = + long-term debt 200 + capital stock 100 + opening retained earnings 50 + net income 50 + accounts payable 100 accounts receivable 150 inventory 50 fixed assets 300.

Year-end #2: Cash 0 = + long-term debt 100 + capital stock 100 + opening retained earnings 100 + net income 0 + accounts payable 150 accounts receivable 100 inventory 50 - fixed assets 300. Working capital policy changes improved cash, which was used to pay down debt.