The balance sheet of the Oliva Manufacturing Company on June 30, 1988, is shown. During the next quarter, Oliva has gross sales of Rs.905,000, sells inventory valued at Rs.600,000, and manufactures Rs.620,000 of new inventory. They collect Rs. 780,000 of outstanding ac­counts receivable and extend new credit in the amount of Rs.801,000. Net income for the period is Rs.84,000, of which Rs.63,000 paid in dividends. None of other accounts have changed (except cash).
                                                                       
                                                               

(a)   Construct a balance sheet as of September 30, 1988.

(b)   What was the level of net working capital on June 30, 1988 ?

Cash Accounts payable Notes payable 221,000 417,000 Accounts receivable 385.000 217,000 Inventory 526,000 Current liabilities 634,000 Long-term debt Common equity Total equities Current assets 1,132,000 800,000 Net fixed assets 1,311,000 2,745,000 1,613,000 Total assets 2,745,000