5 Below are the working capital accounts for HIG, Inc. as of the end of 2018 and 2019. Sales for 2018 and 2019 were $6,500,000 and $7,000,000, respectively. Cost of 6 goods sold for 2018 und 2019 was $3,950,000 and $4,500,000, respectively. 7 8 1) Based on the changes in these accounts, what is the change of cash from working capital in 2019? 9 2) What was the days sales outstanding in accounts receivable for 2019? 10 4) Lf days sales in accounts receivable were reduced, is this better at worse working capital management? 11 5) If inventory turnover was reduced, is this better or worse working capital management? 12 13 14 2018 2012 Cash/ 15 Accounts receivable $35,000 $ 562,000 $ (27,000) 16 Inventory 619,000 605,000 14,000 17 Prepaid expenses 38,000 43,000 (5,000) 18 Accounts payable 516,000 562,000 46,000 19 Accrued expenses 264,000 254,000 (10,000) 20 21 FILL IN THE GRAY AREAS TO GET CREDIT 22 Answer 23 ) Cuth change (2 points) 24 25 Answer 26 ?) Dayt sales in secounts receivable (polnts) 273) Inventory turnover (points) 28 30 Answer (write down "Better" or "Worse" below) 31 4 Lower Days sales in accounts receivable is better or worse management point) 325) Lower Inventory turnover is better or worse management (1 point) 33 34 35 36