True or False?

Year-end #1: Sales 200 (gross margin 50%) and Cash 0 = + long-term debt 100 + capital stock 100 + opening retained earnings 50 + net income 50 + accounts payable 100 accounts receivable 150 inventory 50 fixed assets 200.

Year-end #2: Sales 200 (gross margin 50%) and 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

The companys working capital policy changes helped operations and fostered investment in core long-term assets.