Which of the following contributed most to Hearth and Home's financing need in 20Y3?

A) change in net income after tax

B) outlays for dividend payments

C) increase in accounts receivable days on hand of 1.58 days

D) change in amount of accounts payable and accrued expenses

Hearth and Home

Balance Sheets

(in $000s)

As at June 30:

	20Y3	20Y2	20Y1
ASSETS
Current assets
Cash	$66	$123	$100
Accounts receivable	376	303	240
Inventory	547	461	417
Other current assets	107	70	117
Total current assets	1,096	957	874
Fixed assets	313	257	245
Trademarks and goodwill	107	71	71
TOTAL ASSETS	$1,516	$1,285	$1,190
LIABILITIES AND OWNERS EQUITY
Current liabilities
Current portion-LTD	$67	$67	$67
Notes payable	101	5	0
Accounts payable	244	204	148
Accrued expenses	69	64	57
Other current liabilities	46	28	47
Total current liabilities	527	368	319
Long-term debt	330	397	464
Other noncurrent liabilities	20	19	18
Owners equity	639	501	389
TOTAL LIABILITIES AND OWNERS EQUITY	$1,516	$1,285	$1,190
Working investments	$610	$496	$452

Hearth and Home

Income Statements

(in $000s)

Years ended June 30:

	20Y3	20Y2	20Y1
Sales	$3,570	$3,000	$2,500
COGS	2,467	2,093	1,773
Gross profit	1,103	907	727
Interest expense	36	33	36
Depreciation expense	60	52	50
Operating expense	586	477	371
Profit before taxes	421	345	270
Taxes	188	149	108
Net profit after taxes	$233	$196	$162
Dividends	95	84	65
Earnings retained	$138	$112	$97

Hearth and Home Part B Quick Cash Flow (in $000s) Company Name: Hearth and Home Net profit Plus: Depreciation, amortiration expens9 Pus for less A werking investment Plus for lesss A Gross fxed assets Eguas cash after capital investment ace Less Dividends declared Equas Cash avalable for all debt repayment Less: Current portion long term debt (prier year) Equals Cash availble for other debt repayment Change in working investment BEGINNING ENDING Accounts recevable fnet) Plus: Inventory Less Accounts payabie Less: Accrued expenses Equa's Working investment Beginning working investment Less. Ending working investment 20Y2 Equals: A Working investment BEGINNING ENDING Change in working investment Accounts receivable (net) Plus: Inventory Less Accounts payable Loss: Acerued expenses 303 376 547 204 69 610 Equals: Working investment Beginning working investment Less: Ending working investment 4964 114) 20Y3 Equals, a working investment BEGINNING ENDING Change in working investment Accounts receivable (net Plus Inventory Less: Accounts payable Less: Accrued expenses Equa's: Working investment Beginning working investment Less: Ending working investment Equals: Working investment Are any changes in income taxes payable, interest payable, prepaid expenses, investments, or miscellaneous other accounts large enough to distort quick cash flow