Given the Following Information, Calculate for Year 2 the Number

question 32

Essay

Given the following information, calculate for Year 2 the number of days of working capital financing the firm will need to obtain from other sources?
$\begin{array}{llcc} &\text {Year 1 } & \text {Year 2 }\\ \text { Accounts Receivable, net } &\$518&\$562\\ \text {Accounts Payable } &203&192\\ \text {Inventory } &535&564\\\\ \text { Credit Sales } &3,205&3,636\\ \text { Cost of GoodsSold. } &2,037&2,294\\ \text {Selling and Admin Expense } &1,081&1,131\end{array}$

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Definitions:

Owners' Initial Investment

The initial amount of money or resources contributed by the owners to start a business.

Profits

The profit made when the money earned from business operations is more than the expenses, costs, and taxes needed to maintain the operations.

Open Book Management

Practice of sharing financial information with employees and teaching them how to understand and use financial statements.

Financial Information

Data regarding the financial performance and position of an individual or entity, including statements, reports, budgets, and financial indicators.