Required: Use these data to answer each of the following questions with explanations: a) Is it becoming easier for the company to meet its current debts on time and to take advantage of cash b) discounts? c) Is the company collecting its accounts receivable more rapidly over time? d) Is the company's investment in accounts receivable decreasing? c) Are dollars invested in inventory increasing? ) Is the company's investment in plant assets increasing? g) Is the owner's investment becoming more profitable? h) Is the company using its assets efficiently? i) Did the dollar amount of selling expenses decrease during the three-year period?

Which activity decreases cash? Increasing current liabilities Decreasing fixed assets Increasing long-term debt Decreasing equity

A partial adjusted trial balance of Pharoah Company at January 31, 2022, shows the following. PHAROAH COMPANY Adjusted Trial Balance January 31, 2022 Debit Supplies Prepaid Insurance Salaries and Wages Payable Unearned Service Revenue Supplies Expense Insurance Expense Salaries and Wages Expense Service Revenue Total premium $900 2,400 Purchase date 800 400 3,200 Salaries and wages payable Credit Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry and $1,000 of supplies was purchased in January, what was the balance in Supplies on January 1? Supplies balance $ $900 (b) If the amount in Insurance Expense is the January 31 adjusting entry and the original insurance premium was for 1 year, what was the total premium and when was the policy purchased? 750 $ 2,300 20 5 (c) If $3,300 of salaries owed were paid in January, what was the balance in Salaries and Wages Payable at December 31, 2021? 2

What are some tools that companies have to manage their (net operating) working capital?  Provide examples of inventory and receivables management techniques.  What is the Cash Conversion Cycle and why is this a useful metric?  Are there risks if this is too low?