Balance Sheet and Income Statements Assignment
February 19th, 2020
ABC's balance sheet and income statements for the years ending December 31, 20Y1 and 20Y2: (in thousand)
20Y1 20Y2
Accounts receivable $ 770 $ 785
Inventory 902 1,075
Accounts payable $ 528 $ 473
Accrued expenses 143 136
Sales $ 5,801 $ 6,504
Cost of goods sold 4,258 4,814
What approximate effect did the change in the payment period during 20Y2 have on ABC's financing needs?
a. Financing requirements decreased by a range of $120,000 to $130,000.
b. Financing requirements increased by by a range of $120,000 to $130,000.
c. Financing requirements decreased by a range of $75,000 to $80,000.
d. Financing requirements increased by a range of $165,000 to $170,000. .