1. Basic concepts Aa During the wake of the financial crisis, Ben Bernanke, chairman of the Federal Reserve, said that "shortening the cash cycle and better use of working capital" are the most important factors as private-sector businesses struggle to overcome the current economic volatility and difficulty in accessing capital markets (IBM Global Business Services, "Managing Working Capital in the New Economic Environment," http://www-935.ibm.com/services/uk/bcs/pdf/working capital paper pdf) Considering how important working capital management is, Tun Fuels Co. decided to evaluate the amount of warking capital being used in the firm and explore the prospects of how its working capital will be financed. Tun Fuels Co, reported the following results for current assets and liabilities on its most recent balance sheets. Interestingly, the company's sales did not change-it reported sales of $16,650 for its most recent year as well as for the previous year. The columins labelled "Ending (5) show results at the end of the most recent year, and the columns labeiled "Beginning ($)"show results at the end of the previous year. Ending ($) Beginning (s) Ending (S) Beginning (s) Current labilities Current assets 7,200 4,800 7350 5.400 7,500 Accounts payable Cash Accounts receivable Inventony 7,500 S,B50 6,000 Notes payable 5,100 Accruals and net operating working capital for Tun Using the information given and a 365-day Fuels Co. Use your calculatians to complete the following statements davs at the ond of the days in the previous year to . Tun Fuels Co's days of working capital improved from moat recent year The compony's not working capital increased from $5,250.00 n tho previous year t at the end of last yea in the previous year to S250.00tr, sod of aut . Tun Fuels Co's net aperating working capitol increased trom 6,030 00 8,040.00 10,050 00 pe here to searc