Case Link uestion (10) irections: Click the Case Link above and use the information provide umbing Supply Company, Inc, Part B, to an swer this question: hich of the following contributed most to Brook Plumbing's financing need in Y3? you use arrow to move. s is a single choice question. Selections are automatically selected as X Change due to the 4.19 day increase in inventory days on hand borta tlays for dividend payments or owners' withdrawals hange in amount of net income ange in the amount of financing provided by accounts payable and accrued expenses for review Brook Plumbing Supply Company, Inc. Brook Plumbing Supply Company, Inc. he following case information includes: Part A Company information Part B Balance sheets Income statements Monthly sales figures Quick cash flow rt Agings of accounts receivable 0 Brook Plumbing Supply Company, Inc. Part A Company Information Brook Plumbing Supply Company is a wholesale distributor of plumbing products to building contractors and the trades. The company sells nearly all the parts and tools that plumbing companies need; it also sells to retail customers. Brook Plumbing was started and is owned by two brothers, Sam and David Brook, and has been in business for more than 25 years. The brothers have always nanaged all significant areas of the business without assistance. Brook's main office and warehouse re located in a medium-sized city. The company also has a branch sales office in a nearby mmunity ook purchases plumbing supplies directly from manufacturers' representatives. Since almost all of products are generic, the Brooks use several different sources. A recent trade checking shows m to be discount-to-prompt with all vendors. k Plumbing competes with other local building supply and plumbing wholesalers and hardware s, and several national chain stores k has built a reputation for meeting the special needs of local contractors and the trade- ners who require fast service, credit, and product expertise. Brook's sales representatives will uilding sites with contractors and even help them prepare bids and lay out jobs. Almost all of rk produces sales. ganization has been Brook Plumbing's only financial institution for two y Brook Plumbing Supply Company, Inc. Part B Brook Plumbing Supply Company, Inc. Balance Sheets (in $000s) As At December 31 ASSETS Current assets Cash and equivalents Accounts receivable Inventory $ 11o 785 15497 770 902 1,075 Other current assets 2,010 1,870 2,025 Total current assets Fixed assets Gross fixed assets Less: Accumulated depreciation 331 100 231 335 Net fixed assets 218 238 97 95 Other noncurrentassets 3 2325 5 2,200 2.358 TOTAL ASSETS $2,358 LIABILITIES AND EQUITY Current liabilities Accounts payable Accrued expenses Other current liabilities Notes payable $ 473528 551 155 136 143 592 62 1,354 486 Current portion-LTD Total current liabilities Long-term debt Other noncurrent liabilities 1,322 1,381 143 209 277 37 Owners' equity 793 663 TOTAL LIABILITIES AND EQUITY S-2.325 $ 2,200 $ 2,358 Part B Brook Plumbing Supply Company, Inc. Brook Plumbing Supply Company, Inc. Income Statements (in $000s) Years Ended December 31: 20Y3 20Y2 6,504 5,801 5,120 4,258 3,661 1,459 Cost of goods sold Gross profit 1,690 1,543 General and administrative expense Selling expense Interest expense 905 417 65 303 901 387 58 197 915 385 51 108 Profit before taxes rovision for income taxes 146 95 52 Net income 157 $ 102 56 eciation in general and administrative expenses 20 12 13 Brook Plumbing Supply Company, Inc. Monthly Sales (in $000s) 20Y3 20Y2 January February March 405 455 480 496 575 610 615 640 597 543 532 556 398 405 450 455 520 545 570 590 505 459 439 465 Ma June July August September October November December Part B grook Plumbing Supply Company, Inc. Quick Cash Flow (in $000s) OFA 20Y2 Net profit Plus for less)4 Working investment Plus for less) A Gross Sxed assets 12 Equals Less Dividends declared Equa's Cash available for all debt repayment Less Curment portion long-term debt (prior year NING ENDING Change in working investment Accounts receivable Plus Inventory 902 1020 Less Accounts payable Less Accrued expenses Equals Working investment 1,199 Beginning working investment Less: Ending working investment Equals a Working nvestment 20Y2 Change in working investment BEGINNING ENDING Accounts receivable (net) Plus: Inventory Less Accounts payable Less Accrued expenses . Edas.working investment Beginning working investment Less: Ending working investment -Equals Aworking investment 20Y3 Change in working investment Accounts receivable Plus: Inventory Less Accounts payable BEGINNING ENDING Less: Accrued expenses Equais 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? Case Link uestion (10) irections: Click the Case Link above and use the information provide umbing Supply Company, Inc, Part B, to an swer this question: hich of the following contributed most to Brook Plumbing's financing need in Y3? you use arrow to move. s is a single choice question. Selections are automatically selected as X Change due to the 4.19 day increase in inventory days on hand borta tlays for dividend payments or owners' withdrawals hange in amount of net income ange in the amount of financing provided by accounts payable and accrued expenses for review Brook Plumbing Supply Company, Inc. Brook Plumbing Supply Company, Inc. he following case information includes: Part A Company information Part B Balance sheets Income statements Monthly sales figures Quick cash flow rt Agings of accounts receivable 0 Brook Plumbing Supply Company, Inc. Part A Company Information Brook Plumbing Supply Company is a wholesale distributor of plumbing products to building contractors and the trades. The company sells nearly all the parts and tools that plumbing companies need; it also sells to retail customers. Brook Plumbing was started and is owned by two brothers, Sam and David Brook, and has been in business for more than 25 years. The brothers have always nanaged all significant areas of the business without assistance. Brook's main office and warehouse re located in a medium-sized city. The company also has a branch sales office in a nearby mmunity ook purchases plumbing supplies directly from manufacturers' representatives. Since almost all of products are generic, the Brooks use several different sources. A recent trade checking shows m to be discount-to-prompt with all vendors. k Plumbing competes with other local building supply and plumbing wholesalers and hardware s, and several national chain stores k has built a reputation for meeting the special needs of local contractors and the trade- ners who require fast service, credit, and product expertise. Brook's sales representatives will uilding sites with contractors and even help them prepare bids and lay out jobs. Almost all of rk produces sales. ganization has been Brook Plumbing's only financial institution for two y Brook Plumbing Supply Company, Inc. Part B Brook Plumbing Supply Company, Inc. Balance Sheets (in $000s) As At December 31 ASSETS Current assets Cash and equivalents Accounts receivable Inventory $ 11o 785 15497 770 902 1,075 Other current assets 2,010 1,870 2,025 Total current assets Fixed assets Gross fixed assets Less: Accumulated depreciation 331 100 231 335 Net fixed assets 218 238 97 95 Other noncurrentassets 3 2325 5 2,200 2.358 TOTAL ASSETS $2,358 LIABILITIES AND EQUITY Current liabilities Accounts payable Accrued expenses Other current liabilities Notes payable $ 473528 551 155 136 143 592 62 1,354 486 Current portion-LTD Total current liabilities Long-term debt Other noncurrent liabilities 1,322 1,381 143 209 277 37 Owners' equity 793 663 TOTAL LIABILITIES AND EQUITY S-2.325 $ 2,200 $ 2,358 Part B Brook Plumbing Supply Company, Inc. Brook Plumbing Supply Company, Inc. Income Statements (in $000s) Years Ended December 31: 20Y3 20Y2 6,504 5,801 5,120 4,258 3,661 1,459 Cost of goods sold Gross profit 1,690 1,543 General and administrative expense Selling expense Interest expense 905 417 65 303 901 387 58 197 915 385 51 108 Profit before taxes rovision for income taxes 146 95 52 Net income 157 $ 102 56 eciation in general and administrative expenses 20 12 13 Brook Plumbing Supply Company, Inc. Monthly Sales (in $000s) 20Y3 20Y2 January February March 405 455 480 496 575 610 615 640 597 543 532 556 398 405 450 455 520 545 570 590 505 459 439 465 Ma June July August September October November December Part B grook Plumbing Supply Company, Inc. Quick Cash Flow (in $000s) OFA 20Y2 Net profit Plus for less)4 Working investment Plus for less) A Gross Sxed assets 12 Equals Less Dividends declared Equa's Cash available for all debt repayment Less Curment portion long-term debt (prior year NING ENDING Change in working investment Accounts receivable Plus Inventory 902 1020 Less Accounts payable Less Accrued expenses Equals Working investment 1,199 Beginning working investment Less: Ending working investment Equals a Working nvestment 20Y2 Change in working investment BEGINNING ENDING Accounts receivable (net) Plus: Inventory Less Accounts payable Less Accrued expenses . Edas.working investment Beginning working investment Less: Ending working investment -Equals Aworking investment 20Y3 Change in working investment Accounts receivable Plus: Inventory Less Accounts payable BEGINNING ENDING Less: Accrued expenses Equais 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