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Explain the concept of working capital

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Question: Working Capital Management

1. Explain the concept of working capital, and outline the working capital accounts on the balance sheet.

2. Discuss why it is important for firms to manage their working capital. In your discussion, comment on the level of working capital needed and steps that firms can take if their working capital is insufficient.

3. Demonstrate how working capital is related to cash and profit.

4. Compute the operating cash cycle for FGL for the years 2011, 2012, and 2013. Outline and discuss the implications of this computation.

Reference no: EM132779867

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