Impose a working capital covenant in a loan agreement

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Reference no: EM13827353

If a bank were to impose a working capital covenant in a loan agreement to you, what strategy below would help you to keep net working capital above mandated minimum?

A) Selling excess inventory (below cost) for cash.

B) Converting accounts payable to a long-term note payable.

C) Issuing short-term debt for cash.

D) Buying raw materials and agreeing to pay the invoice in 30 days

Reference no: EM13827353

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