What do you mean by negative working capital

Reference no: EM13925023

1. What do you mean by negative working capital? Explain with examples.

2. What are the mitigation measures available to a bank to prevent (i) over-trading and (ii) diversion risk?

3. XYZA Private Ltd calculates that its operating cycle for last year was 98 days. The trade debtors amounted to $460,000/- on sales of $2.21 million. Calculate the inventory holding period.

Reference no: EM13925023

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