Differences in working capital for different industries, Financial Management

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Differences in working capital for different industries

	Manufacturing	Retail	Service
Inventories	High volume. WIP and finished goods	Goods for re-sale only, usually low volume	No or very little inventories
Trade Receivables	High levels of debtors, as dependant on a few customers	Very low levels as most goods bought by cash	Usually low levels as services are paid for immediately
Trade Payables	Low to medium levels of Payables	Very high levels of trade payables due to the huge purchases of inventory	Low levels of payables

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