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Cash operating cycle

Former userFormer user6y ago

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John MoffatJohn MoffatTutor6y ago#1
Because there is more money tied up in the working capital which means more borrowing and therefore more interest being paid. There is more risk of there being irrecoverable debts. They are likely to be more inventory holding costs. Have you not watched my free lectures on this?
John MoffatJohn MoffatTutor6y ago#2
You are welcome :-)
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