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Hello John,
I am stucked in a question will you help me?
If a company is having high working Capital so it means it is having more liquidity or profitability?I think working capital increase will lead to more liquidity as current asset increases. Am I correct?
I did an Mcq which has an statement “Working Capital should increase as sales increases”.
I am unable to figure relationship between sales and working capital. Increase in credit sales might need working Capital but if these are cash sales so I don’t think it will affect working capital.
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