a) Define working capital.
b) Explain why working capital management is important.
c) Explain the relationship between cash flows and the working capital cycle.
d) Demonstrate the calculation of the working capital cycle (also known as the cash operating cycle) .
e) Outline the possible relationships between inventory levels and sales.
f) Define and explain over-trading and over- capitalisation.
g) Identify and calculate over-trading and over- capitalisation financial indicators.