Question: In an ideal economy net working capital is always zero

In an ideal economy, net working capital is always zero. Why might net working capital be positive in a real economy?
Use the following information to answer Questions 8–12: Last month, BlueSky Airline announced that it would stretch out its bill payments to 45 days from 30 days. The reason given was that the company wanted to “control costs and optimize cash flow.” The increased payables period will be in effect for all of the company’s 4,000 suppliers.

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