In the following debate, take the position of an investor who wants to evaluate the liquidity of
Question:
Team Debate:
Team 1: Argue for including inventory, prepaids, and deferrals in working capital.
Team 2: Argue against including inventory, prepaids, and deferrals in working capital.
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Step by Step Answer:
Team 1 A companys working capital is the net shortterm investment needed to carry on daytoday activities Since inventory is used in daytoday activities it should be included The inventory must be sold ...View the full answer
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Related Book For 
Financial Accounting Theory and Analysis Text and Cases
ISBN: 978-1118582794
11th edition
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack Cathey
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