ABC Ltd$.$ seeks to raise internal finance through working capital changes. Which of the following are valid strategies: $($i$)$ Selling long$-$term assets qualifies as working capital adjustment; $($ii$)$ Delaying payments to suppliers helps retain cash longer; $($iii$)$ Reducing inventory levels can unlock tied$-$up cash; $($iv$)$ Faster collection of receivables strengthens liquidity; $($v$)$ Working capital adjustments can improve long$-$term solvency.

Question $30$Answer

a$.$

Only one of the statements is correct

b$.$

None of the statements is correct

c$.$

All of the statements are correct

d$.$

Two of the statements are correct

e$.$

Three of the statements are correct