Q-3: "Working capital is a critical element in every type of business decision. Finance professionals try their best to manage every component of working capital especially focusing more on accounts receivables and inventory. Bad-debt percentage or similar credit control measures are used for accounts receivable management while economic order quantity is used for inventory management." (a) In view of the above statement, critically evaluate why finance professionals do not just confine to the use of bad debt percentage as a success measure for the accounts receivable. What additional key factor is used? (2 Mark) (b) What does the economic order quantity formula tell? How is it considered an effective inventory management tool? (2 Mark) 1 B