TWO a) Distinguish between temporary working capital and Permanent working capital in relation to working capital management (2 marks) b) The monthly working capital requirement for Starehe Limited are given as follows. Month Total working capital requirement Sh. 000 January 3,000 February 2,500 March 2,000 April 1,500 May 1,500 June 1,700 July 1,800 August 2,800 September 3,200 October 3,500 November 3,600 December 3,800 The short-term cost of financing working capital is 15% per annum whereas the long-term financing cost is 20% per annum. The firms adopt an aggressive policy in financing its working capital needs. 80% of the firms permanent working capital is financed using short term funds and the