This is important, because it shows that the business is undercapitalized, based upon their low working capital figures. As a result, the company needs to remain more liquid, to be properly capitalized for future investments
Table 17.3 Solution to a working capital problem in my organization
Problem identification
Low Working Capital
Analysis (investigation)
The working capital position of the company was affected by the total amounts of cash they invested in new inventory.
Conclusion to the analysis (results of the investigation)
The business needs to be able to control their cash position, to effectively manage their working capital.
The solution, listed as a set of SMART recommendations
NA
Strengths and weaknesses of the recommendations
The strength...
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