State the formula for calculating Working Capital.

Define 'Trade Receivables'.

Define 'Trade Payables'.

Which of the following is NOT a component of Current Assets?

What does the term 'Liquidity' mean in business finance?

GreenTech Ltd has the following: Inventory $500, Cash $200, Trade Payables $400, Trade Receivables $300. Calculate the Total Current Assets.

Using the data from Question 6, calculate GreenTech's Working Capital.

BlueSky Manufacturing has Current Assets of $80,000 and Current Liabilities of $95,000. Calculate the Working Capital and state whether the business is liquid or illiquid.

RetailCo's Inventory is $25,000, Trade Receivables are $15,000, Cash is $5,000, and Trade Payables are $30,000. Calculate the Current Ratio (Current Assets ÷ Current Liabilities).

FastGrowth Ltd increases inventory from $40,000 to $60,000 to meet seasonal demand. Trade Payables increase from $25,000 to $35,000. Calculate the change in Working Capital.

Analyse the risk of a business having too little Working Capital.

Analyse why a business might deliberately operate with negative Working Capital.

Analyse the impact of offering customers longer credit terms (e.g., from 30 to 60 days) on Working Capital.

TechStart Ltd, a software startup, has negative working capital of -$50,000. The CEO argues this is acceptable because 'we're growing fast and customers pay upfront.' Evaluate whether negative working capital is a strategic risk or a competitive advantage for TechStart.

LuxuryGoods PLC operates in the high-end fashion industry with working capital of $2 million. The Finance Director proposes reducing this to $500,000 by: (a) reducing inventory levels, (b) offering customers shorter payment terms. Evaluate whether this strategy would improve or harm business performance.