Growth in Working Capital. Wilhelm Company has been in operation for 20 years. Growth has been rapid in the past but is leveling off. The sales manager, who has been with the firm for 17 years, persuaded the president that the firm should carry larger inventory and grant more liberal credit terms to increase sales. The new controller believes that larger inventories and receivables are too expensive

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Prepare a brief statement indicating how you interpret the sales manager's arguments versus the controller's views. Include any added information you need.