1.Determine the net working capital funding needs, given the following:

Cash = $ 15, 000

Inventory = $ 30, 000

Average Receivables = $ 20, 000

Average Payables = $ 25, 000

2.Determine the seasonal funding needs, given the permanent NWC funding in problem 1 and the following peak needs:

Cash = $ 15, 000

Inventory = $ 55, 000

Average Receivables = $ 45, 000

Average Payables = $ 25, 000

3. How might an aggressive strategy backfire? How might a conservative strategy backfire? When is it best to use each type of strategy?