$(2\mathrm{.}1)$

Which of the following statements concerning working capital management are correct?

$1$ Working capital should increase as sales increase

$2$ An increase in the cash operating cycle will decrease profitability

$3$ Overtrading is also known as under$-$capitalisation

A $1$ and $2$ only

B $1$ and $3$ only

$C2$ and $3$ only

D $1,2$ and $3$