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At the end of the last year, a client wrote off account receivable with amount of 8000 EUR, that he couldnt collect for 2 years.
At the end of the last year, a client wrote off account receivable with amount of 8000 EUR, that he couldnt collect for 2 years. But because of his employees, he managed to recover 5000 EUR in 3rd quarter of this year, and he decided to buy equipment for production with this money. Did this affect liquidity because of decreasing of net working capital? Explain.
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