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The Financial Director of Abcam Ltd has been given the objective of improving the liquidity position. Their most recent Income Statement and Statement of Financial Position is as follows: Income Statement for the Year Ended 31 October 2020 2019 2020 8,230,000 Sales Less: Cost of sales 5,670,000 Opening inventory Add purchases 1,570,000 1.230,000 2,800,000 490.000 2.470,000 2,960,000 Less: Closing inventory (490,000) (890,000) (2,310,000) 5.920,000 (2,070,000) 3,600,000 Expenses (2,152,000) (3,360,000) 3.768,000 Net profit/loss for the period (240,000) Statement of Financial Position as at 31 October 2020 2019 2020 Fixed assets Freehold premises at valuation Fixtures and fittings NBV Motor vehicles at NBV 14,520,000 5.622.000 3.741.000 23,883,000 12,780,000 4,955,000 2,650,000 20,385,000 Current assets Inventory Accounts receivable 490,000 542,000 1,032,000 890.000 941.000 1,831,000 Less creditors due within one year Accounts payable Overdraft (271,000) (855,000) (250,000) (761,000) 23,122,000 (726.000) 21,111,000 Less creditors due after more than one year Corporate debt (710,000) 20,401,000 23,122,000 Capital and reserves Ordinary share capital Retained profit/loss 22,000,000 1.122.000 23,122,000 22,000,000 (1,599,000) 20,401,000 Required: (b) Using liquidity ratios, explain why Abcam maybe concerned with its liquidity position. (c) Calculate the operating cash cycle for Abcam for the two years and what steps may be taken to improve it. (d) Interpret the dynamics of working capital management providing your own illustrative example of both aggressive, moderate and relaxed working capital styles