The working capital is the length of time between the purchase of raw materials and the sale of finished goods. It ensures the smooth running of every business; the finance managers must strategically manager their working capital. A company's manager must strike a balance between overcapitalisation and overtrading. Required: (a) Explain three importance of maintaining adequate working for the business. (7.5 marks) (b) Explain three causes for the under-mentioned situations: (i) Overcapitalised (ii) Overtrading (3.5 marks) (3.5 marks) (15 marks)