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What if Discuss the role of accounting in managing working capital and liquidity. Explain the key components of working capital, including current assets and current

What if Discuss the role of accounting in managing working capital and liquidity. Explain the key components of working capital, including current assets and current liabilities, and how they impact a company's liquidity position. Provide examples of how companies manage their working capital through strategies such as inventory management, accounts receivable collection, and accounts payable optimization. Analyze the importance of cash flow management in maintaining sufficient liquidity to meet short-term obligations and support ongoing operations. Discuss the use of financial ratios, such as the current ratio, quick ratio, and cash conversion cycle, in assessing a company's working capital efficiency and liquidity. How do seasonal variations and economic conditions affect working capital requirements? Discuss the challenges companies face in managing working capital and liquidity, and the role of financial planning and forecasting in addressing these challenges. 10 points.

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