Your company is in the process of evaluating a target company for an acquisition All the evaluation tasks have been allocated and your task is to evaluate the working capital of the target company You reviewed the last audited financial statement of the target company and gathered the following data Compounded Feb 2014 | Feb 2015 | Feb 2016 | Feb 2017 | Growth % Sales (R) Cost of sales (R) Inventory days Trade receivables days Trade Payables days Current Ratio Acid test ratio Inventory (R) Trade receivables (R) Trade Payables (R) Cash Conversion Cycle days 1287 300 1416 030 1 543 473 1713 255 579 285736 336 848 910 1 027 953 43 53 37 3 5 2 4 121 101 130 493174 579198 749 248 774 104 203 100 211 30 37 45 2 5 38 45 42 3 0 42 47 35 3 6 2 4 97 683 47 612 76 660 36 5 24 0 13 4 71 419 84 729 81 402 54 59 38 9 Required: Evaluate the working capital based on the above-mentioned data (Hint, bnefly interpret the key indicators with possible reasons and draw a conclusion on the state of the target company's working capital ) What will the eftect be on the "Cash generated by operating activities" in the cash flow statement? 1 (15) 2 3 Explain the term "overtrading