4 (a) Explain the meaning of the term ‘working capital cycle’ for a trading company. (4 ma

4 (a) Explain the meaning of the term ‘working capital cycle’ for a trading company. (4 marks)

(a) The working capital cycle illustrates the changing make-up of working capital in the course of the trading operations of abusiness:1 Purchases are made on credit and the goods go into inventory.2 Inventory is sold and converted into receivables3 Credi