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FLG Co has annual credit sales of K4·2 million and cost of sales of K1·89 million. Current assets consist of inventory and
Cost of long-term finance of FLG Co11%
Required:
i. Discuss the key factors which determine the level of investment in current assets.
ii. Discuss the ways in which factoring and invoice discounting can assist in the
iii. Discuss whether profitability or liquidity is the primary objective of
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