Discuss the working capital investment, Financial Accounting

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Discuss the working capital investment

Response to the following problem:

We observe that the amount firms invest in working capital varies from industry to industry and from firm to firm. We also observe that the amount invested in working capital varies according to the business cycle. Explain why a firm's working capital investment may vary according to the business cycle.

Support your answer using a minimum of two professional or academic sources.

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Financial Accounting: Discuss the working capital investment

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