A firm's working capital cycle refers to the flow of cash to purchase and sell fixed assets.

Name: A firm's working capital cycle refers to the flow of cash to purchase and sell fixed assets.
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A firm's working capital cycle refers to the flow of cash to purchase and sell current assets (e.g. inventory, accounts receivable) and to pay for operating expenses. It does not include fixed assets, which are typically purchased and sold less frequently.

A Firm's Working Capital Cycle Refers to the Flow of Cash