A rapid build-up of inventories normally requires additional financing, unless the increase is matched by an equally large decrease in some other asset.

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A rapid build-up of inventories typically requires additional financing because it ties up a company's cash flow and resources. Unless the increase is offset by a significant decrease in another asset, such as accounts receivable or investments, the company may need to seek external financing to cover the costs of holding and storing the extra inventory.

A Rapid Build-Up of Inventories Normally Requires Additional Financing, Unless