1. How does management determine how working capital should be financed? A company's Net Operating Working capital rises and falls seasonally and with business cycles. How much NOWC to carry and how to finance it is a company's continuous balancing act? What are the types of NOWC financing policies, and how do they affect a company? 2. What would happen if your banker required you to shorten your Days Sales Outstanding and average collection period? How would you accomplish this? 3. How do we determine the cost of trade credit? What is trade credit ?