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Turnaround is possible for all Business Entity

All the five items interplay in a circular manner but each item has its own loop. Raw material is purchased, is

sued to production and again purchased and so on. Finished goods have also its’ own loop. Production increases inventory and delivery to customers decrease the inventory. Customers are debtors and the debtors have its’ own loop. Debtors increase on sale of products to customers and decrease on receipt of payment from customers. This can be shown in the following way:

 

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