Operating Working CapitalWhich of the following activities will impact the working capital requirement of Ceres Gardening Company? (Note: More than one option may be correct.)Increased credit period to customers✕ IncorrectDecreased inventory of productsIncreased credit period by suppliers✕ IncorrectIncreased interest expenses due to increased debt✕ Incorrect

The working capital of a company is calculated as current assets minus current liabilities. It represents the short-term liquidity of the company. Here's how each of the activities you mentioned would impact the working capital requirement of Ceres Gardening Company:

1. Increased credit period to customers: This would increase the company's accounts receivable, which is a current asset. Therefore, it would increase the working capital requirement.

2. Decreased inventory of products: Inventory is also a part of current assets. So, decreasing inventory would decrease the company's current assets, and therefore, decrease the working capital requirement.

3. Increased credit period by suppliers: This would increase the company's accounts payable, which is a current liability. Therefore, it would decrease the working capital requirement.

4. Increased interest expenses due to increased debt: Interest expenses do not directly affect working capital because they are not a part of current assets or current liabilities. However, if the increased debt is short-term, it would increase current liabilities, and therefore, increase the working capital requirement. If the debt is long-term, it would not affect the working capital.