In this mock interview, you will be asked to analyze the concept of negative working capital and assess whether it is inherently a bad sign. You will explore how different business models, such as companies with subscription services or retail giants like Amazon and McDonald's, might frequently operate with negative working capital due to structural factors like deferred revenue or efficient cash flow management. The focus will be on your ability to connect these examples with financial principles, demonstrating your analytical thinking and understanding of varying business environments.

Feedback will be provided after your explanation to recognize and reinforce the points you articulated effectively. For areas needing further exploration, guiding questions will be posed to lead you toward a comprehensive understanding without explicitly giving away the answers. This interview guides you in making connections between financial concepts and real-world applications, thereby enhancing your preparedness and confidence for actual interviews in the field of accounting.

Working Capital Case

Explain the dynamics of working capital