Before inventory can become cash, it must first be:

1. Gross working capital is available to pay the bills. 2. Some of it has to be converted to cash before it can be spent. 3. Accounts receivable must be collected, and inventory must be sold. 4. So inventory has to be sold before it becomes cash. _Source: OpenStax Principles of Finance (CC BY 4.0), Ch 19 'The Importance of Trade Credit and Working Capital in Planning', sections 19.1-19.5_