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Seminar Assignment LP#5

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Seminar Assignment LP#5

Answered Same Day Mar 08, 2020


Aarti J answered on Mar 10 2020
127 Votes
Working capital
Course Name
Student’s Name
Working capital
Working capital is the capital required on the daily basis for the daily operations or working of the company.
    Working capital is calculated as:
Working capital = Cu
ent Assets – Cu
ent Liabilities
Working capital is calculated as the difference between the cu
ent assets and the cu
ent liabilities. The working capital of the company is used in analysing its liquidity. Working capital is required for the short period and usually on the daily operations or work of the company. The assets and liabilities that has to be used within one year is usually classified as the cu
ent assets and the cu
ent liabilities.
The cu
ent assets of the company includes the assets that are used with the operating cycle of the company or one year whichever is shorter. Some of the major cu
ent assets of the company are: Cash and cash equivalent, accounts receivables, inventory, prepaid expenses, short term investments etc.....

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