Working capital management
This query is : Resolved
31 October 2014
please let me explain my query in details
What is the benefit of working capital and how is it calculated .
What is the benefit of working capital and how is it calculated .
31 October 2014
working capital is for the purpose of meeting short term business requirements.You can't run business with zero working capital.To meet day to day expense you have to have some funds in hand.
Working capital= current assets- current liablities.
ex-You can't say that in order to pay your creditors you will sell your business or building or any other asset everytime.
Working capital= current assets- current liablities.
ex-You can't say that in order to pay your creditors you will sell your business or building or any other asset everytime.
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