BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Current Asset + Current Liability=Net working capital+Provision/Margin For Contingencies
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Current Asset-Current Liability=Net working capital+Provision/Margin For Contingencies
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Current Asset-Current Liability=Net working capital/working capital requirement
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Detailed explanation-1: -Working Capital (WC) = Current Assets (CA) – Current Liabilities (CL). If the value of total current assets is Rs. 3, 00, 000 and current liabilities is Rs. 1, 50, 000, your company’s working capital will be 3, 00, 000-1, 50, 000, which equals to Rs.
Detailed explanation-2: -Working Capital Management in a Nutshell A well-run firm manages its short-term debt and current and future operational expenses through its management of working capital, the components of which are inventories, accounts receivable, accounts payable, and cash.
Detailed explanation-3: -Working capital, also known as net working capital (NWC), is the difference between a company’s current assets-such as cash, accounts receivable/customers’ unpaid bills, and inventories of raw materials and finished goods-and its current liabilities, such as accounts payable and debts.