BANKING AFFAIRS

Detailed explanation-1: -Working capital is a financial metric that is the difference between a company’s curent assets and current liabilities. As a financial metric, working capital helps plan for future needs and ensure the company has enough cash and cash equivalents meet short-term obligations, such as unpaid taxes and short-term debt.

Detailed explanation-2: -Working capital can be defined as the difference between the current assets and liabilities.

Detailed explanation-3: -Net working capital is defined as current assets minus the difference between current liabilities and notes payable, and any decrease in the current ratio automatically indicates that net working capital has decreased.

Detailed explanation-4: -The elements of working capital are money coming in, money going out, and the management of inventory. Companies must also prepare reliable cash forecasts and maintain accurate data on transactions and bank balances.