BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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50, 000
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35, 000
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15, 000
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85, 000
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Detailed explanation-1: -Net working capital = current assets (less cash) – current liabilities (less debt)
Detailed explanation-2: -Working Capital = Current Assets-Current Liabilities. Now, after putting the value we get. Working Capital = 20, 000-15, 000. So, Working Capital = 5, 000.
Detailed explanation-3: -If the current ratio of a concern is one its net working capital will be nil. The current ratio accurately represents the total number of current assets to current liabilities.
Detailed explanation-4: -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.