MANAGEMENT

Detailed explanation-1: -Gross working capital is a company’s net working capital before current liabilities have been deducted. It is the value of the gross amount of current assets a company owns that can be used to satisfy its short-term obligations.

Detailed explanation-2: -Gross working capital means the accumulation of the total current asset of an organisation. It includes assets that can be liquidated quickly. For instance, liquid cash, inventory, account receivables, marketable securities and short-term investments are a few examples of gross working capital.

Detailed explanation-3: -Working capital = current assets – current liabilities. Net working capital = current assets (minus cash)-current liabilities (minus debt). Operating working capital = current assets – non-operating current assets. Non-cash working capital = (current assets – cash) – current liabilities.

Detailed explanation-4: -The statement is true. Working capital is generally defined as the difference between current assets and current liabilities.

Detailed explanation-5: -Gross working capital refers to the firm’s investment in current assets. Net working capital refers to the difference between current assets and current liabilities. A positive working capital indicates the company’s ability to pay its short-term liabilities.