Unit IV: WORKING CAPITAL MANAGEMENT: CONCEPT

Unit IV: WORKING CAPITAL MANAGEMENT: CONCEPT working capital Working capital is the amount of cash a business can safely spend It's commonly defined as current assets minus current liabilities Usually working capital is capital gain Working Capital $ 16, $ 20, Increase in Working Capital $ 4, 1, 1, $ 4, $ 4, It should be noted that the

capital gain What is working capital? Making sure a company can continue operating requires making sure that it has

working capital Working Capital Formula The formula to calculate working capital—at its simplest—is equal to the difference between current assets and current liabilities  Gross Working Capital refers to a firm's current assets used in business operations, including cash and marketable securities, inventory, accounts receivable