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Accounting For Managers | Case Study

Accounting For Managers | Case Study

Working capital

Working capital is afinancial metric used as an indicator of the level of adequacy of available assets and which can be used in paying off liabilities and debts.The level of working capital changes with change in current assets and/or current liabilities. The level of working capital is dependent on nature of the business enterprise, production policy, market conditions, seasonality of operations and supply conditions.[1]Working capital is computed as follows: Working capital = current assets – current liabilities

Components of working capital.

Cash management. It encompasses all activities right from purchase of raw materials to marketing of finished outputs. Moreov ........