Question

Other Payments:

Fixed assets purchased - August Rs. 100 lakhs; Taxes - September Rs. 40 lakhs.

18 Dec 2025
Answer :
Word Count : 284
In working capital management, various factors influence the cash flow and liquidity of a business. One important aspect is managing other payments such as fixed asset purchases and taxes. These payments are critical because they directly impact a company's cash flow and working capital requirements. In August, the company made a fixed asset purchase worth Rs. 100 lakhs. This is considered a capital expenditure, which is not immediately reflected in the working capital since it is a
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