Question
Working Capital
Answer :
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Working capital is the amount of a company's current assets minus the amount of its current liabilities. For example, if a company's balance sheet dated June 30 reports total current assets of Rs 323,000 and total current liabilities of Rs 310,000 the company's working capital on June 30 was Rs 13,000. If another company has total current assets of Rs 210,000 and total current liabilities of Rs 60,000 its working capital is Rs 150,000.
The adequacy of a company's working capital depends on the industry in which it competes, its relationship with its customers and suppliers, and more. Here are some additional factors to
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