Question

Define working capital? And give examples

Answer 1

Working capital is a common measure of a company's liquidity, efficiency, and overall health. it includes cash, inventory, accounts receivable, account payable
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Answer 2

An increase in net working capital indicates that the business has either increased current assets (that it has increased its receivables or other current assets) or has decreased current liabilities—for example has paid off some short-term creditors, or a combination of both.