Difference between gross working capital and net working capital
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Working Capital= It refers to that capital
which helps the business in dealing with
day to day working.....
Working Capital
- Gross
- Net ....
Gross WC v/s Net WC
(1) It refers to sum▪️ (1) It refers to ex-
total of all assets ▪️ -cess of current
i.e Current assets ▪️assets over curr-
C.A means that ▪️-ent liabilities.
assets which easily▪️ It means that
converted into cash▪️ liabilities which
during one year or ▪️ easily payable in
less than one ▪️ one or less than
▪️ year...
▪️
(2) GWC= ▪️ (2) NWC =
Adding all C.A ▪️ C.A-C.L
i.e Bill receivable ▪️ CL = Bill payable
+ A/R,Short term ▪️ A/P,long term
Investment ,etc ▪️ Investment ,etc...
Hope in tabular form u can easily learnt it ...
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Working Capital is the funds which are used in the day to day business operations of a company or to manage their daily running cost.
Working Capital = Current Assets - Current Liabilities
- Current Assets → Inventory, cash, and account receivables
- Current Liabilities → Account Payables And Short Term Loans