Question

Example of working capital

Answer 1

Working capital means the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

For example :

Current assets = 2,00,000

Current liabilities = 1,00,000

Working capital = Current assets - Current liabilities

Working capital = 2,00,000 - 1,00,000

Working Capital = 1,00,000

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