fixed assets are example of working capital?
dassristi2016:
The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like. Typical current assets that are included in the net working capital calculation are cash, accounts receivable, inventory, and short-term investments.
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Working capital as current assets cannot be depreciated the way long-term, fixed assets are.That happens when an asset's price is below its original cost, and others are not salvageable. Two common examples involve inventory and accounts receivable.
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Working capital =current asset -current liability..therefore equation itself prove that fixed assets are no way connected with working capital.
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