For a manufacturing company situation of optimal working capital would be when
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Answer:
situation of optimal working capital would be when company get more profit from others and earn more money..
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Every firm needs a proper level of capital to be running their business. It is a situation where the company is able to pay its expenses and run its business smoothly without a problem.
EXPLANATION:
If the company does not have enough capital then it will lead to a harmful situation and it will impact the production and sales of the company. It will lead to a situation of liquidity and affect the firms’ credibility in the market. Having excess capital also is not right for the company where the level of assets is higher than its liabilities.
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