Question

Importance of working capital for manufacturing concern

Answer 1

A business uses working capital in its daily operations; working capital is the difference between a business' current assets and current liabilities or debts.Working capital serves as a metric for how efficiently a company is operating and how financially stable it is in the short-term

Answer 2

Answer:

Working capital is a daily necessity for businesses, as they require a regular amount of cash to make routine payments, cover unexpected costs, and purchase basic materials used in the production of goods.