Question

Neha Ltd. sales goods on credit while Pankhudi Ltd. sells goods on a cash basis which company will
require more working capital and why?​

Answer 1

Answer:

while neaha Ltd..requires more working capital because she sales goods on credit and pankhudi sales goods on cash so when she sales goods she gets back money and by that she can purchase another thing ...and neaha have no earning she was doing business on sales basis either cash receives or not.....

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Answer 2

Neha Ltd needs more working capital

Explanation:

• Working capital is the difference between a company’s current assets, such as cash,  raw materials & finished goods inventories & accounts receivable (customers’ unpaid bills), and its current liabilities (that is accounts payable).
• The working capital amount depends directly on the "period" of the "operating cycle". The operating cycle applies to the "production time period". The work capital begins right after the procurement of the raw material & ends after the payment is received "after the sale". If the operating cycle is long, more capital is needed, while the working capital demand is lower for companies that have a shorter operating cycle..

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what do you mean by working capital - Brainly.in

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