Question

Q8. Working capital is considered as excess of Current assets over current liabilities but companies

like HUL, Godrej, Bharti airtel, Hero Motorcorp, faces negative working capital in their operating life.

Thus their current liabilities exceed their current assets in some years.

What is your belief in this regard, can working capital ever be negative or Zero for any company? If

yes than what shall be the repercussions if a company has (a) dearth of Working Capital and (b)

overload of Working Capital?​

Answer 1

Answer:

Hello mate..

Explanation:

Main Components of Working Capital – Explained!

Cash Management: Cash is one of the important components of current assets. ...

Receivables Management: The term receivable is defined as any claim for money owed to the firm from customers arising from sale of goods or services in normal course of business. ...

Inventory Management: ...