Question

The working capital requirement of the firm depends upon

Answer 1

Production cycle: Amount of Working Capital depends upon the length of the production cycle. In the booming conditions, the Working Capital requirement is larger and in the depression condition, requirement of Working Capital will reduce. Better business results lead to increase the Working Capital requirements.

Answer 2

Production cycle: Amount of Working Capital depends upon the length of the production cycle. ... In the booming conditions, the Working Capital requirement is larger and in the depression condition, requirement of Working Capital will reduce. Better business results lead to increase the Working Capital requirements.