Question

two ex of working capital

Answer 1

Answer:

For instance, a manufacturer that has current liabilities of $100,000 and current assets of $200,000 has working capital of $100,000. This means that after all the current liabilities are paid off the company still has $100,000 of current assets remaining. This manufacturer is highly liquid.

When analyzing a company’s working capital, it is important to look at its total working capital dollars as well as its current ratio.