what do you mean by working capital give example
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Home » Accounting Tutorials » Assets in Accounting » Working Capital Examples
Working Capital Examples
Working capital refers to the amount which the company requires with the purpose of financing the day to day operation and example of which includes the working capital of $100,000 with a manufacturer which is calculated by subtracting current liabilities of $200,000 from the current assets of $300,000.
Top Examples of Working Capital
Working Capital refers to the Funds available with the Company to meet its day to day Business operations. It is an indicator of the Short Term Financial Strength of the Company and signifies the capability to meet the Current Liabilities and Debt Obligations due within one year. The following working capital example provides an outline of the most common sources of working capital.
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