Question

what do you mean by working capital? how does it effect the day to day activities in farming?

Answer 1

Answer:

Working capital, also known as net working capital (NWC), is the difference between a company's current assets, such as cash, accounts receivable (customers' unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.

Working capital is related with day-to-day activities in farming like use of seeds, pesticides, insecticides, manure, wages of labour etc. So production in farming is high for more working capital. Higher working capital would facilitate more purchase of seeds, fertilisers and wages, so higher yield would be there....