Question

What is Working capital?

Answer 1

Working Capital-

• Working capital refers to the variety of raw materials and money in hand during the production, in order to make payments and by other necessity items .

Answer 2

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Working Capital is the funds which are used in the day to day business operations of a company or to manage their daily running cost.

Working Capital = Current Assets - Current Liabilities

• Current Assets → Inventory, cash, and account receivables

• Current Liabilities → Account Payables And Short Term Loans