Question

what is working capital

Answer 1

the capital of a business which is used in day-to-day trading operations, calculated as the current assets minus the current liabilities.

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