Question

what is working capital state the factors determining the working capital​

Answer 1

Answer:

Proportion of the Cost of Raw Materials to Total Costs determines working capital requirement. In those industries where cost of material is a large proportion of the total cost of the goods produced or where costly raw materials are used, large amount of working capital is required

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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