Which capital is known as the working capital?
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The working capital cycle (WCC) is the amount of time it takes to turn the net current assets and current liabilities into cash. The longer the cycle is, the longer a business is tying up capital in its working capital without earning a return on it.....
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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
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