WORKING CAPITAL ASSESSMENT
*What is Working Capital ?
Funds required to acquire current assets to enable business/industry to operate at the expected levels.
*CONCEPTS OF WORKING CAPITAL
GROSS WORKING
CAPITAL = CA
These are in the system used/ consumed on a day to day basis.
NET WORKING
CAPITAL = CA – CL
OR
(SHF + TL) – (NFA + NCA)
NWC is the entrepreneur's margin available in the system from Long term Funds
*What are Current Assets ?
Assets which normally get converted into cash during the operating cycle of the firm. Cash & Bank balances Inventory Receivables Advances to s
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