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Needed a Document for establish relationships between working capital and current asset?
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Needed a Document for establish relationships between working capital ...
Working capital is what remains on the balance sheet after the current liabilities are subtracted from the current assets.This is an indicator of how well the company can meet its financial obligations and therefore how solvent or liquid (able to convert assets to cash) the company is. With assets exceeding liabililites, the company is in a liquid position.
If you hope to borrow money for your company, potential lenders will examine your working capital to assess the health of your ratio of current assets to current liabilities.
Working capital formulaWorking capital = current assets – current liabilities
ReferencesPlant, Albert C. (2007). The retail game: playing to win: a guide to the profitable sale of goods and services.Vancouver: Douglas & McIntyre Ltd. p. 214.Pratt, Jamie. (2003). Financial Accounting in an Economic Context. New York: John Wiley & Sons. p. 769.
If you hope to borrow money for your company, potential lenders will examine your working capital to assess the health of your ratio of current assets to current liabilities.
Working capital formulaWorking capital = current assets – current liabilities
ReferencesPlant, Albert C. (2007). The retail game: playing to win: a guide to the profitable sale of goods and services.Vancouver: Douglas & McIntyre Ltd. p. 214.Pratt, Jamie. (2003). Financial Accounting in an Economic Context. New York: John Wiley & Sons. p. 769.
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Needed a Document for establish relationships between working capital and current asset? Related: Introduction - Working Capital, Accountancy and Financial Management
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Needed a Document for establish relationships between working capital and current asset? Related: Introduction - Working Capital, Accountancy and Financial Management for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Needed a Document for establish relationships between working capital and current asset? Related: Introduction - Working Capital, Accountancy and Financial Management covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Needed a Document for establish relationships between working capital and current asset? Related: Introduction - Working Capital, Accountancy and Financial Management.
Needed a Document for establish relationships between working capital and current asset? Related: Introduction - Working Capital, Accountancy and Financial Management for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Needed a Document for establish relationships between working capital and current asset? Related: Introduction - Working Capital, Accountancy and Financial Management covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Needed a Document for establish relationships between working capital and current asset? Related: Introduction - Working Capital, Accountancy and Financial Management.
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