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Brums [2.3K]
2 years ago
8

Define working capital. How is working capital computed?

Business
1 answer:
Phoenix [80]2 years ago
8 0

Working capital is calculated by subtracting current liabilities from current assets shown on a company's balance sheet. Current assets include cash, accounts receivable and inventories. Current liabilities include accounts payable, taxes, wages and accrued interest.

Working capital is calculated by subtracting current assets from a company's current liabilities. For example, if a company has current assets of $100,000 and current liabilities of $80,000, its working capital is $20,000.

To calculate the working capital requirement, the following formula can be used: Working Capital (WC) = Current Assets (CA) – Current Assets (CL).

Learn more about working capital here:brainly.com/question/19804046
#SPJ4

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3 years ago
Which of the following statements is CORRECT? Question 9 options: The AFN equation for forecasting funds requirements requires o
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AFN has negative and positive sides. The correct statement is A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed.

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When the AFN value is negative, it means the action or project that is underwork will bring about extra income for the company, which can be invested in another place.

Additional funds needed (AFN) is known as financial term used when a business intends to widen its operations.

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3 0
2 years ago
On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a pri
rjkz [21]

Answer:

The appropriate solution is:

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(b) $4200

Explanation:

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(a)

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(b)

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4 0
3 years ago
Which of the following is NOT a common feature of a
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Answer:

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