Answer:
By definition, working capital is current assets minus current liabilities. The working capital figure shows a financial manager how much of an organization's cash is tied up in items such as accounts receivables and inventory. It also indicates how much cash is going to be required to pay off short term debt and obligations over the next year.
| Previous Question | Next Question |
| Tell me who Do You Admire Most and Why? | Do you know what is a deferred tax liability and what is its purpose? |