Working Capital

BIBLIOGRAPHY Meaning of running(a) pileus: - working(a) gravid is the follow of big(p) that a Business has available to meet the everyday bullion requirements of its operations - Working Capital is the difference mingled with resources in cash or readily convertible into cash (Current Assets) and organizational commitments for which cash will soon be necessitate (Current Liabilities) - It refers to the amount of Current Assets that exceeds Current Liabilities (i.e. CA - CL) - Working Capital refers to that part of the firms Capital, which is required for Financing short or Current Assets such as Cash, Marketable Securities, Debtors and Inventories. Working Capital is also known as Revolving or circulate Capital or Short-Term Capital Working Capital concepts: - Gross Concept: It means Current Assets. This is knows as quantifiable aspect of Working Capital (Focus is on (i) Optimum investing in Current Assets and (ii) Financing of Current Assets) - Net Concept: It means difference between Currents Assets & Current Liabilities.

This is knows as qualitative aspect of Working Capital (Focus is on (i) Liquidity federal agency of the Firm and (ii) WC Amount that can be financed by fixed sources of Funds) Meaning of run calendar method acting of birth control/Working Capital calendar method of birth control: - Cash ?Raw-Materials ?Work-in-Process ?Finished Goods ?Cash Factors affecting Working Capital/ Determinants of Working Capital: - Nature of Business/Industry; size of Business/Scale of Operations; Growth prospects - Business Cycle; Manufacturing Cycle; Operating Cycle & Rapidity of Turnover; - Operating Efficiency; Profit Margin; Profit Appropriation - derogation Policy; Taxation Policy; Dividend Policy and Government Regulations Approaches ( regularitys) of estimating Working Capital: - Conventional Method: Matching of Cash Inflows & Outflows. This method ignores Time Value of Money - Operating Cycle Method: Debtors + Stock (RM/WIP/FG) - Creditors. This method takes into Account length... If you want to get a full essay, order it on our website: Ordercustompaper.com

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