Fluid cash available to a company to maintain day-to-day operations. This is represented by the difference between the company’s liability and the company’s assets. The working capital gives allowance for companies to pay their bills while awaiting earnings from sales. The amount of required working capital varies across industries as the conversion of production to sales differs according to the scale of production, seasonality, sales expansion and more. Working capital can come from retained earnings, short-term borrowing, trade credit, and equity financing.
StudentCreditCards :: Feb.08.2008 :: Uncategorized ::
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