Q. Describes Working Capital. Briefly describe the techniques utilized in making working capital forecast or Estimating Working Capital Requirements?
Ans:- Meaning of Working Capital: - Working capital management is an important aspect of financial management. In business, money is required for fixed assets and working capital. Fixed assets comprise plant and machinery, land and building, furniture and fittings etc. Fixed assets are obtained to be retained in the business for a long period and yield returns over the life of such assets. The major objective of working capital management is to determine the optimum amount of working capital required. Usually management of working capital means management of current assets.