Working Capital Management:
“Working capital is a surplus of current assets over current liabilities. In another words, the amount of current assets that is more than current liabilities is termed as Working Capital. When current liabilities are nil then, working capital will be equivalent to current assets. Working capital demonstrates strength of business in short period of time. When a company contain some amount in the form of working capital, it means Company contain liquid assets, with this money company can face all crises position in market. "
Formula of Calculating Working Capital:
Working Capital = Current Assets - Current Liabilities
Current Assets: Those assets which can be transformed into cash within 1 year or less than one year. In current assets, we comprise cash, bill receivables, bank, debtors, prepaid expenses and outstanding incomes.
Current Liabilities: Those liabilities that can be paid to particular parties in 1 year or less than 1 year at their maturity. In current liabilities, we comprises creditors, bank overdraft, stupendous bills, bills payable and short term loans, outstanding expenditures and advance incomes.Important things about Working Capital:
1. Working Capital can be negative. At that time, we add up one word “deficiency" in the back of working capital. This means when Current Liabilities are more than current assets, it is termed as working capital deficiency or negative working capital or inverse working capital.
2. Working capital can be simply adjusted, when Accounts manager recognizes different methods of managing working capital. He can try to obtain short term loan or he can raise working capital by appropriate management of inventory and outstanding incomes and debtors.
3. Working capital can as well change by Changing in Cash Conversion period. The Cash conversion period is a period in which company modifies current assets into the cash or bank.
4. Working capital can as well positive by rising growth rate of company. When company does not invest more money and raise profit, the similar amount will rise in the cash position of company and with cash company can raise their working capital position.
Latest technology based Finance Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Finance help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Finance, project ideas and tutorials. We provide email based Finance help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Finance. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Finance Homework help and assignment help services. They use their experience, as they have solved thousands of the Finance assignments, which may help you to solve your complex issues of Finance. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Approach Art after 1945 Assignment Help from a team of academic pros and secure your academic future with top-class grades!
Technique of costing assists to represent the data in a specific format so that decision making becomes simple.
tutorsglobe.com equivalent and compensating variation assignment help-homework help by online quasi-linear utility functions tutors
Theory and lecture notes of Data communication all along with the key concepts of operating system, Messages, Sessions, network manager, Transmission control, Pacing dividing. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Data communication.
process costing - operating costing - cost accounting has been conventionally related with manufacturing companies.
tutorsglobe.com acquired immunity assignment help-homework help by online immunology tutors
tutorsglobe.com scope of bioinformatics assignment help-homework help by online bioinformatics tutors
tutorsglobe.com long run equilibrium assignment help-homework help by online long-run equilibrium positions tutors
Move ahead and score A++ and make great reputation in front of your professor with Information and Technology Assignment Help
tutorsglobe.com determinants of investment assignment help-homework help by online investment function tutors
tutorsglobe.com complementary symmetry amplifier assignment help-homework help by online am radio receiver tutors
tutorsglobe.com application of recombinant dna technology assignment help-homework help by online genetic engineering tutors
tutorsglobe.com inflation and deflation assignment help-homework help by online monetary policy tutors
Theory and lecture notes of Higher Order Methods all along with the key concepts of Variable Step Size and RK45, Fourth Order Runge-Kutta, The order of a method. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Higher Order Methods.
tutorsglobe.com importance of money assignment help-homework help by online money tutors
1948392
Questions Asked
3689
Tutors
1466387
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!