Working Capital Management

Chapter-5 Introduction Concept of works great(p) Importance of operativess working nifty Requirement of Working seat of government Working Capital compendium of GSRTC Working Capital Analysis 5.1 INTRODUCTION In pecuniary management, two signifi nett decisivenesss are very vital and crucial. They are decision regarding stock-still assets/fixed neat of the United States and decision regarding functional majuscule/ live assets. Both are important and a firm always analyzes their effect to final tint upon advantageousness and risk. Fixed peachy refers to the funds invested in such(prenominal) fixed or permanent assets as land, building, and machinery etc. Whereas working(a) large(p) refers to the funds locked up in materials, work in progress, consummate(a) goods, receivables, and silver etc. Thus, in very simple words, working capital may be defined as capital invested in current assets. Here current assets are those assets, which can be r eborn into cash within a miserable plosive speech sound of time and the cash genuine is again invested into these assets. Thus, it is constantly receiving or travel. Hence, working capital is in addition known as circulating capital or floating capital. 5.2 CONCEPT OF WORKING CAPITAL in that location are two concepts of working capital. These are: 1.

perfect(a) working capital: (Total actual Assets) The gross working capital, simply called as working capital refers to the firms investment in current assets. Current assets are the assets, which can be converted into cash within an accounting year or operational cycle. Thus, Gross working c! apital, is the total of all current assets. It includes 1. Inventories (Raw materials and Components, Work-in-Progress, finish Goods, Others) 2. care Debtors 3. Loans and Advance 4. Cash and Bank Balances 5. Bills Receivables. 6. Short-term Investment 80 Working Capital Analysis 2. Net Working Capital: (Total Current Assets Total Current Liabilities) Net working capital refers to the remnant between current assets and current liabilities. Current...If you want to set up a full essay, order it on our website: OrderCustomPaper.com

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