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what is the meaning of networking capital

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what is the meaning of networking capital..

Answer / nurulla

According to usage working capital divided into two
categories they are
1) gross working capital
2) net working capital

Gross working capital: it means total investment in current
assets of the firm for the particular financial year.
Net working capital: it means excess investment in current
assets then current liabilities (nw= ca-cl)

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what is the meaning of networking capital..

Answer / shiva

The Capital which is used for day to day transaction of the
company and invested in current assets for converting into
cash very soon.

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