how to calculate working capital?
Answers were Sorted based on User's Feedback
Answer / manojs
working capital= current assets minus current liabilities
Is This Answer Correct ? | 22 Yes | 0 No |
Answer / rkesh kumar singh
How to Calculate Working Capital
1. Begin by determining current assets. Current assets are
comprised of cash, marketable securities, accounts
receivable and current inventory. Sum the total value of
each of the above to arrive at the current assets
2. Determine current liabilities. Current liabilities
include accounts payable, accrued expenses, notes payable
and the portion of long-term debt that is classified as
current. Sum all of these accounts to arrive at the current
liabilities figure.
3. Take the total of the current assets and subtract them
from the current assets. The result will be the working
capital. In other words, current assets minus current
liabilities equals working capital.
4. Look at the following example: The company has $100,000
in cash, $50,000 in securities, $10,000 in account
receivable, and $30,000 in inventory. On the current
liabilities side, the company has $60,000 in accounts
payable, $10,000 in accrued expenses, and $20,000 in current
debt. The current assets are $100, 000 + $50,000 + $10,000 +
$30,000 or $190,000.The current liabilities are $60,000 +
$10,000 + $20,000 or $90,000.Take the current assets of
$190,000 and subtract the current liabilities of $90,000 to
arrive at the working capital of $100,000.$190,000 - $90,000
= $100,000.
Is This Answer Correct ? | 11 Yes | 0 No |
Answer / c.ganesh
working capital = current assets - current liabilities
Is This Answer Correct ? | 0 Yes | 0 No |
1.an Asset costs $ 10,000 and has a net book value of $ 100, and an estimated life of ten (10) years, what would be the annual depreciation using the straight line method?
3, SURVEY EXPENSES FOR MARINE INSURANCE CLAIMS MUST BE A, addedto claim B, added to legal charges c, added to administrative expenses d, none of the above
What is a ledger?
who is the best faculty in hyderabad for sap fico with real time exerience. if you know please send me his contancts
Name three (3) equity security types
6 Answers FactSet Systems, ICICI, Shore Infotech,
What is the difference betwween letter of credit and contract of gaurantee.........in what situations these will issued by whom?
what is cash book
what will be the entry for recivables at 31 st march and if they are paid after 1 month then what is the entry
What is accounts receivable?
IS METHODEX IS GOOD INSTITUTE FOR SAP FICO MODULE TRAINING. IS IT IN BANGALORE OY HYDERABAD.
Were i have to enter for agreements in tally and in which ledger it will come
formula for Net profit and net loss?