Change in working capital, Cost Accounting

Current assets

180.00

 

232.00

Less: Current Liabilities

80.00

 

105.00

Working Capital

100.00

 

127.00

Working capital on December 31, 2003

 

127.00

 

Working Capital on December 31, 2002

 

100.00

 

Increase in Working Capital

 

27.00

 

The Rs. 27 million rises in working capital of TIL demonstrating the composite changes in the operating assets. It does not tell us much in terms of the business' operations. Such change could be the net result of changes in all the accounts covered through current items. May be there has been qualitative changes resulting by the depletion of liquid items of current assets and raise in non-liquid items as inventory. So as to answer these questions we try to analyze the changes in all of the working capital accounts.

Posted Date: 4/9/2013 1:48:40 AM | Location : United States







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