Gross working capital, Managerial Accounting

Financial decisions are depends on specific considerations the major being the cash flows, liquidity and cost. Short-term working capital decisions or financial decisions are different along with observing to frequency and quantum of cash flows. There are two notions of working capital:

(i) Gross Working Capital

(ii) Net Working Capital.

The main feature of the current asset is that they modify their form inside one operating cycle. Working capital requirement is affected by a variety of factors; the major among them is size and nature of business. There are different methods of computing working capital requirement. In several the base figures are acquired from financial statements.

Posted Date: 4/9/2013 3:30:20 AM | Location : United States

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