On completion of the study of the chapter, you should be able to understand:
What is Working Capital?
Need and importance of Working Capital.
Different concepts and classification of Working Capital.
Sources of Working Capital.
Determinants of Working Capital.
Components of Working Capital.
Working Capital or Operating cycle.
Forecasting or Estimation of Working Capital.
Valuation of work-in-process.
6.1 MEANING AND CONCEPT OF WORKING CAPITAL
Working Capital refers to the portion of capital which is employed in the business to carry on its day-to-day activities. It is used by the business to perform its operating activities. Therefore, the capital invested into the business to carry on the continuous ...