WORKING CAPITAL MANAGEMENT AND DIVIDEND DECISIONS
WORKING CAPITAL MANAGEMENT
The capital which is required to finance current assets is called working capital. It is the capital of a business which is used to carry out day-to-day business operations of a firm.
According to John J. Harpton, “Working capital may be defined as all the short-term assets used in the daily operation.”
Current Assets
An asset is classified as current when:
1. It is expected to be realized or intended to be sold or consumed in the normal operating cycle of the entity.
2. The asset is held primarily for the purpose of trading.
3. It is expected to be realized within twelve ...
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