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working capital refers to the difference between current asses and current liabilities . the current asses needs to be more than the current liability so that the firm can be in a position to pay for its financial obligations. working capital is calculated as current asst divided by current liablity in a ration form it should be 2:1 . thus current assts should exceed current liability for a firm not be a bankrupt .
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Sep 28th, 2015
the managing techniques are cash budgeting , just in time, economic order quantity and financing policy on working capital .