Working Capital Calculation

May 19th, 2015
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The period of time which elapses between the point at which cash begins to be expended on the production of a product and the collection of cash from a customer

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ed as:The period of time which elapses between the point at which cash begins to be expended on the production of a product and the collection of cash from a customerThe diagram below illustrates the working capital cycle for a manufacturing firmThe upper portion of the diagram above shows in a simplified form the chain of events in a manufacturing firm. Each of the boxes in the upper part of the diagram can be seen as a tank through which funds flow. These tanks, which are concerned with day-to-day activities, have funds constantly flowing into and out of them. The chain starts wit

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