finance concept- use of tools for analysis

May 28th, 2015
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The Gross Working Capital refers to the firm's total investment in current assets. Current assets mean assets which can be converted into cash within an accounting year. According to J.S. Mill, "the sum of the current assets is working capital of a business." The Net Working Capital of a business represents the excess of current assets over current liabilities. Current liabilities include trade creditors, bills payable, bank overdraft and outstanding expenses. These are expected to mature for payment within as accounting year. We may put the concept of net working capital in the following equation-- Net Working Capital = Current assets - Current liabilities

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WORKING CAPITAL:-The term working capital is commonly used for the amount required for holding current assets like stock of raw material and finished goods, bills receivable, debtors and cash and also to meet the day to day expenses like salareis and wages, rent, taxes etc. The term working capi

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