Working Capital

Estimating working capital requirements

March 19, 2019March 19, 2019 by rashidjaved

1. Estimating working capital requirement using operating cycle method: Problem: X Ltd Co. wants to know working capital by operating cycle methods when : Estimated Sales 20,000 units @ $5 P.U. Production and Sales will remain similar throughout the year. Production costs: M – 2.5 P.U., Labour 1.00 P.U. Overheads $17.500. Customers are given 60 …

April 16, 2020March 19, 2019 by rashidjaved

What is Working Capital?- Definition The term working capital refers to the portion of total capital which is used to run the business efficiently and regularly. It is also known as short term capital, circulating capital or liquid capital. Explanation Working capital, in other words, means management of Current Assets: Cash in hand, Cash at …