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what is working capital

sulu4u Thurs 14/08/08 03:09

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AKMild
Thurs 11/09/08
12:53

Working capital is that amount of cash a business needs to finance its current (i.e. regularly-moving) assets, such as stock and debtors. To an extent, this cash can be reduced by the amount of credit you get from suppliers, so the basic calculation of working capital is stock + debtors - creditors.

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