Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 5Q: What is operating capital, and why is it important?
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Question
What is working capital?
Expert Solution
Step 1
Working capital is the difference between current assets and current liabilities. It is a measure of a company's liquidity and its short term financial health.
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