CORPORATE FINANCE - LL+CONNECT ACCESS
CORPORATE FINANCE - LL+CONNECT ACCESS
12th Edition
ISBN: 9781264054961
Author: Ross
Publisher: MCG
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Chapter 26, Problem 7CQ
Summary Introduction

To explain: The net working capital is positive in real economy. As in ideal economy the net working capital is zero.

Net working capital:

The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

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Students have asked these similar questions
2. What is the difference between Gross Working Capital and Net Working Capital? Explain your answer (Essay) a. How do we compute for Gross Working Capital? b. How do we compute for the Net Working Capital? c. When will negative working capital occur?
What exactly is negative working capital?
Why does net working capital appear with both negative andpositive values?
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