Working capital management

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naresh kumar (Querist)
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31 October 2014 please let me explain my query in details

What is the benefit of working capital and how is it calculated .

CA Vijeta Verma

CA Vijeta Verma (Expert)
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31 October 2014 working capital is for the purpose of meeting short term business requirements.You can't run business with zero working capital.To meet day to day expense you have to have some funds in hand.
Working capital= current assets- current liablities.
ex-You can't say that in order to pay your creditors you will sell your business or building or any other asset everytime.

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