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Accounting doubt for capital
Fixed capital= Investments in FD's, securities, shares etc
Working capital = current cash requirements to meet the cash operating cycle.
Circulating cash= can be cash in hand or petty cash or small loans and advances given to others.
To make your understanding better, working capital is vast
You have to find out Net working capital using the percentage of sales method to budget how much cash you need for operations.
You have factoring facility to reduce receivable days
Your formula is like current assets - current liabilities which will give current balance
Working capital bank loans have different methods to get a loan like tandon method, turnover method or permissable method Etc for funding
Cash can be managed by investing in securities using EOQ / Baumols cash model where they sell securities to meet the cash levels.
Forgot there is miller orr method of cash management
Cash budget to get working capital bank loans.
2) Working Capital - Current Assets less Current liability .
3) Circulating Capital is equivalent to working capital .
Technically Capital= assets- liabilities, however, Fd is like investment capital.
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