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Description
Working capital means current assets such as cash, accounts receivables, inventory etc. minus the current liabilities such as bill payable etc. Current assets are those assets which are normally converted into cash within an accounting year, and current liabilities are usually paid within an accounting year. Working capital requirements of a business concern is a precondition for running the business efficiently and profitably. Every firm should have the adequate amount of working capital to meet the day-to-day need of the enterprise such as purchase of raw material, payment of wages and other expenses etc.
