answersLogoWhite

0


Best Answer

Working capital is needed for the following purposes:

(1) replenishment of inventory

(2) provision of operating expenses

(3) support for credit sales

(4) provision of a safety margin

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the function of working capital?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What are function of working capital?

Working capital is needed for the following purposes: (1) replenishment of inventory (2) provision of operating expenses (3) support for credit sales (4) provision of a safety margin


What are the 3 decisions involved in accounting function?

Following are three decisons involved: 1 - Working capital management 2 - Capital Structure decsion 3 - Dividend policy


What are the determinate of working capital?

conclusion of determinant of working capital


What is a a working capital?

WORKING CAPITAL STATEMENT (WCS) is part of the financial statements' "Statements of Cash Flows or Changes in Financial Position." The WCS normally includes sections covering: Sources of Working Capital, Uses of Working Capital, and Working Capital Changes.


What is optimal working capital?

Optimal working capital is that point where exact amount of working capital is available to run day to day activities and there is no excess or shortage of working capital at any point.


What is the optimum working capital?

Optimum working capital is that point where working capital is neither short from requirements nor excess working capital available at any time during fiscal year.


How to asses Req of working capital in IT Company?

"How to asses Req of working capital in IT Company?" "How to asses Req of working capital in IT Company?"


What is a working capital statement?

WORKING CAPITAL STATEMENT (WCS) is part of the financial statements' "Statements of Cash Flows or Changes in Financial Position." The WCS normally includes sections covering: Sources of Working Capital, Uses of Working Capital, and Working Capital Changes.


How do you calculate net working capital?

How do you calculate net working capital?


How do you determine the working capital of a business?

Working Capital is calculated as follows Working Capital = Current Assets - Current Liabilities Current Assets = 100000 Current Liabilities = 50000 Working Capital = 50000 (Answer)


Example of working capital?

Working capital is a measure of a company's efficiency and its financial health. A measure of a companies efficiency is an example of working capital.


Difference between working capital and working capital margin?

Working capital is a company's short term financial well being and efficiency. Working capital margin is a sum of the company's gross working assets over the long term.