How should an organization devise its working capital strategies? What effects might these strategies have on the organization's profitability and risk?© BrainMass Inc. brainmass.com March 4, 2021, 7:31 pm ad1c9bdddf
Working capital is the firm's total current assets used in operations. Working capital = total current assets. These current assets include cash, marketable securities, prepaid expenses, accounts receivable, inventory, and other current assets. Working capital represents the liquid portion of the firm. Net Working Capital means the difference between current assets and current liabilities, and therefore, represents that position of current assets, which the firm has to finance either ...
This solution provides detailed descriptions regarding working capital strategies in an organization.