Calculate a business working capital

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Explains the various financial statement(s) needed to calculate a business's working capital and how each statement is used. Provide examples to support your claims.

Discusses how effective working capital management supports a healthy business

Uses the appropriate formula to calculate working capital and discusses the business's current financial liquidity position; For example, does the business have sufficient working capital on hand to address bills to suppliers? Will there be potential cash inflow at the end of the year?

Discusses the current direction of the business regarding working capital management; Keep in mind that financial statements reflect a specific moment or period of time and the value of the business's working capital during that period. To get a better understanding of the direction in which a business is going, use the business's balance sheets from Mergent Online to compare the business's value today against its value from one year ago.

Please provide references

Reference no: EM132908262

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