Discuss the working capital requirements

Reference no: EM13925032

The following is the Balance Sheet of ABC Ltd.

			(Amount in $)
LIABILITIES		ASSETS
Share Capital	20,000	Fixed Assets	26,000
Retained Earnings	16,000	Investments	2,000
Long Term Loan	10,000	Stock	16,000
Trade Creditors	16,000	Trade Debtors	18,000
Accruals and Others	6,000	Cash and Others	6,000
Total	68,000	Total	68,000

Discuss the working capital requirements. Also explore the liquidity situation. What would be the working capital situation if the turnover doubles without change in the current terms of trade?

Reference no: EM13925032

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