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Current assets
180.00
232.00
Less: Current Liabilities
80.00
105.00
Working Capital
100.00
127.00
Working capital on December 31, 2003
Working Capital on December 31, 2002
Increase in Working Capital
27.00
The Rs. 27 million rises in working capital of TIL demonstrating the composite changes in the operating assets. It does not tell us much in terms of the business' operations. Such change could be the net result of changes in all the accounts covered through current items. May be there has been qualitative changes resulting by the depletion of liquid items of current assets and raise in non-liquid items as inventory. So as to answer these questions we try to analyze the changes in all of the working capital accounts.
Woodall Ltd has two production departments, X and Y. For month 2, the company budgets its overhead costs as: X Y Variable overhead
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