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Working Capital
a) Working capital or called gross working capital also, refers as current assets.
b) Net working capital refers to current assets minus current liabilities.
c) Working capital management of current liabilities and current assets refers to the administration.
d) Liquidity management includes the planned acquisition and employ of liquid resources over time to meet cash obligations like they become due. The firm's liquidity is measured with liquidity ratio like as current ratio, acid or quick test ratio, cash ratio and so on.
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Objective of Liquidity management?
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The operating income of H Ltd amounts to Rs. 186000. It pays 35% tax on its income. Its capital structure consists of the following: 14% Debentures
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