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Question 2 Which of the following equations is correct: Working capital=cash+trade receivables + inventories - trade payables - bank overdrafts Wothing capital=cashcdot trade receivables + inventories - trade payables - bank overdrafts Working capital=cash+ trade receivables + inventories+ trade payables - bank overdrafts Working capital=cash+trade receivables - inventories - tradle payables + bank overdrafts 1 pts

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Question 2
Which of the following equations is correct:
Working capital=cash+trade receivables + inventories - trade
payables - bank overdrafts
Wothing capital=cashcdot trade receivables + inventories - trade payables
- bank overdrafts
Working capital=cash+ trade receivables + inventories+ trade
payables - bank overdrafts
Working capital=cash+trade receivables - inventories - tradle payables
+ bank overdrafts
1 pts

Question 2 Which of the following equations is correct: Working capital=cash+trade receivables + inventories - trade payables - bank overdrafts Wothing capital=cashcdot trade receivables + inventories - trade payables - bank overdrafts Working capital=cash+ trade receivables + inventories+ trade payables - bank overdrafts Working capital=cash+trade receivables - inventories - tradle payables + bank overdrafts 1 pts

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DarcyProfessional · Tutor for 6 years

Answer

<p>A</p>

Explain

<p> Working capital is also known as net working capital. The formula to calculate working capital is:</p><br /><p>Working Capital = Current Assets - Current Liabilities</p><br /><p>Therefore, the correct equation should consider a company's short-term or current assets (such as cash, trade receivables, and inventories) minus its current liabilities or short-term financial obligations (like trade payables, and bank overdrafts). So, the correct the formulation for working capital should match with this logic.</p>
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