Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Working Capital
- This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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- November 22, 2016 at 5:14 pm #350712
sir, in your revision note there is a point call Overall Level.
It says … 1 sales/working capital [ Higher sales should mean higher working capital]
2 working capital/fixed asst [ higher fixed assets need higher working capital]i failed to get the side notes …can u explain a bit ??
November 23, 2016 at 7:09 am #350876Have you watched my free lectures on working capital?
If sales increase, then you would expect that (for example) receivables would increase as well, and therefore working capital would increase.
If non-current assets increased, then you would expect us to be producing more and therefore selling more – therefore again you would expect more receivables and more inventories, and therefore more working capital.
November 23, 2016 at 8:44 am #350916thank u sir..yes i watched all ur lectures ,but i watched them 3months ago and i tend to forget everything very quickly 🙁
November 23, 2016 at 3:28 pm #351000You are welcome 🙂
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