Measuring working capital – Examples – CIMA F1 Financial Reporting

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1. AnaCensi says

   June 28, 2020 at 6:22 pm

   Might be silly, but what are the steps to re-arrange the equation? (08:57)
   Thank you

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   • AnaCensi says

     June 29, 2020 at 6:14 am

     I’ve got it 🙂

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2. khanhhoangvu says

   November 2, 2017 at 10:52 pm

   Dear Teacher,

   Thank for your great lecture.

   I have some promblem that I hope you could help me clear:

   1. in your note, Working capital = current asset – current liability.

   in real life, when I make financial analysis to make a business plan of specific item ( for example: coffee goods business ) for purpose of bank short-term loans.. I have some information relatings to coffee business: Revenue, cost of sale, relatived expensive, and profit. I need to find out the firm’s capital needs and capital turnover, so I did as following:

   – determine working capital demands for coffee business = current asset – current liability (information on SOFP)

   – determine capital turnover = 365 days / cash operating cycle

   capital turnover = 365 days / ( inventory days + receivable days – payable days )

   I didn’t know whether my above calculation is correct . If I were wrong, Could you please help me clear

   I appreaciate your help and hope to receive your reply soon

   Thanks and best regards

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3. nandun1983 says

   January 31, 2017 at 11:05 am

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