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John Moffat.
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dennissherpa101
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Sir suppose current assets are 10000 financed by over draft 10000 when calculating working capital CA- CL then it will be zero. Same with paybles( short term financing) So can we say working capital only shows capital put in via long term sources?
John Moffat
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the overdraft if short-term finance and so the current assets will be all financed by short-term finance.
dennissherpa101
- Topics: 40
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But when we are calculating the working capital/ net current assets it will be zero so if it is zero then should we understand it as being financed via short term soucres?
John Moffat
- Topics: 57
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If net current assets are zero, the none of the financing is coming from long-term finance. However the current assets are still being financed from short-term finance.
dennissherpa101
John MoffatViewing 4 posts - 1 through 4 (of 4 total)
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