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Working capital

ANAnuja Nair9y ago
Hi sir, Net working capital = Current assets - current liabilities Working capital = current assets - trade payables Right ?
John MoffatJohn MoffatTutor9y ago#1
It depends on the context of the question. Strictly working capital and net working capital are the same thing and are current assets less current liabilities. However, usually in F9 the bank overdraft is left out as it is part of the financing for the rest of the working capital.
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