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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Working Capital
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 ??
Have 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.
thank u sir..yes i watched all ur lectures ,but i watched them 3months ago and i tend to forget everything very quickly 🙁
You are welcome 🙂
