Skip to content
Sign inRegister

Ask the Tutor ACCA FM

Working capital

TTan3y ago
Hi sir, there is a formula Receivable +inventory-payable = working capital May i know why cash is excluded in this formula?
John MoffatJohn MoffatTutor3y ago#1
I do not know where you have got the 'formula' from. Working capital is generally currents assets less current liabilities, and does include cash. Management of working capital (which is very common in the exam) includes cash management. This is all explained in my free lectures. The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
TTan3y ago#2
The formula is from BPP workbook
John MoffatJohn MoffatTutor3y ago#3
If you mean the Revision Kit then tell me which question, because it depends on what the question is requiring. If you mean the Study Text, I do not have the Study Text and so I do not know the context. What is in my lectures is correct and as I wrote before they cover everything needed to be able to pass the exam well. If you are watching the lectures then you do not need the Study Text - it is the Revision Kit that is the essential book.
Sign into reply to this topic.