How to calculate current assets and current liability from working cap

1.	How to calculate current assets and current liability from working capital?
Answer» Working capital is known as the life BLOOD of the business. It is the current assets LESS current liabilities. In which current assets include, cash at bank, cash in hand, inventory or raw MATERIAL,debtors etc. Current liabilities include the creditors, short term loans. Following is a formula: -Balance sheet=Fixed Capital+ Working Capital - Working Capital=Current Assets- Current Liabilities If ANYTHING wants to be calculated the values should simple be moved around.

How to calculate current assets and current liability from working capital?

Answer»

Working capital is known as the life BLOOD of the business.

It is the current assets LESS current liabilities. In which current assets include, cash at bank, cash in hand, inventory or raw MATERIAL,debtors etc.

Current liabilities include the creditors, short term loans.

Following is a formula:

-Balance sheet=Fixed Capital+ Working Capital

- Working Capital=Current Assets- Current Liabilities

If ANYTHING wants to be calculated the values should simple be moved around.

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How to calculate current assets and current liability from working capital?

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