48 - Working Capital and Working Capital Requirement - (Accounting)
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Watch the video with modernized content and better sound. Link: • Working Capital. Need for Capital... Working capital is the amount a company has to cover and maintain its day-to-day operating expenses — an amount that is the result of the difference between the money available to the company and the money owed in the short term. The Need for Working Capital is the minimum amount of cash a company needs to have in its cash register to ensure that its operation (purchase, production and sale of products or services) does not stop due to lack of resources. Working Capital - Definition (00:11), Balance Sheet to support the video (01:46), Operating cycle (04:13), Need for working capital (05:41), Operating values (Assets and Liabilities) (08:22), Working Capital Need Formula (08:47), Sustainable company (10:24), How to correct the Need for Working Capital (10:47).
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