accounting






 

Question by  joe21 (26)

How do you calculate working capital?

 
+7

Answer by  dracoart1 (7)

To find how much working capital a company has all of the liquid assets cash, marketable securities, accounts receivable and current inventory need to be totaled. You then add up the total current liabilities: accounts payable, current liabilities due in less than one year, and accrued expenses. Subtract total current liabilities from total current assets to get working capital.

 
+5

Answer by  Freshman (22)

From what I recall, there is a formula under generally acccepted account princiles (known is the United States as (GAAP). The formula is Short term assets minus short term liabilities

 
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