{"id":32560,"date":"2015-06-04T17:04:11","date_gmt":"2015-06-04T17:04:11","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=32560"},"modified":"2024-04-03T13:22:56","modified_gmt":"2024-04-03T07:52:56","slug":"working-capital-management-2","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/working-capital-management-2\/","title":{"rendered":"WORKING CAPITAL MANAGEMENT"},"content":{"rendered":"

\"WORKING<\/a><\/p>\n

Working capital is the excess of current assets over current liabilities.Proper management of working capital is very important for the success of an enterprises.It aim purchasing power \u00a0of assets and maximizing the return on investment.Sales expansion ,dividend declaration plant expansion new product line increased salaries and wages,rising price levels etc puts added strain on the working capital maintenance.<\/p>\n

Current Assets:- are \u00a0those assets that \u00a0can be turned in to cash with in brief period i.e one year. e.g Inventory, cash in hand and in bank,bills receivables,,prepaid expenses etc.<\/p>\n

Current Liabilities:- Liabilities which can be paid with the short period normally one year e.g Bills payable, cash credit bank O.D, dividend declared and payable etc.<\/p>\n

Sources of Working Capital.<\/strong><\/p>\n

Long term sources:-<\/strong><\/em><\/p>\n

    \n
  1. Sales of shares<\/li>\n
  2. Sales of debentures<\/li>\n
  3. retained earnings<\/li>\n
  4. Sales of idle fixed assets<\/li>\n<\/ol>\n

    Medium and short term sources:-<\/strong><\/em><\/p>\n

      \n
    1. Internal Sources<\/li>\n<\/ol>\n