5.2 - Working Capital
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Practice Questions
Test your understanding with targeted questions
Define working capital.
💡 Hint: Think about what kind of expenses a business has.
What is the formula for calculating working capital?
💡 Hint: Remember how assets and liabilities are defined.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does working capital refer to?
💡 Hint: Think about the expenses that occur each day.
True or False? Low working capital can indicate a potential liquidity issue.
💡 Hint: Consider what happens when you don't have enough cash.
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Challenge Problems
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A company has current assets of $100,000 and current liabilities of $80,000. Calculate its working capital. How might this amount affect the company's operations?
💡 Hint: Use the formula we discussed!
Consider a retail business that has declining sales during the winter season but high inventory costs. What strategies should it deploy to maintain strong working capital?
💡 Hint: Think about balancing expenses and income in varying market conditions.
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