6.2 - Working Capital
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Practice Questions
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What is working capital?
💡 Hint: Think about current assets and liabilities.
List two components of working capital.
💡 Hint: Consider items that affect cash flow.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for calculating working capital?
💡 Hint: Remember the fundamental formula for liquidity.
True or False: Working capital is only important for large businesses.
💡 Hint: Consider the day-to-day operations.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A company has current assets totaling $150,000 and current liabilities of $100,000. Calculate the working capital and discuss its implications for the company's operations.
💡 Hint: Consider the impact of having both surplus and deficit working capital.
Discuss a scenario where high accounts receivable could cause working capital issues. What strategies would you recommend to address these problems?
💡 Hint: Reflect on customer payment behaviors and impacting cash flow.
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