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Working Capital Management - tutor2u
Working Capital Introduction to the Management of Working Capital AS & A2 Business Studies PowerPoint Presentations 2005 tutor2u tutor2u Introduction All businesses need cash to survive Cash is needed to: Invest in fixed assets Pay suppliers and employees Fund overheads and other fixed costs Pay tax due to the Government Nearly all businesses use much of their cash resources to finance investment in Working Capital Managing Working Capital effectively is, therefore, a vital part of making sure the business has enough cash to continuetutor2u What is Working Capital ? Working Capital is the difference between the current assets of a business and its current liabilities Working Capital is the cash needed to pay for the day to day operation of the business What is Working Capital ?
• The working capital cycle is: – The period of time between the point at which cash is first spent on the production of a product and the final collection of cash fro m a
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