What is the working capital of a company?

Question

Quizplus · Accepted Answer

Working capital is defined as the amount of money a company has available to fund its day-to-day operations. It is calculated as current assets minus current liabilities. Current assets are assets that are expected to be converted to cash within one year, while current liabilities are debts that are due within one year. By subtracting current liabilities from current assets, we arrive at the amount of money a company has available to pay its bills and fund its ongoing operations.

What Is the Working Capital of a Company