Total working capital rather than changes in working capital has implications for cash flows.

Name: Total working capital rather than changes in working capital has implications for cash flows.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Changes in working capital are directly related to cash flows, as they represent the difference between current assets and current liabilities over a period. This change affects how much cash is available for the company's operations and investments, not the total working capital at a single point in time.

Total Working Capital Rather Than Changes in Working Capital Has