By: Raquel Maysonet Sancehez
Tutora CDATA
Horarios: Lunes y Miercoles 9:00am-10:00am
          Jueves: 9:00am-1:00pm












Introduction

  • Discuss in depth what is Working Capital
  • Presents as Knowing and studying the current use of the same and effectiveness of the same in a company
  • Also , how to modify the concept to add utility
  • And, expose the availability of the postulates of accounting

Objectives

  1. Development of the working capital concept 
  2. Current usage of working capital
  3. Analyzes components of working capital
  4. Financial analysis of the position of the working capital of the company
  5. Working Capital in accordance with International Accounting Standards 

Working Capital Definition

  • Is the net short-term investment needed to carry on day-to-day activities.
  • For decades, the Working Capital has been considered the appropiate accounting functions in the Finantial Statements.
  • It is used for proper financial analysis of a Fiancial Statement  

Title

Major issues of the Working Capital

  • Inconsistent in the measurement of its various components .
  • Difference of opinion over what elements to include
  • Lack of precision in the meaning of certain key terms, such as
    • Liquidity measurement
    • Current measurement

Conclusion


  • Importance of Working Capital
    
    
    • Internal Users
    
    
    • External Users
    
    
    • Importance of Cost Method

    Working capital

    By Raquel Maysonet