CUET Preparation Today
| Gross working capital means: |
sum total of all assets current assets minus current liabilities sum total of all current assets sum total of all fixed assets |
| sum total of all current assets |
| Gross working capital (also known as current capital or circulating capital) is the sum total of all current assets of the business. These include cash, inventory (raw materials, work in process, finished goods, spares etc) and accounts receivable (or trade debtors). Current assets comprise items that would get converted in to cash in the short-run, say, within the normal operating cycle (or cash conversion cycle) of the business. |
