Page 385 - F1 Integrated Workbook STUDENT 2018
P. 385
Working capitaal management
Elementss of woorkingg capittal
Working capital iss the capitaal availablee for conduucting day to day opeerations off an
organissation. Thiis is normaally the exccess of currrent assets over currrent liabilities.
Working capital mmanagemeent is the mmanagement of all aspects of booth currentt assets
and current liabilities, to minnimise the risk of insoolvency whhile maximmising the rreturns
on asseets.
Current Currentt
asssets liabilitiess
Inveentory, Payables &&
receivables,
cash aand bank b bank overdraaft
Require funding Prrovide funding
therefore therefore
connsider consider
reducing levels inreasing levels
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