Working capital equals ______. assets minus liabilities current assets divided by current liabilities current assets minus current liabilities current liabilities divided by current assets current liabilities minus current assets assets divided by liabilities

Respuesta :

Answer:

Current assets minus current liabilities

Explanation:

The working capital is a difference between the current assets and the current liabilities.

In mathematically,

Working capital = Current assets - current liabilities

where,

Current assets = Cash + account receivable + prepaid insurance + stock

Current liabilities = short term note payable + account payable

The change in the working capital shows in the operating section of the cash flow statement