Question

Choose the correct formula from the following for calculating 'Gross Working Capital'.

Options

• Gross Working Capital = Cash + Accounts Receivable + Fixed Assets + Other Current Assets

• Gross Working Capital = Cash + Accounts Payable + Inventory + Other Current Assets

• Gross Working Capital = Cash + Accounts Receivable + Inventory + Other Current Assets

• Gross Working Capital = Cash + Accounts Receivable + Inventory + Long Term Liabilities

Answer 1

Gross Working Capital = Cash + Accounts Receivable + Inventory + Other Current Assets

Explanation:

Gross working capital represents the total current assets of a company, which include cash, accounts receivable, inventory, and other current assets.