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Estimation of working capital
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I have one situation can anyone tell me that. Let's say the net working capital that you require is 10 lakhs from where you will rise.5 This is the question. whether this from short term source or long term source Answer with explanation....?
Answers (13)
Sowmiya A
for this you need to study FM working management chapter
I studied but i have doubt kindly clarify me.
Sowmiya A
*working capital management
This question was asked my faculty in the class... I didn't know the ans... That's why... I asked here.kindly if you guide me.
Short-term Sources: The sources of capital available to a business for less than one year are called short-term sources of working capital. Long-term Sources: The sources of capital available to a business for a longer period, usually more than one year, are called long-term sources of working capital
Internal sources and external sources make up the second division of short-term funding sources.Internal sources of working capital for the short term include tax and dividend provisions. These obligations can basically only be postponed up to a certain point. The capital from external organizations like banks, NBFCs, or other financial entities is one of the short-term external sources of working capital.
Long-term sources can be divided into internal and external categories just like short-term sources. Internal sources that are entirely earned and owned by the business itself include retained profits and accumulated depreciation. A business incurs no direct costs to access these funds. The external sources of long-term sources of working capital are share capital, long term loans and debentures etc.,
