Working Capital: What It Is & Why It Matters

Working capital is your current assets minus current liabilities (CA – CL).  Current assets are things like:  Cash in the bank Accounts receivables (money that needs collecting) Inventory Investments Current liabilities are things like:  Accounts payable (bills you need to pay) Short-term debt Current portion of long-term debt  Unearned revenue outstanding (similar to A/R) Apple’s […]

(Semi) Weekly Accounting Breakdown: Working Capital

We’ve received a lot of positive feedback on the Cash Flow: It’s All That Matters series. So much so that we thought our readers would like a more regular installment of all things accounting. The goal: Send weekly accounting lessons that you can read in less than five minutes. We know learning about accounting is […]