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Working Capital is calculated as follows Working Capital = Current Assets - Current Liabilities Current Assets = 100000 Current Liabilities = 50000 Working Capital = 50000 (Answer)
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Net working capital = current assets - current liabilities
Gross Working Capital = Current Assets Less Current Liabilities
Gross working capital is sum of current assests of a company and does not account for current liabilities. However, Net working capital is difference of Current assets and current liabilities. Net working capital = Current Assets - Current LiabilitiesA change in the total amount of current assets without a change of the amount in current liabilities will result to a change in the amount of net working capital. Similarly, a change in the total amount of current liabilities without an identical change in the total amount of current assets will cause a change in the net working capital.
One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.
Gross working capital is the amount which is equal to current assets which are available for day to day working but net working capital is that amount which remains after deducting current liabilities from current assets it means that amount which even remains after deducting current liabilities.
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Gross working capital is the amount company invested in current assets while net working capital is the difference between current assets and current liabilities.
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Gross Working Capital is the difference between the current assets and current liabilities where 'current' implies 'within one year' i.e Working Capital = Current Assets - Current Liabilities Working Capital is added to the Fixed Assets to get Net Fixed Assets of a company. i.e. Net Fixed Assets = Fixed Assets + Working Capital