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To calculate an increase in working capital, first determine the working capital for two different periods by subtracting current liabilities from current assets for each period. The formula is: Working Capital = Current Assets - Current Liabilities. Then, subtract the earlier period's working capital from the later period's working capital. The difference will give you the increase in working capital.

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1mo ago

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Related Questions

How do you calculate net working capital?

How do you calculate net working capital?


How a firm increase its working capital?

Firm can increase it's working capital by issuing more capital to public or by getting shore term loan from market.


How can you calculate Incremental working capital investment rate?

Incremental net working capital investment rate = Incremental working capital investment / Incremental sales.


How does an increase in revenue affect working capital?

Revenue affects the capital by decreasing the capital.


How do you calculate average working capital?

To calculate average working capital, first determine the working capital for each period by subtracting current liabilities from current assets. Then, sum the working capital figures for each period and divide by the number of periods to obtain the average. The formula can be expressed as: Average Working Capital = (Working Capital Period 1 + Working Capital Period 2 + ... + Working Capital Period N) / N. This provides a measure of the liquidity available to meet short-term obligations over the specified periods.


How do you calculate the working capital of a bank?

net working capital of bank is the difference of current asset and current liability of a bank.


How do YOU calculate interest on working capital at the rate of 12 percent per annum?

(Amount of working capital/100)*12


The payment of a current liability will?

increase working capital


How sole traders increase their working capital?

dayum


What is effect on working capital if there is an increase in inventory turnover?

decrease


How can one calculate the working capital ratio?

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.


How do you calculate working capital requirement?

Current assets - current liabilities