Equations Flashcards
(3 cards)
1
Q
How do you calculate working capital and what is it?
A
The money available day to day running of the business e.g. energy
Working capital = current assets - current liabilities
2
Q
What is the formula for the acid test ratio
A
(Current assets - inventory) // current liabilities
3
Q
What is the formula for current ratio
A
Current assets // current liabilities
