Ok so I understand basically what working capital is...I was just wondering, since it's based on current operations if you could say that working capital is kind of the equivalent to a surplus?
So after you pay your current liabilities with current assets, the resulting money is working capital...a surplus to put in the bank, or back into the business, or whatever you choose?
Yes. Working capital is just that. Consider it a reserve fund that allows for unforeseen costs or a source to tap for expansion.
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