# ACCT 301 ACCT301 ACCT/301 Homework 3

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## ACCT 301 ACCT301 ACCT/301 Homework 3

ACCT 301 Homework 3 Tatiana Mangwi UMGC

**Working Capital**

Working capital is the difference between current assets and current liabilities, such as accounts payable.

The formula to calculate working capital is

Current Assets – Current Liabilities = Working Capital.

Working capital helps measure a company’s liquidity, financial health and efficiency in the short term.

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## ACCT 301 ACCT301 ACCT/301 Homework 3

ACCT 301 Homework 3 Tatiana Mangwi UMGC

**Working Capital**

Working capital is the difference between current assets and current liabilities, such as accounts payable.

The formula to calculate working capital is

Current Assets – Current Liabilities = Working Capital.

Working capital helps measure a company’s liquidity, financial health and efficiency in the short term. If a company has a positive working capital, if it can invest and grow.

If current assets don’t surpass current liabilities, they may indicate the company has either trouble growing or paying debts.

LEVI Woking Capital Levi’s working capital is $ 1,577,359 obtained by subtracting current assets $3,126,241 and current liabilities $1,548,882.

Levi has a good working capital, which means that their current assets are greater than current liabilities. In other words, Levi can meet its financial obligations; it also shows that the company is well managed and has growth potential.

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