CAIE IGCSE Business Studies 7.3.4 Working capital
Practise defining working capital and calculating the amount available for day-to-day costs from current assets and liabilities.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- define working capital as finance available for day-to-day costs or short-term debts
- calculate working capital as current assets minus current liabilities
7.3.4—Working capital question 1
TJK manufactures candles. Contributing to sustainable development is important to TJK. The business uses batch production in its factory in country X. The target market for TJK's products is females between 20 and 50 years of age. The Managing Director is reviewing TJK's financial data. An extract is shown in Table 3.1. He is also considering the benefits to a business of becoming a multinational company.
Table 3.1
Define 'working capital'.
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