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Unformatted text preview: formula is: (Inventory turnover accounts receivable turnover accounts payable turnover) * operating expenses. Lets say X corporation has inventory turnover of 36, receivables turnover of 90, and payables turnover of 60, and total operating expenses is $100,000 the working capital will be (36+90-60)/ 360 * 100,000 = $18,333....
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This note was uploaded on 03/05/2012 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.
- Spring '11