Current liabilities working capital working capital

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Current LiabilitiesWorking CapitalWorking capital compares current assets to current liabilities, and serves as the liquid reserveavailable to satisfy contingencies and uncertainties. A high working capital balance is mandated if theentity is unable to borrow on short notice. The ratio indicates the short-term solvency of a businessand in determining if a firm can pay its current liabilities when due.FormulaCurrent Assets - Current Liabilities2 (a) What is Master Budget? How it is different from Cash Budget?

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