Working capital = current assets - current liabilities. if assets increase by more than liabilities, the number would be positive, not negative. Unless you mean you flip the sign when inputting it into the CF statement.
How does Assets increase more than liabilities get negative impact in change in working capital? In the explanation of operating activities you said that if assets increase by more than liabilities this is negative otherwise it's positive.
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Working capital = current assets - current liabilities.
if assets increase by more than liabilities, the number would be positive, not negative. Unless you mean you flip the sign when inputting it into the CF statement.
I think that's what he meant. BC if inventory, accounts receivable, etc increase... then its an decrease in cash on CF statement
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How does Assets increase more than liabilities get negative impact in change in working capital? In the explanation of operating activities you said that if assets increase by more than liabilities this is negative otherwise it's positive.
You need to invest in a calculator or actually use the spreadsheet