Read the journal article, “Businesses Seeking Working Capital-Survey (Links to an external site.) Based on the information presented in the article, discuss the following:
How should a business use wc analysis?
Which is more important to the short-term lender: the stock of cash or the flow of cash?
Is it possible in today’s business to operate with no current liabilities?
A current liability is an obligation that is payable within one year. The cluster of liabilities comprising current liabilities is closely watched, for a business must have sufficient liquidity to ensure that they can be paid off when due.
