Jun 28, 2017 · Example 1: Find out the working capital cycle or cash conversion cycle and operating cycle with the help of following information: Cost of goods sold at Rs. 2, 60,000 and opening stock of raw material is Rs. 10, 000. May 30, 2014 · Net working capital = $(8,000,000 – 5,000,000) = $3,000,000. Understanding Working Capital Cycle. The working capital cycle is the time duration between paying for raw materials and goods that were bought to manufacture products and the final receipt of cash that you earn on selling the products.
What is the risk and profitability for permanent working capital when financed with long term debt? Medium Equals the resources the firm must have to continue operating in the short run if it must liquidate all of its current liabilities