What is the importance of working capital in the financial statements and for financial statement analysis? Discuss...

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Accounting

What is the importance of working capital in the financialstatements and for financial statement analysis?
Discuss the matching concept and its importance to incomereporting.
How is the balance sheet useful to investors?
Explain how comprehensive income is consistent with theall-inclusive concept of accounting.
Explain how comprehensive income is consistent with thefinancial capital maintenance concept. Give examples to supportyour decision.

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1Working capital as a financial metric to measure the cash and operating liquidity position of a business It consists of the sum of all current assets and current liabilities Net working capital measures the shortterm liquidity of a business and can also indicate the ability of company management to utilize assets in an efficient manner The amount of net working capital a company has available can also be used to determine if the See Answer

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