Assignment 5: Working Capital Management Southern New Hampshire University FIN 320: Principles of Finance 01:46:52 GMT -05:00 Financial Statements Working capital management is an important aspect that a company must understand to remain financially healthy and prepare for the future. The equ...
Working capital management is an important aspect that a company must understand to
remain financially healthy and prepare for the future. The equation used to find working capital
is current assets – current liability. So, the best financial statement to find these amounts will be
the balance sheet for the quarter you want to know about. I used the Q4 2023 Meta Platform Inc
balance sheet to find the working capital of the company during the last quarter of 2023. That
said, while the balance sheet provides the necessary numbers to find the working capital, there
are other statements that provide more detailed information.
The cashflow and income statements provide a more detailed picture when combined
with the balance sheet. The cashflow details how much money is coming in and out of the
company and specifically where that cash is going. This allows the company to make meaningful
adjustments that can affect the overall financial health of a company. The income statement
helps breakdown the income profits and losses, allowing for the company to be more specific
when adjusting. While the balance sheet will give you the information needed, the cashflow and
income statements create a more comprehensive understanding of the working capital.
01:46:52 GMT -05:00
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