Working capital workbook
The files for this topic are on our working capital tutorial page. Request them there and we send them to you by email.
Working capital is often overlooked, but it can have a large effect on project cash flows, so any thorough analysis needs it. Modelling it accurately avoids surprises later.
This webinar explains what working capital is, where it arises and how it affects the financial statements. A worked example shows best practice for modelling it, how to apply the average balance approach and how to pick out the lines the financial statements need.
What you will learn
Where working capital arises
An introduction to working capital and where it comes from.
Cash flow and balance sheet
The effect working capital has on cash flow and on the balance sheet.
The average balance approach
The main methods for calculating working capital, with a demonstration of the average balance approach using debtor and creditor days.
Corkscrew accounts
How corkscrew accounts manage working capital and pick out the lines for your financial statements.