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MN | BrandonSWIA is correct. Working capital is Current Assets - Current liabilities. The word "current" on the balance sheet is based on one "business cycle" or year of your operation. Current assets in include cash, accounts receivable, crop inventory, prepaids, etc. Current liabilities include accounts payable, accrued interest, current portion of principal required, CCC notes, operating note, etc. in that operating cycle. These are only a few account examples common in the current cycle.
Net worth and debt to equity calculations are based on total assets and liabilites. | |
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What are some ways a young farmer can build "working capital"
