Working Capital and the Construction Industry
and current ratio. One can improve the current ratio without changing the work-ing capital. For instance, assume a company has current assets of $200,000 and current lia-bilities of $100,000. This would result in a working capital of $100,000 ($200,000-100,000=$100,000) and a current ratio of two to one ($200,000 divided by 100,000=2). ................
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