The working capital of a business consists of inventory. The movements in these balances form part of the operating cash flow of a business and are therefore included in the calculation of our annual cash flow projections. In order to calculate the movements in working capital, users therefore need to enter the estimated start-up balances (for existing businesses) and annual closing balances for each of the working capital account groups inventory.
CopyFinancial > The working capital of a business consists of inventory. The movements in these balances form part of the operating cash flow of a business and are therefore included in the calculation of our annual cash flow projections. In order to calculate the movements in working capital, users therefore need to enter the estimated start-up balances (for existing businesses) and annual closing balances for each of the working capital account groups inventory.