1) A. What is Working Capital?

a. WC is the capital used to finance fixed assets.

b. WC is the difference between NFO and long-term debt.

c. WC is the long-term funding available to finance NFO.

d. WC is the capital needed to fund operations.

B. Working Capital is defined as:

a. Long-term debt + Equity - Fixed Assets, or Current Assets Current Liabilities.

b. Current Liabilities - Current Assets.

c. Long-term debt + Equity - Fixed Assets, and not Current Assets Current Liabilities.

d. Short-term debt + Equity - Long term Assets.