Why is change in working capital not in cash flow statement?
1 Answer(s)
Binny
Change in working capital is not a "official" line item in any financial statement. It is always calculated separately by analysts.
First calculate working capital (for 2 years or more) = Current Assets - Current Liabilities. Then subtract one form the other and you get change in working capital.
Jan 12 2013 09:37 AM
First calculate working capital (for 2 years or more) = Current Assets - Current Liabilities. Then subtract one form the other and you get change in working capital.