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    Question

    A company shows the following (₹ crore): Equity

    60, Reserves 40, Term Loan 120, Current Liabilities 80, Fixed Assets 180, Current Assets 120. What is the Net Working Capital and its implication?
    A NWC 20 – Comfortable Correct Answer Incorrect Answer
    B NWC 40 – Comfortable Correct Answer Incorrect Answer
    C NWC 60 – Stretched Correct Answer Incorrect Answer
    D NWC 80 – Excessive Correct Answer Incorrect Answer
    E NWC 0 – Risky Correct Answer Incorrect Answer

    Solution

    NWC = CA – CL = 120 – 80 = ₹40 crore → positive & adequate.

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