What is working capital? What do you understand by gross working capital and net working capital?

Working capital refers to the amount of liquid assets available to a company to meet its short-term financial obligations, such as paying bills and salaries. It is calculated as the difference between a company's current assets and its current liabilities. In other words, it represents the amount of funds available for day-to-day operations.

Current assets include items such as cash, accounts receivable, and inventory, while current liabilities include items such as accounts payable, short-term loans, and other obligations that are due within a year. A positive working capital balance indicates that a company has sufficient liquid assets to meet its short-term financial obligations, while a negative working ___ _________ ___ _______ ______ ________ _____.
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