Working capital of Business

The business requires funds to purchase and sell the products, the fund which is required to run the day to day business is called working capital. If current liabilities removed from current assets then we can get the working capital. Total current assets of the business is called gross working capital, when current liabilities removed from current assets it is called as net working capital. So business need to maintain the liquidity position in the business to maintain the working capital. To manage working capital business need to manage its cash, Inventory, Receivables and payables properly. When inventory was purchased need to be sold as early as possible so the idle of fund can be reduced. Business need to collect the receivable in time. And should pay payables in time. Should have more current assets than the current liabilities.