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To expedite production, in addition to machineries, equipment, workshops ... businesses must spend a certain amount of money to buy goods, materials ... serving for the production process. Working capital so that the first condition for business operations or otherwise working capital is a prerequisite of production and business processes.
plus working capital while ensuring the process of reproduction of the business be conducted regularly, continuously. Working capital is also the tool reflect reviews shopping process, reserves, production, consumption of business.
working capital also has the ability to decide the size of the business functioning. In the corporate market economy fully autonomy in the use of funds so as to expand the scale of business takes a certain amount of capital to invest at least enough to stockpile supplies of goods. Working capital also helps for business blink is a business and create competitive advantages for business.
Working capital was primarily composed parts production by the entire rotation characteristics once on product values. The value of the goods sold is calculated on the basis of matching product plus a portion of profits. Therefore, working capital as determined in the price of goods sold.
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