Define Gross Working Capital.

Gross Working Capital:

Gross Working Capital represents – Sum total of current assets invested in the business. Current assets represent those assets that can be converted into cash within a very short period, generally within one year. The components of Working Capital are as follows:

1. CASH-IN-HAND
2. CASH-AT-BANK
3. SUNDRY DEBTORS (After deduction of bad debts provision).
4. INVENTORIES (Includes the following).
   • Raw materials and Components,
   • Work in Progress,
   • Finished Goods
5. SHORT TERM LOANS AND ADVANCES (to be recovered within one year).
6. TEMPORARY INVESTMENTS (For one year).
7. PRE-PAID EXPENSES (To be adjusted within one accounting year).
8. ACCURED INCOME (To be recovered within the accounting period).
9. BILLS RECEIVABLE.