Homework

john.carter14

Hi, we were given a paper to work on at home entitled "Financial Accounting and Reporting TASK 2" don't know where our tutor got it from as there is no header or footer on it, but it is an extracted trial balance from the accounts of Colin Ash, timber supplies, as at 31st December 2006,
We are to prepare an extended Trial Balance, Profit & Loss Account and a Balance Sheet, however on the balance sheet there is a negative figure for the Working Capital, is that a possibility as all the previous tests we have done have all had positive figures. Everything balances up (suprisingly)

SandyHood

Working capital is:
Current assets less current liabilities

If you look at Tesco and Sainsbury both have what they call net current liabilities or what you call negative working capital
It merely means that the current assets are not as much as the current liabilities.