Working Capital Requirement (WCR) is the measure of the financial resources that a company must implement to cover the financial need resulting from the timing differences in cash flows corresponding to the disbursements (operating expenses and revenues required for production) and receipts (marketing of goods and services) related to its activity. The working capital requirement is generally referred to as a “working capital resource” when it is negative.

This video will show you all the ins and outs. Listen carefully and at the end of the video, you will see a button that will allow you to access the entire exercise you will have to complete.

After the exercise, you will have to watch the video that gives both the solution of the exercise, a worksheet with solution and additional information needed.

You can then move on to view Step 4.4 on the break-even point.

Have a good viewing!