Sources and Uses of Working Capital

The major sources and use of working capital are summarized below:

1. Sources of Working Capital

(a) Funds from business operations
(b) Other incomes
(c) Sale of non-current assets
(d) Long-term borrowings
(e) Issue of additional equity capital or preference share capital

2. Uses of Working Capital

(a) Losses from business operations
(b) Purchase of non-current assets
(c) Redemption of debentures and/or preference shares
(d) Dividends to shareholders

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