From the information given below, calculate the circulating capital of a company: Assets (₹) Liabilities (₹) Stock 60,000 Trade payables 20,000 Debtors 55,000 Short-term loans 10,000 Cash 65,000 Outstanding expenses 5,000 Short-term investments 20,000

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₹ 1,65,000 Explanation: Circulating Capital or Gross Working Capital = Total Current Assets = Stock + Debtors + Cash + Short-term Investments = 60,000 + 55,000 + 65,000 + 20,000 = Rs. 2,00,000 Current Liabilities: Total Current Liabilities = 20,000 + 10,000 + 5,000 = ₹ 35,000 Circulating Capital: Circulating Capital = Total Current Assets − Total Current Liabilities Circulating Capital = ₹ 2,00,000 − ₹ 35,000 = ₹ 1,65,000

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