Working Capital

the funds that are readily available to operate a business.
Example: Working capital comprises the total net current assets of a business minus its liabilities.Current assets â€" current liabilitiesCurrent assets are cash and assets that can be converted to cash within one year or a normal operating cycle; current liabilities are monies owed that are due within one year.

If a company's current assets total $300,000 and its current liabilities total $160,000, its working capital is:$300,000 â€" $160,000 = $140,000