Net current assets or Working capital, calculated by subtracting
current liabilites from current assets, is a measure of the
assets the company has at its disposal in the short term to fund
operations - other kinds of assets such as equipment, real
estate and goodwill are less easily converted to cash. By the
principle of prudence, current assets are reported in the
balance sheet at their least favorable valuation. Short-term
investments, for example, will be recorded at the value that the
firm paid for it or the market value, whichever is lower. It is
only after selling the position that the company recognizes any
gains. Similarly, inventory of raw materials is valued at the
lower of cost of purchase and market price; and inventory of
finished goods are recorded at the lower of cost of production
and selling price. Non-Cash Current Assets are equal to all
Current Assets minus Cash and Cash Equivalents. This means, they
are all assets which are not cash or are not quickly converted
into cash. This includes st