Form FIS0321 Working Capital Calculation - Michigan

What Is Form FIS0321?

This is a legal form that was released by the Michigan Department of Insurance and Financial Services - a government authority operating within Michigan. As of today, no separate filing guidelines for the form are provided by the issuing department.

FAQ

Q: What is Form FIS0321?
A: Form FIS0321 is a document used in Michigan to calculate working capital.

Q: Why is working capital important?
A: Working capital is important because it indicates a company's ability to pay its short-term debts and fund its day-to-day operations.

Q: How is working capital calculated?
A: Working capital is calculated by subtracting a company's current liabilities from its current assets.

Q: What are current liabilities?
A: Current liabilities are debts or obligations that are due within one year.

Q: What are current assets?
A: Current assets are assets that are expected to be converted into cash or used up within one year.

Q: What are some examples of current assets?
A: Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses.

Q: What are some examples of current liabilities?
A: Examples of current liabilities include accounts payable, short-term loans, and accrued expenses.

Q: What does a positive working capital indicate?
A: A positive working capital indicates that a company has enough assets to cover its short-term obligations.

Q: What does a negative working capital indicate?
A: A negative working capital indicates that a company may struggle to meet its short-term obligations.

Q: How can a company improve its working capital?
A: A company can improve its working capital by increasing its current assets, reducing its current liabilities, or a combination of both.